Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Act). Yes ☐ No ☑

As of June 30, ~~2021,~~2022, the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was approximately $~~9.2~~6.3 billion based on the closing sale price of ~~$22.97~~$16.47 of the common stock as reported on the New York Stock Exchange.

As of February ~~18, 2022,~~17, 2023, ~~393,527,543~~373,652,005 shares of the registrant’s common stock were outstanding.

Portions of the Registrant’s proxy statement for the ~~2022~~2023 annual meeting of stockholders are incorporated into Part III of this Annual Report on Form 10‑K.

This Annual Report on Form 10‑K and materials we have filed or will file with the Securities and Exchange Commission (“SEC”) (as well as information included in our other written or oral statements) contain or will contain 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,” “targets,” “anticipates,” “believes,” “estimates,” “guides,” “provides guidance,” “provides outlook,” “projects,” “designed to,” 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 the Annual Report on Form 10‑K 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 Part I, Item 1A, Risk Factors and throughout this Annual Report on Form 10‑K. 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:

The Western Union Company (the “Company,” “Western Union,” “we,” “our,” or “us”) is a leader in global money movement and payment services, providing people and businesses with fast, reliable and convenient ways to send money and make payments around the world. Our vision is to be the world leader of branded payments and accessible consumer financial services, serving the aspiring populations of the world.

The Western Union® brand is globally recognized and represents speed, reliability, trust, and convenience. Our Consumer-to-Consumer money transfer service enables people to use our well-recognized brand to send money around the world, usually within minutes. As of December 31, ~~2021,~~2022, our global network included ~~approximately 600,000~~ agent locations in more than 200 countries and territories and many Western Union branded or partner ~~websites in a growing number of countries and territories.~~websites. Each location in our agent network is capable of facilitating a consumer’s use of one or more of our services, with the substantial majority offering a Western Union branded service. As of December 31, ~~2021, more than 65%~~2022, approximately 400,000 of our agent locations had conducted money transfer activity in the previous 12 months.

On August 4, 2021, we entered into an agreement to sell our Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC (collectively, the "Buyer"). The sale is expected to be completed in three closings, the first of which occurred on March 1, 2022. The second closing occurred on December 31, 2022, and the third closing is expected in the second quarter of 2023. Our Business Solutions services facilitate payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals. The significant majority of our Business Solutions business relates to exchanges of currency at spot rates, which enable customers to make cross-currency payments. In addition, in ~~certain~~limited countries, we write foreign currency forward and option contracts for customers to facilitate future payments. ~~On August 4, 2021, we entered into an agreement to sell our Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC, as further discussed below.~~

We believe that brand strength ~~size~~ and reach of our global network, convenience, reliability, and value for the price paid have been important to ~~the growth of~~ our business. As we continue to seek to meet the needs of our customers for fast, reliable, and convenient global money movement and payment services, with a continued focus on regulatory compliance, we are also working to provide consumers and our business clients with access to an expanding portfolio of ~~payment and other~~ financial services and to expand the ways our services can be ~~accessed.~~accessed, including through the recent launch of our digital wallet in certain countries.

We manage our business around the consumers and businesses we serve and the types of services we offer. Each of our segments addresses a different combination of customer groups, distribution networks, and services offered. Our segments are Consumer-to-Consumer and Business Solutions.

All businesses and other services that have not been classified in these segments are reported as Other, which primarily includes our bill payment services which facilitate payments from consumers to businesses and other ~~organizations. In May 2019, we sold a substantial majority~~organizations and our money order services. Certain of our ~~United States based electronic bill payment services, as discussed below. Our money order and other services, in addition to certain~~ corporate costs such as costs related to strategic initiatives, including costs for the review and closing of mergers, acquisitions, and divestitures, are also included in Other.

No individual country or territory outside the United States accounted for more than approximately 7%9% of our consolidated revenue for each of the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019.~~2020.

See Part I, Item 1A, Risk Factors, for a discussion of certain risks relating to our foreign operations.

Money transfers from one consumer to another are the core of our business, representing ~~87%~~89% of our total consolidated revenues for ~~2021.~~2022. A substantial majority of these transfers were cross-border transactions. Our money transfer service is mainly conducted through our retail agent locations worldwide but also includes our ~~fast-growing~~ money transfer transactions conducted and funded through websites and mobile applications marketed under our brands (“westernunion.com”) and transactions initiated on internet and mobile applications hosted by our third-party white label or co-branded digital partners (together with westernunion.com, “Digital Money Transfer”Branded Digital”). This segment includes five geographic regions whose functions are primarily related to generating, managing, and maintaining agent relationships and localized marketing activities. We include Branded Digital ~~Money Transfer~~ transactions in these regions, including transactions from our arrangements with financial institutions and other third parties to enable such entities to offer money transfer services to their own customers under their brands, as further discussed below.regions. By means of common processes and systems, these regions, including Branded Digital, ~~Money Transfer,~~ create one interconnected global network for consumer transactions, thereby constituting one Consumer-to-Consumer money transfer business and one operating segment.

Our revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the principal amount sent, whether the money transfer involves different send and receive currencies, and the difference between the exchange rate we set to the ~~consumer~~customer and ~~the~~a rate available in the wholesale foreign exchange market, ~~and speed of service,~~ as applicable.

In a typical money transfer transaction, a consumer provides information, either at one of our agent or subagent locations or online, specifying, among other things, the name and other identifying information regarding the recipient and the principal amount of the transfer. The consumer also provides funds for the transaction, including fees. Certain of these processes are streamlined for consumers who participate in our loyalty programs or are registered ~~westernunion.com~~Branded Digital customers. This information is entered into our money transfer system, and the funds are made available for pick-up by the recipient within our system, usually within minutes, in the country or territory specified by the consumer, or paid into the designated account of the recipient. In some jurisdictions, the principal and fees are not collected until after the presentation of our written disclosure that generally identifies the exchange rate and all fees and charges associated with the transaction and the consumer has agreed to the transaction, as described in the disclosure. Consumers then receive a unique identifying number assigned by our system, which the consumer must communicate to the recipient in order to obtain a payout in cash. In this situation, the ~~principal. The~~ recipient generally enters an agent location in the designated receiving country or territory, presents the unique identifying number and identification, where applicable, and is paid the transferred amount by our agent based on the information in our system. Recipients generally do not pay a fee. However, in limited circumstances, a tax may be imposed by the local government on the receipt of the money transfer, or a fee may be charged by the recipient’s institution related to the use of an account. We determine the fee paid by the sender, which generally is based on the principal amount of the transaction, the send and receive country or territory, ~~speed of service,~~ and channel.

In a retail transaction, we generally pay our agents a commission based on a percentage of revenue. A commission is usually paid to both the agent that initiated the transaction, the “send agent,” and the agent that paid the transaction, the “receive agent.” For most agents, the costs of providing the physical infrastructure and staff are typically covered by the agent’s primary business (e.g., postal services, banking, check cashing, travel, and retail businesses), making the economics of being a Western Union agent attractive. Western Union’s global reach and large consumer base allow us to attract agents we believe to be well-positioned to deliver our services. In a ~~westernunion.com~~Branded Digital transaction, we typically pay a credit card processor or bank a fee for collecting the principal, and we are also responsible for losses from chargebacks and fraud, in addition to commissions owed to the receive ~~agent.~~

~~No individual country or territory outside~~agent in the ~~United States accounted for more than approximately 8%~~event of ~~this segment’s revenue during all periods presented.~~cash payout.

We offer money transfer services in more than 200 countries and territories, with a number of options for sending funds that provide consumers convenience and choice, through both our retail and ~~Digital Money Transfer~~digital money transfer channels.

~~Although the majority of transactions are funded with cash, consumers~~Consumers can fund a transaction in a variety of ~~ways.~~ways, in addition to cash. For example, at certain of our agent locations, consumers can fund a transaction using a debit card, and, where available, consumers can fund a money transfer from an account and through an account using an automated teller machine (“ATM”). In ~~Digital Money Transfer~~digital money transfer channels, consumers can generally fund transactions using a credit card, debit card, electronic funds transfer processed through the automated clearing house (“ACH”) payment system or similar system outside the United States, online banking direct payment methods, or other bank account-based payment.

We also provide several options for the receipt of funds. At our retail agent locations, consumers generally receive payments in cash. However, in certain countries, our retail agents may also issue a money order or check or provide payout through an ATM. Funds can also be directed to a bank account in many countries, by either the sender or receiver, and in more limited circumstances, can be paid into or directed to a mobile wallet, a stored-value card, or debit card.

We offer our Consumer-to-Consumer services around the world primarily through our global network of agents and sub-agents in most countries and territories, with approximately 90% of our agent locations being located outside the United States. Our agents facilitate the global distribution and convenience associated with our brands, which in turn helps create demand for our services and helps us to recruit and retain agents. Western Union agents include large networks such as post offices, banks and retailers, and other established organizations as well as smaller independent retail locations, which typically provide other consumer products and services. Many of our agents have multiple locations. Our agents know the markets they serve and leverage this local knowledge to develop business plans for their markets. In some regions, our agents contribute financial resources to, or otherwise support, our efforts to market our services. Many agents operate in locations that are open outside of traditional banking hours, for example on nights and weekends. Our top 40 agents and partners globally have been with us for more than 20 years, on average, and in ~~2021,~~2022, these long-standing relationships accounted for transactions that generated ~~approximately 55%~~nearly 60% of our Consumer-to-Consumer revenue. No individual agent or partner accounted for greater than 10% of the segment’s revenue during all periods presented.

We provide our agents with access to our multi-currency, real-time money transfer processing systems, which are used to originate and pay money transfers. Our systems and processes enable our agents to pay money transfers in ~~over~~nearly 130 currencies worldwide. Certain of our agents can pay in multiple currencies at a single location. Our agents provide the point-of-sale presence and facilitate the interface with Western Union required to complete the transfers. Western Union provides central operating functions such as transaction processing, settlement, marketing support, and consumer relationship management to our agents, as well as compliance training and related support. Some of our agents outside the United States manage subagents. We refer to these agents as ~~superagents.~~master agents. Although the subagents are under contract with these ~~superagents~~master agents (and not with Western Union directly), the subagent locations typically have access to similar technology and services as our other agent locations. Our international agents often customize services as appropriate for their geographic markets. In some markets, individual agents are independently offering specific services such as stored-value card or account payout options. While we typically perform services under the Western Union brand, in certain geographic regions, we operate under other brands targeted to the local market.

We market our services to consumers in a number of ways, directly and indirectly through our agents and their subagents, leveraging promotional activities, grassroots, direct-to-consumer communications, digital advertising, and ~~digital advertising.~~other incentives. Our marketing strategy includes ~~the “My WU~~SM”our loyalty program, which is available in certain countries and territories. This program offers consumers faster service at the point-of-sale and the opportunity to earn points on eligible products, such as money transfers and bill payments, and channels (including ~~westernunion.com~~Branded Digital and mobile applications) that can be redeemed for rewards, such as reduced transaction fees. Redemption activity has been insignificant to the results of our operations.

We cooperate with various partners around the world to offer a variety of branded, co-branded, and ~~unbranded~~non-Western Union branded money transfer services, including services offered exclusively under the partners’ brands. While the terms of these arrangements vary, these services are often marketed by the third-party partner and offered under the partner’s license to provide money transfer services. As a result, the regulatory requirements applicable to us under these arrangements may also vary.

Trends in the volume of cross-border money transfer activity correlate with migration, global economic opportunity and related employment levels worldwide. A significant trend that continues to impact the money transfer industry is increasing regulation. Regulations in the United States and elsewhere focus, in part, on anti-money laundering, anti-terrorist financing, consumer protection, transparent pricing, consumer privacy, data protection, and information security. Regulations require money transfer providers, banks, and other financial institutions to develop systems to prevent, detect, monitor, and report certain transactions. Such regulations increase the costs to provide money transfer services and can make it more difficult or less desirable for consumers and businesses to use money transfer services, either of which could have an adverse effect on money transfer providers’ revenues and operating income. For further discussion of the regulatory impact on our business, see the Regulation discussion in this section, Part I, Item 1A, Risk Factors, and the Enhanced Regulatory Compliance section in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations. Additionally, our ability to enter into or maintain exclusive arrangements with our agents has been and may continue to be challenged by both regulators and certain of our current and prospective agents.

We are seeing increased competition from, and increased market acceptance of, electronic, mobile, and internet-based money transfer services as well as digital currencies, including cryptocurrencies. ~~This trend accelerated in recent years, as consumers responded to the COVID-19 pandemic by sending money increasingly through digital channels.~~ We believe this shift in consumer preference will continue, resulting in an increasing proportion of remittances being sent through digital means in the future.

We face robust competition in the highly fragmented Consumer-to-Consumer money transfer industry. We compete with a variety of remittance providers, including:

We believe the most significant competitive factors in Consumer-to-Consumer remittances relate to the overall consumer value proposition, including brand recognition, trust, reliability, consumer experience, price, speed of delivery, distribution network, variety of send and receive payment methods, and channel options.

On August 4, 2021, we entered into an agreement to sell our Business Solutions business to the Buyer for cash consideration of $910.0 million. The sale is expected to be completed in three closings, the first of which occurred on March 1, 2022 with the entire cash consideration collected at that time. The second closing occurred on December 31, 2022 and included the United Kingdom operations. Refer to Part II, Item 8, Financial Statements and Supplementary Data,Note 5, Divestitures, Investment Activities, and Goodwill for further information related to our Business Solutions divestiture. In our Business Solutions segment, which represented 8%5% of our total consolidated revenues for ~~2021,~~2022, we facilitate payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises, and other organizations and ~~individua~~ls. On August 4, 2021, we entered into an agreement to sell our Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC (collectively, the "Buyer") for cash consideration of $910 million, subject to regulatory and working capital adjustments. The divestiture is expected to result in a gain on the sale and is subject to regulatory approval and other closing conditions. The sale is expected to be completed in two primary closings, with the entirety of the cash consideration due at the first closing. The expected gain on the sale will be recognized at each closing, based on the book values and fair values of the operations sold at each closing. The first closing is expected to be completed during the first quarter of 2022 and to primarily exclude the operations in the European Union and the United Kingdom. The second closing is currently expected by late 2022, pending required regulatory approvals. During the period between the closings, we will pay to the Buyer a measure of profit of the European Union and United Kingdom operations, adjusted for the provision for income taxes, occupancy charges for employees of the Buyer using our facilities, and other items.

The significant majority of our revenue in this segment is derived from foreign exchange resulting from the difference between the exchange rate set by us to the customer and the rate available in the wholesale foreign exchange market. The significant majority of Business Solutions revenue was generated outside the United States during all periods presented.

The significant majority of our Business Solutions business relates to exchanges of currency at spot rates, which enable customers to make cross-currency payments. For certain industries such as educational institutions, financial institutions, and law firms, we provide tailored payment solutions. In addition, in certain countries, we write foreign currency forward and option contracts for customers to facilitate future payments, which usually generate higher revenue per transaction than spot payments. Payments are made predominantly through electronic transfers, wire transfers, or checks.

Business Solutions services are offered primarily through digital channels, including through the internet and third-party channels, and over the phone. Internet services are marketed through websites as well as, from time to time, co-branding arrangements with third-party websites.

~~Customer relationships are a core component of business payment services. No individual customer accounted for greater than 10% of this segment’s revenue.~~

The business-to-business payments industry has evolved rapidly with technological innovations that have created new competitors and methods of processing payments from businesses to other businesses. The various products and services within the business-to-business payments industry are in varying stages of development. Business-to-business payments, especially cross-border, cross-currency transactions, are also dependent on global trade trends and regulations. Increased anti-money laundering, anti-terrorist financing, consumer protection regulations and compliance requirements, and increased regulations and compliance requirements applicable to the offering of derivatives are impacting the business-to-business payments industry.

Our Business Solutions segment competes with a diverse set of service providers offering payment services and foreign exchange risk management solutions, including financial institutions, other non-bank competitors, and electronic payment providers.individuals.

Our remaining businesses and services, which primarily consist of our bill payment services in Argentina and the United States and money order services, are included in Other, which also includes certain corporate costs such as costs related to strategic initiatives, including for the review and closing of mergers, acquisitions, and divestitures. Also included is our digital wallet, which allows consumers in certain countries to load funds and spend those funds or initiate a money transfer. Other revenue is derived primarily from transaction fees paid by customers and billers and represented 5%6% of our total consolidated revenues for ~~2021.~~2022.

Our bill payment services provide fast and convenient options to make payments from consumers to businesses and other organizations, including utilities, auto finance companies, mortgage servicers, financial service providers, and government agencies. Generally, these bill payment services are initiated by consumers making a cash payment at an agent or at a Company-operated location. We believe our business partners, who receive payments through our services, benefit from their relationship with Western Union, as it provides them with real-time or near real-time posting of their customers’ payments. In many circumstances, our relationships with business partners also provide them with an additional source of income and reduce their expenses for handling of payments.

On February 28, 2019, we entered into an agreement with ACI Worldwide Corp. and ACW Worldwide, Inc. to sell our United States electronic bill payment business known as “Speedpay,” which had been included as a component of Other in our segment reporting. We received approximately $750 million and recorded a pre-tax gain on the sale of approximately $523 million in the all-cash transaction that closed on May 9, 2019.

Consumers use our money orders for making purchases, paying bills, and as an alternative to checks. We derive investment income from interest generated on our money order settlement assets, which are primarily held in United States tax exempt state and municipal debt securities.

The Western Union® ~~and WU~~® trademarks and service marks and the Company’s Black & Yellow trade dress are used and/or registered worldwide and are material to our Company. We offer money transfer services under the Western Union®, Orlandi Valuta®, and Vigo® brands. We also provide various payment and other services under many brands and product names, including ~~Western Union Business Solutions~~SM, Pago Fácil®, Quick Collect®, Quick PaySM, ~~Pay@WU~~SM, Quick Cash®~~, My WU~~SM~~, WU+~~SM, and Western Union Convenience Pay®. Our operating results have allowed us to invest significantly each year to support our brands, and in some regions, our agents have also contributed financial resources to assist with marketing our services. Additionally, we own patents and patent applications covering various aspects of our products and services, covering a ~~broad~~ range of technologies, including those related to money transfer, compliance analytics, fraud prevention, and mobile applications. We also own a number of application programming interfaces.

Our business is subject to a wide range of laws and regulations enacted by the United States federal government, each of the states, many localities, and many other countries and jurisdictions, including the EU. These include increasingly strict legal and regulatory requirements intended to help detect and prevent money laundering, terrorist financing, fraud, and other illicit activity. These also include laws and regulations regarding financial services, consumer disclosure and consumer protection, currency controls, money transfer and payment instrument licensing, payment services, credit and debit cards, electronic payments, foreign exchange hedging services, ~~and the sale of spot, forward and option currency contracts,~~ unclaimed property, the regulation of competition, consumer privacy, data protection, and information security. Failure by Western Union, our agents or their subagents (agents and subagents are third parties, over whom Western Union has limited legal and practical control), and certain of our service providers to comply with any of these requirements or their interpretation could result in regulatory action, the imposition of civil and criminal penalties, including fines and restrictions on our ability to offer services, the suspension or revocation of a license or registration required to provide money transfer services and/or payment services or foreign exchange products, the limitation, suspension or termination of services, changes to our business model, loss of consumer confidence, private class action litigation, and/or the seizure of our assets. For example, in early 2017, we entered into a Deferred Prosecution Agreement with the United States Department of Justice and certain United States Attorney’s Offices (the “DPA”), a Stipulated Order for Permanent Injunction and Final Judgment (the “FTC Consent Order”) with the United States Federal Trade Commission (“FTC”), a Consent to the Assessment of Civil Money Penalty with the Financial Crimes Enforcement Network (“FinCEN”) of the United States Department of Treasury (the “FinCEN Agreement”), and settlement agreements with various state attorneys general (collectively, the “Joint Settlement Agreements”), and in early 2018, we agreed to a consent order which resolved a matter with the New York State Department of Financial Services (the “NYDFS Consent Order”). For further discussion of these agreements, please see Part I, Item 1A, Risk Factors - “Our business is the subject of consent agreements with or enforcement actions by regulators.”

We have developed and continue to enhance our global compliance programs, including our anti-money laundering program, comprised of policies, procedures, systems, and internal controls to monitor and to address various legal and regulatory requirements. In addition, we continue to adapt our business practices and strategies to help us comply with current and evolving legal standards and industry practices, including heightened regulatory focus on compliance with anti-money laundering or fraud prevention requirements. These programs include dedicated compliance personnel, training and monitoring programs, suspicious activity reporting, regulatory outreach and education, and support and guidance to our agent network on regulatory compliance. Our money transfer and payment service networks operate through agents in most countries, and, therefore, there are limitations on our legal and practical ability to completely control those agents’ compliance activities.

Most of our services are subject to anti-money laundering laws and regulations, including the Bank Secrecy Act in the United States, as amended (collectively, the “BSA”), and similar laws and regulations in the United States and abroad. The BSA, among other things, requires money transfer companies and the issuers and sellers of money orders to develop and implement risk-based anti-money laundering programs, to report large cash transactions and suspicious activity, and in some cases, to collect and maintain information about consumers who use their services and maintain other transaction records. In addition to United States federal laws and regulations, many other countries and states impose similar and, in some cases, more stringent requirements. These requirements may also apply to our agents and their subagents. In addition, the United States Department of the Treasury has interpreted the BSA to require money transfer companies to conduct due diligence into and risk-based monitoring of their agents and subagents inside and outside the United States, and certain states in the U.S. also require money transfer companies to conduct similar due diligence reviews. Compliance with anti-money laundering laws and regulations continues to be a focus of regulatory attention, with recent settlement agreements being reached with Western Union, other money transfer providers, and several large financial institutions. For example, in early 2017, we entered into the Joint Settlement Agreements, and in early 2018, we agreed to the NYDFS Consent Order.

Economic and trade sanctions programs administered by the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and by certain foreign jurisdictions prohibit or restrict transactions to or from (or dealings with or involving) certain countries, regions, governments, and in certain circumstances, specified foreign nationals, as well as with certain individuals and entities such as narcotics traffickers, terrorists, and terrorist organizations. We provide limited money transfer and payment services to parties in Cuba, Syria and the Crimea region of Ukraine in accordance with United States laws authorizing such services, and pursuant to and as authorized by advisory opinions of, or specific or general licenses issued by, OFAC. ~~In October 2020, OFAC amended its Cuban Assets Control Regulations, requiring us to suspend our money transfer services to Cuba.~~

In the United States, almost all states license certain of our services, and many exercise authority over the operations of certain aspects of our business and, as part of this authority, regularly examine us. Many states ~~require us~~specify the amount and composition of eligible assets that certain of our subsidiaries must hold in order to satisfy our outstanding settlement obligations. In compliance with these regulations, we invest the principal of outstanding money orders, money transfers, or payments in highly-rated, investment grade securities, and our use of such investments is restricted to satisfying outstanding settlement obligations. We regularly monitor credit risk and attempt to mitigate our exposure by investing in highly-rated ~~securities in compliance with these regulations.~~securities. The substantial majority of our investment securities, classified within Settlement assets in the Consolidated Balance Sheets, are held in order to comply with state licensing requirements in the United States and are required to have credit ratings of “A-” or better from a major credit rating agency.

These licensing laws also cover matters such as government approval of controlling shareholders and senior management of our licensed entities, regulatory approval of agents and in some instances their locations, consumer disclosures and the filing of periodic reports by the licensee, and they may require the licensee to demonstrate and maintain certain net worth levels. Many U.S. states also require money transfer providers and their agents to comply with federal and/or state anti-money laundering laws and regulations. There are different shareholding thresholds that may require prior regulatory approval in connection with certain licenses our subsidiaries hold in the United States and outside of the United States. As such, any person who intends to acquire 10% or more of the total equity interest of our ~~company~~Company may be required to obtain prior approval from (or rebut the presumption that such person will become a controlling shareholder with) one or more of our regulators. In addition, certain of our licensed entities are required to make prior notification and seek prior approval from our regulators when certain shareholding thresholds are exceeded.

Outside the United States, our money transfer business is subject to some form of regulation in almost all of the countries and territories in which we offer those services. These laws and regulations may include limitations on what types of entities may offer money transfer services, agent registration requirements, limitations on the amount of principal that can be sent into or out of a country, limitations on the number of money transfers that may be sent or received by a consumer, and controls on the rates of exchange between currencies. They also include laws and regulations intended to detect and prevent money laundering or terrorist financing, including obligations to collect and maintain information about consumers, recordkeeping, reporting and due diligence, and supervision of agents and subagents similar to and in some cases exceeding those required under the BSA. In most countries, either we or our agents are required to obtain licenses or to register with a government authority in order to offer money transfer services, and in certain countries, we must maintain sufficient cash or other funds to satisfy payout obligations in these countries. Where we cooperate with partners around the world to offer ~~other branded and unbranded~~ money transfer services ~~including services offered and~~ marketed exclusively under the partners’ brands, the regulatory requirements applicable to us may vary.

The majority of our EU business is managed through our Irish payment institution subsidiary, Western Union Payment Services Ireland Limited, which is regulated by the Central Bank of Ireland under the Second EU Payment Services Directive EU 2015/2366 (“PSD2”) ~~and local implementing regulations.~~. PSD2 imposes rules on payment service providers like Western ~~Union. It became EU law in January 2016 and required EU member states to transpose it into their national laws by January 2018. Its aim is~~Union, aiming to drive increased competition, innovation, and transparency across the EU payments market, while enhancing consumer protection and the security of internet payments and account access. ~~To achieve this,~~ PSD2: (i) has increased the supervisory powers granted to member states with respect to activities performed by companies such as Western Union, and our agent network, (ii) provides for customer identity verification and authentication measures, and agent monitoring responsibilities, (iii) provides member states with the ability to limit the types, nature, and amount of charges we may assess, increases customer refund rights, and (iv) increases information security and incident reporting responsibilities.

Under our PSD2 license and local EU member states’ implementing legislation and associated regulatory supervisory powers, guidelines, and regulatory technical standards, we are responsible for the regulatory compliance of our agents and their subagents. We are also subject to requirements such as capital and safeguarding rules, certain consumer protection requirements, information technology, and operational security risk management requirements, outsourcing oversight requirements, and periodic regulatory examinations similar to those in the United States. These rules have resulted in increased compliance and agent monitoring costs and the increased risk of adverse regulatory action against us resulting from the actions of our agents in those areas. In addition to increasing our compliance costs, PSD2 ~~increases~~increased the regulatory supervision and enforcement associated with non-compliance with it and the associated increasing body of applicable European Banking Authority guidelines and regulatory technical standards. PSD2 may also result in increased competition arising from other service providers utilizing the enhanced payment initiation and account information access provisions or by our failure to utilize those provisions to innovate our own service offerings. We continue to monitor the impact on our business of PSD2 and associated regulatory guidelines and technical standards, including indicators of changes in the payment services market such as competition from new payment and electronic money license authorizations, including those by multinational online service and technology companies.

In addition to our Irish PSD2 license, which covers most of our retail money transfer business in Europe, our European digital money transfer business is managed through our Austrian banking subsidiary, which is regulated by the Austrian Financial Market Authority under the Austrian Banking Act. Its digital money transfer business is subject to payment services regulated under PSD2 and local implementing legislation.

In view of the departure of the United Kingdom ("UK") from the EU on January 31, 2020 ("Brexit"), to ensure that our operations will continue in the UK, we set up a new payment institution to conduct money remittance in the UK, which was authorized by the Financial Conduct Authority in April 2019 and presently offers retail money transfer services via UK agents. We also applied for the UK branch of our Austrian banking subsidiary to be authorized by the UK Prudential Regulation Authority ("PRA") as a Third Country Branch (i.e., a UK branch of a non-UK bank) ~~in order~~, one avenue to continue to conduct our ~~UK Business Solutions and~~Branded Digital ~~Money Transfer~~ operations. ~~In the period from~~Our application remains pending at this time. Since December 31, 2020, ~~until the date of the UK branch being authorized, it will operate~~our digital business has been operating under the Temporary Permissions Regime introduced in the ~~UK. This~~UK, which is available through December 31, 2023. If authorized as a Third Country Branch, this UK branch will be subject to certain additional UK regulatory ~~requirements upon authorization.~~requirements. Further, as a result of Brexit, including under the terms of any new regulatory authorizations we have and may obtain, we could be required to comply with differing regulatory requirements in the UK as a result of divergence from established EU regulation. This could make it more costly for us to provide our services.

Regulators worldwide are exercising heightened supervision of money transfer providers and banks' relationships with money transfer providers and requiring increasing efforts to ensure compliance. As a result, we continue to incur significant compliance costs related to customer, agent, and subagent due diligence, verification, transaction approval, disclosure, and reporting requirements, including requirements to report transaction data to a greater extent or frequency than previously required, along with other requirements that have had and will continue to have a negative impact on our financial condition and results of operations.

Government agencies both inside and outside the United States may impose new or additional rules on money transfers affecting us, our agents, or their subagents, including regulations that:

The Dodd-Frank Act created the CFPB, which implements, examines compliance with, and enforces federal consumer protection laws governing financial products and services, including money transfer services. The CFPB has created additional regulatory obligations for us and has the authority to examine and supervise us and our larger competitors, including for matters related to unfair, deceptive, or abusive acts and practices. The CFPB’s regulations implementing the remittance provisions of the Dodd-Frank Act have affected our business in a variety of areas. These include: (i) a requirement to provide consumers sending funds internationally from the United States enhanced, written, pre-transaction disclosures and transaction receipts, including the disclosure of fees, foreign exchange rates and taxes, (ii) an obligation to resolve various errors, including certain errors that may be outside our control, and (iii) an obligation at a consumer’s request to cancel transactions that have not been completed. We have modified certain of our systems, business practices, service offerings, and procedures to comply with these regulations. We also face liability for the failure of our money transfer agents to comply with the rules and have implemented and are continuing to enhance additional policies, procedures, and oversight measures designed to foster compliance by our agents. The extent of our and our agents’ implementation of these policies, procedures, and measures may be considered by the CFPB in any action or proceeding against us for noncompliance with the rules by our agents. The CFPB has also implemented a direct portal for gathering information regarding consumer complaints, including with respect to money transfers. The CFPB uses the information collected to help improve its supervision of companies, enforcement of federal consumer financial laws, and writing of rules and regulations. This effort may lead to additional regulations and regulatory scrutiny of our business.

In addition, various jurisdictions in ~~the United States~~ and outside the United States have consumer protection laws and regulations, and numerous governmental agencies are tasked with enforcing those laws and regulations. Consumer protection principles continue to evolve globally, and new or enhanced consumer protection laws and regulations may be adopted. Governmental agencies tasked with enforcing consumer protection laws or regulations are communicating more frequently and coordinating their efforts to protect consumers. For instance, the International Consumer Protection and Enforcement Network (“ICPEN”) is an organization composed of consumer protection authorities from over 60 countries that provides a forum for developing and maintaining regular contact between consumer protection agencies and focusing on consumer protection concerns. By encouraging cooperation between agencies, ICPEN aims to enable its members to have a greater impact with their consumer protection laws and regulations. As the scope of consumer protection laws and regulations change, we may experience increased costs to comply and other adverse effects to our business.

Rules adopted under the Dodd-Frank Act by the Commodity Futures Trading Commission (the “CFTC”), as well as the provisions of the European Market Infrastructure Regulation (“EMIR”) and its technical standards, which are directly applicable in the member states of the EU, ~~and in the UK,~~ have subjected most of our foreign exchange hedging transactions, including certain intercompany hedging transactions and certain of the corporate interest rate hedging transactions we may enter into in the future, ~~and certain of the foreign exchange derivatives contracts we offer as part of our Business Solutions segment,~~ to reporting, recordkeeping, and other requirements. Following Brexit, EMIR and the European Markets in Financial Instruments Directive (“MiFID II”) have been retained as UK law pursuant to the European Union (Withdrawal) Act 2018 UK. Additionally, certain of the corporate interest rate hedging transactions and foreign exchange derivatives transactions we may enter into in the future may be subject to centralized clearing requirements or may be subject to margin requirements in the United States, the EU, and the UK. Other jurisdictions outside of the United States, the EU, and the UK, ~~are considering,~~ have implemented, or are implementing, or may implement regulations similar to those described above. Derivatives regulations have added costs to our business, and any additional requirements, such as future registration requirements and increased regulation of derivatives contracts, will result in additional costs or impact the way we conduct our hedging activities. For further discussion of these risks, see Part I, Item 1A, Risk Factors - “The Dodd-Frank Act, the Electronic Funds Transfer Act and Regulation E, as well as the regulations required by ~~that Act~~these Acts and the actions of the Consumer Financial Protection Bureau and similar legislation and regulations enacted by other government authorities, could adversely affect us and the scope of our activities and could adversely affect our financial condition, results of operations, and cash flows.”~~Our implementation of these requirements has resulted, and will continue to result, in additional costs to our business.~~

~~Additionally,~~For example, the regulatory regimes for derivatives in the United States, the EU, and the UK, such as under the Dodd-Frank Act and ~~the European Markets in Financial Instruments Directive known as~~ “MiFID II,” are continuing to evolve. Any changes to such regimes, or our designation under these regimes, or the implementation of new rules under these regimes, such as future registration requirements and increased regulation of derivatives contracts, may result in additional costs to our business. Other jurisdictions outside the United States, the EU, and the UK, ~~are considering,~~ have implemented, or are implementing, or may implement regulations similar to those described above, and these will result in greater costs to us as well. Our implementation of these requirements has resulted, and will continue to result, in additional costs to our business. Moreover, ~~as a result of~~following Brexit, we could be required to comply with differing regulatory requirements in the UK as a result of divergence from established EU regulation. This could make it more costly for us to provide our services. Furthermore, our failure to implement these requirements correctly could result in fines and other sanctions, as well as necessitate a temporary or permanent cessation to some or all of our derivative related activities. Any such fines, sanctions, or limitations on our business could adversely affect our operations and financial results.

Our Company is subject to unclaimed property laws in the United States and in certain other countries, and our agents are subject to unclaimed property laws in some jurisdictions. These laws require us or our agents, as applicable, to turn over to certain government authorities the property of others held by our Company that has been unclaimed for a specified period of time, such as unpaid money transfers and money orders. We hold property subject to unclaimed property laws, and we have an ongoing program designed to help us comply with these laws. We are subject to audits with regard to our escheatment practices. For further discussion of the risks associated with unclaimed property, see Part I, Item 1A, Risk Factors - “We are subject to unclaimed property laws, and differences between the amounts we have accrued for unclaimed property and amounts that are claimed by a state or foreign jurisdiction could have a significant impact on our results of operations and cash flows.”

We must collect, transfer, disclose, use, and store personal information in order to provide our services. These activities are subject to information security, data privacy, data protection, data breach, and related laws and regulations in the United States, the EU, and many other countries in which we provide services. These laws and requirements continue to evolve and may become increasingly challenging to comply with.

In the United States, federal data privacy laws such as the federal Gramm-Leach-Bliley Act and various state laws, such as the California Consumer Privacy Act (“CCPA”), the Colorado Privacy Act (“CPA”), and other data privacy and breach laws, apply to a broad range of financial institutions including money transfer providers like Western Union and to companies that provide services to or on behalf of those institutions. The United States Federal Trade Commission (“FTC”), which has jurisdiction over companies such as Western Union, has brought numerous enforcement actions, resulting in multi-year settlements and significant fines against companies whose privacy or data security practices allegedly violated the law. ~~We are also subject to privacy and data breach laws in various states, such as the California Consumer Privacy Act (“CCPA”), which became effective on January 1, 2020.~~ The CCPA, ~~imposes~~CPA, and other state privacy laws impose heightened data privacy requirements on companies that collect information from ~~California~~ residents of the particular states and ~~creates~~create a broad set of privacy rights and remedies modeled in part on the GDPR, as discussed below. The FTC, the CFPB, and some states continue to investigate companies’ privacy practices including those related to online and mobile applications. Most state laws require notification to be provided to affected individuals, state authorities, and consumer reporting agencies, in the event of a breach of certain types of personal data contained in electronic systems and, in some cases, physical documents. Such notification requirements may be subject to various factors, including the level of encryption, the data elements involved in the incident, and the potential harm to individuals, including consumers, employees, and other individuals. In addition, we are also subject to United States federal reporting requirements in connection with some such incidents.

Increasingly, data protection laws of countries outside of the United States are having a significant impact on our operations and the manner in which we provide our services. The EU has been particularly active in regulating the collection, transfer, disclosure, use, storage, and other processing of personal information, and the EU’s approach is frequently followed by other jurisdictions. The trend in this area is one of increasingly more stringent regulation, particularly with the EU’s GDPR. The GDPR imposes ~~additional~~ obligations upon our businesses and presents the risk of substantially increased penalties for non-compliance, including the possibility of not only fines but also enforcement action that may require an organization to cease certain of its data processing activities. We have incurred and we expect will continue to incur expenses to meet the obligations of the GDPR, which continue to evolve through national and EU case law, guidance and enforcement actions from data protection regulators, and developing best practices. The GDPR and other supranational, national, and provincial laws throughout the world are not uniform, but typically include one or more of the following objectives: (i) regulating the collection, transfer (including in some cases, the transfer outside of the country or region of collection), processing, storage, use and disclosure of personal information, (ii) requiring clear and transparent notice to individuals of the processing of their personal information and our privacy practices, (iii) providing for certain access, correction, deletion, and other privacy and related rights of individuals with respect to their personal information, ~~and~~ (iv) restricting the use or disclosure of personal information for secondary purposes such as ~~marketing.~~marketing, and (v) taking appropriate actions to protect the personal information from unauthorized disclosure. A significant number of these data protection laws outside of the United States require us to provide, under certain circumstances, notification to affected individuals, data protection authorities, and/or other regulators in the event of a data breach.

Once finalized and adopted, the proposed, pending e-Privacy Regulation in the EU will replace the current e-Privacy Directive and is expected to introduce a new privacy legal framework for electronic communications, including direct marketing communications and the use of cookies and tracking technologies. The new regulation is likely to include fines for non-compliance in line with those in the GDPR.

An emerging trend is the increase in data localization laws which require either that personal information be hosted on local servers or that organizations restrict the transfer of personal information outside of national borders. These laws present operational and technology challenges that can require companies to make significant changes to the management of personal information and can increase our costs and impact our ability to process personal information. These laws may also restrict or limit our ability to process transactions using centralized databases, including cloud computing infrastructure and software, for example, by requiring that transactions be processed using a database maintained in a particular country or region.

Data privacy regulations, laws, and industry standards also impose requirements for safeguarding personal information. We seek to maintain and upgrade our systems and processes to protect the security of our computer systems, software, networks, and other technology assets to help protect against the risks presented by hackers, nation-states and other threat actors. For further discussion of these risks, see Part I, Item 1A, Risk Factors - “Breaches of our information security safeguards could adversely affect our ability to operate and could damage our reputation and adversely affect our business, financial condition, results of operations, and cash flows.”

In connection with regulatory requirements to assist in the prevention of money laundering and terrorist financing, and pursuant to legal obligations and authorizations, we make information available to certain United States federal, state, and foreign government agencies when required by law. In recent years, we have experienced an increasing number of data sharing requests by these agencies, particularly in connection with efforts to prevent terrorist financing or to reduce the risk of identity theft. During the same period, there has also been increased public attention to the corporate use and disclosure of personal information, accompanied by legislation and regulations intended to strengthen data protection,

information security, and consumer privacy. These regulatory goals, including the prevention of money laundering, terrorist financing, and identity theft, and the protection of the individual’s right to privacy, may conflict or otherwise present challenges, and the law in these areas is not consistent or settled. The legal, political, and business environments in these areas are rapidly changing, and subsequent legislation, regulation, litigation, court rulings, or other events could expose us to increased program costs, liability, and reputational damage.

For further discussion of risks related to current and proposed data privacy and security laws and regulations, see Part I, Item 1A, Risk Factors - “Current and proposed regulation addressing consumer privacy and data use and security could increase our costs of operations, which could adversely affect our operations, results of operations, and financial condition.”

We have subsidiaries that operate under banking licenses granted by the Austrian Financial Market Authority and the Brazilian Central Bank. We are also subject to regulation, examination, and supervision by the New York State Department of Financial Services (“NYDFS”), which has regulatory authority over our subsidiary that holds our Austrian banking license. Further, an Agreement of Supervision with the NYDFS imposes various regulatory requirements including operational limitations, capital requirements, affiliate transaction limitations, and notice and reporting requirements on this entity and its Austrian subsidiary. However, because this entity and its Austrian subsidiary do not exercise banking powers in the United States, we are not subject to the Bank Holding Company Act in the United States.

In July 2017, the Financial Conduct Authority in the UK, which regulates LIBOR, publicly announced that it will no longer compel or persuade banks to make LIBOR submissions after 2021. In March 2021, the Financial Conduct Authority issued an update announcing that certain LIBOR settings will continue to be published after 2021, including commonly utilized United States dollar ("USD") LIBOR settings which will continue to be published through June 2023. These announcements have ended certain LIBOR settings and are expected to effectively end various remaining settings on specified dates in the future.~~While other alternatives,~~ Alternatives, such as the Secured Overnight Financing Rate ("SOFR"), have been endorsed by certain regulatory authorities and are currently in use for many market transactions, and other alternatives to LIBOR are in development and may also be adopted for use in major financial markets. ~~The transition away from LIBOR primarily impacts our credit facilities and potential interest rate swap and borrowing transactions in the future.~~

Our credit facilities have been or are subject to USD LIBOR-based interest rates, which will continue to be published through June 2023. On December 18, 2018, we entered into an amended and restated term loan facility providing for up to $950.0 million in borrowings and extending the final maturity of the facility to January 2024 (the "Term Loan Facility"). Also on December 18, 2018, we entered into a credit agreement providing for unsecured financing facilities in an aggregate amount of $1.5 billion, which supports our commercial paper program and expires in January 2025 (the "Revolving Credit Facility"). Borrowings under the Term Loan Facility and the Revolving Credit Facility have generally been subject to a one-month USD LIBOR rate plus interest rate margins of 125 basis points and 110 basis points, respectively. However, on January 4, 2022, we repaid all remaining borrowings owed under the Term Loan Facility, and we are no longer able to borrow money under this facility. While we have not drawn on our Revolving Credit Facility since its inception,the governing agreement for the Revolving Credit Facility contains provisions to amend the rate and payment terms to conform to an appropriate LIBOR alternative, and we intend to exercise and negotiate these options in accordance with market standards prior to cessation of the one-month USD LIBOR benchmark setting after June 2023.

~~Historically, we have utilized interest rate swaps to vary the percentage of fixed to floating rate debt, subject to market conditions.~~ As of December 31, ~~2021,~~2022, we ~~do not~~ have ~~any LIBOR-based interest rate swaps, and we do not intend to enter into any LIBOR-based~~transitioned all of our significant contracts in the future. We believe that the market for interest rate swaps based on SOFR has grown significantly in recent months, which will allow us to enter into interest rate swaps with terms that are materially comparable to those previously available to us based on LIBOR settings. We continue to monitor SOFR-based interest rate swap and borrowing transactions, and we may use or issue SOFR-based instruments in the future.away from LIBOR.

Some of our services are subject to card association rules and regulations. For example, an independent standards-setting organization, the Payment Card Industry (“PCI”) Security Standards Council developed a set of comprehensive requirements concerning payment card account security through the transaction process, called the Payment Card Industry Data Security Standard (“PCI DSS”). All merchants and service providers that store, process and transmit payment card data are required to comply with PCI DSS as a condition to accepting credit cards. We are subject to annual reviews to ensure compliance with PCI regulations worldwide and are subject to fines if we are found to be non-compliant.

As of December 31, ~~2021,~~2022, our businesses employed approximately ~~10,500~~8,900 individuals, of which approximately ~~1,700~~1,300 employees are located inside the United States. Our employees span more than 50 countries.

Our recruitment efforts focus on identifying internal and external talent with skills that are critical to our business strategy, including those individuals with cloud, data architecture, cybersecurity, payment systems, and many other areas of expertise. We actively assess our new talent needs, evaluate the extent to which current staff have those critical skills,

and provide development to build these capabilities. Our recruiting team uses multiple channels to find, assess, and hire employees, including channels that focus on diverse candidates.

We invest in our people and their growth. Our talent processes endeavor to strike an appropriate balance between global scale and local responsiveness. Our development and training organization has members in many countries, so that training can be made available to all regions of our global workforce.

Our employee development philosophy centers around learning and empowerment. To position our people for success, we provide our employees with access to a variety of learning, including self-paced digital and facilitated formats. Employees also gain valuable experiences through on the job learning, special assignments and projects, and coaching and mentoring. We use a variety of assessments to help employees identify and develop areas to both improve current performance as well as areas that prepare them for future opportunities.

Reflecting our commitment to a culture of ethics and compliance, new employees receive mandatory education related to compliance, ethics, privacy, and information security. Existing employees receive continuing education on these same topics every year.

We assess employee engagement regularly, and our employee engagement system utilizes ~~monthly~~periodic surveys, artificial intelligence, and machine learning to help leaders better understand what our employees are thinking, what they value, and what they need. We benchmark our engagement results against global peers to better understand our strengths and areas of opportunity. One of our ongoing goals is to foster greater communication to help ensure that our employees are informed, believe that their concerns are heard, and feel empowered to make decisions. To that end, we have implemented employee engagement and culture teams in certain of our offices worldwide. While each site varies somewhat in its approach, these teams are supported by on-site business leaders to focus on the “culture of the customer,” diversity and inclusion, community, the environment, and other issues that are meaningful to employees in those locations.

We are committed to fostering a diverse and inclusive work environment. We recognize the strategic importance of talent and diversity in our workforce and promote diversity through:

For example, as of December 31, ~~2021,~~2022, over 50% of our global workforce were women and ~~over~~ 37% of senior management-level and above positions were held by women. ~~As of February 24, 2022, three out of our nine executive officers were women.~~ Our leadership team has diverse backgrounds, with wide-ranging, global experience. As of February 23, 2023, three out of our eight executive officers were diverse, including two who were female and one who identified as Black/African-American. In addition, our Board of Directors considers diversity in gender, ethnicity, geography, background, and cultural viewpoints when selecting nominees. As of December 31, ~~2021,~~2022, five of our eleven directors were diverse, including three directors who were female and three directors who ~~identify~~identified as ~~Latinx,~~Hispanic/Latino, Asian, or LGBTQ+.

We seek to provide compensation that motivates, retains, and rewards our employees and attracts future talent. We offer packages designed to inspire the delivery of exceptional performance and results to help us deliver on our business strategy, stockholder commitments, and Company values. To guide our annual compensation assessment, we examine and benchmark market data for countries where we operate, as available data allows.

We strive to achieve equal pay for equal work. We consistently review and update salary ranges and perform internal pay equity reviews, with the goal of developing impartial and competitive pay practices and aligning salaries to local market conditions and cost-of-labor changes. We also offer employees multiple channels to raise pay equity concerns, such as our human resources team, ethics helpline, and legal department.

Our benefit packages aim to support the health and well-being of our employees and their families, including same sex domestic partners in ~~most countries.~~all countries where it is legally permissible. Our benefit packages vary among countries based on laws, cultural norms, and market practices. Benefits generally available to all full-time employees include medical benefits, risk insurance benefits (life, disability, and accidental death and dismemberment), global adoption assistance, our employee assistance program (counseling, legal, and other professional services), paid leave, a scholarship program available to employees with college-age children, a global recognition and reward program, and business travel assistance and insurance.

As we continue to support our employees during the COVID-19 pandemic, we provide relevant benefits, support flexible working arrangements, and provide training and resources to support the mental and physical health, as well as the financial wellness of our employees. These include the ability to work from home for the majority of employees, along with work-from-home tools, resources, and support, and in certain countries, back-up and in-home child and elder care, additional paid sick and family leave for employees affected by COVID-19, and telehealth medical, behavioral, and mental health visits.Additional support is provided through a global tutoring benefit for employees and their children to support remote learning, and an award-winning meditation and sleep application to support our employees' mental and emotional health.

The Western Union Company is a Delaware corporation, and its principal executive offices are located at 7001 East Belleview Avenue, Denver, CO, 80237, telephone (866) 405‑5012. The Company’s Annual Report on Form 10‑K, quarterly reports on Form 10‑Q, current reports on Form 8‑K, and amendments to those reports are available free of charge through the “Investor Relations” portion of the Company’s website, www.westernunion.com, as soon as reasonably practical after they are filed with the SEC. The SEC maintains a website, www.sec.gov, which contains reports, proxy and information statements, and other information filed electronically with the SEC by the Company.

As of February ~~24, 2022,~~23, 2023, our executive officers consist of the individuals listed below:

Devin McGranahan is our President and Chief Executive Officer and member of the Company's Board of Directors (from December 2021).Prior to joining Western Union, Mr. McGranahan was with Fiserv, Inc., a global provider of payments and financial services technology solutions, where he served as Executive Vice President, Senior Group President, Global Business Solutions, from 2018 to 2021 and Group President, Billing and Payments Group, from 2016 to 2018. Before joining Fiserv, Mr. McGranahan served as a senior partner at McKinsey & Company, a global management consulting firm. While there, he held a variety of senior management roles, including leader of the global insurance practice from 2013 to 2016 and as a co-chair of the global senior partner election committee from 2013 to 2015. In addition, Mr. McGranahan served as co-leader of the North America financial services practice from 2009 to 2016. He joined McKinsey & Company in 1992 and served in a variety of other leadership positions prior to 2009.

~~Raj Agrawal~~Matt Cagwin is our Chief Financial Officer (from ~~2014), and~~January 2023). Mr. Cagwin previously served as ~~Executive Vice President of Global Operations (from 2017 to 2019), and Executive Vice President and~~our Interim Chief Financial Officer ~~during 2014. From 2011~~from September 2022 to ~~2014,~~January 2023. Mr. ~~Agrawal served~~Cagwin joined the Company in July 2022 as ~~President, Western Union~~Head of Business ~~Solutions. From 2010~~Unit Financial Planning and Analysis. Prior to ~~2011,~~joining the Company, Mr. ~~Agrawal served as General Manager, Business Solutions, and as Senior Vice President of Finance for Business Units. Previously, Mr. Agrawal~~Cagwin served as Senior Vice President, of Finance of the Company’s Europe, Middle East, and Africa and Asia Pacific regions from 2008 to 2010, and as Senior Vice President and Treasurer of Western Union from 2006 to 2008. Prior to joining Western Union in 2006, Mr. Agrawal served as Treasurer and Vice President of Investor Relations at Deluxe Corporation, and worked at General Mills, Inc., Chrysler Corporation, and General Motors Corporation.Chief

~~David Cebollero~~Financial Officer – Merchant Acceptance of Fiserv, Inc. from 2019 to 2022, in the same role at First Data Corporation from 2018 to 2019, and as Senior Vice President, Corporate Controller and Chief Accounting Officer of First Data Corporation from 2014 to 2018. Prior to his roles at Fiserv and First Data, Mr. Cagwin spent ten years at Coca-Cola Enterprises in a variety of senior management roles, including Vice President and European Controller and Vice President and Assistant Corporate Controller.

Benjamin Adams is our ~~Interim~~ Chief Legal Officer (from June 2022) and our Interim Chief People Officer (from February 2023). Prior to joining the Company, Mr. Adams was Vice President, Legal at PayPal from 2015 to 2022. From 2007 to 2015, Mr. Adams served as Assistant General Counsel, Global Commercial Lead for Microsoft Corporation and held various senior legal positions at Nokia Corporation, including Head of Legal, Americas Region, Head of Legal, India and Emerging Market Services, and Head of Legal, Mergers and Acquisitions.

Giovanni Angelini is our President, Europe and Africa (from September 2022). Mr. Angelini previously served as ~~Deputy General Counsel,~~ Head of ~~Product & Platform Business Legal~~Global Independent Channels and ~~Strategic Initiatives from 2021 to 2022. From 2013 to 2021, Mr. Cebollero was~~Senior Vice President and General Manager, Global Money Transfer Consumer Network. Earlier in his career, from 1996 until early 2002, he was a Senior ~~Counsel, Legal Operations, Strategic Initiatives, and Chief~~Manager at Bain & Company in Italy. From 2002 to 2011, he served as General Manager of ~~Staff to~~Angelo Costa Group (a former Western Union Master Agent). Following the ~~Chief Legal Officer and Head~~acquisition of ~~Digital Business Legal. Mr. Cebollero joined~~the Angelo Costa business by Western Union in ~~2007.~~2011, Mr. Angelini became CEO of Angelo Costa and Finint, and then Head of Independent Channels, Europe at Western Union.

Cherie Axelrod is our Chief Enterprise Risk Officer (from August 2022). Ms. Axelrod previously served as the Company’s Chief Auditor from 2018 to 2022. Prior to that, she served as Deputy Chief Compliance Officer and U.S. Settlements Lead from 2016 to 2018 and Director of Project Management – Compliance from 2012, when she joined Western Union. Before joining Western Union, Ms. Axelrod held various roles of increasing responsibility, including divisional Chief Financial Officer for the Consumer and Small Business division of Qwest Communications International, Inc.

Jean Claude Farah is our President, ~~EMEA/APAC~~Middle East and Asia Pacific (from ~~2021)~~September 2022) and previously served the Company as President, EMEA/APAC from 2021 to 2022, President of Global Network ~~(from~~from 2019 to ~~2021). From 2017 to 2019, Mr. Farah served as~~2021, Executive Vice President and President, Global Payments from ~~2013~~2017 to ~~2017, Mr. Farah served as~~2019, Executive Vice President and President, Middle East, Africa, APAC, Eastern Europe and CIS ~~and~~ from ~~2009~~2014 to ~~2013, Mr. Farah served as~~2017, and Senior Vice President for the Middle East and Africa ~~region.~~region from 2009 to 2013. Mr. Farah joined Western Union in 1999 as Marketing Manager, Middle East & North Africa. ~~He has~~From 1999 to 2013, Mr. Farah held a variety of progressively responsible positions with the ~~company,~~Company, including Regional Director, Regional Vice President, and Senior Vice President for the Middle East, Pakistan and Afghanistan region. Mr. Farah started his career in 1995 with Renault SA. Prior to joining Western Union, he was Area Manager for Orangina Pernod Ricard.

Gabriella Fitzgerald is our President, North America (from September 2022). Prior to her current role, Ms. Fitzgerald was President, Americas ~~(from 2021). From 1998~~from 2021 to ~~2021,~~2022. Before joining Western Union, Ms. Fitzgerald worked at American Express from 1998 to 2021, holding various positions of increasing responsibility, including her last position as Executive Vice President, General Manager, Global Commercial Services where she was responsible for ~~sales~~account management and ~~account~~ development of American Express' largest commercial clients in the United States. During Ms. Fitzgerald’s time at American Express, she also held the roles ~~of Chief Procurement Officer, Senior Vice President, JV Management, Global Business Travel; Vice President & General Manager, Corporate Development,~~in various disciplines and ~~Vice President, Investor Relations.~~functions, including marketing, finance, and procurement.

~~Jacqueline Molnar~~Andrew Walker is our Chief ~~Transformation~~Operations Officer (from ~~2020)~~April 2022). ~~Ms. Molnar served as~~Previously, Mr. Walker was Executive Vice President and Chief ~~Transformation~~Administrative Officer at United Services Automobile Association (USAA) from 2020 to 2022 and ~~Global Head~~before that he was Chief Procurement Officer at USAA from 2018 to 2020. Prior to USAA, Mr. Walker was President of ~~Compliance from 2019~~Nationwide Bank, a subsidiary to ~~2020, Chief Compliance Officer from 2016 to 2019, Interim Chief Compliance Officer from 2015 to 2016, and~~Nationwide where he spent 11 years in a variety of senior management roles, including Senior Vice President, Chief Procurement Officer and ~~Deputy~~Information Technology Chief Compliance Officer from 2013 to 2015. Prior to joining Western Union in 2013, Ms. Molnar served as Vice President, Associate Global Anti-Money Laundering Officer at Toronto Dominion Bank Group, as Vice President, Assistant General Counsel at Wells Fargo & Company, and in various roles at Gibson Dunn, Latham & Watkins LLP and at Herbert Smith Freehills.Financial Officer.

~~Michelle Swanback~~ is our President, Product and Platform (from 2020). From 2014 to 2020, Ms. Swanback served as the Group Operating Officer at Accenture Digital. She previously served as the lead for Accenture Technology, North America from 2012 to 2014. Prior to that, she served as a managing director in the North American operating unit of the Accenture Communications, Media, and Technology operating group from 2011 to 2012.

~~Andrew Summerill~~ ~~is our President, Payments (from 2020).~~From 2019 to 2020, Mr. Summerill served as our Interim President, Payments. From 2015 to 2019, Mr. Summerill served as Chief Financial Officer of Western Union Business Solutions and as Vice President of Finance for Asia Pacific of Western Union Business Solutions from 2010 to 2015. Mr. Summerill joined Western Union with the 2011 acquisition of Travelex Global Business Payments, where he held various positions.

~~Richard Williams~~ is our Chief People Officer (from 2019). Mr. Williams previously served as Executive Vice President, Chief Human Resources Officer from 2013 to 2019, Interim Chief Human Resources Officer during 2013, and as Senior Vice President, Human Resources - Global Consumer Financial Services from 2011 to 2013. Mr. Williams joined Western Union in 2009 as the Vice President of Human Resources for the Americas and Global Cards. Before joining Western Union, Mr. Williams worked for Fullerton Financial Holdings (a wholly-owned subsidiary of Temasek Holdings) as its Senior Vice President of Human Resources for Central and Eastern Europe, Middle East and Africa, based in Dubai, United Arab Emirates from 2007 to 2009. Previously, Mr. Williams spent 17 years with American Express Company.

The following is a summary of certain key risk factors with respect to our Company. You should read this summary together with the more detailed descriptions of risks relating to our Company below.

There are many factors that affect our business, financial condition, results of operations, and cash flows, some of which are beyond our control. These risks include, but are not limited to, the risks described in detail below. Such risks are grouped according to:

Global economic downturns or 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, and difficult conditions in global financial markets and financial market disruptions could adversely affect our business, financial condition, results of operations, and cash flows.

The global economy has experienced in recent years, and may experience, downturns, volatility and disruption, and we face certain risks relating to such events, including:

•

Demand for our services could soften, including due to low consumer confidence, high unemployment, high inflation, changes in foreign exchange rates, reduced global trade, including from trade disruptions or trade restrictions, or other events, such as civil unrest, war, terrorism, natural disasters, including those related to climate change, or public health emergencies or epidemics. For example, in March 2022, we suspended our operations in Russia and Belarus, due to the Russia/Ukraine conflict (the "Conflict"), which has had an adverse effect on our business, financial condition, results of operations, and cash flows. The Conflict has had and is expected to continue to have broader implications to our overall business, including reduced transaction activity in Ukraine and we expect that our results of operations will continue to be negatively impacted by this Conflict into 2023. The COVID-19 pandemic has also had an adverse impact on our business (see risk factor “The COVID-19 pandemic continues to evolve and negatively impact our business, and the extent to which it will further impact our business depends on future developments, which remain highly uncertain and difficult to predict. The effects of the pandemic have had an adverse effect and could have a material adverse effect on our business, financial condition, results of operations, and cash flows in the future.”)~~, and we face certain risks relating to such events, including:~~.

•

Demand for our services could soften, including due to low consumer confidence, high unemployment, changes in foreign exchange rates, reduced global trade, including from trade disruptions or trade restrictions, or other events, such as civil unrest, war, terrorism, natural disasters, including those related to climate change, or public health emergencies or epidemics.

•

Our Consumer-to-Consumer money transfer business relies in large part on migration, which brings workers to countries with greater economic opportunities than those available in their native countries. A significant portion of money transfers are sent by international migrants. Migration is affected by (among other factors) overall economic conditions, the availability of job opportunities, changes in immigration laws, restrictions on immigration and travel, and political or other events (such as civil unrest, war, terrorism, natural disasters, or public health emergencies or epidemics) that would make it more difficult for workers to migrate or work abroad. Changes to these factors could adversely affect our remittance volume and could have an adverse effect on our business, financial condition, results of operations, and cash flows.

•

Many of our consumers work in industries that may be impacted by deteriorating economic conditions more quickly or significantly than other industries. The prospect of reduced job opportunities, especially in retail, healthcare, construction, hospitality, and technology industries, or weakness in the regional economies could adversely affect the number of money transfer transactions, the principal amounts transferred and correspondingly our results of operations. If general market softness in the economies of countries important to migrant workers occurs, our results of operations could be adversely impacted. Additionally, if our consumer transactions decline, if the amount of money that consumers send per transaction declines, or if migration patterns shift due to weak or deteriorating economic conditions or immigration laws, our financial condition, results of operations, and cash flows may be adversely affected.

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•

Our agents or clients could experience reduced sales or business as a result of a deterioration in economic conditions. As a result, our agents could reduce their numbers of locations or hours of operation or cease doing business altogether. Businesses using our services may make fewer cross-currency payments or may have fewer customers making payments to them through us, particularly businesses in those industries that may be more affected by an economic downturn.

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Our Business Solutions business is heavily dependent on global trade. A downturn in global trade, including as a result of increased tensions regarding trade relationships between countries, or the failure of long-term import growth rates to return to historic levels could have an adverse effect on our business, financial condition, results of operations, and cash flows. Additionally, as customer hedging activity in our Business Solutions business generally varies with currency volatility, we have experienced and may experience in the future lower foreign exchange revenues in periods of lower currency volatility.

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Our exposure to receivables from our agents, consumers, and businesses could impact us. For more information on this risk, see risk factor “We face credit, liquidity, and fraud risks from our agents, consumers, businesses, and third-party processors that could adversely affect our business, financial condition, results of operations, and cash flows.”

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The market value of the securities in our investment portfolio may substantially decline. The impact of that decline in value may adversely affect our liquidity, financial condition, and results of operations.

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The third-party service providers on whom we depend may experience difficulties in their businesses, which may impair their ability to provide services to us and have a potential impact on our own business. The impact of a change or temporary stoppage of services may have an adverse effect on our business, financial condition, results of operations, and cash flows.

•

The counterparties to the derivative financial instruments that we use to reduce our exposure to various market risks, including changes in interest rates and foreign exchange rates, may fail to honor their obligations, which could expose us to risks we had sought to mitigate. This includes the exposure generated by the Business Solutions business, where we write derivative contracts to our customers as part of our cross-currency payments business, and we typically hedge the net exposure through offsetting contracts with established financial institution counterparties. That failure could have an adverse effect on our financial condition, results of operations, and cash flows.

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We may be unable to refinance our existing indebtedness or finance our obligations to pay tax on certain of our previously undistributed earnings pursuant to United States tax reform legislation enacted in December 2017 (the “Tax Act”) on favorable terms, as such amounts become due, or we may have to refinance or obtain new financing on unfavorable terms, which could require us to dedicate a substantial portion of our cash flow from operations to payments on our debt or tax obligations, thereby reducing funds available for working capital, capital expenditures, acquisitions, share repurchases, dividends, and other purposes.

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Our revolving credit facility with a consortium of banks is one source for funding liquidity needs and also backs our commercial paper program. If any of the banks participating in our credit facility fails to fulfill its lending commitment to us, our short-term liquidity and ability to support borrowings under our commercial paper program could be adversely affected.

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Banks upon which we rely to conduct our business could fail or be unable to satisfy their obligations to us. This could lead to our inability to access funds and/or credit losses for us and could adversely impact our ability to conduct our business.

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Insurers we utilize to mitigate our exposures to litigation and other risks may be unable to or refuse to satisfy their obligations to us, which could have an adverse effect on our liquidity, financial condition, results of operations, and cash flows.

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If market disruption or volatility occurs, we could experience difficulty in accessing capital on favorable terms, and our business, financial condition, results of operations, and cash flows could be adversely impacted.

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We face competition from global and niche or corridor money transfer providers, United States and international banks, card associations, card-based payments providers, and a number of other types of service providers, including electronic, mobile and internet-based services, and from digital currencies, including cryptocurrencies and related protocols, and other innovations in technology and business models. Our future ~~growth~~success depends on our ability to compete effectively in the industry.

Money transfer and ~~business payments~~payment services are highly competitive industries which include service providers from a variety of financial and non-financial business groups. Our competitors include consumer money transfer companies, banks and

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credit unions (including interbank partnerships), card associations, web-based services, mobile money transfer services, payment processors, card-based payments providers such as issuers of e-money, travel cards or stored-value cards, informal remittance systems, automated teller machine providers and operators, phone payment systems (including mobile phone networks), postal organizations, retailers, check cashers, mail and courier services, currency exchanges, and digital currencies, including cryptocurrencies and cryptocurrency exchanges. These services are differentiated by features and functionalities such as brand recognition, customer service, trust and reliability, distribution network and channel options, convenience, price, speed, variety of payment methods, service offerings and innovation. Our business, distribution network and channel options, such as our digital channels, have been and may continue to be impacted by increased competition, including from new competitors and the consolidation of competitors and the expansion of their services, which could adversely affect our financial condition, results of operations, and cash flows. For example, we have experienced increased competition in money transfers sent and received within the United States from competitors that do not charge a fee to send or receive money through bank accounts. The potential international expansion of these competitors could represent significant competition to us.

Our future ~~growth~~success depends on our ability to compete effectively in money transfer and ~~business payments.~~payment services. For example, if we fail to price our services appropriately, consumers may not use our services, which could adversely affect our business and financial results. In addition, we have historically implemented and will likely continue to implement price reductions from time to time in response to competition and other factors. Price reductions generally reduce margins and adversely affect financial results in the short term and may also adversely affect financial results in the long term if transaction volumes do not increase sufficiently. Further, failure to compete on service differentiation and service quality could significantly affect our future growth potential and results of operations.

As noted below under risk factor “Risks associated with operations outside the United States and foreign currencies could adversely affect our business, financial condition, results of operations, and cash flows,” many of our agents outside the United States are national post offices. These entities are often governmental organizations that may enjoy special privileges or protections that could allow them to simultaneously develop their own money transfer businesses. International postal organizations could agree to establish a money transfer network among themselves. Due to the size of these organizations and the number of locations they have, any such network could represent significant competition to us.

If customer confidence in our business or in consumer money transfer and payment service providers generally deteriorates, our business, financial condition, results of operations, and cash flows could be adversely affected.

Our business is built on customer confidence in our brands and our ability to provide fast, reliable money transfer and payment services. Erosion in customer confidence in our business, or in consumer money transfer and payment service providers as a means to transfer money, could adversely impact transaction volumes which would in turn adversely impact our business, financial condition, results of operations, and cash flows.

A number of factors could adversely affect customer confidence in our business, or in consumer money transfer and payment service providers generally, many of which are beyond our control, and could have an adverse impact on our results of operations. These factors include:

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changes or proposed changes in laws or regulations or regulator or judicial interpretation thereof that have the effect of making it more difficult or less desirable to transfer money using consumer money transfer and payment service providers, including additional consumer due diligence, identification, reporting, and recordkeeping requirements;

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the quality of our services and our customer experience, and our ability to meet evolving customer needs and preferences, including consumer preferences related to our ~~westernunion.com and other~~Branded Digital ~~Money Transfer~~ services;

•

failure of our agents, their subagents, our vendors, or other partners to deliver services in accordance with our requirements;

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reputational concerns resulting from actual or perceived events, including those related to fraud, consumer protection, data breaches, inappropriate use of personal data, or other matters;

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actions by federal, state or foreign regulators that interfere with our ability to transfer consumers’ money reliably, for example, attempts to seize money transfer funds, or limit our ability to or prohibit us from transferring money in certain corridors;

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federal, state or foreign legal requirements, including those that require us to provide consumer or transaction data either pursuant to requirements under the Joint Settlement Agreements or other requirements or to a greater extent than is currently required;

•

any significant interruption in our systems, including by unauthorized entry and computer viruses, ransomware, fire, natural disaster, power loss, telecommunications failure, terrorism, vendor failure, or disruptions in our workforce; and

•

any breach of our computer systems or other data storage facilities, or of certain of our third-party providers, resulting in a compromise of personal or other data.

Many of our money transfer consumers are migrants. Consumer advocacy groups or governmental agencies could consider migrants to be disadvantaged and entitled to protection, enhanced consumer disclosure, or other different treatment. If consumer advocacy groups are able to generate widespread support for actions that are detrimental to our business, then our business, financial condition, results of operations, and cash flows could be adversely affected.

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If we are unable to maintain our agent, subagent, or global business relationships under terms acceptable to us or consistent with 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, or if our agents or their subagents fail to comply with our business and technology standards and contract requirements, our business, financial condition, results of operations, and cash flows would be adversely affected.

Most of our Consumer-to-Consumer revenue is derived through our agent network. Some of our international agents have subagent relationships in which we are not directly involved. If, due to competition or other reasons, agents or their subagents decide to leave our network, or if we are unable to sign new agents or maintain our agent network under terms acceptable to us or consistent with those currently in place, or if our agents are unable to maintain relationships with or sign new subagents, our revenue and profits may be adversely affected. Agent attrition might occur for a number of reasons, including a competitor engaging an agent, an agent’s dissatisfaction with its relationship with us or the revenue derived from that relationship, an agent’s or its subagents’ unwillingness or inability to comply with our standards or legal requirements, including those related to compliance with anti-money laundering regulations, anti-fraud measures, or agent registration and monitoring requirements or increased costs or loss of business as a result of difficulty for us, our agents, or their subagents in establishing or maintaining relationships with banks needed to conduct our services. For example, the Joint Settlement Agreements and the NYDFS Consent Order subjected us to heightened requirements relating to agent oversight, which resulted in and may continue to result in agent ~~attrition. Further,~~attrition, and certain agents decided to leave our network due to reputational concerns related to the Joint Settlement Agreements and the NYDFS Consent Order. Recently, we have had one retail agent stop offering our services and another communicate they were moving away from cash-based services at their retail locations. These changes have impacted and will continue to adversely impact our revenue. In addition, agents may generate fewer transactions or less revenue for various reasons, including increased competition, political unrest, changes in the economy, or factors impacting our agents’ ability to settle with us, and the cost of maintaining agent or subagent locations has increased and may continue to increase because of enhanced compliance efforts or changes to compliance requirements. Because an agent is a third-party that engages in a variety of activities in addition to providing our services, it may encounter business difficulties unrelated to its provision of our services, which could cause the agent to reduce its number of locations, hours of operation, or cease doing business altogether.

Changes in laws regulating competition or in the interpretation of those laws could undermine our ability to enter into or maintain our exclusive arrangements with our current and prospective agents. See risk factor “Regulatory initiatives and changes in laws, regulations, ~~and~~ industry practices and standards, and third-party policies affecting us, our agents or their subagents, or the banks with which we or our agents maintain bank accounts needed to provide our services could require changes in our business model and increase our costs of operations, which could adversely affect our financial condition, results of operations, and liquidity” below. In addition, certain of our agents and subagents have refused to enter into exclusive arrangements in recent years,including a significant agent in the United States. The inability to enter

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into exclusive arrangements or to maintain our exclusive rights in agent contracts in certain situations could adversely affect our business, financial condition, results of operations, and cash flows by, for example, allowing competitors to benefit from the goodwill associated with the Western Union brand at our agent locations.

In Business Solutions, we facilitate payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals. In our various bill payment services, we provide services for making one-time or recurring payments from consumers to businesses and other organizations, including utilities, auto finance companies, mortgage servicers, financial service providers and government agencies. Our relationships with these businesses and other organizations are a core component of our payment services, and we derive a substantial portion of our revenue from payment services through these relationships. Increased regulation and compliance requirements are impacting these businesses by making it more costly for us to provide our services or by making it more cumbersome for businesses or consumers to do business with us. We have also had difficulty establishing or maintaining banking relationships needed to conduct our services due to banks’ policies. If we are unable to maintain our current business or banking relationships or establish new relationships under terms acceptable to us or consistent with those currently in place, our ability to continue to offer our services may be adversely impacted, which could have an adverse effect on our business, financial condition, results of operations, and cash flows.

As a result of offering our services, our agents may be subject to various taxes, as governments outside the United States have viewed and may continue to view our agents’ services as subject to income, withholding, and other taxes. Any such taxes that are levied on our agents could make it less desirable for agents to offer our services, which could result in increased agent attrition, agents ceasing to offer some of our services, or increased costs to maintain our agent network, any of which could have an adverse effect on our business, results of operations, and cash flows.

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Our ability to adopt new technology and develop and gain market acceptance of new and enhanced products and services in response to changing industry and regulatory standards and evolving customer needs poses a challenge to our business.

Our industry is subject to rapid and significant technological changes, with the constant introduction of new and enhanced products and services and evolving industry and regulatory standards and consumer needs and preferences. Our ability to enhance our current products and services and introduce new products and services that address these changes has a significant impact on our ability to be successful. We actively seek to respond in a timely manner to changes in customer (both consumer and business) and agent needs and preferences, technology advances, and new and enhanced products and services such as technology-based money transfer and ~~Business Solutions~~ payment services, including internet, digital wallet, other mobile money transfer services, and digital currencies, including cryptocurrencies. Failure to respond timely and well to these challenges could adversely impact our business, financial condition, results of operations, and cash flows. Further, even if we respond well to these challenges, the business and financial models offered by many of these ~~alternative,~~alternatives, more technology-reliant means of money transfer and electronic payment solutions may be less advantageous to us than our traditional cash/agent model or our current electronic money transfer model.

The COVID-19 pandemic continues to evolve and negatively impact our business, and the extent to which it will further impact our business depends on future developments, which remain highly uncertain and difficult to predict. The effects of the pandemic have had an adverse effect and could have a material adverse effect on our business, financial condition, results of operations, and cash flows in the future.

~~The global spread of COVID-19 has created significant macroeconomic uncertainty, volatility, and disruption~~ ~~for approximately two years~~. In response, many governments implemented policies intended to stop or slow the further spread of the disease, such as lockdowns, shelter-in-place orders, or restricted movement guidelines, and these measures have been in place for significant periods of time, ~~have been relaxed and reinstated to varying degrees in various locations,~~ ~~and may be reinstated again in the future. These policies have resulted in lower consumer and commercial activity across many markets in which we operate and the closure of,~~ ~~or staffing shortages at,~~ ~~Western Union locations and agent locations in certain areas. As a result, customers have experienced and may continue to experience reduced access to,~~ ~~or desire or ability to use~~, retail agent locations. Additionally, as money transfer services offered through our retail agent locations contribute a majority of our Consumer-to-Consumer revenue, our business has been and may continue to be negatively impacted by these temporary closures, ~~staffing shortages, or shifts in customer behavior~~ to a greater extent than others in our industry who are not as reliant on retail locations. Further, the economic impact of the pandemic included a global economic downturn, including high unemployment, lower consumer and commercial activity, and consumer behavioral changes that negatively impacted and may continue to negatively impact our transaction volumes. While the duration and severity of this pandemic and related impacts ~~have varied across time and locations and remain~~ ~~uncertain, our results of operations in future periods may also be negatively impacted by COVID-19.~~

The extent to which the COVID-19 pandemic continues to impact our business, financial condition, results of operations or cash flows will depend on future developments, which are highly uncertain and are difficult to predict, including, but not limited to, the duration and geographic spread of the pandemic, its severity, the occurrence of additional waves, ~~variants,~~ ~~or periods of increased spread of COVID-19 in key markets in which we operate, the availability and effectiveness of vaccines~~ ~~(including with respect to new variants), the actions to contain the virus or treat its impact, including new or additional restrictions imposed by governments, its effects on~~ ~~the broader economy, including supply chains, employment levels,consumer behavior and demand,~~ ~~inflation,~~ the impacts of these factors in turn on migrants and immigration patterns and regulations, how quickly and to what extent normal economic and operating conditions can resume and be sustained, and our ability to adapt to changing conditions. Even after the COVID-19 pandemic has subsided, we may continue to experience materially adverse impacts to our business as a result of its global economic impact, including any recession, economic downturn, ~~inflationary pressures, changes in customer behavior or demand, or increased unemployment that has occurred or may occur in the future.~~

Although the pandemic has been ongoing for approximately two years, its course and impact on the global economy and our business has been unpredictable and has challenged industry forecasts, including from the World Bank~~, and the ultimate impact of the pandemic or a similar health epidemic is~~ highly uncertain and subject to change. We do not yet know the full extent of the impacts on our business, our operations, or the global economy as a whole. However, the effects have had an adverse effect on our business, financial condition, results of operations, and cash flows and could have a material adverse effect in the future.

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Risks associated with operations outside the United States and foreign currencies could adversely affect our business, financial condition, results of operations, and cash flows.

A substantial portion of our revenue is generated in currencies other than the United States dollar. As a result, we are subject to risks associated with changes in the value of our revenues and net monetary assets denominated in foreign currencies. For example, a considerable portion of our revenue is generated in the euro. In an environment of a rising United States dollar relative to the euro, the value of our euro-denominated revenue, operating income and net monetary assets would be reduced when translated into United States dollars for inclusion in our financial statements. Some of these adverse financial effects may be partially mitigated by foreign currency hedging activities. In an environment of a declining United States dollar relative to the euro, some of the translation benefits on our reported financial results could be limited by the impact of foreign currency hedging activities. We are also subject to changes in the value of other foreign currencies.

We operate in almost all developing markets throughout the world. In many of these markets, our foreign currency exposure is limited because most transactions are receive transactions, and we currently reimburse the substantial majority of our agents in United States dollars, Mexican pesos, or euros for the payment of these transactions. However, in certain of these developing markets we settle transactions in local currencies and generate revenue from send transactions. Our exposure to foreign currency fluctuations in those markets is increased as these fluctuations impact our revenues and operating income.

We have additional foreign exchange risk and associated foreign exchange risk management requirements due to the nature of our Business Solutions business. The significant majority of our Business Solutions business relates to exchanges of currency at spot rates, which enable customers to make cross-currency payments. In certain countries, this business also writes foreign currency forward and option contracts for our customers. ~~The majority of these derivative contracts have a duration at inception of less than one year~~. The credit risk associated with our derivative contracts increases when foreign currency exchange rates move against our customers, possibly impacting their ability to honor their obligations to deliver currency to us or to maintain appropriate collateral with us. Business Solutions aggregates its foreign exchange exposures arising from customer contracts, including the derivative contracts described above, and hedges the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties. However, these contracts do not eliminate all of the risks related to fluctuating foreign currency rates. If we are unable to obtain offsetting positions, our business, financial condition, results of operations, and cash flows could be adversely affected.

~~A substantial portion of our revenue is generated outside the United States. We~~ utilize a variety of planning and financial strategies to help ensure that our worldwide cash is available where needed, including decisions related to the amounts, timing, and manner by which cash is repatriated or otherwise made available from our international subsidiaries. Changes in the amounts, timing, and manner by which cash is repatriated (or deemed repatriated) or otherwise made available from our international subsidiaries, including changes arising from new

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legal or tax rules, disagreements with legal or tax authorities concerning existing rules that are ultimately resolved in their favor, or changes in our operations or business, could result in material adverse effects on our financial condition, results of operations, and cash flows including our ability to pay future dividends or make share repurchases. For further discussion regarding the risk that our future effective tax rates could be adversely impacted by changes in tax laws, both domestically and internationally, see risk factor “Changes in tax laws, or their interpretation, and unfavorable resolution of tax contingencies could adversely affect our tax expense” below.

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Money transfers and payments to, from, within, or between countries may be limited or prohibited by law. At times in the past, we have been required to cease operations in particular countries due to political uncertainties or government restrictions imposed by foreign governments or the United States. Government sanctions imposed with respect to Russia and Ukraine in February 2022 ~~are impacting~~impacted our ability to offer services in the region, and ~~additional sanctions could be imposed~~ in March 2022, we voluntarily suspended our operations in Russia and Belarus due to the ~~future.~~Conflict. Further or prolonged instability or tension in Russia, Ukraine, and the surrounding region could also cause us to adjust our operating model, which would increase our costs of operations. Occasionally agents or their subagents have been required by their regulators to cease offering our services; see risk factor “Regulatory initiatives and changes in laws, regulations, ~~and~~ industry practices and standards, and third-party policies affecting us, our agents or their subagents, or the banks with which we or our agents maintain bank accounts needed to provide our services could require changes in our business model and increase our costs of operations, which could adversely affect our financial condition, results of operations, and liquidity” below. Additionally, economic or political instability or natural disasters may make money transfers to, from, within, or between particular countries difficult or impossible, such as when banks are closed, when currency devaluation makes exchange rates difficult to manage or when natural disasters or civil unrest makes access to agent locations unsafe. These risks could negatively impact our ability to offer our services, to make payments to or receive payments from international agents or our subsidiaries or to recoup funds that have been advanced to international agents or are held by our subsidiaries, and as a result could adversely affect our business, financial condition, results of operations, and cash flows. In addition, the general state of telecommunications and infrastructure in some lesser developed countries, including countries where we have a large number of transactions, creates operational risks for us and our agents that generally are not present in our operations in the United States and other more developed countries.

Rules implemented by regulators may also restrict our ability to distribute excess cash balances from our subsidiaries. For example, in connection with our decision to suspend operations in Russia and Belarus, we sought to distribute excess cash balances held in our Russian subsidiary. While we continue to pursue the distribution, our initial request to do so was denied by the Russian regulator. Currently, our Russian subsidiary holds approximately $21 million of excess cash balances, in addition to approximately $8 million of cash held to maintain its banking license. We have classified the excess cash balances as restricted cash, included within Other assets in our Consolidated Balance Sheets as of December 31, 2022. Rules implemented by the regulator could further restrict or delay this distribution. An inability to utilize or distribute excess cash from our Russian subsidiary or our other subsidiaries could have an adverse effect on our financial condition, results of operations, and cash flows.

Many of our agents outside the United States are post offices, which are often owned and operated by national governments. These governments may decide to change the terms under which they allow post offices to offer remittances and other financial services. For example, governments may decide to separate financial service operations from postal operations or mandate the creation or privatization of a “post bank,” which could result in the loss of agent locations, or they may require multiple service providers in their network. These changes could have an adverse effect on our ability to distribute or offer our services in countries that are material to our business.

We face credit, liquidity and fraud risks from our agents, consumers, businesses, and third-party processors that could adversely affect our business, financial condition, results of operations, and cash flows.

The significant majority of our Consumer-to-Consumer money transfer activity and our walk-in bill payment and money order activity is conducted through agents that provide our services to consumers at their retail locations. These agents sell our services, collect funds from consumers, and are required to pay the proceeds from these transactions to us. As a result, we have credit exposure to our agents. In some countries, our agent networks include ~~superagents~~master agents that establish subagent relationships; these agents must collect funds from their subagents in order to pay us. We are generally not insured against credit losses, except in certain circumstances related to agent theft or fraud. If an agent becomes insolvent, files for bankruptcy, commits fraud or otherwise fails to pay money order, money transfer or payment services

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proceeds to us, we must nonetheless pay the money order or complete the money transfer or payment services on behalf of the consumer.

The liquidity of our agents and other parties we transact with directly, including merchant acquirers, is necessary for our business to remain strong and to continue to provide our services. If our agents or other partners fail to settle with us in a timely manner, our liquidity could be affected.

From time to time, we have made, and may in the future make, advances to our agents. We generally owe settlement funds payable to these agents that offset these advances. However, the failure of these borrowing agents to repay these advances constitutes a credit risk to us.

We are exposed to credit risk in our Business Solutions business relating to: (i) derivatives written by us to our customers and (ii) the extension of trade credit when transactions are paid to recipients prior to our receiving cleared funds from the sending customers. The credit risk associated with our derivative contracts increases when foreign currency exchange rates move against our customers, possibly impacting their ability to honor their obligations to deliver currency to us or to maintain appropriate collateral with us. If a customer becomes insolvent, files for bankruptcy, commits fraud or otherwise fails to pay us, we may be exposed to the value of an offsetting position with a financial institution counterparty for the derivatives or may bear financial risk for those receivables where we have extended trade credit.

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In many countries, we offer consumers the ability to transfer money utilizing their bank account or credit or debit card via websites and mobile devices. These transactions have experienced and continue to experience a greater risk of fraud and higher fraud losses than transactions initiated at agent locations. Additionally, money transfers funded by ACH, or similar methods, are not preauthorized by the sender’s bank and carry the risk that the account may not exist or have sufficient funds to cover the transaction. We apply verification and other tools to help authenticate transactions and protect against fraud. However, these tools are not always successful in protecting us against fraud. As the merchant of these transactions, we may bear the financial risk of the full amount sent in some of the fraudulent transactions. Issuers of credit and debit cards may also incur losses due to fraudulent transactions through our distribution channels and may elect to block transactions by their cardholders in these channels with or without notice. We may be subject to additional fees or penalties if the amount of chargebacks exceeds a certain percentage of our transaction volume. Such fees and penalties increase over time if we do not take effective action to reduce chargebacks below the threshold, and if chargeback levels are not ultimately reduced to acceptable levels, our merchant accounts could be suspended or revoked, which would adversely affect our results of operations.

To help ensure availability of our worldwide cash where needed, we utilize a variety of planning and financial strategies, including decisions related to the amounts, timing, and manner by which cash is repatriated or otherwise made available from our international subsidiaries. These decisions can influence our overall tax rate and impact our total liquidity. Our overall liquidity may also be impacted by regulations or their interpretations that, if fully enacted or implemented, could require us to ~~register as a swap dealer and post~~exchange collateral in connection with our derivative financial instruments used to hedge our exposures arising in connection with changes to foreign currency exchange and interest rates.

Although the pandemic has been ongoing for approximately three years, its course and impact on the global economy and our business has been unpredictable and has challenged industry forecasts, including from the World Bank, and the ultimate impact of the pandemic or a similar health epidemic is highly uncertain and subject to change. We cannot reasonably predict the extent of the impacts on our business, our operations, or the global economy as a whole. However, the effects of the pandemic have had an adverse effect on our business, financial condition, results of operations, and cash flows and could have a material adverse effect in the future.

Risks Relating to Cybersecurity and Third-Party Vendors

Breaches of our information security safeguards could adversely affect our ability to operate and could damage our reputation and adversely affect our business, financial condition, results of operations, and cash flows.

As part of our business, we collect, transfer, and retain confidential and personal information about consumers, business customer representatives, employees, applicants, agents and other individuals. With our services being offered in more than 200 countries and territories, these activities are subject to laws and regulations in the United States and many other jurisdictions; see risk factor “Current and proposed regulation addressing consumer privacy and data use and security could increase our costs of operations, which could adversely affect our operations, results of operations, and financial condition” below. The requirements imposed by these laws and regulations, which often differ materially among the many jurisdictions in which we operate and may impact our business operations, are designed to protect the privacy

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and security of personal information, to prevent that information from being inappropriately accessed, used or disclosed, and to protect financial services providers and other regulated entities and their customers, as well as information technology systems, from cyber attacks. Although we strive to develop and maintain administrative, technical, and physical safeguards designed to comply with applicable legal requirements, it is nonetheless possible that hackers, employees acting contrary to our policies, or others could circumvent these safeguards to improperly access our systems or documents, or the systems or documents of our business partners, agents, or service providers, as well as to improperly access, obtain, misuse, or disclose sensitive business information or personal information about our consumers, business customer representatives, employees, applicants, agents or others. It is also possible that any of our third-party service providers or agents could experience a cybersecurity incident or intentionally or inadvertently use, disclose, or make available sensitive business or personal information to unauthorized parties in violation of law or its contract with us. Such risk of a third-party service provider or agent's cybersecurity or other data incident is significant as much of our data and our customers' data is collected and stored by our agents and other third parties, including providers of cloud-based software services. Security incidents have the potential to impose material costs on the Company and, despite measures that the Company takes to prevent and mitigate such incidents, there can be no assurance that security incidents will not occur in the future. The methods used to obtain unauthorized access, disable or degrade service or sabotage systems are also constantly changing and evolving and may be difficult to anticipate or to detect for significant periods of time. Additionally, transactions undertaken through our websites or other digital channels may create risks of fraud, hacking, unauthorized access or acquisition, and other deceptive practices. Any security incident resulting in a compromise of sensitive business information or the personal information of consumers, business customer representatives, employees, applicants, agents or other individuals, could result in material costs to us and require us to notify impacted individuals, and in some cases regulators, of a possible or actual incident, expose us to regulatory enforcement actions, including substantial fines, limit our ability to provide services, subject us to litigation, damage our reputation, and adversely affect our business, financial condition, results of operations, and cash flows.

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Interruptions in our systems, including as a result of cyber attacks, or disruptions in our workforce may have a significant adverse effect on our business.

Our ability to provide reliable service ~~largely~~ depends on the efficient and uninterrupted operation of our computer information systems and those of our service providers. Any significant interruptions could harm our business and reputation and result in a loss of business. These systems and operations could be exposed to damage or interruption from unauthorized entry and computer viruses, ransomware, fire, natural disaster, power loss, telecommunications failure, war, terrorism, vendor failure, or other causes, many of which may be beyond our control or that of our service providers. The frequency and intensity of weather events related to climate change are increasing, which could increase the likelihood and severity of natural disasters as well as related damage and business interruption. Additionally, any significant damage or interruptions in the computer information systems of our agents or other partners could result in a disruption in providing our services to consumers at their locations. Further, we and our vendors have been, and continue to be, the subject of cyber attacks, including distributed denial of service and ransomware attacks. These attackers and attacks, which may in some cases be initiated by nation-states, are increasingly sophisticated and primarily aimed at either interrupting our business ~~exposing us to financial losses,~~ or exploiting information security ~~vulnerabilities. Due~~vulnerabilities, both of which expose us to the political uncertainty involving Russia and Ukraine, there is an increased likelihood that escalation of tensions could result in cyber attacks that could either directly or indirectly impact our operations.financial losses. Historically, none of these attacks or breaches has individually or in the aggregate resulted in any material liability to us or any material damage to our reputation, and disruptions related to cybersecurity have not caused any material disruption to the Company’s business, but there can be no assurance that such attacks will not have a material adverse impact on the Company in the future. The safeguards we have designed to help prevent future security incidents and systems disruptions and to comply with applicable legal requirements may not be successful, and we may experience material security incidents, disruptions, or other problems in the future. We also may experience software defects, development delays, installation difficulties and other systems problems, which could harm our business and reputation and expose us to potential liability which may not be fully covered by our business interruption insurance. In addition, hardware, software, or applications that we develop or procure from third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise information security. These applications may not be sufficient to address technological advances, regulatory requirements, changing market conditions or other developments. In addition, any work stoppages or other labor actions by employees, the significant majority of whom are located outside the United States, could adversely affect our business.

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Table of 2021, we transitioned a majority of our money transfer settlement processes to our new global platform. This project has been and will continue to be complex, as we have defined, created, and implemented new settlement solutions that are specific to the needs of our agents and other partners, who span a number of countries and regulatory regimes. We continue to transition the remaining processes, primarily including money transfers sent from the United States and Canada, to the new platform. We expect that this will require the continued assistance of our third-party software provider, with whom we have worked on this project over the past several years, as well as our agents that are being transitioned to the platform.Contents

We receive services from third-party vendors that would be difficult to replace if those vendors ceased providing such services adequately or at all. Cessation of or defects in various services provided to us by third-party vendors could cause temporary disruption to our business.

Some services relating to our business, such as cloud-based software service providers, software application support, the development, hosting and maintenance of our operating systems, merchant acquiring services, call center services, check clearing, processing of returned checks, and other operating activities are outsourced to third-party vendors, which would be difficult to replace quickly. If our third-party vendors were unwilling or unable to provide us with these services in the future, due to labor shortages or otherwise, our business and operations could be adversely affected.

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Risks Relating to Acquisitions, Divestitures, and Restructuring Activities

Acquisitions and integration of new businesses create risks and may affect operating results.

We have acquired and may acquire businesses both inside and outside the United States. As of December 31, 2021, we had $2,566.6 million of goodwill comprising approximately 29% of our total assets, including $1,980.7 million of goodwill in our Consumer-to-Consumer reporting unit and $532.0 million of goodwill in our Business Solutions reporting unit. On August 4, 2021, we entered into an agreement to sell our Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC for $910 million in cash, and we expect to recognize a gain on the sale. As of December 31, 2021, the goodwill related to the Business Solutions reporting unit is included in Assets held for sale on the Consolidated Balance Sheets. If we or our reporting units do not generate operating cash flows at levels consistent with our expectations, we may be required to write down the goodwill on our balance sheet, which could have a significant adverse impact on our financial condition and results of operations in future periods. ~~For example, for the year ended December 31, 2017, we recognized a non-cash goodwill impairment charge related to our Business Solutions reporting unit.~~

In addition to the risk of goodwill impairment, the acquisition and integration of businesses involve a number of other risks. The core risks involve valuation (negotiating a fair price for the business based on inherently limited due diligence) and integration (managing the complex process of integrating the acquired company’s people, products and services, technology and other assets in an effort to realize the projected value of the acquired company and the projected synergies of the acquisition). Another risk is the need in some cases to improve regulatory compliance; see “Risks Relating to Our Regulatory and Litigation Environment” below. Acquisitions often involve additional or increased risks including, for example:

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realizing the anticipated financial benefits from these acquisitions and where necessary, improving internal controls of these acquired businesses;

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managing geographically separated organizations, systems and facilities;

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managing multi-jurisdictional operating, tax and financing structures;

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integrating personnel with diverse business backgrounds and organizational cultures;

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integrating the acquired technologies into our Company;

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complying with regulatory requirements, including those particular to the industry and jurisdiction of the acquired business;

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obtaining and enforcing intellectual property rights in some foreign countries;

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entering new markets with the services of the acquired businesses; and

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general economic and political conditions, including legal and other barriers to cross-border investment in general, or by United States companies in particular.

Integrating operations could cause an interruption of, or divert resources from, one or more of our businesses and could result in the loss of key personnel. The diversion of management’s attention and any delays or difficulties encountered in connection with an acquisition and the integration of the acquired company’s operations could have an adverse effect on our business, financial condition, results of operations, and cash flows.

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Divestitures and contingent liabilities from divested businesses could adversely affect our business and financial results.

We continually evaluate the performance and strategic fit of all of our businesses and may sell businesses or product lines.For example, on August 4, 2021, we entered an agreement to sell our Business Solutions business, ~~which is expected to be completed in two primary closings during 2022,~~ as previously discussed. Divestitures involve risks, including difficulties in the separation of operations, services, products and personnel, the diversion of management's attention from other business concerns, the disruption of our business, the potential loss of key employees and the retention of uncertain contingent liabilities related to the divested business. When we decide to sell assets or a business, we may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner, which could delay the achievement of our strategic objectives. We may also dispose of a business at a price or on terms that are less desirable than we had anticipated, which could result in significant asset impairment charges, including those related to goodwill and other intangible assets, that could have a material adverse effect on our financial condition and results of operations. In addition, we may experience greater dis-synergies than expected, the impact of the divestiture on our revenue growth may be larger than projected, and some divestitures may be dilutive to earnings. There can be no assurance whether the strategic benefits and expected financial impact of the divestiture will be achieved. We cannot assure you that we will be successful in managing these or any other significant risks that we encounter in divesting a business or product line, and any divestiture we undertake could materially and adversely affect our business, financial condition, results of operations and cash flows.

We may not realize all of the anticipated benefits from restructuring and other related initiatives, which may include decisions to downsize or to transition operating activities from one location to another, and we may experience disruptions in our workforce as a result of those initiatives.

Over the past few years, we have been engaged in restructuring actions and activities associated with business transformation, productivity improvement initiatives, and expense reduction measures. ~~See Part II, Item 8,~~ ~~Financial Statements~~For example, in October 2022, we announced an operating expense redeployment program which aims to redeploy approximately $150 million in expenses in our cost base over the next 5 years, accomplished through optimizations in vendor management, our real estate footprint, marketing, and ~~Supplementary Data~~, Note 4, Restructuring-Related Expenses for further discussion regarding our restructuring plan initiated in 2019 designed to change our operating model and improve our business processes and cost structure by reorganizing our senior management, reducing our headcount, and consolidating various facilities.people costs. We may implement additional initiatives in future periods. While these initiatives are designed to increase operational effectiveness and productivity and ~~result~~allow us to invest in ~~improved profitability,~~strategic initiatives, there can be no assurance that the anticipated benefits will be realized, and the costs to implement such initiatives may be greater than expected. In addition, these initiatives have resulted and will likely result in the loss of personnel, some of whom may support significant systems or operations, and may make it more difficult to attract and retain key personnel, any of which could negatively impact our results of operations. Consequently, these initiatives could result in a disruption to our workforce. If we do not realize the anticipated benefits from these or similar initiatives, the costs to implement future initiatives are greater than expected, or if the actions result in a disruption to our workforce greater than anticipated, our business, financial condition, results of operations, and cash flows could be adversely affected.

General Risks

Changes in tax laws, or their interpretation, and unfavorable resolution of tax contingencies could adversely affect our tax expense.

Our future effective tax rates could be adversely affected by changes in tax laws or their interpretation, both domestically and internationally. For example, in December 2017, the Tax Act was enacted into United States law. Among other things, the Tax Act imposes a tax on certain previously undistributed foreign earnings, establishes minimum taxes related to certain payments deemed to erode the United States tax base, and retains and expands United States taxation on a broad range of foreign earnings (whether or not the earnings have been repatriated) while effectively exempting certain types of foreign earnings from United States tax. In ~~addition,~~August 2022, the ~~Tax~~U.S. enacted the Inflation Reduction Act ~~is broad and complex, and any changes or clarifications in the interpretation~~of 2022 (“IRA”) which, among other provisions, implemented a 15% minimum tax on book income of certain large corporations. Based on our evaluation of the ~~Tax Act or other legislative proposals or amendments could have an adverse effect on our financial condition, results of operations, and cash flows. Furthermore,~~IRA, we do not believe we will be subject to the ~~effect of certain aspects~~15% book minimum tax in 2023. However, we will continue to monitor the application of the ~~Tax Act on state income~~minimum tax frameworks could change as states update their laws for these aspects, and potential changes to state income tax laws or their interpretation could further increase our income tax expense. Recently, several changes have been proposed to current United States tax laws to increase taxes on corporations. If any or all of these (or similar) proposals are ultimately enacted into law, in ~~whole or in part, such increases could negatively impact our effective tax rate.~~future periods.

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Additionally, the Organization for Economic Co-Operation and Development (“OECD”) has asked countries around the globe to act to prevent what it refers to as base erosion and profit shifting (“BEPS”). The OECD considers BEPS to refer to tax planning strategies that shift, perhaps artificially, profits across borders to take advantage of differing tax laws and rates among countries. Tax reforms recommended in the BEPS action plan include changes that would impact, among other things, global tax reporting, intercompany transfer pricing arrangements, the definition of taxable permanent establishments, and other legal or financial arrangements that are viewed as causing BEPS. Significant components of the BEPS action plan were published by the OECD in October 2015 and a number of governments have enacted or proposed rules to implement changes specifically suggested in the recommendations or other changes, such as specific “economic substance” rules, inspired by BEPS-style considerations. Furthermore,Most recently, the OECD, through an association of almost 140 countries known as the “inclusive framework,” has announced a consensus around further changes in traditional international tax principles (“

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(“BEPS 2.0”) to address, among other things, perceived challenges presented by global digital commerce (“Pillar 1”) and the perceived need for a minimum global effective tax rate of 15% (“Pillar 2”). On December 15, 2022, the European Union formally adopted the Pillar Two Directive and EU member states are expected to transpose the Pillar Two Directive into domestic law by December 31, 2023. Other countries are taking similar actions. We are evaluating developments to determine whether Pillar 2 will materially impact our financial position in the future. Any material change in tax laws or policies, or their interpretation, resulting from BEPS, BEPS 2.0, or other legislative proposals or inquiries could result in a higher effective tax rate on our earnings and have an adverse effect on our financial condition, results of operations, and cash flows.

Our tax returns and positions (including positions regarding jurisdictional authority of foreign governments to impose tax) are subject to review and audit by federal, state, local and foreign taxing authorities. An unfavorable outcome to a tax audit could result in higher tax expense, thereby negatively impacting our results of operations. We have established contingency reserves for a variety of material, known tax exposures. As of December 31, ~~2021,~~2022, the total amount of unrecognized tax benefits was a liability of ~~$318.6~~$237.2 million, including accrued interest and penalties, net of related items. Our reserves reflect our judgment as to the resolution of the issues involved if subject to judicial review. While we believe that our 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 our related reserve, and such resolution could have a material effect on our effective tax rate, financial condition, results of operations and cash flows in the current period and/or future periods. With respect to these reserves, our 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 Company’s tax position as recorded in the financial statements and the final resolution of a tax issue during the period. Such resolution could increase or decrease income tax expense in our consolidated financial statements in future periods and could impact our operating cash flows.

Our business, financial condition, results of operations, and cash flows could be harmed by adverse rating actions by credit rating agencies.

Downgrades in our credit ratings, or their review or revision to a negative outlook, could adversely affect our business, financial condition, results of operations, and cash flows, and could damage perceptions of our financial strength, which could adversely affect our relationships with our agents, particularly those agents that are financial institutions or post offices, and our banking and other business relationships. In addition, adverse ratings actions could result in regulators imposing additional capital and other requirements on us, including imposing restrictions on the ability of our regulated subsidiaries to pay dividends. Also, a downgrade below investment grade will increase our interest expense under certain of our notes and our revolving credit facility, and any significant downgrade could increase our costs of borrowing money more generally or adversely impact or eliminate our access to the commercial paper market, each of which could adversely affect our business, financial condition, results of operations, and cash flows.

There can be no guarantee that we will continue to make dividend payments or repurchase stock.

For risks associated with our ability to continue to make dividend payments or repurchase shares, please see Part II, Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

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Our ability to remain competitive depends in part on our ability to protect our trademarks, patents, copyrights, and other intellectual property rights and to defend ourselves against potential intellectual property infringement claims.

The Western Union® ~~and WU~~® brands, which are protected by trademark registrations in many countries, are material to our Company. The loss of the Western Union® ~~or WU~~® ~~trademarks~~trademark or a diminution in the perceived quality of products or services associated with the names would harm our business. Similar to the Western Union® ~~and WU~~®trademarks, the Orlandi Valuta®, Vigo®~~, Western Union Business Solutions~~SM, Pago Fácil®, Quick Collect®, Quick PaySM, ~~Pay@WU~~SM, Quick Cash®~~, My WU~~SM~~, WU+~~SM, Western Union Convenience Pay®, and other trademarks and service marks are also important to our Company and a loss of the service mark or trademarks or a diminution in the perceived quality associated with these names could harm our business.

Our intellectual property rights are an important element in the value of our business. Our failure to take appropriate actions against those who infringe upon our intellectual property could adversely affect our business, financial condition, results of operations, and cash flows.

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The laws of certain foreign countries in which we do business do not always protect intellectual property rights to the same extent as do the laws of the United States. Adverse determinations in judicial or administrative proceedings in the United States or in foreign countries could impair our ability to sell our products or services or license or protect our intellectual property, which could adversely affect our business, financial condition, results of operations, and cash flows.

We own patents and patent applications covering various aspects of our processes and services. We have been, are and in the future may be, subject to claims alleging that our platform, mobile application, or other products and services infringe third-party intellectual property or other proprietary rights, both inside and outside the United States. Unfavorable resolution of these claims could require us to change how we deliver or promote a service, result in significant financial consequences, or both, which could adversely affect our business, financial condition, results of operations, and cash flows.

Material changes in the market value or liquidity of the securities we hold may adversely affect our results of operations and financial condition.

As of December 31, ~~2021,~~2022, we held ~~$1.4~~$1.3 billion in investment securities, the ~~significant~~ majority of which are state and municipal debt securities. The majority of this money represents the principal of money orders issued by us to consumers primarily in the United States and money transfers sent by consumers. We regularly monitor our credit risk and attempt to mitigate our exposure by investing in highly-rated securities and by diversifying our investments. Despite those measures, it is possible that the value of our portfolio may decline in the future due to any number of factors, including general market conditions, credit issues, the viability of the issuer of the security, failure by a fund manager to manage the investment portfolio consistently with the fund prospectus or increases in interest rates. Any such decline in value may adversely affect our results of operations and financial condition.

We have substantial debt and other obligations that could restrict our operations.

As of December 31, ~~2021,~~2022, we had approximately ~~$3.0~~$2.6 billion in consolidated indebtedness, and we may also incur additional indebtedness in the future. Furthermore, the Tax Act imposes a tax on certain of our previously undistributed foreign earnings, which we have elected to pay in periodic installments through 2025.

Our indebtedness and tax obligations could have adverse consequences, including:

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limiting our ability to pay dividends to our stockholders or to repurchase stock consistent with our historical practices;

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increasing our vulnerability to changing economic, regulatory and industry conditions;

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limiting our ability to compete and our flexibility in planning for, or reacting to, changes in our business and the industry;

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limiting our ability to borrow additional funds; and

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requiring us to dedicate a substantial portion of our cash flow from operations to payments on our debt or tax obligations, thereby reducing funds available for working capital, capital expenditures, acquisitions, and other purposes.

Failure to attract, retain, and develop the key employees we need to support our objectives could have a material adverse impact on our business.

Much of our success depends on our ability to attract, retain, and develop key employees. Qualified individuals with experience in our industry are in high demand and we have faced and will continue to face competition globally to attract and retain a diverse workforce with skills that are critical to our success. In addition, legal or enforcement actions against compliance and other personnel in the money transfer industry may affect our ability to attract and retain key employees. Further, any failure to have in place and execute an effective succession plan for key employees could harm our business.

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Risks Relating to Our Regulatory and Litigation Environment

As described under Part I, Item 1, Business, our business is subject to a wide range of laws and regulations enacted by the United States federal government, each of the states (including licensing requirements), many localities and many other countries and jurisdictions. Laws and regulations to which we are, or may in the future, be subject to including by virtue of the introduction of new products or acquisitions, include those related to: financial services generally, banking, anti-money laundering, countering the financing of terrorism, sanctions and anti-fraud, anti-bribery, anti-corruption, consumer disclosure and consumer protection, currency controls, money transfer and payment instrument licensing, payment services, credit and debit cards, electronic payments, foreign exchange hedging services and the sale of spot, forward, and option currency contracts, cryptocurrency licensing and other regulations, prepaid access, taxation, accessibility, unclaimed property, the regulation of competition, consumer privacy, data protection and information security, cybersecurity, operational security, outsourcing, risk management, environmental, sustainability and governance reporting, including climate and social governance-related reporting, and other governance requirements applicable to regulated financial service providers. Further, where we cooperate with partners around the world to offer ~~other branded and unbranded~~ money transfer services ~~including services offered and~~ marketed exclusively under the partners’ brands, the regulatory requirements applicable to us may vary. The failure by us, our agents, their subagents, or our partners to comply with any such laws or regulations could have an adverse effect on our business, financial condition, results of operations, and cash flows and could seriously damage our reputation and brands, and result in diminished revenue and profit and increased operating costs.

Risks Relating to Significant Regulatory Requirements

Our business is subject to a wide range and increasing number of laws and regulations. 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, and increased costs or loss of business associated with compliance with those laws and regulations has had and we expect will continue to have an adverse effect on our business, financial condition, results of operations, and cash flows.

Our services are subject to increasingly strict legal and regulatory requirements, including those related to detecting and preventing money laundering, countering terrorist financing, fraud, and other illicit activity, and administering economic and trade sanctions. The interpretation of those requirements by judges, regulatory bodies and enforcement agencies may change quickly and with little notice. Additionally, these requirements or their interpretations in one jurisdiction may conflict with those of another jurisdiction. As United States federal and state as well as foreign legislative and regulatory scrutiny and enforcement action in these areas increase, we expect that our costs of complying with these requirements could continue to increase, perhaps substantially, and may make it more difficult or less desirable for consumers and others to use our services or for us to contract with certain intermediaries, either of which would have an adverse effect on our revenue and operating income. For example, in recent years we have made significant additional investments in our compliance programs based on the rapidly evolving and increasingly complex global regulatory and enforcement environment and our internal reviews. These additional investments relate to enhancing our compliance capabilities, including our consumer protection efforts. Further, failure by Western Union, our agents or their subagents (agents and subagents are third parties, over whom Western Union has limited legal and practical control), and service providers to comply with any of these requirements or their interpretation could result in the suspension or revocation of a license or registration required to provide money transfer, payment or foreign exchange services, the limitation, suspension, or termination of services, changes to our business model, loss of consumer confidence, the seizure of our assets, and/or the imposition of civil and criminal penalties, including fines and restrictions on our ability to offer services.

We are subject to regulations imposed by the Foreign Corrupt Practices Act (the “FCPA”) in the United States and similar laws in other countries, such as the Bribery Act in the UK, which generally prohibit companies and those acting on their behalf from making improper payments to foreign government officials for the purpose of obtaining or retaining business. Some of these laws, such as the Bribery Act, also prohibit improper payments between commercial enterprises. Because our services are offered in virtually every country of the world, we face significant risks associated with our obligations under the FCPA, the Bribery Act, and other national anti-corruption laws. Any determination that we have violated these laws could have an adverse effect on our business, financial condition, results of operations, and cash flows.

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Our United States business is subject to reporting, recordkeeping and anti-money laundering provisions of the BSA and to regulatory oversight and enforcement by FinCEN. We have subsidiaries in Brazil and Austria that are subject to

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banking regulations. Our Austrian banking subsidiary is also subject to regulation, examination, and supervision by the NYDFS. We also operate through a small number of licensed payment institutions in the EU. Under the Payment Services Directive (“PSD”), as amended by a revised Payment Services Directive known as PSD2, and the ~~4th~~4th and ~~5th~~5th Anti-Money Laundering Directive in the EU, our operating companies that are licensed in the EU have increasingly become directly subject to reporting, recordkeeping, and anti-money laundering regulations, and agent oversight and monitoring requirements, as well as broader supervision by EU member states. Additionally, the financial penalties associated with the failure to comply with anti-money laundering laws have increased in recent regulation, including the 4th and 5th Anti-Money Laundering Directive in the EU. These laws have increased and will continue to increase our costs and could also increase competition in some or all of our areas of service. Legislation that has been enacted or proposed in other jurisdictions could have similar effects.

The remittance industry, including Western Union, has come under increasing scrutiny from government regulators and others in connection with its ability to prevent its services from being abused by people seeking to defraud others. For example, in early 2017, we entered into the Joint Settlement Agreements with the United States Department of Justice (“DOJ”), certain United States Attorney’s Offices, the FTC, FinCEN, and various state attorneys general to resolve the respective investigations of those agencies, and in early 2018, we agreed to the NYDFS Consent Order. The ingenuity of criminal fraudsters, combined with the potential susceptibility to fraud by consumers, make the prevention of consumer fraud a significant and challenging problem. Our failure to continue to help prevent such frauds and increased costs related to the implementation of enhanced anti-fraud measures, or a change in fraud prevention laws or their interpretation or the manner in which they are enforced has had, and could in the future have, an adverse effect on our business, financial condition, results of operations, and cash flows.

Further, any determination that our agents or their subagents have violated laws and regulations could seriously damage our reputation and brands, resulting in diminished revenue and profit and increased operating costs. In some cases, we could be liable for the failure of our agents or their subagents to comply with laws which also could have an adverse effect on our business, financial condition, results of operations, and cash flows. In many jurisdictions where Western Union is licensed to offer money transfer services, the license holder is responsible for ensuring the agent’s compliance with the rules that govern the money transfer service. For example, in the EU, Western Union is responsible for the compliance of our agents and their subagents when they are acting on behalf of ~~our Irish payment institution subsidiary,~~Western Union Payment Services Ireland Limited, which is regulated by the Central Bank of Ireland. ~~The majority of our EU consumer money transfer activity is managed through our Irish payment institution.~~ Thus, the risk of adverse regulatory action against Western Union because of actions by our agents or their subagents and the costs to monitor our agents or their subagents in those areas has increased. The regulations implementing the remittance provisions of the Dodd-Frank Act also impose responsibility on us for any related compliance failures of our agents and their subagents.

The requirements under the PSD/PSD2, the Dodd-Frank Act, and similar legislation enacted or proposed in other countries have resulted and will likely continue to result in increased compliance costs, and in the event we or our agents are unable to comply, could have an adverse impact on our business, financial condition, results of operations, and cash flows. Additional countries may adopt similar legislation.

In view of the UK’s departure from the EU on January 31, 2020, to ensure that our operations will continue in the UK, we set up a new payment institution to conduct money remittance in the UK, which was authorized by the Financial Conduct Authority in April 2019, and presently offers retail money transfer services via UK agents. We also applied for the UK branch of our Austrian banking subsidiary to be authorized by the UK PRA as a Third Country Branch (i.e., a UK branch of a non-UK bank) ~~in order~~, one avenue to continue to conduct our ~~UK Business Solutions and~~Branded Digital ~~Money Transfer~~ operations. ~~In the period from~~Our application remains pending at this time. Since December 31, 2020, ~~until the date of the UK branch being authorized, it will operate~~our digital business has been operating under the Temporary Permissions Regime introduced in the ~~UK. This~~UK, which is available through December 31, 2023. If authorized as a Third Country Branch, this UK branch will be subject to certain additional UK regulatory ~~requirements upon authorization.~~requirements. Further, as a result of Brexit, including under the terms of any new regulatory authorizations we have and may obtain, we could be required to comply with differing regulatory requirements in the UK as a result of divergence from established EU regulation. This could make it more costly for us to provide our services. Since Brexit, UK laws and regulations in the financial services sector have largely maintained equivalence with related EU laws and regulations. We continue to monitor developments in this area, particularly those forthcoming under the Financial Services and Markets Bill 2022-23, which is going through UK Parliamentary scrutiny, and is expected to be passed in 2023. The Bill aims to recast the UK regulatory framework post-Brexit and will give the UK Government the power to repeal retained EU financial services legislation and create new regulator rule-making powers in areas currently covered by retained EU law, with the objective of promoting the growth and international competitiveness of the UK economy.

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Our fees, profit margins, and/or foreign exchange spreads may be reduced or limited because of regulatory initiatives and changes in laws and regulations or their interpretation and industry practices and standards that are either industry wide or specifically targeted at our Company.

The evolving regulatory environment, including increased fees or taxes, regulatory initiatives (and increases in regulatory authority, oversight, and enforcement), changes in laws and regulations or their interpretation, industry practices and standards imposed by state, federal, or foreign governments, and expectations regarding our compliance efforts, is impacting the manner in which we operate our business, may change the competitive landscape, and is expected to continue to adversely affect our financial results. Existing, new, and proposed legislation relating to financial services providers and consumer protection in various jurisdictions around the world has affected and may continue to affect the manner in which we provide our services; see risk factor “"The Dodd-Frank Act, the Electronic Funds Transfer Act and Regulation E, as well as the regulations required by ~~that Act~~these Acts and the actions of the Consumer Financial Protection Bureau and similar legislation and regulations enacted by other government authorities, could adversely affect us and the scope of our activities and could adversely affect our financial condition, results of operations, and cash ~~flows~~flows..”" Recently proposed and enacted legislation related to financial services providers and consumer protection in various jurisdictions around the world and at the federal and state level in the United States has subjected and may continue to subject us to additional regulatory oversight, mandate additional consumer disclosures and remedies, including refunds to consumers, or otherwise impact the manner in which we provide our services. If governments implement new laws or regulations that limit our right to set fees and/or foreign exchange spreads, then our business, financial condition, results of operations, and cash flows could be adversely affected. In addition, changes in regulatory expectations, interpretations, or practices could increase the risk of regulatory enforcement actions, fines, and penalties. For example, in early 2017, we entered into the Joint Settlement Agreements, and in early 2018, we agreed to the NYDFS Consent Order.

In addition, U.S. policy makers have sought and may continue to seek heightened customer due diligence requirements on, or restrict, remittances from the United States to Mexico or other jurisdictions. For example, ~~in October 2020, OFAC amended its Cuban Assets Control Regulations, requiring us to suspend our money transfer services to Cuba. In addition,~~ government sanctions imposed in February 2022 with respect to Russia and Ukraine ~~are impacting~~impacted our ability to offer services in the region and ~~additional sanctions could be imposed~~we voluntarily suspended our operations in ~~the future.~~Russia and Belarus in March 2022. Policy makers have also discussed potential legislation to add taxes to remittances from the United States to Mexico and/or other countries. Further, one state has passed a law imposing a fee on certain money transfer transactions, and certain other states have proposed similar legislation. Several foreign countries have enacted or proposed rules imposing taxes or fees on certain money transfer transactions, as well. The approach of policy makers and the ongoing budget shortfalls in many jurisdictions, combined with future federal action or inaction on immigration reform, may lead other states or localities to impose similar taxes or fees or other requirements or restrictions. Foreign countries in similar circumstances have invoked and could continue to invoke the imposition of sales, service, or similar taxes, or other requirements or restrictions, on money transfer services. A tax, fee, or other requirement or restriction exclusively on money transfer ~~services~~service providers like Western Union could put us at a competitive disadvantage to other means of remittance which are not subject to the same taxes, fees, requirements, or restrictions. Other examples of changes to our financial environment include the possibility of regulatory initiatives that focus on lowering international remittance costs. Such initiatives may have a material adverse impact on our business, financial condition, results of operations, and cash flows.

Regulators around the world look at each other’s approaches to the regulation of the payments and other industries. Consequently, a development in any one country, state, or region may influence regulatory approaches in other countries, states, or regions. Similarly, new laws and regulations in a country, state, or region involving one service may cause lawmakers there to extend the regulations to another service. As a result, the risks created by any one new law or regulation are magnified by the potential they may be replicated, affecting our business in another place or involving another service. Conversely, if widely varying regulations come into existence worldwide, we may have difficulty adjusting our services, fees, foreign exchange spreads and other important aspects of our business, with the same effect. Further, political changes and trends such as populism, economic nationalism, protectionism, and negative sentiment towards multinational companies could result in laws or regulations that adversely impact our ability to conduct business in certain jurisdictions. Any of these eventualities could materially and adversely affect our business, financial condition, results of operations, and cash flows.

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Regulatory initiatives and changes in laws, regulations, ~~and~~ industry practices and standards, and third-party policies affecting us, our agents or their subagents, or the banks with which we or our agents maintain bank accounts needed to provide our services could require changes in our business model and increase our costs of operations, which could adversely affect our financial condition, results of operations, and liquidity.

Our agents and their subagents are subject to a variety of regulatory requirements, which differ from jurisdiction to jurisdiction, are subject to change, and continue to increase. Material changes in the regulatory requirements for offering money transfer services, including with respect to anti-money laundering requirements, sanctions, fraud prevention, licensing requirements, consumer protection, customer due diligence, agent registration, or increased requirements to monitor our agents or their subagents in a jurisdiction important to our business have meant and could continue to mean increased costs and/or operational demands on our agents and their subagents, which have resulted and could continue to result in their attrition, a decrease in the number of locations at which money transfer services are offered, an increase in the commissions paid to agents and their subagents to compensate for their increased costs, and other negative consequences.

We rely on our agents’ technology systems and/or processes to obtain transaction data. If an agent or its subagent experiences a breach of its systems, if there is a significant disruption to the technology systems of an agent or its subagent, if an agent or its subagent does not maintain the appropriate controls over their systems, or if we are unable to demonstrate adequate oversight of an agent’s or subagent’s handling of those matters, we may experience reputational and other harm which could result in losses to the Company.

Our regulatory status and the regulatory status of our agents and their subagents could affect our and their ability to offer our services. For example, we and our agents and their subagents rely on bank accounts to provide our Consumer-to-Consumer money transfer services. We also rely on bank accounts to provide our payment services. We and our agents and their subagents are considered Money Service Businesses (“MSBs”) under the ~~BSA, including our Business Solutions operations.~~BSA. Many banks view MSBs as a class of higher risk customers for purposes of their anti-money laundering programs. We and some of our agents and their subagents have had, and in the future may have, difficulty establishing or maintaining banking relationships due to the banks’ policies. If we or a significant number of our agents or their subagents are unable to maintain existing or establish new banking relationships under terms acceptable to us or our agents or consistent with those currently in place, or if we or these agents face higher fees to maintain or establish new bank accounts, our ability and the ability of our agents and their subagents to continue to offer our services may be adversely impacted, which would have an adverse effect on our business, financial condition, results of operations, and cash flows.

The types of enterprises that are legally authorized to act as our agents and their subagents vary significantly from one country to another. Changes in the laws affecting the kinds of entities that are permitted to act as money transfer agents or their subagents (such as changes in requirements for capitalization or ownership) could adversely affect our ability to distribute our services and the cost of providing such services, both by us and our agents and their subagents. For example, a requirement that a money transfer provider be a bank or other highly regulated financial entity could increase significantly the cost of providing our services in many countries where that requirement does not exist today or could prevent us from offering our services in an affected country. Further, any changes in law that would require us to provide money transfer services directly to consumers as opposed to through an agent network (which would effectively change our business model) or that would prohibit or impede the use of subagents could significantly adversely impact our ability to provide our services, and/or the cost of our services, in the relevant jurisdiction. Changes mandated by laws which make Western Union responsible for acts of its agents and their subagents while they are providing the Western Union money transfer service increase our risk of regulatory liability and our costs to monitor our agents’ or their subagents’ performance.

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Although most of our Orlandi Valuta and Vigo branded agents also offer money transfer services of our competitors, many of our Western Union branded agents have agreed to offer only our money transfer services. While we expect to continue signing certain agents under exclusive arrangements and believe that these agreements are valid and enforceable, changes in laws regulating competition or in the interpretation of those laws could undermine our ability to enforce them in the future. Various jurisdictions continue to increase their focus on the potential impact of agent agreements on competition. In addition, over the past several years, several countries in Eastern Europe, the Commonwealth of Independent States, Africa, and Asia have promulgated laws or regulations, or authorities in these countries have issued orders, which effectively prohibit payment service providers, such as money transfer companies, from agreeing to exclusive arrangements with agents in those countries. Certain institutions, non-governmental organizations and others are actively advocating against exclusive arrangements in money transfer agent agreements. Advocates for laws prohibiting or limiting exclusive agreements continue to push for enactment of similar laws in other jurisdictions. ~~In addition to legal challenges, certain of our agents and their subagents have refused to enter into exclusive arrangements. See risk factor~~ “If we are unable to maintain our agent, subagent, or global business relationships under terms acceptable to us or consistent with 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, or if our agents or their subagents fail to comply with our business and technology standards and contract requirements, our business, financial condition, results of operations, and cash flows would be adversely affected” above. The inability to enter into exclusive arrangements or to maintain our exclusive rights in agent contracts in certain situations could adversely affect our business, financial condition, results of operations, and cash flows by, for example, allowing competitors to benefit from the goodwill associated with the Western Union brand at our agent locations.

~~In addition to legal or regulatory restrictions discussed in the Capital Resources and Liquidity section in Part II, Item 7,~~ ~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~, some jurisdictions use tangible net worth and other financial strength guidelines to evaluate financial position. If our regulated subsidiaries do not abide by these guidelines, they may be subject to heightened review by these jurisdictions, and the jurisdictions may be more likely to impose new formal financial strength requirements. Additional financial strength requirements imposed on our regulated subsidiaries or significant changes in the regulatory environment for money transfer providers could impact our primary source of liquidity.

The Dodd-Frank Act, the Electronic Funds Transfer Act and Regulation E, as well as the regulations required by ~~that Act~~these Acts and the actions of the Consumer Financial Protection Bureau and similar legislation and regulations enacted by other government authorities, could adversely affect us and the scope of our activities and could adversely affect our financial condition, results of operations, and cash flows.

Rules and regulations implemented under the Dodd-Frank Act have made and continue to make significant structural reforms and new substantive regulation across the financial services industry. In addition, the Dodd-Frank Act created the CFPB, which implements, examines compliance with and enforces federal consumer protection laws governing financial products and services, including money transfer services. The CFPB has created additional regulatory obligations for us and has the authority to examine and supervise us and our larger competitors, including for matters related to unfair, deceptive, or abusive acts and practices (“UDAAP”)., the Electronic Funds Transfer Act (“EFTA”), and Regulation E. The CFPB’s regulations implementing the remittance provisions of the Dodd-Frank Act have affected our business in a variety of areas. These include: (i) a requirement to provide consumers sending funds internationally from the United States enhanced, written, pre-transaction disclosures and transaction receipts, including the disclosure of fees, foreign exchange rates and taxes, (ii) an obligation to resolve various errors, including certain errors that may be outside our control, and (iii) an obligation at a consumer’s request to cancel transactions that have not been completed. These requirements have changed the way we operate our business and along with other potential changes under CFPB regulations could adversely affect our operations and financial results. In addition, the Dodd-Frank Act and interpretations and actions by the CFPB have had, and could continue to have a significant impact on us by, for example, requiring us to limit or change our business practices, limiting our ability to pursue business opportunities, requiring us to invest valuable management time and resources in compliance efforts, imposing additional costs on us, delaying our ability to respond to marketplace changes, requiring us to alter our products and services in a manner that would make them less attractive to consumers and impair our ability to offer them profitably, or requiring us to make other changes that could adversely affect our business. In addition, these regulations impose responsibility on us for any related compliance failures of our agents.

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The CFPB has broad authority to enforce consumer protection laws. The CFPB has a large staff and budget, which is not subject to Congressional appropriation, and has broad authority with respect to our money transfer service and related business. It is authorized to collect fines and provide consumer restitution in the event of violations, engage in consumer financial education, track and solicit consumer complaints, request data, and promote the availability of financial services to underserved consumers and communities. In addition, the CFPB may adopt other regulations governing consumer financial services, including regulations defining UDAAP, and new model disclosures. The CFPB’s authority to change regulations adopted in the past by other regulators, or to rescind or ignore past regulatory guidance, could increase our compliance costs and litigation exposure. In addition, attorneys general of the various states of the United States also have authority to enforce the consumer protection provisions of the Dodd-Frank Act in their respective jurisdictions.

We have been and continue to be subject to examination by the CFPB, which defines “larger participants of a market for other consumer financial products or services” as including companies, such as Western Union, that make at least one million aggregate annual international money transfers. The CFPB has the authority to examine and supervise us and our larger competitors, which will involve providing reports to the CFPB. The CFPB has used information gained in examinations as the basis for enforcement actions resulting in settlements involving monetary penalties and other remedies.

The effect of the Dodd-Frank Act, the EFTA, Regulation E, and the CFPB on our business and operations has been and will continue to be significant, and the application of the ~~Dodd-Frank Act’s~~associated implementing regulations to our business may differ from the application to certain of our competitors, including banks. ~~Further, and in addition to our own compliance costs, implementation~~

Table of requirements under Dodd-Frank could impact our business relationships with financial institution customers who outsource processing of consumer transactions to our Business Solutions segment. These financial institutions may determine that the compliance costs associated with providing consumer services are too burdensome and consequently may limit or discontinue offering such services.Contents

Various jurisdictions in the United States and outside the United States have consumer protection laws and regulations, and numerous governmental agencies are tasked with enforcing those laws and regulations. Consumer protection principles continue to evolve globally, and new or enhanced consumer protection laws and regulations may be adopted. Governmental agencies tasked with enforcing consumer protection laws or regulations are communicating more frequently and coordinating their efforts to protect consumers. For instance, ~~ICPEN~~the International Consumer Protection and Enforcement Network (“ICPEN”) is an organization composed of consumer protection authorities from over 6070 countries that provides a forum for developing and maintaining regular contact between consumer protection agencies and focusing on consumer protection concerns. By encouraging cooperation between agencies, ICPEN aims to enable its members to have a greater impact with their consumer protection laws and regulations. As the scope of consumer protection laws and regulations change, we may experience increased costs to comply and other adverse effects to our business.

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Rules adopted under the Dodd-Frank Act by the CFTC, as well as the provisions of the ~~European Market Infrastructure Regulation~~EMIR and its technical standards, which are directly applicable in the member states of the EU, ~~and in the UK,~~ have subjected most of our foreign exchange hedging transactions, including certain intercompany hedging transactions and certain of the corporate interest rate hedging transactions we may enter into in the future, ~~and certain of the foreign exchange derivatives contracts we offer as part of our Business Solutions segment,~~ to reporting, recordkeeping, and other requirements. Following Brexit, EMIR and the MiFID II have been retained as UK law pursuant to the European Union (Withdrawal) Act 2018 UK. Additionally, certain of the corporate interest rate hedging transactions and foreign exchange derivatives transactions we may enter into in the future may be subject to centralized clearing requirements or may be subject to margin requirements in the United States, the EU, and the UK. Other jurisdictions outside of the United States, the EU, and the UK, ~~are considering,~~ have implemented, or are implementing, or may implement regulations similar to those described above. Derivatives regulations have added costs to our business, and any additional requirements, such as future registration requirements and increased regulation of derivatives contracts, will result in additional costs or impact the way we conduct our hedging activities. ~~Additionally,~~For example, the regulatory regimes for derivatives in the United States, the EU, and the UK, such as under the Dodd-Frank Act and MiFID II, are continuing to ~~evolve and~~evolve. Any changes to such regimes, our designation under such regimes, or the implementation of new rules under such regimes, such as future registration requirements and increased regulation of derivatives contracts, may result in additional costs to our business. Other jurisdictions outside the United States, the EU, and the UK, ~~are considering,~~ have implemented, or are implementing, or may implement regulations similar to those described above, and these will result in greater costs to us as well. Our implementation of these requirements has resulted, and will continue to result, in additional costs to our business. Moreover, ~~as a result of~~following Brexit, we could be required to comply with differing regulatory requirements in the UK as a result of divergence from established EU regulation. This could make it more costly for us to provide our services. Furthermore, our failure to implement these requirements correctly could result in fines and other sanctions, as well as necessitate a temporary or permanent cessation to some or all of our derivative related activities. Any such fines, sanctions, or limitations on our business could adversely affect our operations and financial results.

Current and proposed regulation addressing consumer privacy and data use and security could increase our costs of operations, which could adversely affect our operations, results of operations, and financial condition.

We are subject to extensive requirements relating to data privacy and security under federal, state, and foreign laws. These laws and requirements continue to evolve and may become increasingly difficult to comply with. For example, the FTC continues to investigate the privacy practices of many companies and has brought numerous enforcement actions, resulting in significant fines and multi-year agreements governing the settling companies’ privacy practices. In addition, the U.S. Securities and Exchange Commission and the New York Department of Financial Services have proposed new rules or amendments to existing rules that would modify reporting requirements and add prescriptive requirements relating to cybersecurity programs. Furthermore, certain industry groups require us to adhere to privacy requirements in addition to federal, state, and foreign laws, and certain of our business relationships depend upon our compliance with these requirements. As the number of countries enacting privacy and related laws increases and the scope of these laws and enforcement efforts expand, we will increasingly become subject to new and varying requirements. For example, in 2018, the EU implemented the GDPR, and other countries have enacted similar legislation, such as Brazil’s General Data Protection Law (“LGPD”), which became effective in 2020, and China’s Personal Information Protection Law ("PIPL"), which became effective in November 2021. The GDPR, LGPD, and PIPL impose ~~additional~~ obligations and present the risk of substantially increased penalties for non-compliance, including the possibility of not only fines but also enforcement action that may require an organization to cease certain of its data processing activities. Such penalties could have a material adverse effect on our financial condition, results of operations, and cash flows. In addition, in 2020 the Court of Justice of the European Union (“CJEU”) invalidated the EU-U.S. Privacy Shield framework, which provided a mechanism for companies transferring personal data from the EU to the U.S., and imposed additional obligations on companies such as Western Union when transferring personal data from the EU to the U.S. and other jurisdictions. This may result in increased

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costs of compliance and limitations on us. Further, this CJEU decision or other regulatory changes relating to cross-border data transfers may serve as a basis for challenges to our personal data handling practices, which could also adversely impact our business, financial condition, and operating results. We have incurred, and we expect to continue to incur, expenses to meet the obligations of the GDPR and other similar legislation and new interpretations of their requirements. We are also subject to data privacy and security laws in various states, such as the California Consumer Privacy Act ~~which became effective in 2020,~~and the Colorado Privacy Act, that ~~imposes~~impose heightened data privacy requirements on companies that collect information from ~~California~~state residents and ~~creates~~create a broad set of privacy rights and remedies modeled in part on the GDPR. Failure to comply with existing or future data privacy and security laws, regulations, and requirements to which we are subject or could become subject, including by reason of inadvertent disclosure of confidential information, could result in fines, sanctions, penalties, or other adverse consequences and loss of consumer confidence, which could materially adversely affect our results of operations, overall business, and reputation.

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In addition, in connection with regulatory requirements to assist in the prevention of money laundering and terrorist financing and pursuant to legal obligations and authorizations, Western Union makes information available to certain United States federal, state, and foreign government agencies when required by law. In recent years, Western Union has experienced an increasing number of data sharing requests by these agencies, particularly in connection with efforts to prevent terrorist financing or to reduce the risk of identity theft. During the same period, there has also been increased public attention to the corporate use and disclosure of personal information, accompanied by legislation and regulations intended to strengthen data protection, information security, and consumer privacy. These regulatory goals, including the prevention of money laundering, terrorist financing, and identity theft, and the protection of the individual’s right to privacy, may conflict or otherwise present challenges, and the law in these areas is not consistent or settled. The legal, political, and business environments in these areas are rapidly changing, and subsequent legislation, regulation, litigation, court rulings, or other events could expose us to increased program costs, liability, and reputational damage.

We are subject to unclaimed property laws, and differences between the amounts we have accrued for unclaimed property and amounts that are claimed by a state or foreign jurisdiction could have a significant impact on our results of operations and cash flows.

We are subject to unclaimed property laws in the United States and abroad, and some of our agents are subject to unclaimed property laws in their respective jurisdictions which require us, or our agents, to turn over to certain government authorities the property of others held by us that has been unclaimed for a specified period of time, such as unpaid money transfers and money orders. We have an ongoing program to help us comply with those laws. These laws are evolving and are frequently unclear and inconsistent among various jurisdictions, making compliance challenging. In addition, we are subject to audits with regard to our escheatment practices. Currently in the United States, approximately 30 states are conducting a multi-year audit of our escheatment practices through a contracted third-party auditor. We have also commenced a contemporaneous internal review as part of our participation in Delaware’s voluntary disclosure program. Any difference between the amounts we have accrued for unclaimed property and amounts that are claimed by a state, foreign jurisdiction, or representative thereof could have a significant impact on our results of operations and cash flows.

~~Our consolidated balance sheets may not contain~~We are subject to requirements and guidelines related to financial soundness and strength, and if we fail to meet current or changing requirements or guidelines, including maintaining sufficient amounts or types of regulatory capital to meet the changing requirements of our various regulators worldwide, ~~which could adversely affect~~ our business, financial condition, results of operations, and cash ~~flows.~~flows could be adversely affected.

Our regulators expect us to possess sufficient financial soundness and strength to adequately support our regulated subsidiaries. We have substantial indebtedness and other obligations, including those related to the tax imposed on certain of our previously undistributed foreign earnings pursuant to the Tax Act, which could make it more difficult to meet these requirements or any additional requirements. In addition, although we are not a bank holding company for purposes of United States law or the law of any other jurisdiction, as a global provider of payment services and in light of the changing regulatory environment in various jurisdictions, we could become subject to new capital requirements introduced or imposed by our regulators that could require us to raise capital immediately or retain earnings over a period of time. ~~Also,~~Our regulators also impose restrictions on our ability to use cash generated by our regulated subsidiaries such as those related to minimum qualifying investments, net worth requirements, and restrictions on transferring assets outside of the countries where those assets are located. For instance, our regulators specify the amount and composition of eligible assets that certain of our subsidiaries must hold in order to satisfy our outstanding settlement obligations. These regulators could further restrict the type of instruments that qualify as permissible investments or require our regulated subsidiaries to

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maintain higher levels of eligible assets. Further, some jurisdictions use tangible net worth and other financial strength guidelines to evaluate financial position. If our regulated subsidiaries do not abide by these guidelines, they may be subject to heightened review by these jurisdictions, and the jurisdictions may be more likely to impose new formal financial strength requirements. Additional financial strength requirements imposed on our regulated subsidiaries or significant changes in the regulatory environment for money transfer providers could impact our primary source of liquidity. Any change or increase in these regulatory requirements or guidelines could have a material adverse effect on our business, financial condition, and results of operations.

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Risks Relating to Consent Agreements and Litigation

Our business is the subject of consent agreements with or enforcement actions by regulators.

In early 2017, the Company entered into Joint Settlement Agreements with the DOJ, certain United States Attorney’s Offices, the FTC, FinCEN, and various state attorneys general to resolve the respective investigations of those agencies. Under the Joint Settlement Agreements, the Company was required, among other things, to pay an aggregate amount of $586 million to the DOJ to be used to reimburse consumers who were the victims of third-party fraud conducted through the Company’s money transfer services, and retain an independent compliance auditor for three years to review and assess actions taken by the Company to further enhance its oversight of agents and protection of consumers, both of which were performed by the Company during 2017. The Joint Settlement Agreements also required the Company to adopt certain new or enhanced practices with respect to its compliance program, relating to, among other things, consumer reimbursement, agent due diligence, agent training, monitoring, reporting, and record-keeping by the Company and its agents, consumer fraud disclosures, and agent suspensions and terminations. Western Union has continuing obligations under the FTC Consent Order, which is a permanent injunction, as well as the requirement to submit annual reports to the FTC through January 2028. The ongoing obligations under the Joint Settlement Agreements have had and could have adverse effects on the Company’s business, including additional costs and potential loss of business. The Company has also faced actions from other regulators as a result of the Joint Settlement Agreements. For example, on July 28, 2017, the NYDFS informed the Company that the facts set forth in the Deferred Prosecution Agreement (the “DPA”) with the DOJ and with certain other United States Attorney’s Offices regarding the Company’s anti-money laundering programs over the 2004 through 2012 period gave the NYDFS a basis to take additional enforcement action. In January 2018, the Company agreed to the NYDFS Consent Order with the NYDFS, which required the Company to pay a civil monetary penalty of $60 million to the NYDFS and resolved its investigation into these matters. The term of the DPA expired in January 2020, and it was dismissed in March 2020, and the term of the Independent Compliance Auditor under the FTC Consent Order ended in May 2020. Notwithstanding, if the Company fails to comply with its continuing obligations under the Joint Settlement Agreements, it could face criminal prosecution, civil litigation, significant fines, damage awards, or other regulatory consequences. Any or all of these outcomes could have a material adverse effect on the Company’s business, financial condition, results of operations, and cash flows.

Our business is, and may in the future be, the subject of litigation, including purported class action litigation, and regulatory actions, which could result in material settlements, judgments, fines, or penalties.

As a company that provides global financial services primarily to consumers, we are, and may in the future be, subject to litigation, including purported class action litigation, and regulatory actions alleging violations of consumer protection, anti-money laundering, sanctions, securities laws, and other laws, both foreign and domestic. Any such regulatory enforcement may be applied inconsistently across the industry, resulting in increased costs for the Company that may not be incurred by competitors. We also are subject to claims asserted by consumers based on individual transactions. There can be no guarantee that we will be successful in defending ourselves in these matters, and such failure may result in substantial fines, damages and expenses, revocation of required licenses, or other limitations on our ability to conduct business. Any of these outcomes could adversely affect our business, financial condition, results of operations, and cash flows. Further, we believe increasingly strict legal and regulatory requirements and increased regulatory investigations and enforcement, any of which could occur or intensify as a result of the Joint Settlement Agreements, are likely to continue to result in changes to our business, as well as increased costs, supervision, and examination for both ourselves and our agents and subagents. These developments have had, and we believe will continue to have, an adverse effect on our business, financial condition, and results of operations, and in turn may result in additional litigation or other actions. For more information, please see Part II, Item 8, Financial Statements and Supplementary Data, Note 6, Commitments and Contingencies.

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Item 1B. Unresolved Staff Comments

Not applicable.

Item 2. Properties

Properties and Facilities

As of December 31, ~~2021,~~2022, we occupied facilities in ~~approximately~~nearly 45 countries. ~~Substantially all~~All of these facilities were leased. Our office in Denver, Colorado serves as our corporate headquarters. Our offices in Dublin, Ireland and Barbados represent key operational and leadership locations. We also operate shared service centers in Lithuania, Costa Rica, India, and the Philippines. Our facilities are shared and primarily used for operational, sales, and administrative purposes in support of our Consumer-to-Consumer and Business Solutions segments, and other services.

We believe that our facilities are suitable and adequate for our current business; however, we periodically review our facility requirements and may consolidate and dispose of or sublet facilities which are no longer required or acquire new facilities and update existing facilities to meet the needs of our business.

Item 3. Legal Proceedings

The information required by this Item 3 is incorporated herein by reference to the discussion in Part II, Item 8, Financial Statements and Supplementary Data, Note 6, Commitments and Contingencies.

Item 4. Mine Safety Disclosures

Not applicable.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Our common stock trades on the New York Stock Exchange under the symbol “WU.” There were ~~2,989~~2,915 stockholders of record as of February ~~18, 2022.~~17, 2023. This figure does not include an estimate of the indeterminate number of beneficial holders whose shares may be held of record by brokerage firms and clearing agencies.

The following table sets forth stock repurchases for each of the three months of the quarter ended December 31, ~~2021:~~2022:


							Approximate Dollar								Approximate Dollar
					Total Number of Shares		Value of Shares that						Total Number of Shares		Value of Shares that
					Purchased as Part of		May Yet Be Purchased						Purchased as Part of		May Yet Be Purchased
	Total Number of		Average Price		Publicly Announced		Under the Plans or		Total Number of		Average Price		Publicly Announced		Under the Plans or
Period	Shares Purchased (a)		Paid per Share		Plans or Programs (b)		Programs (in millions)		Shares Purchased (a)		Paid per Share		Plans or Programs (b)		Programs (in millions)
October 1 - 31		1,644,869	$	20.11		1,632,462	$	524.8		102,097	$	13.47		—	$	823.2
November 1 - 30		4,296,770	$	16.97		4,291,171	$	452.0		5,891,930	$	13.75		5,888,977	$	742.2
December 1 - 31		3,940,830	$	17.61		3,938,179	$	—		6,802,617	$	13.86		6,783,007	$	648.2
Total		9,882,469	$	17.75		9,861,812				12,796,644	$	13.81		12,671,984

(a)

These amounts represent both shares authorized by the Board of Directors for repurchase under a publicly announced authorization, as described below, as well as shares withheld from employees to cover tax withholding obligations on restricted stock units that have vested.

(b)

On February ~~28, 2019,~~10, 2022, our Board of Directors authorized $1.0 billion of common stock repurchases ~~and this authorization expired December 31, 2021. On February 10, 2022, our Board of Directors authorized another $1.0 billion of common stock repurchases~~ through December 31, ~~2024.~~2024, of which $648.2 million remained available as of December 31, 2022. In certain instances, management has historically established and may continue to establish prearranged written plans pursuant to Rule 10b5‑1. A Rule 10b5‑1 plan permits us to repurchase shares at times when we may otherwise be unable to do so, provided the plan is adopted when we are not aware of material non-public information.

Refer to Part II, Item 8, Financial Statements and Supplementary Data, Note 17, Stock-Based Compensation Plans, and Part III, Item 12, Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters for information related to our equity compensation plans.

Dividend Policy and Share Repurchases

During 2022 and 2021, the Board of Directors declared quarterly cash dividends of $0.235 per common ~~share~~share. The dividends were payable on December ~~31, 2021,~~30, September 30, ~~2021,~~ June 30, ~~2021,~~ and March 31 ~~2021. During 2020, the Board of Directors declared quarterly cash dividends of $0.225 per common share payable on~~for 2022 and December 31, ~~2020,~~ September 30, ~~2020,~~ June 30, ~~2020,~~ and March 31 ~~2020.~~for 2021. The declaration or authorization and amount of future dividends or share repurchases will be determined by the Board of Directors and will depend on our financial condition, earnings, liquidity, the amount and timing of payments under our debt and other obligations, capital requirements, regulatory constraints, cash generated or made available in the United States, industry practice, and any other factors that the Board of Directors believes are relevant. In ~~addition,~~connection with the ~~United States House of Representatives has proposed~~IRA, there will be a ~~new~~1% excise tax on net share ~~repurchases; if this or a similar tax is enacted, it would~~repurchases made after December 31, 2022, which will increase our cost to repurchase shares in future periods. As a holding company with no material assets other than the capital stock of our subsidiaries, our ability to pay dividends or repurchase shares in future periods will ~~be dependent~~depend primarily on our ability to use cash generated by our operating subsidiaries. Several of our operating subsidiaries are subject to financial services regulations, and their ability to pay dividends and distribute cash may be restricted. In addition, the Tax Act imposes a tax on certain of our previously undistributed foreign earnings, which we have elected to pay in periodic installments through 2025, as discussed in the Capital Resources and Liquidity section in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations. These payments will adversely affect our cash flow and liquidity and may adversely affect future share repurchases.

On February ~~10, 2022,~~7, 2023, the Board of Directors declared a quarterly cash dividend of $0.235 per common share payable on March 31, ~~2022.~~2023.

Item 6. [Reserved]

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the consolidated financial statements and the notes to those statements included ~~elsewhere~~in Part II, Item 8, Financial Statements and Supplementary Data in this Annual Report on Form 10‑K. This Annual Report on Form 10‑K contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements contained in the Management’s Discussion and Analysis of Financial Condition and Results of Operations are forward-looking statements that involve risks and uncertainties. The forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions, and projections about our industry, business, and future financial results. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed in other sections of this Annual Report on Form 10‑K. See “Risk Factors” and “Forward-Looking Statements.”

Overview

We are a leading provider of money movement and payment services, operating in two business segments:

•

Consumer-to-Consumer - Our Consumer-to-Consumer operating segment facilitates money transfers, which are primarily sent from our retail agent locations worldwide or through websites and mobile devices, including our fast-growing money transfer transactions conducted and funded through websites and mobile applications marketed under our brands (“westernunion.com”) and transactions initiated on the internet and mobile applications hosted by our third-party white label or co-branded digital partners (together with westernunion.com, “Digital Money Transfer”).devices. Our money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers.

•

Business Solutions - Our Business Solutions operating 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 ~~significant~~ majority of ~~our Business Solutions~~the segment’s business relates to exchanges of currency at spot rates, which enable customers to make cross-currency payments. In addition, in ~~certain~~limited countries, we write foreign currency forward and option contracts for customers to facilitate future payments. On August 4, 2021, we entered into an agreement to sell our Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC, and this business is expected to be fully divested in the second quarter of 2023 as ~~further~~ discussed below.

All businesses and other services that have not been classified in the above segments are reported as Other, which primarily includes our bill payment services which facilitate payments from consumers to businesses and other organizations and our money order services. ~~Our other services, in addition to certain~~Certain of our corporate costs such as costs related to strategic initiatives, including costs for the review and closing of mergers, acquisitions, and divestitures, are also included in Other. Additional information on our segments is provided in the Segment Discussion below.

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Results of Operations

The following discussion of our consolidated results of operations and segment results refers to the year ended December 31, ~~2021~~2022 compared to the same period in ~~2020.~~2021. For discussion of our consolidated results of operations and segment results for the year ended December 31, ~~2020~~2021 compared to the same period in ~~2019,~~2020, refer to Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~19, 2021.~~24, 2022.

The results of operations should be read in conjunction with the discussion of our segment results of operations, which provide more detailed discussions concerning certain components of the Consolidated Statements of Income. All significant intercompany accounts and transactions between our segments have been eliminated. The below information has been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) unless otherwise noted. All amounts provided in this section 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.

In March 2020, the World Health Organization declared the outbreak associated with a novel coronavirus a pandemic (“COVID-19”), and many governments implemented policies intended to stop or slow the further spread of the disease. These policies have resulted in lower consumer and commercial activity across many markets in which we operate and the ~~closure of Western Union locations and agent locations in certain areas.As a result, customers have experienced and may continue to experience reduced access to,~~ ~~or desire or ability to use, retail agent locations.~~ ~~However, since March 2020, we have also experienced significant revenue growth from westernunion.com and other digital transactions, as further described below.~~ ~~While the duration and severity of this pandemic and related impacts~~ ~~have varied across time and locations and remain~~ ~~uncertain, our results of operations in future periods may also be negatively impacted by COVID-19.~~

Our revenues and operating income for the year ended December 31, ~~2021~~2022 were impacted by fluctuations in the United States dollar compared to foreign currencies. Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges, resulted in ~~an increase~~a decrease to revenues of ~~$18.3~~$185.5 million for the year ended December 31, ~~2021~~2022 relative to the prior year. Fluctuations in the United States dollar compared to foreign currencies ~~positively~~negatively impacted operating income by ~~$30.5~~$5.0 million for the year ended December 31, ~~2021~~2022 relative to the prior year.

On August 4, 2021, we entered into an agreement to sell our Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC (collectively, the "Buyer") for cash consideration of ~~$910 million, subject to regulatory and working capital adjustments. The divestiture is expected to result in a gain on the sale and is subject to regulatory approval and other closing conditions.~~$910.0 million. The sale is expected to be completed in ~~two primary~~three closings, with the ~~entirety of the~~entire cash consideration ~~due~~collected at the first ~~closing. The expected gain~~closing and allocated to the closings on ~~the sale will be recognized at each closing, based on the book values and~~a relative fair ~~values of the operations sold at each closing.~~value basis. The first closing ~~is expected to be completed during the first quarter of~~occurred on March 1, 2022, ~~and to primarily exclude~~excluded the operations in the European Union and the United ~~Kingdom.~~Kingdom, and resulted in a gain of $151.4 million. The second closing, which occurred on December 31, 2022 and included the United Kingdom operations, resulted in a gain of $96.9 million. The third closing, which is currently expected ~~by late 2022,~~to occur in the second quarter of 2023 pending required regulatory ~~approvals.~~approvals, includes the European Union operations. During the ~~period~~periods between the first and third closings, we ~~will~~are required to pay to the Buyer a measure of profit of the European Union and United Kingdom operations, while we owned them, adjusted for the provision for income taxes, occupancy charges for employees of the Buyer using our facilities, and other items. ~~Bus~~

~~iness~~Business Solutions revenues included in our Consolidated Statements of Income were ~~$421.8~~$196.9 million and ~~$356.1~~$421.8 million, and direct operating expenses, excluding corporate allocations, were ~~$317.7~~$140.3 million and ~~$319.5~~$317.7 million for the years ended December 31, 2022 and 2021, respectively. Costs related to the review and ~~2020,~~closing of this divestiture were $5.2 million and $14.4 million for the years ended December 31, 2022 and 2021, respectively.

50In March 2022, we suspended our operations in Russia and Belarus, which are included in our Consumer-to-Consumer segment, due to the Russia/Ukraine conflict (the "Conflict"). Revenues associated with the Russia and Belarus operations, including transactions sent from, into, and within these countries for the years ended December 31, 2022 and 2021 were approximately $28 million and $145 million, respectively. The Conflict has had and is expected to continue to have broader implications to our overall business, including reduced transaction activity in Ukraine. We expect that our results of operations will continue to be negatively impacted by this Conflict into 2023.

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The following table sets forth our consolidated results of operations for the years ended December 31, ~~2021~~2022 and ~~2020:~~2021:


	Year Ended December 31,									Year Ended December 31,
(in millions, except per share amounts)	2021			2020			% Change			2022			2021			% Change
Revenues	$	5,070.8		$	4,835.0			5	%	$	4,475.5		$	5,070.8			(12	)%
Expenses:
Cost of services		2,896.4			2,826.5			2	%		2,626.4			2,896.4			(9	)%
Selling, general, and administrative		1,051.3			1,041.2			1	%		964.2			1,051.3			(8	)%
Total expenses		3,947.7			3,867.7			2	%		3,590.6			3,947.7			(9	)%
Operating income		1,123.1			967.3			16	%		884.9			1,123.1			(21	)%
Other income/(expense):
Gain on divestiture of business											248.3			—		(a)
Gain on sale of noncontrolling interest in a private company		47.9			—		(a)				—			47.9		(a)
Pension settlement charges		(109.8	)		—		(a)				—			(109.8	)	(a)
Interest income		1.4			3.2			(57	)%		13.9			1.4		(a)
Interest expense		(105.5	)		(118.5	)		(11	)%		(101.0	)		(105.5	)		(4	)%
Other income/(expense), net		(21.7	)		3.1		(a)
Total other expense, net		(187.7	)		(112.2	)		67	%
Other expense, net											(37.5	)		(21.7	)	(a)
Total other income/(expense), net											123.7			(187.7	)	(a)
Income before income taxes		935.4			855.1			9	%		1,008.6			935.4			8	%
Provision for income taxes		129.6			110.8			17	%		98.0			129.6			(24	)%
Net income	$	805.8		$	744.3			8	%	$	910.6		$	805.8			13	%
Earnings per share:
Basic	$	1.98		$	1.81			9	%	$	2.35		$	1.98			19	%
Diluted	$	1.97		$	1.79			10	%	$	2.34		$	1.97			19	%
Weighted-average shares outstanding:
Basic		406.8			412.3						387.2			406.8
Diluted		408.9			415.2						388.4			408.9

(a)

Calculation not meaningful.

Revenues Overview

Revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the principal amount sent, whether the money transfer involves different send and receive currencies, and the difference between the exchange rate we set to the customer and ~~the~~a rate available in the wholesale foreign exchange market, ~~and speed of service,~~ as applicable. We also offer several other services, including foreign exchange and payment services and other bill payment services, for which revenue is impacted by similar factors.

Due to the significance of the effect that foreign exchange fluctuations against the United States dollar can have on our reported revenues, ~~and the significance of our Consumer-to-Consumer segment to our overall results,~~ constant currency results have been provided in the table below for consolidated ~~revenues and for our Consumer-to-Consumer segment~~ revenues. Constant currency results assume foreign revenues are translated from foreign currencies to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year. We have also disclosed the impact of our Business Solutions divestiture on our revenues in the table below. Constant currency measures and measures that exclude the impact of divestitures are non-GAAP financial measures and are provided so that revenue can be viewed without the effect of fluctuations in foreign currency exchange rates and divestitures of our businesses, which is consistent with how management evaluates our revenue results and trends. We believe that these measures provide management and investors with information about revenue results and trends that eliminates currency volatility and divestitures, thereby providing greater clarity regarding, and increasing the comparability of, our underlying results and trends. These disclosures are provided in addition to, and not as a substitute for, the percentage change in revenue on a GAAP basis for the year ended December 31, ~~2021~~2022 compared to the prior year. Other companies may calculate and define similarly labeled items differently, which may limit the usefulness of this measure for comparative purposes.

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The following table sets forth our consolidated revenue results for the years ended December 31, ~~2021~~2022 and ~~2020:~~2021:


	Year Ended December 31,							Year Ended December 31,
(dollars in millions)	2021		2020		% Change			2022		2021		% Change
Revenues, as reported - (GAAP)	$	5,070.8	$	4,835.0		5	%	$	4,475.5	$	5,070.8		(12	)%
Foreign currency impact(a)						1	%						4	%
Revenue change, constant currency adjusted - (Non-GAAP)						4	%
Divestitures impact(b)													4	%
Revenue change, constant currency adjusted, excluding Business Solutions - (Non-GAAP)													(4	)%

(a)

Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges, resulted in ~~an increase~~a decrease to revenues of ~~$18.3~~$185.5 million for the year ended December 31, ~~2021~~2022 when compared to foreign currency rates in the prior year.

~~For~~(b)

Business Solutions revenues included in our results were $196.9 million and $421.8 million for the ~~year~~years ended December 31, 2022 and 2021, ~~GAAP revenues increased when compared~~respectively.

In addition to the ~~prior year, primarily~~decline in revenues associated with fluctuations in exchange rates between the United States dollar and foreign currencies as well as our Business Solutions divestiture, GAAP and non-GAAP revenues decreased due to ~~continued recovery from~~a transaction decline in our Consumer-to-Consumer segment, including as a result of the ~~negative impacts~~suspension of ~~COVID-19 on~~ our ~~prior year results as previously discussed above.~~ ~~For the year ended December 31, 2021, transactions~~operations in Russia and ~~revenues from our Digital Money Transfer services, including from white label partnerships, continued to grow. We believe that our growth in Digital Money Transfer transactions~~Belarus for the year ended December 31, 2021 was due, in part, to shifts in consumer behavior to send money through digital channels, including as a result of COVID-19. However, this growth rate decelerated throughout the year as a result of the strong growth in Digital Money Transfer transactions we experienced in the prior year. Revenues were also positively impacted by ~~growth in our Business Solutions segment.~~ F~~luctuations between the United States dollar and other currencies positively impacted GAAP revenues by 1% for the year ended December 31, 2021~~2022 when compared to the prior year.

Operating Expenses Overview

~~Enhanced Regulatory Compliance~~Operating expense redeployment program

~~The financial services industry, including money services businesses, continues~~On October 20, 2022, we announced an operating expense redeployment program which aims to ~~be subject to increasingly strict legal~~redeploy approximately $150 million in expenses in our cost base over the next 5 years, accomplished through optimizations in vendor management, our real estate footprint, marketing, and regulatory requirements, and we continue to focus on and regularly review our compliance programs. In connection with these reviews, and in light of growing and rapidly evolving regulatory complexity and heightened attention of, and increased dialogue with, governmental and regulatory authorities related to our compliance activities, we have made, and continue to make, enhancements to our processes and systems designed to detect and prevent money laundering, terrorist financing, and fraud and other illicit activity, and enhancements designed to improve consumer protection. Some ofpeople costs. We believe these changes ~~have had,~~will allow us to invest in strategic initiatives. The timing and pace of this redeployment may vary, and we believe that we will continue to ~~have, an adverse effect on our business, financial condition, and results~~refine aspects of ~~operations.~~

~~Restructuring-Related Expenses~~

On August 1, 2019, our Board of Directors approved a plan to change our operating model and improve our business processes and cost structure by reorganizing our senior management, including those managers reporting to our chief executive officer, reducing our headcount, and consolidating various facilities.the program into 2023. We incurred approximately $150 million of total expenses through December 31, 2020, with approximately $110 million related to severance and employee-related benefits and approximately $40 million related to costs associated with the relocation of various operations to other Company facilities, facility closures, lease terminations, consulting, and other expenses. As of December 31, 2020, all expenses associated with this plan have been incurred. In 2020, the plan generated expense savings of more than $50 million. For 2021, the plan generated expense savings of approximately $100 million.

~~For the year ended December 31, 2020, we incurred $36.8 million related to this plan. Of this amount, $4.5~~$2.7 million and ~~$32.3~~$19.1 million ~~are included within~~of Cost of services and Selling, general, and administrative ~~respectively, in the Consolidated Statements of Income. Refer to Part II, Item 8,~~ ~~Financial Statements and Supplementary Data, Note 4, Restructuring-Related Expenses for further discussion.~~

~~These~~ expenses, ~~are specific to this initiative; however, the types of expenses~~respectively, related to this ~~initiative are similar to expenses that we have previously incurred and can reasonably be expected to incur in~~program for the ~~future.~~year ended December 31, 2022.

~~Table of Contents~~

Cost of Services

Cost of services primarily consists of agent commissions, which represented approximately 60% of total cost of services for the year ended December 31, ~~2021.~~2022. Cost of services ~~increased~~decreased for the year ended December 31, ~~2021~~2022 compared to the prior year primarily due to ~~increases~~a decrease in ~~information technology costs, bank fees associated with digital transactions, and agent commissions in our~~ Consumer-to-Consumer money transfer ~~business,~~agent commissions, which generally vary with revenues, and a decrease associated with the Business Solutions divestiture, as discussed above, partially offset by ~~a reduction~~increased investments in ~~credit losses.~~information technology.

Selling, General, and Administrative

Selling, general, and administrative expenses ~~increased~~decreased for the year ended December 31, ~~2021~~2022 compared to the prior year due to ~~increases~~a decrease associated with the Business Solutions divestiture, as discussed above, and a decrease in employee-related expenses, including incentive compensation and as a result of reduced hiring that we implemented in response to COVID-19 in the prior year, and costs related to strategic initiatives, including for the review and closing of mergers, acquisitions, and divestitures,expenses. The decrease was partially offset by ~~a reduction~~an increase in ~~restructuring-related expenses~~marketing costs, severance and ~~fluctuations between~~other costs associated with the ~~United States dollar~~operating expense redeployment initiatives, as discussed above, and ~~foreign currencies.~~exit costs associated with the suspension of our Russian and Belarus operations and the Business Solutions divestiture, as discussed below.

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Total Other ~~Expense,~~Income/(Expense), Net

Total other ~~expense,~~income/(expense), net ~~during~~for the year ended December 31, 2022 compared to the prior year benefited from the gain on the first two closings of the Business Solutions divestiture, pension settlement charges incurred in the prior period and a reduction in net periodic pension costs due to the termination of our U.S. defined benefit pension plan (the "Plan") in the fourth quarter of 2021, and debt extinguishment costs incurred in the prior period. This was partially offset by a prior year gain of $47.9 million recorded from the sale of a substantial majority of shares we held as a noncontrolling investor in a private company and by the expense associated with payment obligations to the Buyer of the Business Solutions business for a measure of the profits, as contractually agreed, from the European Union and United Kingdom operations subsequent to the first closing.

Income Taxes

Our effective tax rates on pre-tax income were 9.7% and 13.9% for the years ended December 31, 2022 and 2021, respectively. The decrease in our effective tax rate for the year ended December 31, 2022 compared to the prior year was ~~impacted by $109.8 million in pension settlement charges,~~primarily due to the reversal of uncertain tax positions, including from statute of limitations expirations and the completion of the examination of our federal income tax returns for 2017 and 2018, as further ~~described~~discussed in Part II, Item 8, Financial Statements and Supplementary Data, Note 12, Employee Benefit Plans, and costs associated with the April 2021 repayment of our 3.6% unsecured notes due in 2022. These impacts were partially offset by a $47.9 million gain recorded from the sale of a substantial majority of the shares we held as a noncontrolling investor in a private company for cash proceeds of $50.9 million and a reduction in interest expense driven by lower average debt balances outstanding and a lower weighted-average interest rate on our outstanding debt.

11, Income Taxes,

~~Our effective~~ as well as tax ~~rates on pre-tax income were 13.9% and 12.9% for the years ended December 31, 2021 and 2020, respectively. The increase~~expense incurred in ~~our effective tax rate for the year ended December 31, 2021 compared to~~ the prior ~~year was primarily due~~period related to ~~deferred taxes from~~ changes in ~~certain of~~ our permanent reinvestment assertions, ~~relating to~~partially offset by the sale of the Business Solutions business and our decision to ~~classify our Business Solutions business as held for sale~~suspend operations in ~~the current period, partially offset by discrete tax benefits associated with the pension termination~~Russia and ~~other items.~~Belarus.

We have established contingency reserves for a variety of material, known tax exposures. As of December 31, ~~2021,~~2022, the total amount of tax contingency reserves was ~~$318.6~~$237.2 million, including accrued interest and penalties, net of related items. Our tax reserves reflect our judgment as to the resolution of the issues involved if subject to judicial review or other settlement. While we believe that our 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 our related reserve. With respect to these reserves, our income tax expense would include: (i) any changes in tax reserves arising from material changes in facts and circumstances (i.e., new information) surrounding a tax issue during the period, and (ii) any difference from our tax position as recorded in the financial statements and the final resolution of a tax issue during the period. Such resolution could materially increase or decrease income tax expense in our consolidated financial statements in future periods and could impact our operating cash flows.

A significant proportion of our profits are foreign-derived. For the years ended December 31, 2022 and 2021, 95% and ~~2020,~~ 106% ~~and 100%~~, respectively, of our pre-tax income was derived from foreign sources. While the income tax imposed by any one foreign country is not material to us, our overall effective tax rate could be adversely affected by changes in foreign tax laws.

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Earnings Per Share

During the years ended December 31, ~~2021~~2022 and ~~2020,~~2021, basic earnings per share were ~~$1.98~~$2.35 and ~~$1.81,~~$1.98, respectively, and diluted earnings per share were ~~$1.97~~$2.34 and ~~$1.79,~~$1.97, respectively. Outstanding options to purchase Western Union stock and 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. As of December 31, ~~2021~~2022 and ~~2020,~~2021, there were ~~2.3~~8.0 million and ~~1.6~~2.3 million, respectively, of shares excluded from the diluted earnings per share calculation under the treasury stock method, primarily due to outstanding ~~restricted stock units and~~ options to purchase shares of Western Union stock and restricted stock units, as the assumed proceeds of the options and restricted stock ~~and options~~ per unit were above our weighted-average share price during the periods and their effect was anti-dilutive.

Earnings per share for the year ended December 31, ~~2021~~2022 compared to the prior year ~~was positively~~were impacted by the previously described factors impacting net income and a lower number of shares outstanding. The lower number of shares outstanding for the year ended December 31, ~~2021~~2022 compared to the prior year is due to stock repurchases exceeding stock issuances ~~related to~~under our stock compensation programs.

Table of Contents

Segment Discussion

We manage our business around the consumers and businesses we serve and the types of services we offer. Each of our segments addresses a different combination of consumer groups, distribution networks, and services offered. Our segments are Consumer-to-Consumer and Business Solutions. On August 4, 2021, we entered into an agreement to sell our Business Solutions business, as discussed above. The operations of the Business Solutions business to ~~Goldfinch Partners LLC~~be sold in the third closing will continue to be included in Revenues and ~~The Baupost Group LLC,~~Operating income after the second closing. However, between the first and third closings, we are required to pay the Buyer a measure of the profits from these operations, while we owned them, adjusted for other charges, and this expense is recognized in Other income/(expense), net in the Consolidated Statements of Income.

During the year ended December 31, 2022, we incurred $10.0 million and $7.7 million of exit costs associated with the suspension of our Russia and Belarus operations and the Business Solutions divestiture, respectively. These exit costs are primarily related to severance and non-cash impairments of property and equipment, an operating lease right-of-use asset, and other intangible assets. During the year ended December 31, 2022, we also incurred $21.8 million of costs associated with our operating expense redeployment program, as ~~further~~ described ~~above.~~above, primarily related to severance and non-cash impairments of an operating lease right-of-use asset and property and equipment. While certain of the above expenses are identifiable to our segments, the expenses are not included in the measurement of segment operating income provided to the Chief Operating Decision Maker (“CODM”) for purposes of performance assessment and resource allocation. These expenses are therefore excluded from our segment operating income results.

The business segment measurements provided to, and evaluated by, our ~~Chief Operating Decision Maker (“CODM”)~~CODM are computed in accordance with the following principles:

•

The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

•

Corporate costs, including ~~stock-based compensation and other~~ overhead expenses, are allocated to the segments primarily based on a percentage of the segments’ revenue compared to total revenue.

•

~~As described in Part II, Item 8,~~ ~~Financial Statements and Supplementary Data,~~ Note 4, Restructuring-Related Expenses, on August 1, 2019, our Board of Directors approved an overall plan to change our operating model and improve our business processes and cost structure by reducing our headcount and consolidating various facilities. For the year ended December 31, 2020, we incurred $36.8 million related to this plan. While certain of these expenses may be identifiable to our segments, primarily our Consumer-to-Consumer segment, the expenses are not included in the measurement of segment operating income provided to the CODM for purposes of assessing segment performance and decision making with respect to resource allocation.

•

All items not included in operating income are excluded from the segments.

The following table sets forth the components of segment revenues as a percentage of the consolidated totals for the years ended December 31, ~~2021~~2022 and ~~2020:~~2021:


	Year Ended December 31,						Year Ended December 31,
	2021			2020			2022			2021
Consumer-to-Consumer		87	%		87	%		89	%		87	%
Business Solutions		8	%		8	%		5	%		8	%
Other		5	%		5	%		6	%		5	%
		100	%		100	%		100	%		100	%

~~Table of Contents~~

Consumer-to-Consumer Segment

The following table sets forth our Consumer-to-Consumer segment results of operations for the years ended December 31, ~~2021~~2022 and ~~2020:~~2021:


	Year Ended December 31,									Year Ended December 31,
(dollars and transactions in millions)	2021			2020			% Change			2022			2021			% Change
Revenues	$	4,394.0		$	4,220.0			4	%	$	3,993.5		$	4,394.0			(9	)%
Operating income	$	977.6		$	924.7			6	%	$	765.1		$	977.6			(22	)%
Operating income margin		22	%		22	%					19	%		22	%
Key indicator:
Consumer-to-Consumer transactions		305.9			290.5			5	%		274.1			305.9			(10	)%

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Our Consumer-to-Consumer money transfer service facilitates money transfers sent from our retail agent locations worldwide and our Branded Digital ~~Money Transfer~~ services. The segment includes five geographic regions whose functions are primarily related to generating, managing, and maintaining agent relationships and localized marketing activities. We include Branded Digital ~~Money Transfer~~ transactions in our regions, including transactions from our arrangements with financial institutions and other third parties to enable such entities to offer money transfer services to their own customers under their brands.regions. By means of common processes and systems, these regions, including Branded Digital, ~~Money Transfer transactions,~~ create one interconnected global network for consumer transactions, thereby constituting one Consumer-to-Consumer money transfer business and one operating segment.

Transaction volume is the primary generator of revenue in our Consumer-to-Consumer segment. A Consumer-to-Consumer transaction constitutes the transfer of funds to a designated recipient utilizing one of our consumer money transfer services. The geographic split for transactions and revenue in the table that follows ~~including Digital Money Transfer transactions,~~ is determined based upon the region where the money transfer is initiated. Included in each region’s transaction and revenue percentages in the tables below are Branded Digital ~~Money Transfer~~ transactions for the years ended December 31, ~~2021~~2022 and ~~2020.~~2021. Where reported separately in the discussion below, Branded Digital ~~Money Transfer, and its subset westernunion.com, consist~~consists of 100% of the transactions conducted and funded through ~~those respective channels.~~that channel.

The table below sets forth revenue and transaction changes by geographic region compared to the prior year. Additionally, due to the significance of our Consumer-to-Consumer segment to our overall results, we have also provided constant currency results for our Consumer-to-Consumer segment revenues. Consumer-to-Consumer segment constant currency revenue growth/(decline) is a non-GAAP financial measure, as further discussed in Revenues Overview above.


													Year Ended December 31, 2022
	Year Ended December 31, 2021																		Constant
							Constant						Revenue						Currency
	Revenue			Foreign			Currency						Growth /			Foreign			Revenue
	Growth			Exchange			Revenue						(Decline)			Exchange			Growth(a) /			Transaction
	as Reported -			Translation			Growth(a) -			Transaction			as Reported -			Translation			(Decline) -			Growth/
	(GAAP)			Impact			(Non-GAAP)			Growth / (Decline)			(GAAP)			Impact			(Non-GAAP)			(Decline)
Consumer-to-Consumer regional growth/(decline):
North America (United States & Canada) ("NA")		1	%		0	%		1	%		(1	)%		(4	)%		0	%		(4	)%		(5	)%
Europe and Russia/CIS ("EU & CIS")		3	%		3	%		0	%		13	%		(20	)%		(5	)%		(15	)%		(25	)%
Middle East, Africa, and South Asia ("MEASA")		4	%		0	%		4	%		10	%		(4	)%		(2	)%		(2	)%		(1	)%
Latin America and the Caribbean ("LACA")		22	%		(2	)%		24	%		9	%		4	%		(3	)%		7	%		5	%
East Asia and Oceania ("APAC")		6	%		3	%		3	%		(7	)%		(13	)%		(4	)%		(9	)%		(12	)%
Total Consumer-to-Consumer growth:		4	%		1	%		3	%		5	%		(9	)%		(3	)%		(6	)%		(10	)%

Digital Money Transfer(b)		22	%		1	%		21	%		32	%
westernunion.com(b)		18	%		1	%		17	%		19	%
Branded Digital(b)														(3	)%		(2	)%		(1	)%		0	%

(a)

Constant currency revenue ~~growth~~growth/(decline) assumes that revenues denominated in foreign currencies are translated to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year.

(b)

As noted above, Branded Digital ~~Money Transfer~~ revenues ~~have been~~are included in the ~~regions above. As noted above, westernunion.com is a subset of Digital Money Transfer and is included in the regions and Digital Money Transfer revenues.~~regions.

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The table below sets forth regional revenues as a percentage of our Consumer-to-Consumer revenue for the years ended December 31, ~~2021~~2022 and ~~2020:~~2021:


	Year Ended December 31,						Year Ended December 31,
	2021			2020			2022			2021
Consumer-to-Consumer revenue as a percentage of segment revenue:
NA		37	%		38	%		40	%		37	%
EU & CIS		32	%		33	%		28	%		32	%
MEASA		15	%		15	%		16	%		15	%
LACA		9	%		8	%		10	%		9	%
APAC		7	%		6	%		6	%		7	%

Branded Digital, ~~Money Transfer,~~ which is included in the regional percentages above, represented approximately ~~24%~~22% and 20% of our Consumer-to-Consumer revenues for the years ended December 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

Our consumers transferred ~~$109.0~~$93.6 billion and ~~$96.1~~$104.1 billion in Consumer-to-Consumer cross-border principal for the years ended December 31, 2022 and 2021, ~~and 2020, of which $104.1 billion and $90.6 billion, respectively, related to cross-border principal.~~respectively. The ~~increase~~decrease in ~~principal and~~ cross-border principal transferred during the year ended December 31, ~~2021~~2022 compared to the prior year is primarily attributable to ~~growth~~a decline in ~~Digital Money Transfer.~~ Consumer-to-Consumer ~~principal is~~transactions, including as a result of the ~~amount~~suspension of ~~consumer funds transferred to~~our operations in Russia and Belarus, as discussed above, as well as fluctuations in exchange rates between the ~~designated recipient. Cross-border~~United States dollar and foreign currencies. Consumer-to-Consumer cross-border principal is the amount of consumer funds transferred to a designated recipient in a country or territory that differs from the country or territory from which the transaction was initiated. Consumer-to-Consumer ~~principal and~~ cross-border principal ~~are metrics~~is a metric used by management to monitor and better understand the growth in our underlying business relative to competitors, as well as changes in our market share of global remittances.

Revenues

Consumer-to-Consumer money transfer revenue ~~increased 4%~~decreased 9% and transactions ~~increased 5%~~decreased 10% for the year ended December 31, ~~2021~~2022 compared to the prior year, including as a result of the impacts from the worldwide actions related to COVID-19. Revenues increased primarily due to continued recovery from the negative impacts of COVID-19 on our prior year results as previously discussed above. For the year ended December 31, 2021 compared to the prior year, transactions and revenues from our Digital Money Transfer services, including from white label partnerships, continued to grow. We believe that our growth in Digital Money Transfer transactions was due in part to ~~shifts~~the suspension of our operations in consumer behavior to send money through digital channels, including as a result of COVID-19. However, this growth rate decelerated throughout the year as a result of the strong growth in Digital Money TransferRussia and Belarus, which negatively impacted Consumer-to-Consumer revenues and transactions ~~we experienced in the prior year. The spread between transaction volumes~~by 2% and ~~revenue was primarily attributable to growth in our digital white label partnerships, which have a lower revenue per transaction than Western Union branded transactions.~~6%, respectively. Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges, ~~positively~~negatively impacted revenue by 1%3% for the year ended December 31, ~~2021~~2022 compared to the prior year. Constant currency revenue ~~increased 3%~~decreased 6% for the year ended December 31, ~~2021.~~2022.

In our Consumer-to-Consumer regions, the ~~increase~~decrease in NA revenue for the year ended December 31, ~~2021~~2022 compared to the prior year was primarily due to ~~cross-border transaction growth, partially offset by declines in transactions sent and received within the United States and~~decreases in transactions sent from and within the United ~~States to Cuba, as these money transfer services have been suspended since the fourth quarter of 2020. T~~heStates. The EU & CIS region experienced ~~strong~~transaction volume and revenue ~~growth~~declines in Russia and ~~transaction volumes for both~~Belarus, France, Germany, and the United Kingdom and was also impacted by promotional pricing. As noted above, our EU & CIS revenues were negatively impacted by our suspension of operations in Russia and ~~MEASA regions continued to benefit from growth~~Belarus in ~~Digital Money Transfer, including white label partnerships. The revenue growth in the LACA region was primarily due to an increase in principal transferred during~~ the year ended December 31, ~~2021, compared~~2022 and will continue to the prior year. Price increases in APAC were offset by transaction declines for the year ended December 31, 2021, compared to the prior year. Digital Money Transfer revenue, including westernunion.com, increased compared to the prior year due to an increase in digital transaction volumes, partially offset by price reductions.be negatively impacted into 2023.

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We have historically implemented price reductions or price increases throughout many of our global corridors. We will likely continue to implement price changes from time to time in response to competition and other factors. Price reductions generally reduce margins and adversely affect financial results in the short term and may also adversely affect financial results in the long term if transaction volumes do not increase sufficiently. Price increases may adversely affect transaction volumes, as consumers may not use our services if we fail to price them appropriately. We believe that revenues could be adversely impacted in connection with promotional pricing we recently implemented for Branded Digital transactions, including those sent from the United States.

Operating Income

Consumer-to-Consumer operating income ~~increased 6%~~decreased 22% during the year ended December 31, ~~2021~~2022 compared to the prior year primarily due to the ~~increase~~decrease in revenues, as discussed above, ~~a reduction~~and increases in ~~credit losses,~~marketing costs and ~~fluctuations~~investments in ~~the United States dollar compared to foreign currencies,~~information technology, partially offset by increases in information technology costs and employee-related expenses, including incentive compensation and as a result of reduced hiring that we implemented in response to COVID-19 in the prior year period, and increasesdecreases in agent commissions, ~~and bank fees,~~ which generally vary with ~~revenues.~~revenues, and decreased employee-related expenses.

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Business Solutions

The following table sets forth our Business Solutions segment results of operations for the years ended December 31, ~~2021~~2022 and ~~2020:~~2021:

Year Ended December 31,

(dollars in millions)

2021

2020

% Change

Revenues

$
421.8

$
356.1

18
%
Operating income

$
95.5

$
24.4

(a)

Operating income margin

23
%

7
%

~~(a)~~

~~Calculation not meaningful.~~


	Year Ended December 31,
(dollars in millions)	2022			2021			% Change
Revenues	$	196.9		$	421.8			(53	)%
Operating income	$	58.5		$	95.5			(39	)%
Operating income margin		30	%		23	%

Revenues

Business Solutions revenue ~~increased 18%~~decreased 53% for the year ended December 31, ~~2021~~2022 compared to the prior year, primarily due to ~~an increase in payment services activity in Europe and North America and increased hedging activity. We believe this increase was due, in part, to~~ the ~~continued recovery from~~first closing of the ~~downturn in economic activity and trade caused by the negative impacts~~sale of ~~COVID-19~~our Business Solutions business, which occurred on ~~our prior year results.~~March 1, 2022, as described further above. Fluctuations in the exchange rates between the United States dollar and foreign currencies ~~positively~~negatively impacted revenue by 4% for the year ended December 31, ~~2021~~2022 compared to the prior ~~year~~.year.

Operating Income

For the year ended December 31, ~~2021,~~2022, Business Solutions operating income and operating income margin ~~increased when compared to~~was impacted by the ~~prior year due to~~first closing of the ~~increase in revenues, as discussed above,~~sale of our Business Solutions business, partially offset by a reduction in depreciation and amortization expenses, including as a result of classifying our Business Solutions business as held for sale in August ~~2021, and~~2021.

Effective January 1, 2022, we stopped allocating corporate costs incurred in the prior year associated with the termination of a property lease in the United States, partially offset by an increase in employee-related expenses, including as a result of reduced hiring that we implemented in response to ~~COVID-19 in the prior year.~~our Business Solutions segment, given our agreement to sell this business.

Other

Other primarily consists of our cash-based bill payment businesses in Argentina and the United States, in addition to our money order services.

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The following table sets forth Other results for the years ended December 31, ~~2021~~2022 and ~~2020:~~2021:


	Year Ended December 31,									Year Ended December 31,
(dollars in millions)	2021			2020			% Change			2022			2021			% Change
Revenues	$	255.0		$	258.9			(1	)%	$	285.1		$	255.0			12	%
Operating income	$	50.0		$	55.0			(9	)%	$	100.8		$	50.0		(a)
Operating income margin		20	%		21	%					35	%		20	%

(a)

Calculation not meaningful.

Revenues

Other ~~revenue decreased 1%~~revenues increased 12% for the year ended December 31, ~~2021~~2022 compared to the prior year primarily due to transaction growth in our cash-based bill payments services offered at retail locations in Argentina, as well as growth in our business-to-consumer payments, partially offset by the strengthening of the United States dollar against the Argentine peso, partially offset by an increase in local currency revenue per transaction, primarily due to inflation, and an increase in transaction volumes in our cash-based bill payment services offered at retail locations.peso.

Operating Income

Other operating income ~~decreased~~increased for the year ended December 31, ~~2021~~2022 compared to the prior year primarily due to ~~an increase in~~increased revenues, the reimbursement of expenses associated with transition services provided after the first closing of the sale of our Business Solutions business, and decreased costs associated with strategic initiatives, including for the review ~~and closing~~ of mergers, acquisitions, and divestitures.

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Capital Resources and Liquidity

Our primary source of liquidity has been cash generated from our operating activities, primarily from net income and fluctuations in working capital. Our working capital is affected by the timing of payments for employee and agent incentives, interest payments on our outstanding borrowings, and timing of income tax payments, among other items. Many of our annual employee incentive compensation and agent incentive payments are made in the first quarter following the year they were incurred. The majority of our interest payments are due in the second and fourth quarters, which results in a decrease in the amount of cash provided by operating activities in those quarters and a corresponding increase to the first and third quarters. The annual payments resulting from the United States tax reform legislation enacted in 2017 (the “Tax Act”) include amounts related to the United States taxation of certain previously undistributed earnings of foreign subsidiaries. These payments are ~~typically~~ due in the second quarter of each year through 2025.

Our future cash flows could be impacted by a variety of factors, some of which are out of our control. These factors include, but are not limited to, changes in economic conditions, especially those impacting migrant populations, ~~and including as a result of COVID-19 related impacts,~~ changes in income tax laws or the status of income tax audits, including the resolution of outstanding tax matters, and the settlement or resolution of legal contingencies.

Substantially all of our cash flows from operating activities have been generated from subsidiaries. Most of these cash flows are generated from our regulated subsidiaries. Our regulated subsidiaries may transfer all excess cash to the parent company for general corporate use, except for assets subject to legal or regulatory restrictions, including: (i) requirements to maintain cash and other qualifying investment balances, free of any liens or other encumbrances, related to the payment of certain of our money transfer and other payment obligations, (ii) other legal or regulatory restrictions, including statutory or formalized minimum net worth requirements, and (iii) restrictions on transferring assets outside of the countries where these assets are located. ~~See also Part II, Item 8,~~ ~~Financial Statements and Supplementary Data, Note 1, Business and Basis of Presentation.~~

We currently believe we have adequate liquidity to meet our business needs, including payments under our debt and other obligations, through our existing cash balances, our ability to generate cash flows through operations, and our $1.5 billion revolving credit facility (“Revolving Credit Facility”), which expires in January 2025 and supports our commercial paper program. Our commercial paper program enables us to issue unsecured commercial paper notes in an amount not to exceed $1.5 billion outstanding at any time, reduced to the extent of any borrowings outstanding on our Revolving Credit Facility. As of December 31, ~~2021,~~2022, we had no outstanding borrowings on our Revolving Credit Facility and ~~$275.0~~$180.0 million of outstanding borrowings on the commercial paper program.

To help ensure availability of our worldwide cash where needed, we utilize a variety of planning and financial strategies, including decisions related to the amounts, timing, and manner by which cash is repatriated or otherwise made available from our international subsidiaries. These decisions can influence our overall tax rate and impact our total liquidity. We regularly evaluate our United States cash requirements, taking tax consequences and other factors into consideration and also the potential uses of cash internationally to determine the appropriate level of dividend repatriations of our foreign source income.

Cash and Investment Securities

As of December 31, ~~2021~~2022 and ~~2020,~~2021, we had Cash and cash equivalents of $1,291.1 million and $1,246.0 million, which includes $5.2 million and $37.7 million related to Business Solutions, ~~and $1,428.2 million,~~ respectively. As described in Part II, Item 8, Financial Statements and Supplementary Data, Note 5, Divestitures, Investment Activities, and Goodwill, we ~~have agreed~~collected the entire cash consideration related to ~~sell~~the sale of our Business Solutions ~~business.~~business, subject to regulatory approval and other closing conditions. We ~~expect that our use~~invested a portion of ~~the net~~these proceeds ~~on the sale, after taxes on the gain from the transaction, will be consistent with our objective to maintain strong liquidity~~temporarily in reverse repurchase agreements, as discussed in Part II, Item 8, Financial Statements and ~~a capital structure consistent with investment-grade credit ratings, as further described below.~~ Supplementary Data, Note 9, Fair Value Measurements.

In many cases, we receive funds from money transfers and certain other payment services before we settle the payment of those transactions. These funds, referred to as Settlement assets on our Consolidated Balance Sheets, are not used to support our operations. However, we earn income from investing these funds. We maintain a portion of these settlement assets in highly liquid investments, classified as Cash and cash equivalents within Settlement assets, to fund settlement obligations.

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Investment securities, classified within Settlement assets on the Consolidated Balance Sheets, were ~~$1,398.9~~$1,333.4 million and ~~$1,990.6~~$1,398.9 million as of December 31, ~~2021~~2022 and ~~2020,~~2021, respectively, and consist primarily of highly-rated state and municipal debt ~~securities, including fixed-rate term notes and variable-rate demand notes. The substantial majority of our~~securities. These investment securities are held in order to comply with state licensing requirements in the United States and are required to have credit ratings of “A-” or better from a major credit rating agency. Refer to Part II, Item 8, Financial Statements and Supplementary Data, Note 8, Settlement Assets and Obligations for more details regarding investment securities.

Investment securities are exposed to market risk due to changes in interest rates and credit risk. We regularly monitor credit risk and attempt to mitigate our exposure by investing in highly-rated securities and diversifying our investment portfolio. Our investment securities are also actively managed with respect to concentration. As of December 31, ~~2021,~~2022, all investments with a single issuer and each individual security represented less than 10% of our investment securities portfolio.

Cash Flows from Operating Activities

~~During~~Cash provided by operating activities for the ~~years~~year ended December 31, ~~2021 and 2020,~~2022 decreased to $581.6 million from $1,045.3 million for the year ended December 31, 2021. Excluding the gain on the sale of the Business Solutions business, as the pre-tax proceeds from this divestiture are reflected in Cash provided by investing activities, net income would have decreased for the year ended December 31, 2022, which resulted in a decrease to cash provided by operating activities. In addition, Cash provided by operating activities for the year ended December 31, 2022 was ~~$1,045.3 million and $877.5 million, respectively.~~negatively impacted by higher income taxes paid, including those related to the gain on the sale of the Business Solutions business. Cash provided by operating activities ~~can be~~is also impacted by ~~changes to our consolidated net income, in addition to~~ fluctuations in our working capital balances, among other factors.

Financing Resources

As of December 31, ~~2021,~~2022, we had the following outstanding borrowings (in millions):


Commercial paper	$	275.0		$	180.0
Notes:
4.250% notes due 2023(a)		300.0			300.0
2.850% notes due 2025(a)		500.0			500.0
1.350% notes due 2026 (effective rate of 1.5%)		600.0
2.750% notes due 2031 (effective rate of 2.9%)		300.0
1.350% notes due 2026(a)					600.0
2.750% notes due 2031(a)					300.0
6.200% notes due 2036(a)		500.0			500.0
6.200% notes due 2040(a)		250.0			250.0
Term loan facility borrowing (effective rate of 1.4%)		300.0
Total borrowings at par value		3,025.0			2,630.0
Debt issuance costs and unamortized discount, net		(16.6	)		(13.2	)
Total borrowings at carrying value(b)	$	3,008.4		$	2,616.8

(a)

The difference between the stated interest rate and the effective interest rate is not significant.

(b)

As of December 31, ~~2021,~~2022, our weighted-average effective rate on total borrowings was approximately ~~3.3%~~3.9%.

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Commercial Paper Program

Pursuant to our commercial paper program, we may issue unsecured commercial paper notes in an amount not to exceed $1.5 billion outstanding at any time, reduced to the extent of borrowings outstanding on our Revolving Credit Facility. Our commercial paper borrowings may have maturities of up to 397 days from date of issuance. Interest rates for borrowings are based on market rates at the time of issuance. As of December 31, ~~2021~~2022 and ~~2020,~~2021, we had ~~$275.0~~$180.0 million and ~~$80.0~~$275.0 million in commercial paper borrowings outstanding, respectively. Our commercial paper borrowings as of December 31, ~~2021~~2022 had a weighted-average annual interest rate of approximately ~~0.2%~~4.6% and a weighted-average term of approximately 53 days. During the years ended December 31, ~~2021~~2022 and ~~2020,~~2021, the average commercial paper balance outstanding was ~~$140.0~~$192.9 million and ~~$181.6~~$140.0 million, respectively, and the maximum balance outstanding was ~~$575.0~~$725.0 million and ~~$690.0~~$575.0 million, respectively. Proceeds from our commercial paper borrowings were used for general corporate purposes and working capital needs.

Revolving Credit Facility

On December 18, 2018, we entered into a credit agreement providing for unsecured financing facilities in an aggregate amount of $1.5 billion, including a $250.0 million letter of credit ~~sub-facility. On December 18, 2019, we extended the~~sub-facility, with a final maturity date of ~~the~~January 8, 2025. On October 31, 2022, we amended our Revolving Credit Facility to ~~January 8, 2025.~~transition away from the London Interbank Offered Rate and allow us to draw loans payable based upon the Secured Overnight Financing Rate, the Euro Interbank Offered Rate, or the Sterling Overnight Index Average.

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Interest due under the Revolving Credit Facility is fixed for the term of each borrowing and is payable according to the terms of that borrowing. Generally, interest is calculated using a selected ~~LIBOR~~term benchmark rate plus an interest rate margin of 110 basis points. A facility fee is also payable quarterly at an annual rate of 15 basis points on the total facility, regardless of usage. Both the interest rate margin and facility fee percentage are based on certain of our credit ratings.

The purpose of our Revolving Credit Facility, which is diversified through a group of 19 participating institutions, is to provide general liquidity and to support our commercial paper program, which we believe enhances our short-term credit rating. The largest commitment from any single financial institution within the total committed balance of $1.5 billion is approximately 11%. As of December 31, ~~2021~~2022 and ~~2020,~~2021, we had no outstanding borrowings under our Revolving Credit Facility. If the amount available to borrow under the Revolving Credit Facility decreased, or if the Revolving Credit Facility were eliminated, the cost and availability of borrowing under the commercial paper program may be impacted.

Term Loan Facility

On December 18, 2018, we ~~extended the Term Loan Facility providing for~~entered into an ~~unsecured delayed draw~~amended and restated term loan facility providing for up to $950.0 million in ~~an aggregate amount~~borrowings and extending the final maturity of ~~$950.0 million. In October 2016, we borrowed $575.0 million under our prior term loan facility. In December 2018, we borrowed~~ the ~~remaining amount available under the Term~~facility to January 2024 (the "Term Loan ~~Facility.~~Facility"). In the first quarter of 2021, ~~proceeds from the 2026 Notes and the 2031 Notes (as defined below), and cash, including cash generated from operations, were used to repay~~we repaid $650.0 million of the Term Loan Facility. On January 4, 2022, we repaid all remaining borrowings owed under the Term Loan Facility for total consideration of $300.0 million, using proceeds from our commercial paper and cash, including cash generated from operations. We are no longer able to borrow money under this facility.

Notes

~~On March 9, 2021, we issued $600.0 million~~For a discussion regarding the terms and $300.0 million of aggregate principal amount of 1.350% and 2.750% unsecured notes due March 15, 2026 (“2026 Notes”) and March 15, 2031 (“2031 Notes”), respectively. We used the net proceeds from the salematurities of our ~~2026 Notes~~notes, please refer to Part II, Item 8, Financial Statements and 2031 Notes to pay down our 2022 Notes (as defined below) and a portion of our Term Loan Facility. Interest with respect to these notes is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. If a change of control triggering event occurs, holders of the 2026 Notes and 2031 Notes may require us to repurchase some or all of their notes at a price equal to 101% of the principal amount of their notes, plus any accrued and unpaid interest. We may redeem the 2026 Notes and the 2031 Notes, in whole or in part, at any time prior to February 15, 2026 and December 15, 2030, respectively, at the greater of par or a price based on the applicable treasury rate plus 15 and 25 basis points, respectively. We may redeem the 2026 Notes and the 2031 Notes at any time after February 15, 2026 and December 15, 2030, respectively, at a price equal to par, plus accrued interest.Supplementary Data,

On November 25, 2019, we issued $500.0 million of aggregate principal amount of unsecured notes due January 10, 2025 (“2025 Notes”). We used the net proceeds from the sale of the 2025 Notes to redeem our 2020 Notes, as defined below, and for general corporate purposes. Interest with respect to the 2025 Notes is payable semi-annually in arrears on January 10 and July 10 of each year, beginning on July 10, 2020, based on the per annum rate of 2.850%. The interest rate payable on the 2025 Notes will be increased if the debt rating assigned to these notes is downgraded by an applicable credit rating agency, beginning at a downgrade below investment grade. However, in no event will the interest rate on the 2025 Notes exceed 4.850% per annum. The interest rate payable on the 2025 Notes may also be adjusted downward for debt rating upgrades subsequent to any debt rating downgrades but may not be adjusted below 2.850% per annum. We may redeem the 2025 Notes, in whole or in part, at any time prior to December 10, 2024 at the greater of par or a price based on the applicable treasury rate plus 20 basis points. We may redeem the 2025 Notes at any time after December 10, 2024 at a price equal to par, plus accrued interest.

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On June 11, 2018, we issued $300.0 million of aggregate principal amount of unsecured notes due June 9, 2023 (“2023 Notes”). Interest with respect to the 2023 Notes is payable semi-annually in arrears on June 9 and December 9 of each year, beginning on December 9, 2018, based on the per annum rate of 4.250%. The interest rate payable on the 2023 Notes will be increased if the debt rating assigned to these notes is downgraded by an applicable credit rating agency, beginning at a downgrade below investment grade. However, in no event will the interest rate on the 2023 Notes exceed 6.250% per annum. The interest rate payable on the 2023 Notes may also be adjusted downward for debt rating upgrades subsequent to any debt rating downgrades but may not be adjusted below 4.250% per annum. We may redeem the 2023 Notes, in whole or in part, at any time prior to May 9, 2023 at the greater of par or a price based on the applicable treasury rate plus 25 basis points. We may redeem the 2023 Notes at any time after May 9, 2023 at a price equal to par, plus accrued interest.

On August 22, 2017, we issued $250.0 million of aggregate principal amount of unsecured floating rate notes due May 22, 2019 (“Floating Rate Notes”). The Floating Rate Notes were repaid in May 2019 using proceeds from the Speedpay divestiture, commercial paper, and cash, including cash generated from operations.

On March 15, 2017, we issued $400.0 million of aggregate principal amount of unsecured notes due March 15, 2022. On August 22, 2017, we issued an additional $100.0 million of aggregate principal amount of unsecured notes due March 15, 2022, for an aggregate principal total of $500.0 million of 3.600% unsecured notes (“2022 Notes”). The 2022 Notes were repaid in April 2021 using proceeds from the 2026 Notes and the 2031 Notes.

On November 22, 2013, we issued $250.0 million of aggregate principal amount of unsecured notes due May 22, 2019 (“2019 Notes”). The 2019 Notes were repaid in May 2019 using proceeds from the Speedpay divestiture, commercial paper, and cash, including cash generated from operations.

On June 21, 2010, we issued $250.0 million of aggregate principal amount of unsecured notes due June 21, 2040 (“2040 Notes”). Interest with respect to the 2040 Notes is payable semi-annually on June 21 and December 21 each year based on the fixed per annum rate of 6.200%. We may redeem the 2040 Notes at any time prior to maturity at the greater of par or a price based on the applicable treasury rate plus 30 basis points.

On March 30, 2010, we exchanged $303.7 million of aggregate principal amount of unsecured notes due November 17, 2011 for unsecured notes due April 1, 2020 (“2020 Notes”). Interest with respect to the 2020 Notes was payable semi-annually on April 1 and October 1 each year based on the fixed per annum rate of 5.253%. In connection with the exchange, note holders were given a 7% premium ($21.2 million), which approximated market value at the exchange date, as additional principal. As this transaction was accounted for as a debt modification, this premium was not charged to expense. Rather, the premium, along with the offsetting hedge accounting adjustments, was accreted into Interest expense over the life of the notes. On November 18, 2019, we announced a cash tender offer on our outstanding 2020 Notes. On November 25, 2019, we purchased the principal amount of $56.1 million, plus accrued interest, pursuant to the tender offer. On December 27, 2019, we redeemed the remaining principal amount of $268.8 million, plus accrued interest. The total premium paid to redeem the 2020 Notes was $3.1 million.

On November 17, 2006, we issued $500.0 million of aggregate principal amount of unsecured notes due November 17, 2036 (“2036 Notes”). Interest with respect to the 2036 Notes is payable semi-annually on May 17 and November 17 each year based on the fixed per annum rate of 6.200%. We may redeem the 2036 Notes at any time prior to maturity at the greater of par or a price based on the applicable treasury rate plus 25 basis points.Note 16, Borrowings.

Credit Ratings and Debt Covenants

The credit ratings on our debt are an important consideration in our overall business, managing our financing costs, and facilitating access to additional capital on favorable terms. Factors that we believe are important in assessing our credit ratings include earnings, cash flow generation, leverage, available liquidity, and the overall business.

Our Revolving Credit Facility contains interest rate margins which are determined based on certain of our credit ratings and also contains a facility fee that is based on our credit ratings. In addition, the interest rates payable on our notes due in 2023, ~~Notes,~~ 2025, ~~Notes,~~ 2026, ~~Notes,~~ and 2031 ~~Notes~~ can be impacted by our credit ratings. We are also subject to certain provisions in many

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of our notes and certain of our derivative contracts, which could require settlement or collateral posting in the event of a change in control combined with a downgrade below investment grade, as further described below. We do not have any other terms within our debt agreements that are tied to changes in our credit ratings.

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The Revolving Credit Facility contains covenants, subject to certain exceptions, that, among other things, limit or restrict our ability to sell or transfer assets or merge or consolidate with another company, grant certain types of security interests, incur certain types of liens, impose restrictions on subsidiary dividends, enter into sale and leaseback transactions, incur certain subsidiary level indebtedness, or use proceeds in violation of anti-corruption or anti-money laundering laws. Our notes are subject to similar covenants except that only the notes due in 2036 ~~Notes~~ contain covenants limiting or restricting subsidiary indebtedness, and none of our notes are subject to a covenant that limits our ability to impose restrictions on subsidiary dividends. Our Revolving Credit Facility requires us to maintain a consolidated adjusted Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA") interest coverage ratio of greater than 3:1 (ratio of consolidated adjusted EBITDA, defined as net income/(loss) plus the sum of (i) interest expense, (ii) income tax expense, (iii) depreciation expense, (iv) amortization expense, (v) any other non-cash deductions, losses or charges made in determining net income/(loss) for such period, and (vi) extraordinary, non-recurring, or unusual losses or charges (including costs and expenses of litigation included in operating income), minus extraordinary, non-recurring or unusual gains provided that the amount added back to net income (or net loss) for such extraordinary, non-recurring or unusual losses, expenses or charges may not exceed 10% of adjusted EBITDA, in each case determined in accordance with United States generally accepted accounting principles for such period, to interest expense) for each period comprising the four most recent consecutive fiscal quarters. Our consolidated interest coverage ratio was ~~13:~~11:1 for the year ended December 31, ~~2021.~~2022.

For the year ended December 31, ~~2021,~~2022, we were in compliance with our debt covenants. A violation of our debt covenants could impair our ability to borrow, and outstanding amounts borrowed could become due, thereby restricting our ability to use our excess cash for other purposes.

Certain of our notes (including ~~the~~our notes due in 2023, ~~Notes,~~ 2025, ~~Notes,~~ 2026, ~~Notes,~~ 2031, ~~Notes,~~ and ~~2040 Notes)~~2040) include a change of control triggering event provision, as defined in the terms of the notes. If a change of control triggering event occurs, holders of the notes may require us to repurchase some or all of their notes at a price equal to 101% of the principal amount of their notes, plus any accrued and unpaid interest. A change of control triggering event will occur when there is a change of control involving us and, among other things, within a specified period in relation to the change of control, the notes are downgraded from an investment grade rating to below an investment grade rating by certain major credit rating agencies.

Cash Priorities

Liquidity

Our objective is to maintain strong liquidity and a capital structure consistent with investment-grade credit ratings. We have existing cash balances, cash flows from operating activities, access to the commercial paper markets, and our Revolving Credit Facility available to support the needs of our business.

Our ability to grow the business, make investments in our business, make acquisitions, return capital to shareholders, including through dividends and share repurchases, and service our debt and tax obligations will depend on our ability to continue to generate excess operating cash through our operating subsidiaries and to continue to receive dividends from those operating subsidiaries, our ability to obtain adequate financing, and our ability to identify acquisitions that align with our long-term strategy. For additional information, please refer to Part II, Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

~~Investment in Saudi Digital Payments Company~~

We entered into an agreement in November 2020, which was subsequently amended, to acquire an ownership interest in stc Bank (formerly Saudi Digital Payments Company), a subsidiary of Saudi Telecom Company and one of our Consumer-to-Consumer digital white label partners. Under the terms of the amended agreement, we agreed to invest $200.0 million for a 15% ownership in stc Bank, and this transaction closed in October 2021.

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Capital Expenditures

The total aggregate amount paid for contract costs, purchases of property and equipment, and purchased and developed software was $208.2 million and $214.6 million in 2022 and ~~$156.8 million in~~ 2021, ~~and 2020,~~ respectively. Amounts paid for new and renewed agent contracts vary depending on the terms of existing contracts as well as the timing of new and renewed contract signings. Other capital expenditures during these periods included investments in our information technology ~~infrastructure and purchased and developed software.~~infrastructure.

Share Repurchases and Dividends

During the years ended December 31, 2022 and 2021, ~~and 2020, 19.5~~22.3 million and ~~8.5~~19.5 million shares, respectively, have been repurchased for ~~$400.0~~$351.8 million and ~~$217.4~~$400.0 million, respectively, excluding commissions, at an average cost of ~~$20.56~~$15.81 and ~~$25.45,~~$20.56, respectively, under the share repurchase ~~authorization~~authorizations approved by our Board of Directors, including one which expired on December 31, 2021. On February 10, 2022, our Board of Directors authorized $1.0 billion of common stock repurchases through December 31, 2024. As of December 31, 2022, $648.2 million remained available under this share repurchase program.

Our Board of Directors declared quarterly cash dividends of $0.235 per common share in all four quarters of 2022 and 2021, representing $361.6 million and $380.5 million in total ~~dividends. Our Board of Directors declared quarterly cash~~ dividends, ~~of $0.225 per common share in all four quarters of 2020, representing $369.9 million in total dividends.~~respectively. These amounts were paid to shareholders of record in the respective quarter the dividend was declared.

On February ~~10, 2022,~~7, 2023, the Board of Directors declared a quarterly cash dividend of $0.235 per common share payable on March 31, ~~2022.~~2023.

Material Cash Requirements

Debt Service Requirements

~~Our 2022 and future debt service requirements~~Notes with an aggregate principal amount of $300.0 million will ~~include payments on all outstanding indebtedness, including any borrowings under our~~mature in June 2023. We may repay this maturity through proceeds from commercial paper ~~program. Refer to Part II, Item 8,~~ issuance and cash, including cash generated from operations, or we may refinance this maturity through the issuance of term debt.~~Financial Statements and Supplementary Data,~~

~~Note 16, Borrowings for details on our outstanding borrowings, including future principal payments on our notes, and commercial paper.~~ As of December 31, ~~2021,~~2022, the total projected interest payments on ~~our~~outstanding borrowings were ~~$935.6~~$845.7 million, of which ~~$89.9~~$83.5 million is expected to be paid in the next 12 months. We have estimated our future interest payments based on the assumption that no debt issuances or renewals will occur upon the maturity dates of our notes. However, we may refinance all or a portion of our borrowings in future periods. ~~Estimated interest payments on floating-rate debt are calculated by utilizing the effective rate and forward rates as of December 31, 2021 for our current and future interest rates, respectively.~~

2017 United States Federal Tax Liability

The Tax Act imposed a tax on certain of our previously undistributed foreign earnings. This tax charge, combined with our other 2017 United States taxable income and tax attributes, resulted in a 2017 United States federal tax liability of approximately $800 million, of which approximately ~~$541~~$478 million remained as of December 31, ~~2021.~~2022. We ~~have~~ elected to pay this liability in periodic installments through 2025. Under the terms of the law, we owe 8%15% of the original liability in ~~2022,~~2023, with ~~15%,~~ 20%, and 25% of the tax owed in ~~2023,~~ 2024 and 2025, respectively. During the years ended December 31, ~~2021~~2022 and ~~2020,~~2021, we made installment payments of ~~$63.4~~$63.7 million and ~~$64.0~~$63.4 million, respectively. These payments have affected and will continue to adversely affect our cash flows and liquidity and may adversely affect future share repurchases.

Operating Leases

We lease real properties for use as administrative and sales offices, in addition to transportation, office, and other equipment. Refer to Part II, Item 8, Financial Statements and Supplementary Data, Note 13, Leases for details on our leasing arrangements, including future maturities of our operating lease liabilities.

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Foreign Currency Derivative Contracts

We use derivatives to minimize our exposures related to changes in foreign currency exchange rates, which fluctuate based on market conditions. Refer to Part II, Item 8, Financial Statements and Supplementary Data, Note 15, Derivatives. The substantial majority of these derivative contracts relate to our Business Solutions segment, which facilitates cross-currency payments by writing derivatives to customers, and a majority of these derivative contracts have a duration at inception of less than one year.

Purchase Obligations

A purchase obligation is an agreement to purchase goods or services that is enforceable, legally binding, and specifies all significant terms. As of December 31, ~~2021,~~2022, we had approximately ~~$310~~$240 million of outstanding purchase obligations, of which approximately ~~$160~~$140 million is expected to be paid in the next 12 months. Many of our contracts contain clauses that allow us to terminate the contract with notice and with a termination penalty. Termination penalties are generally an amount less than the original obligation. Obligations under certain contracts are usage-based and are, therefore, estimated in the above amounts. Historically, we have not had any significant defaults on our contractual obligations or incurred significant penalties for termination of our contractual obligations.

We have no material off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources.

Pension Plan

We had a frozen defined benefit pension plan (the “Plan”), for which the funded status was measured as the difference between the fair value of the plan assets and the projected benefit obligation. We were not required to and did not make material contributions to the Plan in either 2021 or 2020.

On July 22, 2021, our Board of Directors approved a plan to terminate and settle ~~the Plan.~~our frozen defined benefit pension plan (the "Plan"). Upon settlement in the fourth quarter of 2021, we transferred Plan assets to an insurance company that will provide for and pay the remaining benefits to participants. We incurred approximately $109.8 million of charges associated with this ~~settlement.~~settlement in the prior year. The pre-tax balance in Accumulated other comprehensive loss associated with the Plan, along with costs related to the settlement, were recorded as a component of Total other income/(expense), net, with the related income tax effects recorded in Provision for income taxes, in the Consolidated Statements of Income. As of December 31, 2021, we had $18.4 million of restricted cash and $11.9 million of investments remaining from the settlement, which are included in Other assets in the Consolidated Balance Sheets. These assets will be used to fund contributions to our defined contribution plan in future periods.

Other Commercial Commitments

We had approximately ~~$450~~$390 million in outstanding letters of credit and bank guarantees as of December 31, ~~2021~~2022 primarily held in connection with ~~safeguarding consumer funds,~~regulatory requirements, lease arrangements, and certain agent agreements. We expect to renew many of our letters of credit and bank guarantees prior to ~~expiration, while certain letters of credit will be terminated, released, or transferred as a result of the sale of our Business Solutions business.~~expiration.

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Critical Accounting Policies and Estimates

Management’s discussion and analysis of results of operations and financial condition is based on our consolidated financial statements that have been prepared in accordance with ~~generally accepted accounting principles in the United States of America.~~GAAP. The preparation of these consolidated financial statements requires that management make estimates and assumptions that affect the amounts reported for revenues, expenses, assets, liabilities, and other related disclosures. Actual results may or may not differ from these estimates. Our significant accounting policies are discussed in Part II, Item 8, Financial Statements and Supplementary Data, Note 2, Summary of Significant Accounting Policies.

Our critical accounting policies and estimates, described below, are very important to the portrayal of our financial condition and our results of operations, and applying them requires our management to make difficult, subjective, and complex judgments. We believe that the understanding of these key accounting policies and estimates is essential in achieving more insight into our operating results and financial condition.

Income Taxes

Income taxes, as reported in our consolidated financial statements, represent the net amount of income taxes we expect to pay to various taxing jurisdictions in connection with our operations. We provide for income taxes based on amounts that we believe we will ultimately owe after applying the required analyses and judgments.

The determination of our worldwide provision for income taxes requires significant judgment. We routinely receive, and may in the future receive, questions from taxing authorities on various tax-related assertions. In many of these instances, the ultimate tax determination is uncertain, given the complexities in interpreting tax laws and applying our facts and circumstances to these laws in many jurisdictions throughout the world.

~~Income Tax Contingencies~~

We recognize the tax benefit from an uncertain tax position only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution.

We have established contingency reserves for a variety of material, known tax exposures. Our tax reserves reflect our judgment as to the resolution of the issues involved if subject to judicial review or other settlement. While we believe that our 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 our related reserve. With respect to these reserves, our 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 during the period and (ii) any difference from our tax position as recorded in the consolidated financial statements and the final resolution of a tax issue during the period.

Our tax contingency reserves for our uncertain tax positions as of December 31, ~~2021~~2022 were ~~$318.6~~$237.2 million, including accrued interest and penalties, net of related items. While we believe that our reserves are adequate to cover reasonably expected tax risks, in the event that the ultimate resolution of our uncertain tax positions differs from our estimates, we may be exposed to material increases in income tax expense, which could materially impact our financial condition, results of operations, and cash flows. Furthermore, the timing of any related cash payments for these tax liabilities is inherently uncertain and is affected by variable factors outside our control.

Derivative Financial Instruments

We have used derivatives to: (i) minimize our exposures related to changes in foreign currency exchange rates and, periodically, interest rates and (ii) facilitate cross-currency Business Solutions payments by writing derivatives to customers. We recognize all derivatives in ~~Other assets and Other liabilities in~~ our Consolidated Balance Sheets at their fair value. Certain of our derivative arrangements are designated as ~~either~~ cash flow ~~hedges or fair value~~ hedges at the time of inception ~~and others~~while those that do not qualify for cash flow hedge accounting are not designated as accounting hedges.

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~~Cash flow hedges~~ - Cash flow hedges consist of foreign currency hedging of forecasted revenues, as well as hedges of the forecasted issuance of fixed-rate debt. Derivative fair value changes that are captured in Accumulated other comprehensive loss

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("AOCL") are reclassified to earnings in the same period the hedged item affects earnings when the instrument is effective in offsetting the change in cash flows attributable to the risk being hedged.

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~~Fair value hedges~~ - Fair value hedges consist of hedges of fixed-rate debt, through interest rate swaps. Changes in the fair value of these hedges, along with offsetting changes in the fair value of the related debt instrument attributable to changes in the benchmark interest rate, are recorded in Interest expense.

The accounting guidance related to derivative accounting is complex and contains strict documentation requirements. The details of each designated hedging relationship must be formally documented at the inception of the arrangement, including the risk management objective, hedging strategy, hedged item, specific risks being hedged, the derivative instrument, and how effectiveness is being assessed. The derivative must be highly effective in offsetting the changes in cash flows ~~or fair value~~ of the hedged item, and effectiveness is evaluated quarterly on a retrospective and prospective basis. If the hedge is no longer deemed effective, we discontinue applying hedge accounting to that relationship on a prospective basis.

We have foreign currency and interest rate ~~derivative instruments~~accounting hedges that ~~qualify for hedge accounting and~~ are designated as cash flow hedges. If these hedges no longer qualify under hedge accounting, the change in the fair value of these derivatives would be reflected into earnings, which could have a significant impact on our reported results. As of December 31, ~~2021,~~2022, the cumulative pre-tax unrealized gain currently classified within AOCL that would be reflected in earnings if these hedges were disqualified from hedge accounting was ~~$24.3~~$26.0 million.

Goodwill

Goodwill represents the excess of purchase price over the fair value of tangible and other intangible assets acquired less liabilities assumed, arising from business combinations. An impairment assessment of goodwill is conducted annually during our fourth quarter at the reporting unit level. This assessment of goodwill is performed more frequently if events or changes in circumstances indicate that the carrying value of the goodwill may not be recoverable. Reporting units are determined by the level at which management reviews segment operating results. In some cases, that level is the operating segment, and in others, it is one level below the operating segment.

Our impairment assessment typically begins with a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. The initial qualitative assessment includes comparing the overall financial performance of the reporting unit against the planned results. Additionally, each reporting unit’s fair value is assessed under certain events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity-specific events. Periodically, we perform a quantitative assessment, as described below, for each of our reporting units, regardless of the results of prior qualitative assessments.

If we determine in the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we estimate the fair value of the reporting unit using discounted cash flows and compare the estimated fair value to its carrying value. If the carrying value exceeds the fair value of the reporting unit, then an impairment is recognized for the difference. Refer to Part II, Item 8, Financial Statements and Supplementary Data, Note 2, Summary of Significant Accounting Policies, for further discussion regarding our accounting policies for goodwill and any related impairments.

The determination of the reporting units and which reporting units to include in the qualitative assessment requires significant judgment. Also, all of the assumptions used in the qualitative assessment require judgment. Additionally, for the quantitative goodwill impairment test, we calculate the fair value of reporting units through discounted cash flow analyses which require us to make estimates and assumptions including, among other items, revenue growth rates, operating margins, and capital expenditures based on our budgets and business plans. Development of such estimates and assumptions and the resultant fair value takes into consideration expected regulatory, marketplace, and other economic factors as well as relevant discount rates and terminal values.

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We could be required to evaluate the recoverability of goodwill if we experience disruptions to the business, unexpected significant declines in operating results, a divestiture of a significant component of our business, or other triggering events. In addition, as our business or the way we manage our business changes, our reporting units may also change. If an event described above occurs and causes us to recognize a goodwill impairment charge, it would impact our reported earnings in the period such charge occurs.

The carrying value of goodwill as of December 31, ~~2021~~2022 was ~~$2,566.6~~$2,096.0 million, which represented approximately ~~29%~~25% of our consolidated assets. As of December 31, ~~2021,~~2022, goodwill of $1,980.7 million and ~~$532.0~~$61.4 million resides in our Consumer-to-Consumer and Business Solutions reporting units, respectively, while the remaining $53.9 million resides in

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Other. For the years ended December 31, ~~2021~~2022 and ~~2020,~~2021, we did not record any goodwill impairments. For the reporting units that comprise Consumer-to-Consumer and Other, the fair values of the businesses significantly exceed their carrying amounts. On August 4, 2021, we entered into an agreement to sell our Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC, ~~for $910 million~~and this business is expected to be fully divested in ~~cash,~~the second quarter of 2023, as described in Part II, Item 8, Financial Statements and Supplementary Data, Note 5, Divestitures, Investment Activities, and ~~we expect to recognize a gain upon completion of the sale in 2022.~~Goodwill. As of December 31, ~~2021,~~2022, the goodwill related to the Business Solutions reporting unit is included in Assets held for sale on the Consolidated Balance Sheets.

Other Intangible Assets

We capitalize acquired intangible assets as well as certain initial payments for new and renewed agent contracts and software. We evaluate such intangible assets for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. In such reviews, estimated undiscounted cash flows associated with these assets or operations are compared with their carrying amounts to determine if a write-down to fair value (normally measured by the present value technique) is required.

The capitalization of initial payments for new and renewed agent contracts is subject to strict accounting policy criteria and requires management judgment as to the amount to capitalize and the related period of benefit. Our accounting policy is to limit the amount of capitalized costs for a given agent contract to the lesser of the estimated future cash flows from the contract or the termination fees we would receive in the event of early termination of the contract. Additionally, the estimated undiscounted cash flows associated with each asset requires us to make estimates and assumptions, including, among other things, revenue growth rates and operating margins based on our budgets and business plans.

Disruptions to contractual relationships, significant declines in cash flows or transaction volumes associated with contracts, or other issues significantly impacting the future cash flows associated with the contract would cause us to evaluate the recoverability of the asset and could result in an impairment charge. The net carrying value of our other intangible assets as of December 31, ~~2021~~2022 was ~~$467.5~~$459.3 million and includes ~~$50.4~~$1.4 million of other intangibles related to the Business Solutions business, which is classified as held for sale. During the years ended December 31, ~~2021~~2022 and ~~2020,~~2021, we recorded immaterial impairments related to other intangible assets.

~~Legal Contingencies~~

We are subject to certain claims and litigation that could result in losses, including damages, fines, and/or civil penalties, which could be significant, and in some cases, criminal charges. We regularly evaluate the status of legal matters to assess whether a loss is probable and reasonably estimable in determining whether an accrual is appropriate. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we accrue a liability for the estimated loss. When a potential loss is considered probable and the reasonable estimate is a range, we accrue on the low end of the range when no amount is a better estimate than any other amount.

Significant judgment is required in determining whether a loss is probable and whether the loss can be reasonably estimated, including determining a loss value within a range. Our judgments are subjective and are based on considerations such as the status of the legal or regulatory proceedings, the merits of our defenses, and consultations with in-house and outside legal counsel. As the outcome of claims and litigation is uncertain, accruals are based on the best information available at the time the judgment is made. As additional information becomes available, which may include information we learn through the discovery process, settlement discussions, or rulings by courts, arbitrators, or others, we reassess the potential liability related to pending claims and litigation and may revise our estimates.

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In determining whether disclosure is appropriate, we evaluate each legal matter to assess if there is at least a reasonable possibility that a material loss or additional material losses may have been incurred beyond those amounts which we have already accrued. If such a reasonable possibility exists, we include an estimate of possible loss or range of loss in our disclosure of reasonably possible potential litigation losses, or we state if such an estimate of possible loss or range of loss cannot be made.

Due to the inherent uncertainties of the legal and regulatory process in the multiple jurisdictions in which we operate, and to the varied range of potential outcomes, the actual outcomes may differ materially from our judgments.

Recent Accounting Pronouncements

Refer to Part II, Item 8, Financial Statements and Supplementary Data, Note 2, Summary of Significant Accounting Policies for further discussion.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks arising from changes in market rates and prices, including changes in foreign currency exchange rates and interest rates and credit risk related to our agents and customers. A risk management program is in place to manage these risks.

Foreign Currency Exchange Rates

We provide our services primarily through a network of agent locations in more than 200 countries and territories. We manage foreign exchange risk through the structure of the business and an active risk management process. We currently settle with the ~~substantial~~significant majority of our agents in United States dollars, Mexican pesos, or euros, requiring those agents to obtain local currency to pay recipients, and we generally do not rely on international currency markets to obtain and pay illiquid currencies. However, in certain circumstances, we settle in other currencies. The foreign currency exposure that does exist is limited by the fact that the majority of transactions are paid by the next day after they are initiated, and agent settlements occur within a few days in most instances. To mitigate this risk further, we enter into short duration foreign currency forward contracts, generally with maturities ranging from a few days up to one month, to offset foreign exchange rate fluctuations between transaction initiation and settlement. We also have exposure to certain foreign currency denominated cash and other asset and liability positions and may utilize foreign currency forward contracts, typically with maturities of less than one year at inception, to offset foreign exchange rate fluctuations on these positions. In certain consumer money transfer and bill payment ~~and Business Solutions~~ transactions involving different send and receive currencies, we generate revenue based on the difference between the exchange rate set by us to the consumer or business and ~~the~~a rate available in the wholesale foreign exchange market, helping to provide protection against currency fluctuations. We attempt to promptly buy and sell foreign currencies as necessary to cover our net payables and receivables which are denominated in foreign currencies.

We use longer-term foreign currency forward contracts to help mitigate risks associated with changes in foreign currency exchange rates on revenues denominated primarily in the euro, and, to a lesser degree, the British pound, the Canadian dollar, and other currencies. We use contracts with maturities of up to 36 months at inception to mitigate some of the impact that changes in foreign currency exchange rates could have on forecasted revenues, with a targeted weighted-average maturity of approximately one year. We believe the use of longer-term foreign currency forward contracts provides predictability of future cash flows from our international operations.

As of December 31, ~~2021,~~2022, a hypothetical uniform 10% strengthening or weakening in the value of the United States dollar relative to all other currencies in which our net income is generated would have resulted in a decrease/increase to pre-tax annual income of approximately ~~$50~~$40 million, based on our forecast of unhedged exposure to foreign currency at that date. There are inherent limitations in this sensitivity analysis, primarily due to the following assumptions: (i) foreign exchange rate movements are linear and instantaneous, (ii) fixed exchange rates between certain currency pairs are retained, (iii) the unhedged exposure is static, and (iv) we would not hedge any additional exposure. As a result, the analysis is unable to reflect the potential effects of more complex market changes that could arise, which may positively or negatively affect income.

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Interest Rates

We invest in several types of interest-bearing assets, with a total value as of December 31, ~~2021~~2022 of approximately ~~$2.9~~$2.7 billion. Approximately $1.6 billion of these assets bear interest at floating rates. These assets primarily include cash in banks, money market ~~instruments, and~~investments, state and municipal variable-rate securities, and reverse repurchase agreements and are included in our Consolidated Balance Sheets within Cash and cash equivalents, Settlement assets, and ~~Settlement~~Other assets. To the extent these assets are held in connection with money transfers and other related payment services awaiting redemption, they are classified as Settlement assets. Earnings on these investments will increase and decrease with changes in the underlying short-term interest rates.

The ~~remainder of our~~remaining interest-bearing assets pay fixed interest rates and primarily ~~consists~~consist of highly-rated state and municipal debt securities ~~which are fixed-rate term notes.~~and asset-backed securities. These investments may include investments made from cash received from our money order services, money transfer business, and other related payment services awaiting redemption and are classified within Settlement assets in the Consolidated Balance Sheets. As interest rates rise, the fair value of these fixed-rate interest-bearing securities will decrease; conversely, a decrease to interest rates would result in an increase to the fair values of the

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securities. We have classified these investments as available-for-sale within Settlement assets in the Consolidated Balance Sheets, and accordingly, recorded these instruments at their fair value with the net unrealized gains and losses, net of the applicable deferred income tax effect, being added to or deducted from our Total stockholders' equity in our Consolidated Balance Sheets.

As of December 31, 2021, we had a total of $300.0 million of borrowings under our term loan that were subject to floating interest rates. The interest on these borrowings was calculated using a selected LIBOR rate plus an interest rate margin of 125 basis points. On January 4, 2022, we repaid all remaining borrowings owed under the Term Loan Facility. Borrowings under our commercial paper program mature in such a short period that the financing is also effectively floating rate. As of December 31, ~~2021,~~2022, there were ~~$275.0~~$180.0 million in outstanding borrowings under our commercial paper program.

We review our overall exposure to floating and fixed rates by evaluating our net asset or liability position and the duration of each individual position. We manage this mix of fixed versus floating exposure in an attempt to minimize risk, reduce costs, and improve returns. Our exposure to interest rates can be modified by changing the mix of our interest-bearing assets as well as adjusting the mix of fixed versus floating rate debt. The latter is accomplished primarily through the use of interest rate swaps and the decision regarding terms of any new debt issuances (i.e., fixed versus floating). From time to time, we use interest rate swaps designated as hedges to vary the percentage of fixed to floating rate debt, subject to market ~~conditions.~~conditions, although there were no such swaps outstanding as of December 31, 2022. As of December 31, ~~2021,~~2022, our weighted-average effective rate on total borrowings was approximately ~~3.3%~~3.9%. ~~For further detail on our variable rate borrowings, see risk factor “We have substantial debt and other obligations that could restrict our operations” in Part I, Item 1A,~~ ~~Risk Factors~~.

A hypothetical 100 basis point increase/decrease in interest rates would result in a decrease/increase to annual pre-tax income of approximately $6$2 million based on borrowings that are sensitive to interest rate fluctuations, net of the impact of hedges, on December 31, ~~2021.~~2022. The same 100 basis point increase/decrease in interest rates, if applied to our cash and investment balances on December 31, ~~2021~~2022 that bear interest at floating rates, would result in an offsetting increase/decrease to annual pre-tax income of approximately $16 million. There are inherent limitations in the sensitivity analysis presented, primarily due to the assumptions that interest rate changes would be instantaneous and consistent across all geographies in which our interest-bearing assets are held and our liabilities are payable. As a result, the analysis is unable to reflect the potential effects of more complex market changes, including changes in credit risk regarding our investments, which may positively or negatively affect income. In addition, the mix of fixed versus floating rate debt and investments and the level of assets and liabilities will change over time, including the impact from commercial paper borrowings that may be outstanding in future periods.

Credit Risk

To manage our exposures to credit risk with respect to investment securities, money market fund investments, derivatives, and other credit risk exposures resulting from our relationships with banks and financial institutions, we regularly review investment concentrations, trading levels, credit spreads, and credit ratings, and we attempt to diversify our investments among global financial institutions.

~~Table of Contents~~

We are also exposed to credit risk related to receivable balances from agents in the money transfer, walk-in bill payment, and money order settlement process. We perform a credit review before each agent signing and conduct periodic analyses of agents and certain other parties we transact with directly. In addition, we are exposed to losses directly from consumer transactions, particularly through our digital channels, where transactions are originated through means other than cash and are therefore subject to “chargebacks,” insufficient funds, or other collection impediments, such as fraud, which are anticipated to increase as digital channels become a greater proportion of our money transfer business.

We are exposed to credit risk in our Business Solutions business relating to: (i) derivatives written by us, primarily to our customers, and (ii) the extension of trade credit when transactions are paid to recipients prior to our receiving cleared funds from the sending customers. For the derivatives, the duration of these contracts at inception is generally less than one year. The credit risk associated with our derivative contracts increases when foreign currency exchange rates move against our customers, possibly impacting their ability to honor their obligations to deliver currency to us or to maintain appropriate collateral with us. For those receivables where we have extended trade credit, collection ordinarily occurs within a few days. To mitigate the risk associated with potential customer defaults, we perform credit reviews of the customer on an ongoing basis, and, for our derivatives, we may require certain customers to post or increase collateral.

Our losses ~~were~~have been less than 2% of our consolidated revenues in all periods presented.

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ITEM 8. Financial Statements and Supplementary Data

THE WESTERN UNION COMPANY

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


Management’s Report on Internal Control Over Financial Reporting	7465
Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42)	7566
Consolidated Statements of Income for each of the three years in the period ended December 31, ~~2021~~2022	7869
Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 31, ~~2021~~2022	7970
Consolidated Balance Sheets as of December 31, ~~2021~~2022 and ~~2020~~2021	8071
Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, ~~2021~~2022	8172
Consolidated Statements of Stockholders’ Equity/(Deficit) for each of the three years in the period ended December 31, ~~2021~~2022	8374
Notes to Consolidated Financial Statements	8475
Schedule I - Condensed Financial Information of the Registrant (Parent Company Only)	~~131~~121

All other financial statement schedules for The Western Union Company have been omitted since the required information is not present or not present in amounts sufficient to require submission of the schedule, or because the information required is included in the respective consolidated financial statements or notes thereto.

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Management’s Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a‑15(f) under the Securities Exchange Act of 1934. The Western Union Company’s (“Western Union” or the “Company”) internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles. Western Union’s internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of our management and Board of Directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of Western Union’s internal control over financial reporting as of December 31, ~~2021,~~2022, utilizing the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013 framework). Based on the results of its evaluation, the Company’s management concluded that as of December 31, ~~2021,~~2022, the Company’s internal control over financial reporting is effective. Western Union’s internal control over financial reporting as of December 31, ~~2021~~2022 has been audited by Ernst & Young LLP, Western Union’s independent registered public accounting firm, as stated in their attestation report included in this Annual Report on Form 10‑K.

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of The Western Union Company

Opinion on Internal Control Over Financial Reporting

We have audited The Western Union Company’s internal control over financial reporting as of December 31, ~~2021,~~2022, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, The Western Union Company (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2021,~~2022, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, ~~2021~~2022 and ~~2020,~~2021, and the related consolidated statements of income, comprehensive income, cash flows and stockholders' equity/(deficit) for each of the three years in the period ended December 31, ~~2021,~~2022, and the related notes and financial statement schedule listed in the Index at Item 15(a) and our report dated February ~~24, 2022~~23, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.


	/s/ Ernst & Young LLP
Denver, Colorado
February ~~24, 2022~~23, 2023

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of The Western Union Company

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of The Western Union Company (the Company) as of December 31, ~~2021~~2022 and ~~2020,~~2021, and the related consolidated statements of income, comprehensive income, cash flows and stockholders’ equity/(deficit) for each of the three years in the period ended December 31, ~~2021~~2022 and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, ~~2021~~2022 and ~~2020,~~2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2021,~~2022, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, ~~2021,~~2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February ~~24, 2022~~23, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

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Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

~~Income taxes - Uncertain tax positions~~Business Solutions divestiture

Description of the matter

As described in Note 115 to the consolidated financial statements, the Company ~~operates~~entered into an agreement in August 2021 to sell its Business Solutions business for cash consideration of $910.0 million. The sale is being completed in multiple closings, with the entire cash consideration collected at the first closing and allocated to the closings on a relative fair value basis. The first closing occurred on March 1, 2022, excluded the operations in the European Union and the United Kingdom, and resulted in a ~~multinational tax environment and is subject to taxation in various jurisdictions.~~gain of $151.4 million. The ~~Company recognizes tax benefits from uncertain tax positions only when it is more likely than not, based on~~second closing, comprising the ~~technical merits that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized~~operations in the ~~consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. As of~~United Kingdom, occurred on December 31, ~~2021,~~2022, and resulted in a gain of $96.9 million. The remaining assets of the ~~Company has accrued~~Business Solutions business have been presented as held for sale, along with the associated liabilities, and the proceeds allocated to these operations of ~~$318.6~~approximately $104 million ~~for uncertain tax positions.~~have been classified within Other liabilities in the Consolidated Balance Sheets.

Auditing ~~management’s estimate of~~ the ~~amount of tax benefits that qualify for recognition required significant judgment~~Business Solutions divestiture was especially challenging given the ~~complexity~~judgment required to determine the allocation of proceeds to the multiple closings and ~~varying interpretations~~the complexity of international tax laws ~~regulations and legal rulings.~~considered in determining the appropriate income tax accounting for the transaction.

How we Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s ~~accounting~~ process for ~~uncertain tax positions.~~the Business Solutions divestiture. For example, ~~this included~~we tested controls over ~~the Company’s assessment~~management's review of the ~~technical merits~~accounting treatment of ~~tax positions, including controls relating to management’s process to measure~~ the ~~benefit of those tax positions.~~transaction and calculating the gain on sale.

Our audit procedures included, among others, inspecting the transaction agreement, assessing the reasonableness of judgments, testing the ~~recognition~~accuracy of the gain on sale calculation and ~~measurement~~evaluating the adequacy of ~~uncertain tax positions,~~the Company's disclosures related to the Business Solutions divestiture. For example, we ~~made inquiries of management and involved our income tax professionals to assess~~evaluated the ~~technical merits~~appropriateness of the Company’s ~~tax positions. This included assessing~~methodology and related judgments for allocating proceeds to the multiple closings and performed sensitivity analyses of significant assumptions to evaluate changes in the fair value of the divestiture components resulting from changes in the assumptions. In addition, we tested the Company’s ~~correspondence~~separation of Business Solutions assets and liabilities by inspecting the Company’s accounting records and evaluating for consistency with the ~~relevant~~terms of the transaction agreement. We also involved our tax ~~authorities and~~professionals, including those with jurisdictional expertise, in evaluating ~~income tax opinions or other third-party advice obtained by the Company. We evaluated~~ the appropriateness of the Company’s accounting for ~~its~~the income tax ~~positions~~effects of the transaction, taking into consideration our knowledge of and experience with the application of international and local income tax laws by the relevant income tax authorities. We analyzed the Company’s assumptions and data used to determine the amount of tax benefits to recognize and tested the accuracy of the calculations. We have also evaluated the adequacy of the Company’s financial statement disclosures related to tax matters.


	/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2006.

Denver, Colorado
February ~~24, 2022~~23, 2023

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THE WESTERN UNION COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts)


	Year Ended December 31,									Year Ended December 31,
	2021			2020			2019			2022			2021			2020
Revenues	$	5,070.8		$	4,835.0		$	5,292.1		$	4,475.5		$	5,070.8		$	4,835.0
Expenses:
Cost of services		2,896.4			2,826.5			3,086.5			2,626.4			2,896.4			2,826.5
Selling, general, and administrative		1,051.3			1,041.2			1,271.6			964.2			1,051.3			1,041.2
Total expenses(a)		3,947.7			3,867.7			4,358.1			3,590.6			3,947.7			3,867.7
Operating income		1,123.1			967.3			934.0			884.9			1,123.1			967.3
Other income/(expense):
Gain on divestitures of businesses (Note 5)		—			—			524.6
Gain on divestiture of business (Note 5)											248.3			—			—
Gain on sale of noncontrolling interest in a private company (Note 5)		47.9			—			—			—			47.9			—
Pension settlement charges (Note 12)		(109.8	)		—			—			—			(109.8	)		—
Interest income		1.4			3.2			6.3			13.9			1.4			3.2
Interest expense		(105.5	)		(118.5	)		(152.0	)		(101.0	)		(105.5	)		(118.5	)
Other income/(expense), net		(21.7	)		3.1			8.5			(37.5	)		(21.7	)		3.1
Total other income/(expense), net		(187.7	)		(112.2	)		387.4			123.7			(187.7	)		(112.2	)
Income before income taxes		935.4			855.1			1,321.4			1,008.6			935.4			855.1
Provision for income taxes		129.6			110.8			263.1			98.0			129.6			110.8
Net income	$	805.8		$	744.3		$	1,058.3		$	910.6		$	805.8		$	744.3
Earnings per share:
Basic	$	1.98		$	1.81		$	2.47		$	2.35		$	1.98		$	1.81
Diluted	$	1.97		$	1.79		$	2.46		$	2.34		$	1.97		$	1.79
Weighted-average shares outstanding:
Basic		406.8			412.3			427.6			387.2			406.8			412.3
Diluted		408.9			415.2			430.9			388.4			408.9			415.2

(a)

As further described in Note 7, total expenses include amounts incurred with related parties of $~~54.7~~48.8 million, $~~54.6~~54.7 million, and $~~57.1~~54.6 million for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, respectively.

See Notes to Consolidated Financial Statements.

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THE WESTERN UNION COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)


	Year Ended December 31,									Year Ended December 31,
	2021			2020			2019			2022			2021			2020
Net income	$	805.8		$	744.3		$	1,058.3		$	910.6		$	805.8		$	744.3
Other comprehensive income, net of reclassifications and tax (Note 14):
Unrealized gains/(losses) on investment securities		(27.9	)		33.6			25.8			(99.8	)		(27.9	)		33.6
Unrealized gains/(losses) on hedging activities		49.2			(26.9	)		(11.0	)		1.8			49.2			(26.9	)
Foreign currency translation adjustments											(17.8	)		—			—
Defined benefit pension plan adjustments (Note 12)		86.1			42.8			7.2			—			86.1			42.8
Total other comprehensive income		107.4			49.5			22.0
Total other comprehensive income/(loss)											(115.8	)		107.4			49.5
Comprehensive income	$	913.2		$	793.8		$	1,080.3		$	794.8		$	913.2		$	793.8

See Notes to Consolidated Financial Statements.

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THE WESTERN UNION COMPANY

CONSOLIDATED BALANCE SHEETS

(in millions, except per share amounts)


	December 31,						December 31,
	2021			2020			2022			2021
Assets
Cash and cash equivalents	$	1,208.3		$	1,428.2		$	1,285.9		$	1,208.3
Settlement assets		2,843.5			3,821.4			3,486.8			2,843.5
Property and equipment, net of accumulated depreciation of $650.4 and $659.9, respectively		129.4			150.4
Property and equipment, net of accumulated depreciation of $512.8 and $650.4, respectively								109.6			129.4
Goodwill		2,034.6			2,566.6			2,034.6			2,034.6
Other intangible assets, net of accumulated amortization of $731.8 and $1,044.6, respectively		417.1			505.0
Other intangible assets, net of accumulated amortization of $616.3 and $731.8, respectively								457.9			417.1
Other assets		737.7			1,024.7			859.9			737.7
Assets held for sale (Note 5)		1,452.9			—			261.6			1,452.9
Total assets	$	8,823.5		$	9,496.3		$	8,496.3		$	8,823.5
Liabilities and stockholders' equity
Liabilities:
Accounts payable and accrued liabilities	$	450.2		$	500.9		$	464.0		$	450.2
Settlement obligations		2,843.5			3,821.4			3,486.8			2,843.5
Income taxes payable		870.7			928.9			725.3			870.7
Deferred tax liability, net		203.8			188.9			158.5			203.8
Borrowings		3,008.4			3,067.2			2,616.8			3,008.4
Other liabilities		269.4			802.4			384.6			269.4
Liabilities associated with assets held for sale (Note 5)		821.9			—			182.5			821.9
Total liabilities		8,467.9			9,309.7			8,018.5			8,467.9

Commitments and contingencies (Note 6)

Stockholders' equity:
Preferred stock, $1.00 par value; 10 shares authorized; 0 shares issued		—			—
Common stock, $0.01 par value; 2,000 shares authorized; 393.8 shares and 411.2 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively		3.9			4.1
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued								—			—
Common stock, $0.01 par value; 2,000 shares authorized; 373.5 shares and 393.8 shares issued and outstanding as of December 31, 2022 and 2021, respectively								3.7			3.9
Capital surplus		941.0			885.1			995.9			941.0
Accumulated deficit		(537.2	)		(543.1	)		(353.9	)		(537.2	)
Accumulated other comprehensive loss		(52.1	)		(159.5	)		(167.9	)		(52.1	)
Total stockholders' equity		355.6			186.6			477.8			355.6
Total liabilities and stockholders' equity	$	8,823.5		$	9,496.3		$	8,496.3		$	8,823.5

See Notes to Consolidated Financial Statements.

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THE WESTERN UNION COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

Year Ended December 31,

2021

2020

2019

Cash flows from operating activities

Net income

$
805.8

$
744.3

$
1,058.3

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

49.6

61.3

79.6

Amortization

158.6

164.3

178.1

Pension settlement charges (Note 12)

109.8

—

—

Gain on divestiture of businesses, excluding transaction costs (Note 5)

—

—

(532.1
)
Gain on the sale of noncontrolling interest in a private company (Note 5)

(47.9
)

—

—

Deferred income tax provision/(benefit) (Note 11)

(2.6
)

13.9

(24.5
)
Other non-cash items, net

149.6

145.8

118.4

Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in:

Other assets

(73.0
)

(44.4
)

7.5

Accounts payable and accrued liabilities

(24.8
)

(96.6
)

94.3

Income taxes payable (Note 11)

(56.2
)

(94.4
)

(36.8
)
Other liabilities

(23.6
)

(16.7
)

(28.2
)
Net cash provided by operating activities

1,045.3

877.5

914.6

Cash flows from investing activities

Payments for capitalized contract costs

(107.5
)

(69.1
)

(46.6
)
Payments for internal use software

(69.4
)

(51.2
)

(33.0
)
Purchases of property and equipment

(37.7
)

(36.5
)

(48.1
)
Purchases of settlement investments

(433.0
)

(6,421.1
)

(5,866.1
)
Proceeds from the sale of settlement investments

755.3

5,978.4

5,219.1

Maturities of settlement investments

229.7

182.6

181.7

Proceeds from the sale of former corporate headquarters and other property (Note 5)

—

49.4

—

Proceeds from the sale of noncontrolling interest in a private company (Note 5)

50.9

—

—

Proceeds from divestitures of businesses, net of cash divested (Note 5)

—

—

711.7

Purchase of noncontrolling interest in stc Bank (Note 5)

(200.0
)

—

—

Other investing activities

3.7

(6.0
)

48.3

Net cash (used in)/provided by investing activities

192.0

(373.5
)

167.0

Cash flows from financing activities

Cash dividends and dividend equivalents paid

(381.6
)

(370.3
)

(340.8
)
Common stock repurchased (Note 14)

(409.9
)

(239.7
)

(552.6
)
Net proceeds from/(repayments of) commercial paper

195.0

(165.0
)

120.0

Net proceeds from issuance of borrowings

891.7

—

495.9

Principal payments on borrowings

(1,150.0
)

—

(824.9
)
Make-whole premium on early extinguishment of debt (Note 16)

(14.3
)

—

—

Proceeds from exercise of options

11.6

2.2

36.7

Net change in settlement obligations

(412.2
)

587.6

(414.3
)
Other financing activities

0.2

(0.7
)

(4.1
)
Net cash used in financing activities

(1,269.5
)

(185.9
)

(1,484.1
)
Net change in cash and cash equivalents, including settlement, and restricted cash

(32.2
)

318.1

(402.5
)
Cash and cash equivalents, including settlement, and restricted cash at beginning of period

2,143.1

1,825.0

2,227.5

Cash and cash equivalents, including settlement, and restricted cash at end of period

$
2,110.9

$
2,143.1

$
1,825.0


	Year Ended December 31,
	2022			2021			2020
Cash flows from operating activities
Net income	$	910.6		$	805.8		$	744.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		42.7			49.6			61.3
Amortization		141.1			158.6			164.3
Pension settlement charges (Note 12)		—			109.8			—
Gain on divestiture of business, excluding transaction costs (Note 5)		(254.8	)		—			—
Gain on the sale of noncontrolling interest in a private company (Note 5)		—			(47.9	)		—
Deferred income tax provision/(benefit) (Note 11)		(26.7	)		(2.6	)		13.9
Other non-cash items, net		115.4			149.6			145.8
Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in:
Other assets		(209.2	)		(73.0	)		(44.4	)
Accounts payable and accrued liabilities		42.6			(24.8	)		(96.6	)
Income taxes payable (Note 11)		(152.7	)		(56.2	)		(94.4	)
Other liabilities		(27.4	)		(23.6	)		(16.7	)
Net cash provided by operating activities		581.6			1,045.3			877.5
Cash flows from investing activities
Payments for capitalized contract costs		(71.9	)		(107.5	)		(69.1	)
Payments for internal use software		(104.4	)		(69.4	)		(51.2	)
Purchases of property and equipment		(31.9	)		(37.7	)		(36.5	)
Purchases of settlement investments		(1,160.0	)		(433.0	)		(6,421.1	)
Proceeds from the sale of settlement investments		919.3			755.3			5,978.4
Maturities of settlement investments		169.7			229.7			182.6
Proceeds from the sale of former corporate headquarters and other property (Note 5)		—			—			49.4
Proceeds from the sale of noncontrolling interest in a private company (Note 5)		—			50.9			—
Purchase of noncontrolling interest in stc Bank (Note 5)		—			(200.0	)		—
Purchases of non-settlement investments (Note 9)		(400.0	)		—			—
Proceeds from the sale of non-settlement investments (Note 9)		300.0			—			—
Proceeds from divestiture, net of cash divested (Note 5)		887.2			—			—
Other investing activities		17.5			3.7			(6.0	)
Net cash (used in)/provided by investing activities		525.5			192.0			(373.5	)
Cash flows from financing activities
Cash dividends and dividend equivalents paid (Note 14)		(364.2	)		(381.6	)		(370.3	)
Common stock repurchased (Note 14)		(369.9	)		(409.9	)		(239.7	)
Net proceeds from/(repayments of) commercial paper		(95.0	)		195.0			(165.0	)
Net proceeds from issuance of borrowings		—			891.7			—
Principal payments on borrowings		(300.0	)		(1,150.0	)		—
Make-whole premium on early extinguishment of debt (Note 16)		—			(14.3	)		—
Proceeds from exercise of options		9.5			11.6			2.2
Net change in settlement obligations		(56.4	)		(412.2	)		587.6
Other financing activities		(1.3	)		0.2			(0.7	)
Net cash used in financing activities		(1,177.3	)		(1,269.5	)		(185.9	)
Net change in cash and cash equivalents, including settlement, and restricted cash		(70.2	)		(32.2	)		318.1
Cash and cash equivalents, including settlement, and restricted cash at beginning of period		2,110.9			2,143.1			1,825.0
Cash and cash equivalents, including settlement, and restricted cash at end of period	$	2,040.7		$	2,110.9		$	2,143.1

See Notes to Consolidated Financial Statements.

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THE WESTERN UNION COMPANY

SUPPLEMENTAL CASH FLOW INFORMATION

(in millions)


	Year Ended December 31,						Year Ended December 31,
	2021		2020		2019		2022		2021		2020
Reconciliation of balance sheet cash and cash equivalents to cash flows:
Cash and cash equivalents on balance sheet	$	1,208.3	$	1,428.2	$	1,450.5	$	1,285.9	$	1,208.3	$	1,428.2
Settlement cash and cash equivalents (Note 8)		835.5		695.7		368.2		708.1		835.5		695.7
Restricted cash in Other assets		29.4		19.2		6.3		41.5		29.4		19.2
Cash and cash equivalents included in Assets held for sale (Note 5)		37.7		—		—		5.2		37.7		—
Cash and cash equivalents, including settlement, and restricted cash	$	2,110.9	$	2,143.1	$	1,825.0
Cash and cash equivalents, including settlement, and restricted cash at end of period							$	2,040.7	$	2,110.9	$	2,143.1
Supplemental cash flow information:
Interest paid	$	101.6	$	109.6	$	151.3	$	97.2	$	101.6	$	109.6
Income taxes paid	$	185.9	$	187.3	$	318.9	$	279.8	$	185.9	$	187.3
Cash paid for lease liabilities	$	46.5	$	65.9	$	53.8	$	40.5	$	46.5	$	65.9
Non-cash lease liabilities arising from obtaining right-of-use assets (Note 13)	$	18.5	$	38.6	$	269.1	$	12.4	$	18.5	$	38.6
Internal use software capitalized but not yet paid	$	26.4	$	0.2	$	1.6	$	—	$	26.4	$	0.2
Accrued and unpaid capitalized contract costs							$	32.3	$	—	$	—

See Notes to Consolidated Financial Statements.

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THE WESTERN UNION COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY/(DEFICIT)

(in millions)


												Accumulated																	Accumulated
												Other			Total														Other			Total
	Common Stock						Capital		Accumulated			Comprehensive			Stockholders'			Common Stock						Capital		Accumulated			Comprehensive			Stockholders'
	Shares			Amount			Surplus		Deficit			Loss			Equity/(Deficit)			Shares			Amount			Surplus		Deficit			Loss			Equity/(Deficit)
Balance, December 31, 2018		441.2		$	4.4		$	755.6	$	(838.8	)	$	(231.0	)	$	(309.8	)
Net income		—			—			—		1,058.3			—			1,058.3
Stock-based compensation		—			—			48.9		—			—			48.9
Common stock dividends and dividend equivalents declared ($0.80 per share)		—			—			—		(342.6	)		—			(342.6	)
Repurchase and retirement of common shares		(27.6	)		(0.2	)		—		(552.8	)		—			(553.0	)
Shares issued under stock-based compensation plans		4.4			—			36.7		—			—			36.7
Other comprehensive income (Note 14)		—			—			—		—			22.0			22.0
Balance, December 31, 2019		418.0			4.2			841.2		(675.9	)		(209.0	)		(39.5	)		418.0		$	4.2		$	841.2	$	(675.9	)	$	(209.0	)	$	(39.5	)
Adoption of new accounting pronouncement (Note 2)		—			—			—		(0.6	)		—			(0.6	)		—			—			—		(0.6	)		—			(0.6	)
Net income		—			—			—		744.3			—			744.3			—			—			—		744.3			—			744.3
Stock-based compensation		—			—			41.7		—			—			41.7			—			—			41.7		—			—			41.7
Common stock dividends and dividend equivalents declared ($0.90 per share)		—			—			—		(373.2	)		—			(373.2	)		—			—			—		(373.2	)		—			(373.2	)
Repurchase and retirement of common shares		(9.4	)		(0.1	)		—		(237.7	)		—			(237.8	)		(9.4	)		(0.1	)		—		(237.7	)		—			(237.8	)
Shares issued under stock-based compensation plans		2.6			—			2.2		—			—			2.2			2.6			—			2.2		—			—			2.2
Other comprehensive income (Note 14)		—			—			—		—			49.5			49.5			—			—			—		—			49.5			49.5
Balance, December 31, 2020		411.2			4.1			885.1		(543.1	)		(159.5	)		186.6			411.2			4.1			885.1		(543.1	)		(159.5	)		186.6
Net income		—			—			—		805.8			—			805.8			—			—			—		805.8			—			805.8
Stock-based compensation		—			—			44.3		—			—			44.3			—			—			44.3		—			—			44.3
Common stock dividends and dividend equivalents declared ($0.94 per share)		—			—			—		(384.8	)		—			(384.8	)		—			—			—		(384.8	)		—			(384.8	)
Repurchase and retirement of common shares		(20.1	)		(0.2	)		—		(415.1	)		—			(415.3	)		(20.1	)		(0.2	)		—		(415.1	)		—			(415.3	)
Shares issued under stock-based compensation plans		2.7			—			11.6		—			—			11.6			2.7			—			11.6		—			—			11.6
Other comprehensive income (Note 14)		—			—			—		—			107.4			107.4			—			—			—		—			107.4			107.4
Balance, December 31, 2021		393.8		$	3.9		$	941.0	$	(537.2	)	$	(52.1	)	$	355.6			393.8			3.9			941.0		(537.2	)		(52.1	)		355.6
Net income																			—			—			—		910.6			—			910.6
Stock-based compensation																			—			—			45.5		—			—			45.5
Common stock dividends and dividend equivalents declared ($0.94 per share)																			—			—			—		(363.0	)		—			(363.0	)
Repurchase and retirement of common shares																			(23.0	)		(0.3	)		—		(364.3	)		—			(364.6	)
Shares issued under stock-based compensation plans																			2.7			0.1			9.4		—			—			9.5
Other comprehensive loss (Note 14)																			—			—			—		—			(115.8	)		(115.8	)
Balance, December 31, 2022																			373.5		$	3.7		$	995.9	$	(353.9	)	$	(167.9	)	$	477.8

See Notes to Consolidated Financial Statements.

8374

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THE WESTERN UNION COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Business and Basis of Presentation

Business

The Western Union Company (“Western Union” or the “Company”) is a leader in global money movement and payment services, providing people and businesses with fast, reliable, and convenient ways to send money and make payments around the world. The Western Union® brand is globally recognized. The Company’s services are available through a network of agent locations in more than 200 countries and territories and also through money transfer transactions conducted and funded through websites and mobile applications marketed under the Company’s brands (“~~westernunion.com”~~Branded Digital”) and transactions initiated on internet and mobile applications hosted by the Company’s third-party white label or co-branded digital ~~partners (together with westernunion.com, “Digital Money Transfer”).~~partners. Each location in the Company’s agent network is capable of providing one or more of the Company’s services.

The Western Union business consists of the following segments:

•

Consumer-to-Consumer - The Consumer-to-Consumer operating segment facilitates money transfers, which are primarily sent from retail agent locations worldwide or through websites and mobile ~~devices, including Digital Money Transfer services.~~devices. The Company’s money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers.

•

Business Solutions - The Business Solutions operating 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 significant majority of the Business Solutions business relates to exchanges of currency at spot rates, which enable customers to make cross-currency payments. In addition, in ~~certain~~limited countries, the Company writes foreign currency forward and option contracts for customers to facilitate future payments. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. The first closing occurred on March 1, 2022, the second occurred on December 31, 2022, and the third closing is expected in the second quarter of 2023. See Note 5 for further information regarding this transaction. The Buyer has rebranded the sold operations within a new standalone company (now referred to as "Convera").

All businesses and other services that have not been classified in the above segments are reported as Other, which primarily includes the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services. ~~In May 2019,~~Certain of the ~~Company sold a substantial majority of its United States based electronic bill payment services, as discussed in Note 5. The Company’s other services, in addition to certain~~Company's corporate costs such as costs related to strategic initiatives, including costs for the review and closing of mergers, acquisitions, and divestitures, are also included in Other. See Note 18 for further information regarding the Company’s segments.

There are legal or regulatory limitations on transferring certain assets of the Company outside of the countries where these assets are located. However, there are generally no limitations on the use of these assets within those countries. Additionally, the Company must meet minimum capital requirements in some countries in order to maintain operating licenses. As of December 31, ~~2021,~~ 2022, the Company's restricted net assets associated with these asset limitations and minimum capital requirements totaled approximately $~~460~~710 million.

Various aspects of the Company’s services and businesses are subject to United States federal, state, and local regulation, as well as regulation by foreign jurisdictions, including certain banking and other financial services regulations.

Basis of Presentation

The financial statements in this Annual Report on Form 10‑K are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated.

8475

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THE WESTERN UNION COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Consistent with industry practice, the accompanying Consolidated Balance Sheets are unclassified due to the short-term nature of the Company’s settlement obligations contrasted with the Company’s ability to invest cash awaiting settlement in long-term investment securities.

~~Cash Flow Classification Revision~~

Beginning in the fourth quarter of 2021, the Company revised its presentation to include changes in settlement cash associated with settlement obligations as a financing activity and changes in settlement cash from purchases, proceeds, and maturities of settlement investments as an investing activity within its Consolidated Statements of Cash Flows. Previously, the changes in settlement assets and settlement obligations were presented on a net basis within operating activities in the Company’s Consolidated Statements of Cash Flows.

Prior year amounts have been revised to conform to this presentation. These changes in presentation have been concluded to be immaterial, having no impact on the Company’s previously reported net income, financial position, or cash flows from operating activities, as changes in the Company’s settlement assets exactly offset changes in its settlement obligations. However, the revised presentation shows all changes associated with settlement cash in the Consolidated Statements of Cash Flows instead of in the Notes to the Consolidated Financial Statements.

~~The following tables present the effects of the changes in presentation of these cash flows, compared to the previously reported Consolidated Statements of Cash Flows (in millions):~~

Year Ended December 31, 2020

As Previously

Reported(a)

Revisions

As Revised

Net cash provided by/(used in):

Operating activities

$
877.5

$
—

$
877.5

Investing activities(b)

(113.4
)

(260.1
)

(373.5
)
Financing activities(c)

(773.5
)

587.6

(185.9
)
Net change in cash and cash equivalents, including settlement, and restricted cash

$
(9.4
)

$
327.5

$
318.1

~~(a)~~

~~As reported in the Company's Form 10-K filed with the SEC on February 19, 2021.~~

~~(b)~~

~~The financial statement lines included in Investing activities are Purchases of settlement investments, Proceeds from the sale of settlement investments, and Maturities of settlement investments.~~

~~(c)~~

~~The financial statement line included in Financing activities is Net change in settlement obligations.~~

Year Ended December 31, 2019

As Previously

Reported(a)

Revisions

As Revised

Net cash provided by/(used in):

Operating activities

$
914.6

$
—

$
914.6

Investing activities(b)

632.3

(465.3
)

167.0

Financing activities(c)

(1,069.8
)

(414.3
)

(1,484.1
)
Net change in cash and cash equivalents, including settlement, and restricted cash

$
477.1

$
(879.6
)

$
(402.5
)

~~(a)~~

~~As reported in the Company's Form 10-K filed with the SEC on February 20, 2020.~~

~~(b)~~

~~The financial statement lines included in Investing activities are Purchases of settlement investments, Proceeds from the sale of settlement investments, and Maturities of settlement investments.~~

~~(c)~~

~~The financial statement line included in Financing activities is Net change in settlement obligations.~~

~~Table of Contents~~

~~THE WESTERN UNION COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.

Principles of Consolidation

The Company consolidates financial results when it has a controlling financial interest in a subsidiary via voting rights or when it has both the power to direct the activities of an entity that most significantly impact the entity’s economic performance and the ability to absorb losses or the right to receive benefits of the entity that could potentially be significant to the entity. The Company utilizes the equity method of accounting when it is able to exercise significant influence over an entity’s operations, which generally occurs when the Company has an ownership interest between 20% and 50%.

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. Outstanding options to purchase Western Union stock and 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 and the unamortized compensation expense of options and restricted stock are available to acquire shares at an average market price throughout the period, and therefore, reduce the dilutive effect.

Shares excluded from the diluted earnings per share calculation under the treasury stock method, primarily due to outstanding ~~restricted stock units and~~ options to purchase shares of Western Union stock and restricted stock units, as the assumed proceeds of the options and restricted stock ~~and options~~ per unit were above the Company’s average share price during the periods and their effect was anti-dilutive, were ~~2.3~~8.0 million, ~~1.6~~2.3 million, and ~~1.9~~1.6 million, respectively, of shares for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019.~~2020.

The following table provides the calculation of diluted weighted-average shares outstanding (in millions):


	Year Ended December 31,						Year Ended December 31,
	2021		2020		2019		2022		2021		2020
Basic weighted-average shares outstanding		406.8		412.3		427.6		387.2		406.8		412.3
Common stock equivalents		2.1		2.9		3.3		1.2		2.1		2.9
Diluted weighted-average shares outstanding		408.9		415.2		430.9		388.4		408.9		415.2

8676

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THE WESTERN UNION COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Fair Value Measurements

The Company determines the fair values of its assets and liabilities that are recognized or disclosed at fair value in accordance with the hierarchy described below. ~~The fair values of the assets and liabilities held in the Company’s defined benefit plan trust (“Trust”) have been recognized or disclosed utilizing the same hierarchy.~~ The following three levels of inputs may be used to measure fair value:

•

Level 1 - Quoted prices in active markets for identical assets or liabilities.

•

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. For most of these assets, the Company utilizes pricing services that use multiple prices as inputs to determine daily market values.

•

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires significant management judgment or estimation. The Company holds assets classified as Level 3 that are recognized and disclosed at fair value on a non-recurring basis related to the Company’s business combinations, where the values of the intangible assets and goodwill acquired in a purchase are derived utilizing one of the three recognized approaches: the market approach, the income approach, or the cost approach.

Carrying amounts for many of the Company’s financial instruments, including cash and cash equivalents, settlement cash and cash equivalents, and settlement receivables and settlement obligations approximate fair value due to their short maturities. Available-for-sale investment securities, as further discussed in Notes 8 and 9, and derivative financial instruments, as further discussed in Notes 9 and 15, are carried at fair value. Fixed-rate notes are carried at their original issuance values and adjusted over time to amortize or accrete that value to ~~par, except for portions of notes that were hedged by interest rate swap agreements in prior years, as disclosed in Note 15.~~par. The fair values of fixed-rate notes are disclosed in Note 9 and are based on market quotations.

The fair values of non-financial assets and liabilities related to the Company’s business combinations, as applicable, will be disclosed in Note 5. ~~The fair value of the assets in the Trust, which held the assets for the Company’s defined benefit pension plan, is disclosed in Note 12.~~

Business Combinations

The Company accounts for all business combinations where control over another entity is obtained using the acquisition method of accounting, which requires that most assets (both tangible and intangible), liabilities (including contingent consideration), and remaining noncontrolling interests be recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets less liabilities and noncontrolling interests is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or noncontrolling interests made subsequent to the acquisition date, but within the measurement period, which is one year or less, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded within Net income. Any cost or equity method interest that the Company holds in the acquired company prior to the acquisition is remeasured to fair value at acquisition with a resulting gain or loss recognized within Other income/(expense), net for the difference between fair value and existing book value. Results of operations of the acquired company are included in the Company’s results from the date of the acquisition forward and include amortization expense arising from acquired intangible assets. The Company expenses all costs as incurred related to or involved with an acquisition in Selling, general, and administrative expenses.

~~Table of Contents~~

~~THE WESTERN UNION COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

Cash and Cash Equivalents

Highly liquid investments (other than those included in settlement assets) with maturities of three months or less at the date of purchase (that are readily convertible to cash) are considered cash equivalents and are stated at cost, which approximates fair value.

Table of Contents

THE WESTERN UNION COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company maintains cash and cash equivalent balances, including a portion in money market funds, with a group of globally diversified banks and financial institutions. The Company limits the concentration of its cash and cash equivalents with any one institution and regularly reviews investment concentrations and credit worthiness of these institutions.

Allowance for Credit Losses

For the Company’s accounting policies with respect to the allowance for credit losses, refer to Note 8.

Settlement Assets and Obligations

Settlement assets represent funds received or to be received from agents and others for unsettled money transfers, money orders, and consumer payments. The Company records corresponding settlement obligations relating to amounts payable under money transfers, money orders, and consumer payment service arrangements. Settlement assets and obligations also include amounts receivable from, and payable to, customers for the value of their cross-currency payment transactions related to the Business Solutions segment. The Company has included the settlement assets and obligations related to the Business Solutions segment in the Assets held for sale and Liabilities associated with assets held for sale lines, respectively, of the Consolidated Balance Sheets.

Settlement assets consist of cash and cash equivalents, receivables from agents, Business Solutions customers, and others,and investment securities. Cash received by Western Union agents generally becomes available to the Company within one week after initial receipt by the agent. Cash equivalents consist of short-term time deposits, commercial paper, and other highly liquid investments. Receivables from agents represent funds collected by such agents, but in transit to the Company. Western Union has a large and diverse agent base, thereby reducing the Company’s credit risk ~~of the Company~~ from any one agent. The Company performs ongoing credit evaluations of its agents’ financial condition and credit worthiness.

Receivables from Business Solutions customers arise from cross-currency payment transactions in the Business Solutions segment. Receivables occur when funds have been paid out to a beneficiary but not yet received from the customer. Collection of these receivables ordinarily occurs within a few days. To mitigate risk associated with potential Business Solutions customer defaults, the Company performs credit reviews on an ongoing basis.

Settlement obligations consist of money transfer, money order and payment service payables, and payables to agents. Money transfer payables represent amounts to be paid to transferees when they request their funds. Most agents typically settle with transferees first and then obtain reimbursement from the Company. Money order payables represent amounts not yet presented for payment. Payment service payables represent amounts to be paid to utility companies, auto finance companies, mortgage servicers, financial service providers, government agencies, and others. Due to the agent funding and settlement process, payables to agents represent amounts due to agents for money transfers that have been settled with transferees.

Refer to Note 8 for additional details on the Company’s settlement assets and obligations.

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the lesser of the estimated life of the related assets (generally three to seven years for equipment and furniture and fixtures) or the lease term. Maintenance and repairs, which do not extend the useful life of the respective assets, are charged to expense as incurred.

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THE WESTERN UNION COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Property and equipment consisted of the following (in millions):


	December 31,						December 31,
	2021			2020			2022			2021
Equipment	$	607.7		$	608.9		$	464.6		$	607.7
Leasehold improvements and other		151.2			153.7			120.1			151.2
Furniture and fixtures		46.2			45.4			37.5			46.2
Projects in process		0.3			2.3			1.9			0.3
Total property and equipment, gross		805.4			810.3			624.1			805.4
Less accumulated depreciation		(669.7	)		(659.9	)		(513.8	)		(669.7	)
Property and equipment, net(a)	$	135.7		$	150.4		$	110.3		$	135.7

(a)

As of December 31, 2022 and 2021, Property and equipment, net includes Assets held for sale of $0.7 million and $6.3 million, respectively, which consists of property and equipment of the Company's Business Solutions business, as further described in Note 5.

Amounts charged to expense for depreciation of property and equipment were $~~49.6~~42.7 million, $~~61.3~~49.6 million, and $~~79.6~~61.3 million during the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, respectively.

Goodwill

Goodwill represents the excess of purchase price over the fair value of tangible and other intangible assets acquired less liabilities assumed, arising from business combinations. In the event a reporting unit’s carrying amount exceeds its fair value, the Company recognizes an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. The Company’s annual impairment assessment did 0not identify any goodwill impairment during the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019.~~2020.

Other Intangible Assets

Other intangible assets primarily consist of contract costs (primarily amounts paid to agents in connection with establishing and renewing long-term contracts), software, and acquired contracts. Other intangible assets are generally amortized on a straight-line basis over the length of the contract or benefit period. Included in the Consolidated Statements of Income is amortization expense of $~~158.6~~141.1 million, $~~164.3~~158.6 million, and $~~178.1~~164.3 million for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, respectively.

Acquired contracts include customer and contractual relationships and networks of subagents that are recognized in connection with the Company’s acquisitions.

The Company purchases and develops software that is used in providing services and in performing administrative functions. Internal and external software development costs incurred that are directly related to the chosen design, development, and testing phases of the software are capitalized once the Company has completed all planning and analysis activities. Any other software development related costs are expensed as incurred. Capitalization of costs ceases when the product is available for general use. Software development costs and purchased software are generally amortized over a term of three to seven years.

The Company capitalizes initial payments for new and renewed agent contracts to the extent recoverable through future operations or penalties in the case of early termination. The Company’s accounting policy is to limit the amount of capitalized costs for a given contract to the lesser of the estimated future cash flows from the contract or the termination fees the Company would receive in the event of early termination of the contract.

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THE WESTERN UNION COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table provides the components of other intangible assets (in millions):


	December 31, 2021					December 31, 2020				December 31, 2022					December 31, 2021
	Weighted-									Weighted-
	Average									Average
	Amortization			Net of				Net of		Amortization			Net of				Net of
	Period	Initial		Accumulated		Initial		Accumulated		Period	Initial		Accumulated		Initial		Accumulated
	(in years)	Cost		Amortization		Cost		Amortization		(in years)	Cost		Amortization		Cost		Amortization
Capitalized contract costs	6.2	$	532.7	$	242.0	$	574.4	$	308.0	5.8	$	524.4	$	252.8	$	532.7	$	242.0
Internal use software	4.3		388.7		128.8		310.3		55.5	4.4		387.8		155.3		388.7		128.8
Acquired contracts	11.6		552.9		50.2		561.7		75.8	11.7		87.4		3.0		552.9		50.2
Acquired trademarks	25.4		30.1		10.8		30.1		12.0	25.4		30.2		9.6		30.1		10.8
Other intangibles	4.3		19.4		—		19.4		—	4.5		17.0		—		19.4		—
Projects in process(b)	(a)		35.7		35.7		53.7		53.7	(a)		38.6		38.6		35.7		35.7
Total other intangible assets(b)	8.0	$	1,559.5	$	467.5	$	1,549.6	$	505.0	6.3	$	1,085.4	$	459.3	$	1,559.5	$	467.5

(a)

Not applicable as the assets have not been placed in service.

(b)

AsTotal other intangible assets, net includes Assets held for sale of $1.4 million as of December 31, ~~2021,~~2022, and Projects in process and Total other intangible assets, net includes Assets held for sale of $2.3 million and $50.4 million, respectively, as of December 31, 2021, which consists of Other intangible assets associated with the Company's Business Solutions business as further described in Note 5.

The estimated future aggregate amortization expense for existing other intangible assets as of December 31, ~~2021, including the Business Solutions business, would~~2022 is expected to be $~~141.9~~ ~~million in 2022, $106.1~~135.4 million in 2023, $~~82.7~~115.8 million in 2024, $~~48.6~~70.7 million in 2025, $~~24.0~~43.3 million in 2026, ~~and~~ $~~28.5~~ ~~million thereafter. However, included in these amounts are future aggregate amortization expenses related to Assets held for sale of $16.2~~31.3 million in ~~2022, $10.1~~ ~~million in 2023, $7.1~~ ~~million in 2024, $6.3~~ ~~million in 2025, $5.5~~ ~~million in 2026,~~2027, and $~~2.9~~22.8 million thereafter. Beginning in August 2021, the Company stopped amortizing ~~these~~its held for sale assets over the terms of their useful lives.

Other intangible assets are reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In such reviews, estimated undiscounted cash flows associated with these assets or operations are compared with their carrying values to determine if a write-down to fair value (normally measured by the present value technique) is required. The Company recorded immaterial impairments related to other intangible assets during the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019.~~2020.

Other Investments

Other investments consist of equity investments in privately held companies that do not have readily determinable fair values. For these investments, the Company has less than a 20% interest and does not have control or significant influence. The Company has elected to measure these investments at cost less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment in the same issuer. These investments are reflected in Other assets in the Consolidated Balance Sheets as of December 31, 2022 and 2021. The Company has not recorded any material annual or cumulative impairment losses or valuation adjustments based on observable price changes.

Revenue Recognition

For the Company’s accounting policies with respect to revenue recognition, refer to Note 3.

Cost of Services

Cost of services primarily consists of agent commissions and expenses for call centers, settlement operations, and related information technology costs. Expenses within these functions include personnel, software, equipment, telecommunications, bank fees, credit losses, depreciation, amortization, and other expenses incurred in connection with providing money transfer and other payment services.

~~Advertising Costs~~

~~Advertising costs are charged to operating expenses as incurred. Advertising costs for the years ended December 31, 2021, 2020, and 2019 were $177.8~~ ~~million, $177.0~~ ~~million, and $209.1~~ ~~million, respectively.~~

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Advertising Costs

Advertising costs are charged to operating expenses as incurred. Advertising costs for the years ended December 31, 2022, 2021, and 2020 were $195.4 million, $177.8 million, and $177.0 million, respectively.

Income Taxes

The Company accounts for income taxes under the liability method, which requires that deferred tax assets and liabilities be determined based on the expected future income tax consequences of events that have been recognized in the consolidated financial statements. Deferred tax assets and liabilities are recognized based on temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. The Company routinely assesses the realizability of its deferred tax assets. A valuation allowance must be established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized.

The Company recognizes the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution.

The Company accounts for the effects of global intangible low-taxed income taxed in the United States as a component of income tax expense in the period the tax arises.

Foreign Currency Translation

The United States dollar is the functional currency for substantially all of the Company’s businesses. Revenues and expenses are translated at average exchange rates prevailing during the period. Foreign currency denominated assets and liabilities for those businesses for which the local currency is the functional currency are translated into United States dollars based on exchange rates at the end of the year. The effects of foreign exchange gains and losses arising from the translation of assets and liabilities of these businesses are included as a component of ~~AOCL~~Accumulated other comprehensive loss ("AOCL") in the accompanying Consolidated Balance Sheets. Foreign currency denominated monetary assets and liabilities of businesses for which the United States dollar is the functional currency are remeasured based on exchange rates at the end of the period, and the resulting remeasurement gains and losses are recognized in net income. Non-monetary assets and liabilities of these operations are remeasured at historical rates in effect when the asset was recognized or the liability was incurred.

The Company has bill payment and other businesses in Argentina for which the local currency is the functional currency. However, as Argentina is currently classified as a highly inflationary economy, all changes in the value of the Argentine peso on these businesses’ monetary assets and liabilities are reflected in net income.

Derivatives

The Company has used derivatives to: (i) minimize its exposures related to changes in foreign currency exchange rates and, periodically, interest rates and (ii) facilitate cross-currency Business Solutions payments by writing derivatives to customers. The Company recognizes all derivatives in the ~~Other assets and Other liabilities captions in the~~ accompanying Consolidated Balance Sheets at their fair value. All cash flows associated with derivatives are included in Cash flows from operating activities in the Consolidated Statements of Cash Flows. Certain of the Company’s derivative arrangements are designated as ~~either~~ cash flow ~~hedges or fair value~~ hedges at the time of inception, and others are not designated as accounting hedges.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

•

Cash flow hedges – Cash flow hedges consist of foreign currency hedging of forecasted revenues, as well as hedges of the forecasted issuance of fixed-rate debt. Derivative fair value changes that are captured in AOCL are reclassified to earnings in the same period the hedged item affects earnings when the instrument is effective in offsetting the change in cash flows attributable to the risk being hedged. The Company excludes time value from the assessment of effectiveness, and the initial value of the excluded components in the Company’s foreign currency cash flow hedges is amortized into Revenues within the Consolidated Statements of Income. For foreign currency cash flow hedges entered into before January 1, 2018, which was the date the Company adopted this accounting treatment, all changes in the fair value of the excluded components were recognized immediately in Revenues during the year ended December 31, 2019.

•

~~Fair value hedges -~~ Fair value hedges consist of hedges of fixed-rate debt, through interest rate swaps. Changes in the fair value of derivatives that are designated as fair value hedges of fixed-rate debt are recorded in Interest expense. The offsetting change in value of the related debt instrument attributable to changes in the benchmark interest rate is also recorded in Interest expense. There were no fair value hedges outstanding as of December 31, 2021 and 2020.

•

Undesignated - Derivative contracts entered into to reduce the foreign exchange variability related to: (i) money transfer settlement assets and obligations, generally with maturities from a few days up to one month, and (ii) certain foreign currency denominated cash and other asset and liability positions, typically with maturities of less than one year at inception, are not designated as hedges for accounting purposes, and changes in their fair value are included in Selling, general, and administrative. The Company is also exposed to risk from derivative contracts written to its customers arising from its cross-currency Business Solutions payment operations. The majority of these derivative contracts have a duration at inception of less than one year. The Company aggregates its Business Solutions payments foreign currency exposures arising from customer contracts, including the derivative contracts described above, and hedges the resulting net currency risks by entering into offsetting contracts with ~~established financial institution counterparties (economic hedge contracts) as~~Convera through the end of the third closing of the Business Solutions divestiture. The derivatives written are part of athe broader portfolio of foreign currency ~~portfolio, including significant~~positions arising from the Company’s cross-currency payment operations, which include spot exchanges of currency in addition to forwards and options. The changes in the fair value related to these contracts are recorded in Revenues.

The fair value of the Company’s derivatives is derived from standardized models that use market-based inputs (e.g., forward prices for foreign currency).

The details of each designated hedging relationship must be formally documented at the inception of the arrangement, including the risk management objective, hedging strategy, hedged item, specific risks being hedged, the derivative instrument, and how effectiveness is being assessed. The derivative must be highly effective in offsetting the changes in cash flows ~~or fair value~~ of the hedged item, and effectiveness is evaluated quarterly on a retrospective and prospective basis.

Legal Contingencies

The Company is a party to certain legal and regulatory proceedings with respect to a variety of matters. The Company records an accrual for these contingencies to the extent that a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than other amounts within the range, that amount is accrued. When no amount within a range of loss appears to be a better estimate than any other amount, the lowest amount in the range is accrued.

Stock-Based Compensation

The Company has a stock-based compensation plan that provides for grants of Western Union stock options, restricted stock awards, restricted stock units, and deferred stock units to employees and non-employee directors of the Company.

~~Table of Contents~~

~~THE WESTERN UNION COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. The Company generally recognizes compensation expense on awards on a straight-line basis over the requisite service period for the entire award, with an estimate for forfeitures. Refer to Note 17 for additional discussion regarding details of the Company’s stock-based compensation plans.

Severance and Other Related Expenses

The Company records severance-related expenses once they are both probable and estimable in accordance with the provisions of the applicable accounting guidance for severance provided under an ongoing benefit arrangement. One-time involuntary benefit arrangements and other costs are generally recognized when the liability is incurred. The Company

Table of Contents

THE WESTERN UNION COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

also evaluates impairment issues associated with restructuring and other activities when the carrying amount of the related assets may not be fully recoverable, in accordance with the appropriate accounting guidance.

Recently Adopted Accounting Pronouncements

On January 1, 2020, the Company adopted a new accounting standard that requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. Additionally, the standard requires certain credit losses relating to investment securities classified as available-for-sale to be recorded through an allowance for credit losses. The Company recognized the cumulative effect of the new accounting standard as an adjustment to the January 1, 2020 balance of Accumulated deficit in the Consolidated Balance Sheets, and the adoption of the new accounting standard did not have a material impact on the Company’s January 1, 2020 accumulated deficit. ~~In accordance with the modified retrospective approach, the comparative information has not been restated and continues to be reported under accounting standards in effect for those periods.~~ Refer to Note 8 for additional information and the related disclosures.

On ~~January 1, 2019, the Company~~ ~~adopted~~ a new accounting standard, as amended, that requires the Company to record assets and liabilities on the balance sheet for lease-related rights and obligations and disclose key information about its leasing arrangements. The Company elected the ~~effective~~ date method, utilized the modified retrospective approach upon adoption, and elected the package of practical expedients available under the new standard, including the expedients to not reassess whether an existing contract is a lease or contains a lease and whether the lease is an operating or finance lease. This new standard establishes a right-of-use (“ROU”) model that requires the Company to recognize ROU assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months at commencement of the lease. Refer to Note 13 for additional information and the related disclosures.

3. Revenue

The Company’s revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the principal amount sent, whether the money transfer involves different send and receive currencies, and the difference between the exchange rate set by the Company to the customer and ~~the~~a rate available in the wholesale foreign exchange market, ~~and speed of service,~~ as applicable. The Company also offers several other services, including foreign exchange and payment services and other bill payment services, for which revenue is impacted by similar factors. For the substantial majority of the Company’s revenues, the Company acts as the principal in transactions and reports revenue on a gross basis, as the Company controls the service at all times prior to transfer to the customer, is primarily responsible for fulfilling the customer contracts, has the risk of loss, and has the ability to establish transaction prices. The Company also provides services to financial institutions and other third parties to enable such entities to offer money transfer services to their own customers under their brands. Generally, in these arrangements, consumers agree to terms and conditions specified by the financial institution or other third party that, among other things, establish pricing paid by the consumer for the service. The Company recognizes revenue on a net basis under these arrangements. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.

~~Table of Contents~~

~~THE WESTERN UNION COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

The Company recognized $~~4,865.5~~4,254.0 million, $~~4,625.1~~4,865.5 million, and $~~5,033.2~~4,625.1 million in revenues from contracts with customers for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, respectively. There were no material upfront costs incurred to obtain contracts with customers during these same periods. Under the Company’s loyalty programs, which are primarily offered in its money transfer services, the Company must fulfill loyalty program rewards earned by customers. The loyalty program redemption activity has been and continues to be insignificant to the Company’s results of operations for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, and the Company has immaterial contract liability balances as of December 31, ~~2021~~2022 and ~~2020,~~2021, which primarily relate to its customer loyalty programs and other services. Contract asset balances related to customers were also immaterial as of December 31, ~~2021~~2022 and ~~2020,~~2021, as the Company typically receives payment of consideration from its customers prior to satisfying performance obligations under the customer contracts. In addition to revenue generated from contracts with customers, the Company recognizes revenue from other sources, including the sale of derivative financial instruments and investment income generated on settlement assets primarily related to money transfer and money order services.

The Company analyzes its different services individually to determine the appropriate basis for revenue recognition, as further described below. Revenues from consumer money transfers are included in the Company’s Consumer-to-Consumer segment, revenues from foreign exchange and payment services are included in the Company’s Business Solutions segment, and revenues from consumer bill payment and other services are not included in the Company’s segments and are reported as Other. See Note 18 for further information on the Company’s segments. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. The first closing occurred on March 1, 2022, the second occurred on December 31, 2022, and the third closing is expected in the second quarter of 2023. See Note 5 for further information regarding this transaction.

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THE WESTERN UNION COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Consumer Money Transfers

For the Company’s money transfer services, customers agree to the Company’s terms and conditions at the time of initiating a transaction. In a money transfer, the Company has 1one performance obligation as the customer engages the Company to perform 1one integrated service which typically occurs within minutes — collect the customer’s money and make funds available for payment to a designated person in the currency requested. Therefore, the Company recognizes revenue upon completion of the following: (i) the customer’s acknowledgment of the Company’s terms and conditions and payment information has been received by the Company, (ii) the Company has agreed to process the money transfer, and (iii) the Company has ~~provided~~completed the ~~customer a unique transaction identification number, and (iv)~~processing of the money transfer, so that funds are available to be picked up by the ~~customer’s~~customer's designated receiving ~~party.~~party in the case of cash payout. The transaction price is comprised of a transaction fee and the difference between the exchange rate set by the Company to the customer and ~~the~~a rate available in the wholesale foreign exchange market, as applicable, both of which are readily determinable at the time the transaction is initiated.

Foreign Exchange and Payment Services

For the Company’s foreign exchange and payment services, customers agree to terms and conditions for all transactions, either at the time of initiating a transaction or signing a contract with the Company to provide payment services on the customer’s behalf. In the majority of the Company’s foreign exchange and payment services, the Company makes payments to the recipient to satisfy its performance obligation to the customer, and therefore, the Company recognizes revenue on foreign exchange and payment services when this performance obligation has been fulfilled. Revenues from foreign exchange and payment services are primarily comprised of the difference between the exchange rate set by the Company to the customer and ~~the~~a rate available in the wholesale foreign exchange market.

Consumer Bill Payments and Other

The Company offers bill payment and other services that vary by contractual features, including the types and amounts of fixed charges and with respect to how fees are billed and collected. The identification of the contract with the customer for revenue recognition purposes is consistent with these features for each of the Company’s bill payment and other services. As with consumer money transfers, customers engage the Company to perform one integrated service — collect money from the consumer and process the transaction, thereby providing billers with real-time or near real-time information regarding consumer payments and simplifying the billers’ collection efforts.

~~Table of Contents~~

~~THE WESTERN UNION COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

Management has determined that the substantial majority of the Company’s revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019~~2020 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated.


	Year Ended December 31, 2022
			Foreign
	Consumer		Exchange
	Money		and Payment		Consumer		Other
	Transfers		Services (b)		Bill Payments		Services		Total
Regions:
North America	$	1,553.2	$	17.9	$	71.0	$	58.5	$	1,700.6
Europe and Russia/CIS		1,056.0		102.3		21.1		—		1,179.4
Middle East, Africa, and South Asia		630.5		0.4		0.4		—		631.3
Latin America and the Caribbean		388.0		0.5		99.8		8.4		496.7
East Asia and Oceania		233.0		12.5		0.5		—		246.0
Revenues from contracts with customers	$	3,860.7	$	133.6	$	192.8	$	66.9	$	4,254.0
Other revenues(a)		132.8		63.3		5.1		20.3		221.5
Total revenues	$	3,993.5	$	196.9	$	197.9	$	87.2	$	4,475.5

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THE WESTERN UNION COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)


	Year Ended December 31, 2021
			Foreign
	Consumer		Exchange
	Money		and Payment		Consumer		Other
	Transfers		Services		Bill Payments		Services		Total
Regions:
North America	$	1,625.7	$	101.8	$	73.3	$	57.1	$	1,857.9
Europe and Russia/CIS		1,381.3		145.5		5.8		1.1		1,533.7
Middle East, Africa, and South Asia		660.8		2.2		0.6		—		663.6
Latin America and the Caribbean		376.6		3.4		75.8		7.3		463.1
East Asia and Oceania		276.5		69.6		1.1		—		347.2
Revenues from contracts with customers	$	4,320.9	$	322.5	$	156.6	$	65.5	$	4,865.5
Other revenues(a)		73.1		99.3		13.3		19.6		205.3
Total revenues	$	4,394.0	$	421.8	$	169.9	$	85.1	$	5,070.8


	Year Ended December 31, 2020
			Foreign
	Consumer		Exchange
	Money		and Payment		Consumer		Other
	Transfers		Services		Bill Payments		Services		Total
Regions:
North America	$	1,605.5	$	83.6	$	75.1	$	57.0	$	1,821.2
Europe and Russia/CIS		1,330.0		121.1		3.6		1.8		1,456.5
Middle East, Africa, and South Asia		630.0		1.5		0.4		—		631.9
Latin America and the Caribbean		310.1		2.4		75.8		7.9		396.2
East Asia and Oceania		257.4		60.5		1.4		—		319.3
Revenues from contracts with customers	$	4,133.0	$	269.1	$	156.3	$	66.7	$	4,625.1
Other revenues(a)		87.0		87.0		14.0		21.9		209.9
Total revenues	$	4,220.0	$	356.1	$	170.3	$	88.6	$	4,835.0

Year Ended December 31, 2019

Foreign

Consumer

Exchange

��

Money

and Payment

Consumer

Other

Transfers

Services

Bill Payments (b)

Services

Total

Regions:

North America

$
1,653.5

$
95.4

$
223.0

$
55.9

$
2,027.8

Europe and Russia/CIS

1,350.1

127.1

3.2

4.1

1,484.5

Middle East, Africa, and South Asia

642.0

1.8

0.4

—

644.2

Latin America and the Caribbean

395.2

3.4

129.4

15.3

543.3

East Asia and Oceania

263.5

68.4

1.5

—

333.4

Revenues from contracts with customers

$
4,304.3

$
296.1

$
357.5

$
75.3

$
5,033.2

Other revenues(a)

103.5

92.7

37.3

25.4

258.9

Total revenues

$
4,407.8

$
388.8

$
394.8

$
100.7

$
5,292.1

(a)

Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources.

(b)

On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. The sale will be completed in three closings, with the first and second closings occurring on March 1, 2022 and December 31, 2022, respectively. The third is expected in the second quarter of 2023. See Note 5 for further information regarding this transaction.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

~~(b)~~

On February 28, 2019, the Company entered into an agreement with ACI Worldwide Corp. and ACW Worldwide, Inc. to sell its United States electronic bill payments business known as “Speedpay” and closed the transaction on May 9, 2019. Included within North America revenues are Speedpay revenues of $~~125.4~~ ~~million for the year ended December 31, 2019.~~

The carrying amounts for many of the Company’s financial instruments, including certain cash and cash equivalents, settlement cash and cash equivalents, and settlement receivables and obligations approximate fair value due to their short maturities. The Company’s borrowings are classified as Level 2 within the valuation hierarchy, and the aggregate fair value of these borrowings was based on quotes from multiple banks. Fixed-rate notes are carried in the Company’s Consolidated Balance Sheets at their original issuance values as adjusted over time to amortize or accrete that value to par. As of December 31, 2022, the carrying value and fair value of the Company’s borrowings were $2,616.8 million and $2,442.5 million, respectively (see Note 16). As of December 31, 2021, the carrying value and fair value of the Company’s borrowings were $3,008.4 million and $3,217.2 million, ~~respectively (see Note 16). As~~respectively.

During the year ended December 31, 2022, the Company entered into reverse repurchase agreements, a form of secured lending, with broker-dealer affiliates of large U.S. banks, using a portion of the proceeds from the sale of the Company's Business Solutions business. These agreements require the counterparties to pledge marketable securities with a value greater than the amount of cash transferred as collateral, which is held and valued by a third-party custodial bank. These investments generate interest income through the date of repurchase, at which point the purchase price together with the interest due will be paid back to the Company. The Company carries these investments at amortized cost, and as of December 31, ~~2020,~~2022, the carrying value ~~and~~of these investments, as reported in Other assets in the Company's Consolidated Balance Sheets, was $100.0 million, which approximates fair value due to the creditworthiness of the counterparty, the value of the ~~Company’s borrowings were $3,067.2~~ ~~million~~collateral, and $~~3,348.0~~ ~~million, respectively.~~the investments' short-term nature and variable interest rate.

The fair values of derivative assets and liabilities associated with contracts that include netting language that the Company believes to be enforceable have been netted in the following tables to present the Company’s net exposure with these counterparties. The Company’s rights under these agreements generally allow for transactions to be settled on a net basis, including upon early termination, which could occur upon the counterparty’s default, a change in control, or other conditions.

In addition, certain of the Company’s other agreements include netting provisions, the enforceability of which may vary from jurisdiction to jurisdiction, depending on the circumstances. Due to the uncertainty related to the enforceability of these provisions, the derivative balances associated with these agreements are included within "Derivatives that are not or may not be subject to master netting arrangement or similar agreement" in the following tables. In certain circumstances, the Company may require its Business Solutions customers to maintain collateral balances, which may mitigate the risk associated with potential customer defaults.

The effective portion of the change in ~~the~~ fair value of derivatives that qualify as cash flow hedges is recorded in AOCL in the Company’s Consolidated Balance Sheets. Generally, amounts are recognized in income when the related forecasted transaction affects earnings.

All cash flows associated with derivatives are included in Cash flows from operating activities in the Consolidated Statements of Cash Flows.

Based on December 31, ~~2021~~2022 foreign exchange rates, an accumulated other comprehensive pre-tax gain of $~~16.5~~24.3 million related to the foreign currency forward contracts is expected to be reclassified into Revenues within the next 12 months.

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Our management, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of our controls and procedures related to our reporting and disclosure obligations (as defined by Rules 13a-15(e) and 15d-15(e) within the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of December 31, ~~2021,~~2022, which is the end of the period covered by this Annual Report on Form 10‑K. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that, as of December 31, ~~2021,~~2022, the disclosure controls and procedures were effective to ensure that information required to be disclosed by us, including our consolidated subsidiaries, in the reports we file or submit under the Exchange Act, is recorded, processed, summarized and reported, as applicable, within the time periods specified in the rules and forms of the Securities and Exchange Commission, and are designed to ensure that information required to be disclosed by us in the reports that we file or submit is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure.

Management’s report on Western Union’s internal control over financial reporting (as such term is defined in Rules 13a‑15(f) and 15d‑15(f) under the Securities Exchange Act of 1934), and the related Report of Independent Registered Public Accounting Firm, are set forth under Item 8 of this Annual Report on Form 10‑K.

There were no changes that occurred during our most recently completed fiscal quarter covered by this Annual Report on Form 10-K that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

The Company is making the following disclosure pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 and Section 13(r) of the Exchange Act, which require us to include certain disclosures in our periodic reports if we or any of our “affiliates” (as defined in Rule 12b-2 under the Exchange Act) knowingly engage in certain specified activities.

Subsequent to the filing of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, the Company determined that during 2021 the Company processed through its money transfer network a Consumer-to-Consumer money transfer for which the sender appears to have been an individual who is designated on the Specially Designated Nationals and Blocked Persons List of the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) pursuant to Executive Order 13224. This money transfer occurred on January 7, 2021 and was for a principal amount of $293. The Company’s total revenue from this transaction was approximately $11 and its net profit was approximately $3.

This transaction was identified for further review by the Company’s automated transaction screening system but was released following review by a first-level reviewer rather than escalated for further review and blocking. The release of this transfer appears to have resulted from human error. The Company has taken additional steps designed to prevent any future transactions with this individual.

~~The Company disclosed this matter to OFAC and received a response from OFAC closing the matter.~~

On February 22, 2023, the Compensation Committee of our Board of Directors amended and restated The Western Union Company Severance/Change in Control Policy (Executive Committee Level) (the “Amended and Restated Policy”), effective May 1, 2023, to revise the severance provisions and make certain other administrative changes, including the elimination of the legacy tax gross-up provision with respect to change in control benefits. Under the Amended and Restated Policy, in the event of an involuntary termination of employment by the Company prior to or more than 24 months following a Change in Control and other than due to death, disability or for cause, the eligible executive will receive (i) an amount equal to a severance multiple times the eligible executive’s base salary, with the severance multiple equal to 1.5 in the case of the Chief Executive Officer, 1.0 in the case of other eligible executives and 0.5 in the case of an eligible executive who has been employed with the Company for six months or less, (ii) a pro-rated bonus for the year of termination based on actual performance and days employed during the year, (iii) a payment ranging from $3,000 to $18,000 for healthcare continuation coverage if the eligible executive was enrolled in coverage and (iv) pro-rata vesting of equity awards, with such awards to be settled in accordance with the terms of the equity award agreements. In the event of an involuntary termination of employment by the Company other than due to death, disability or for cause or by the eligible executive due to good reason, in each case, within 24 months following a change in control of the Company, then in lieu of the benefits set forth in clauses (i) and (iv) of the preceding sentence, an eligible executive will receive a severance payment equal to two times the sum of the eligible executive’s base salary and target bonus and outstanding equity awards will become fully vested and exercisable, with any applicable performance goals achieved based on the greater of (x) actual performance through the date of termination and (y) target performance. Severance benefits payable under the Amended and Restated Policy are subject to the eligible executive’s execution and non-revocation of a release of claims.

Eligible executives under the Amended and Restated Policy consist of any individual who is 1) designated by the Company as an insider for purposes of Section 16 of the Exchange Act and who is the Chief Executive Officer, 2) an officer of the Company who reports directly to the Chief Executive Officer on the earlier of his or her termination date or the occurrence of a change in control of the Company, or 3) selected by the Compensation Committee to participate in the Amended and Restated Policy. Accordingly, Messrs. McGranahan and Farah and Ms. Fitzgerald are eligible executives under the Amended and Restated Policy.

Item 9C. ~~Disclosures~~Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Except for the information required by this item with respect to our executive officers included in Item 1 of Part I of this Annual Report on Form 10‑K and our Code of Ethics, the information required by this Item 10 is incorporated herein by reference to the discussion in “Proposal 1—Election of Directors,” “Board of Directors Information,” and “Corporate Governance—Committees of the Board of Directors” of our definitive proxy statement for the ~~2022~~2023 annual meeting of stockholders.

The Company’s Directors’ Code of Conduct, Code of Ethics for Senior Financial Officers, Reporting Procedure for Accounting and Auditing Concerns, Attorneys’ Professional Conduct Policy, and the Code of Conduct are available without charge through the “Corporate Governance” portion of the Company’s website, www.westernunion.com, or by writing to the attention of: Investor Relations, The Western Union Company, 7001 East Belleview Avenue, Denver, Colorado 80237. In the event of an amendment to, or a waiver from, the Company’s Code of Ethics for Senior Financial Officers, the Company intends to post such information on its website, www.westernunion.com.

The information required by this Item 11 is incorporated herein by reference to the discussion in “Compensation Discussion and Analysis,” “Executive Compensation,” “Compensation of Directors,” and “Compensation and Benefits Committee Report” of our definitive proxy statement for the ~~2022~~2023 annual meeting of stockholders, provided that the Compensation and Benefits Committee Report shall not be deemed filed in this Form 10‑K.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this Item 12 is incorporated herein by reference to the discussion in “Stock Beneficially Owned by Directors, Executive Officers and Our Largest Stockholders,” and “Equity Compensation Plan Information” of our definitive proxy statement for the ~~2022~~2023 annual meeting of stockholders.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this Item 13 is incorporated herein by reference to the discussion of “Corporate Governance—Independence of Directors” and “Certain Transactions and Other Matters” of our definitive proxy statement for the ~~2022~~2023 annual meeting of stockholders.

The information required by this Item 14 is incorporated herein by reference to the discussion in “Proposal 3—4—Ratification of Selection of Auditors” of our definitive proxy statement for the ~~2022~~2023 annual meeting of stockholders.

* Management contracts and compensatory plans and arrangements required to be filed as exhibits pursuant to Item 15(b) of this report.

** Certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Corporation agrees to furnish supplementally a copy of such schedules and exhibits, or any section thereof, to the SEC upon request.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


Delaware		20-4531180
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 Par Value	WU	The New York Stock Exchange


	As of December 31,									As of December 31,
	2021			2020			2019			2022			2021			2020
Goodwill, gross	$	3,030.6		$	3,030.6		$	3,030.6		$	2,125.6		$	3,030.6		$	3,030.6
Accumulated impairment losses		(464.0	)		(464.0	)		(464.0	)		(29.6	)		(464.0	)		(464.0	)
Goodwill, net(a)	$	2,566.6		$	2,566.6		$	2,566.6		$	2,096.0		$	2,566.6		$	2,566.6


				December 31, 2022
Settlement assets:
Cash and cash equivalents				$	708.1
Receivables from agents, Business Solutions customers, and others					1,533.2
Less: Allowance for credit losses					(13.0	)
Receivables from agents, Business Solutions customers, and others, net					1,520.2
Investment securities					1,333.7
Less: Allowance for credit losses					(0.3	)
Investment securities, net					1,333.4
Total settlement assets(a)				$	3,561.7
Settlement obligations:
Money transfer, money order, and payment service payables				$	2,843.3
Payables to agents					718.4
Total settlement obligations(a)				$	3,561.7

	December 31, 2021			December 31, 2021
Settlement assets:
Cash and cash equivalents	$	835.5		$	835.5
Receivables from agents, Business Solutions customers, and others		1,198.8			1,198.8
Less: Allowance for credit losses		(23.7	)		(23.7	)
Receivables from agents, Business Solutions customers, and others, net		1,175.1			1,175.1
Investment securities		1,398.9			1,398.9
Total settlement assets(a)	$	3,409.5		$	3,409.5
Settlement obligations:
Money transfer, money order, and payment service payables	$	2,838.9		$	2,838.9
Payables to agents		570.6			570.6
Total settlement obligations(a)	$	3,409.5		$	3,409.5

	December 31, 2020
Settlement assets:
Cash and cash equivalents	$	695.7
Receivables from agents, Business Solutions customers, and others		1,188.3
Less: Allowance for credit losses		(53.2	)
Receivables from agents, Business Solutions customers, and others, net		1,135.1
Investment securities		1,990.6
Total settlement assets	$	3,821.4
Settlement obligations:
Money transfer, money order, and payment service payables	$	2,902.9
Payables to agents		918.5
Total settlement obligations	$	3,821.4


	Agents and			Business Solutions
	Others			Customers
Allowance for credit losses as of January 1, 2022	$	18.0		$	5.7
Current period provision for expected credit losses(a)		14.1			3.8
Write-offs charged against the allowance		(20.9	)		(1.5	)
Recoveries of amounts previously written off		4.7			—
Impacts of foreign currency exchange rates, divestitures, and other		(4.5	)		(6.4	)
Allowance for credit losses as of December 31, 2022	$	11.4		$	1.6



☑	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended: December 31, ~~2021~~2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to


Large accelerated filer ☑	Accelerated filer ☐	Non-accelerated filer ☐


Auditor Name:	Ernst & Young LLP	Auditor Location:	Denver, Colorado


		PAGE NUMBER
PART I

Item 1.	Business	6

Item 1A.	Risk Factors	2321

Item 1B.	Unresolved Staff Comments	4742

Item 2.	Properties	4742

Item 3.	Legal Proceedings	4742

Item 4.	Mine Safety Disclosures	4742

PART II

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	4843

Item 6.	[Reserved]	4843

Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4944

Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	7062

Item 8.	Financial Statements and Supplementary Data	7364

Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	~~137~~127

Item 9A.	Controls and Procedures	~~137~~127

Item 9B.	Other Information	~~137~~128

Item 9C.	~~Disclosures~~Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	~~138~~128

PART III

Item 10.	Directors, Executive Officers and Corporate Governance	~~139~~129

Item 11.	Executive Compensation	~~139~~129

Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	~~139~~129

Item 13.	Certain Relationships and Related Transactions, and Director Independence	~~139~~129

Item 14.	Principal Accounting Fees and Services	~~139~~129

PART IV

Item 15.	Exhibits, Financial Statement Schedules	~~140~~130

Item 16.	Form 10‑K Summary	~~145~~135


Name	Age		Position
Devin McGranahan		5253	President, Chief Executive Officer, and Director
~~Raj Agrawal~~Matt Cagwin		48	Chief Financial Officer
Benjamin Adams		51	Chief Legal Officer and Interim Chief People Officer
Giovanni Angelini		53	President, Europe and Africa
Cherie Axelrod		57	Chief Enterprise Risk Officer
Jean Claude Farah		52	President, Middle East and Asia Pacific
Gabriella Fitzgerald		51	President, North America
Andrew Walker		56	Chief ~~Financial Officer~~
~~David Cebollero~~		46	~~Interim Chief Legal Officer~~
~~Jean Claude Farah~~		51	~~President, EMEA/APAC~~
~~Gabriella Fitzgerald~~		50	~~President, Americas~~
~~Jacqueline Molnar~~		58	~~Chief Transformation Officer~~
~~Michelle Swanback~~		53	~~President, Product and Platform~~
~~Andrew Summerill~~		48	~~President, Payments~~
~~Richard Williams~~		56	~~Chief People~~Operations Officer


	Year Ended December 31, 2020
	As Previously
	Reported(a)			Revisions			As Revised
Net cash provided by/(used in):
Operating activities	$	877.5		$	—		$	877.5
Investing activities(b)		(113.4	)		(260.1	)		(373.5	)
Financing activities(c)		(773.5	)		587.6			(185.9	)
Net change in cash and cash equivalents, including settlement, and restricted cash	$	(9.4	)	$	327.5		$	318.1


	Year Ended December 31, 2019
	As Previously
	Reported(a)			Revisions			As Revised
Net cash provided by/(used in):
Operating activities	$	914.6		$	—		$	914.6
Investing activities(b)		632.3			(465.3	)		167.0
Financing activities(c)		(1,069.8	)		(414.3	)		(1,484.1	)
Net change in cash and cash equivalents, including settlement, and restricted cash	$	477.1		$	(879.6	)	$	(402.5	)


	Severance and			Facility Relocations
	Related			and Closures,
	Employee			Consulting,
	Benefits			and Other			Total
Balance, December 31, 2019	$	71.2		$	2.1		$	73.3
Expenses(a)		11.8			25.0			36.8
Cash payments		(58.7	)		(24.0	)		(82.7	)
Non-cash benefits/(charges)(a)		0.6			(1.8	)		(1.2	)
Balance, December 31, 2020	$	24.9		$	1.3		$	26.2

Total expenses incurred	$	109.8		$	42.5		$	152.3


	Consumer-to-		Business						Consumer-to-		Business
	Consumer		Solutions(a)		Other		Total		Consumer		Solutions(a)			Other		Total
January 1, 2020 goodwill, net	$	1,980.7	$	532.0	$	53.9	$	2,566.6
Additions		0		0		0		0
December 31, 2020 goodwill, net	$	1,980.7	$	532.0	$	53.9	$	2,566.6
January 1, 2021 goodwill, net									$	1,980.7	$	532.0		$	53.9	$	2,566.6
Additions		0		0		0		0		—		—			—		—
December 31, 2021 goodwill, net	$	1,980.7	$	532.0	$	53.9	$	2,566.6	$	1,980.7	$	532.0		$	53.9	$	2,566.6
Additions										—		—			—		—
Divestiture(a)										—		(470.6	)		—		(470.6	)
December 31, 2022 goodwill, net									$	1,980.7	$	61.4		$	53.9	$	2,096.0


					Gross		Gross			Net							Gross		Gross			Net
	Amortized		Fair		Unrealized		Unrealized			Unrealized			Amortized		Fair		Unrealized		Unrealized			Unrealized
December 31, 2021	Cost		Value		Gains		Losses			Gains/(Losses)
December 31, 2022													Cost		Value		Gains		Losses (b)			Gains/(Losses)
Settlement assets:
Cash and cash equivalents:
Money market funds	$	7.9	$	7.9	$	—	$	—		$	—		$	11.7	$	11.7	$	—	$	—		$	—
Available-for-sale securities:
State and municipal debt securities(a)		1,182.6		1,219.9		39.8		(2.5	)		37.3			1,010.5		933.3		0.3		(77.5	)		(77.2	)
Asset-backed securities														183.4		184.1		0.8		(0.1	)		0.7
Corporate debt securities														153.5		146.9		0.3		(6.9	)		(6.6	)
State and municipal variable-rate demand notes		84.8		84.8		—		—			—			48.9		48.9		—		—			—
Corporate and other debt securities		58.1		57.8		0.2		(0.5	)		(0.3	)
United States government agency mortgage-backed securities		35.6		36.4		0.8		—			0.8			21.5		20.5		—		(1.0	)		(1.0	)
Total available-for-sale securities		1,361.1		1,398.9		40.8		(3.0	)		37.8			1,417.8		1,333.7		1.4		(85.5	)		(84.1	)
Total investment securities	$	1,369.0	$	1,406.8	$	40.8	$	(3.0	)	$	37.8		$	1,429.5	$	1,345.4	$	1.4	$	(85.5	)	$	(84.1	)


	Fair Value		Fair Value
Due within 1 year	$	162.5	$	116.5
Due after 1 year through 5 years		575.6		593.2
Due after 5 years through 10 years		503.5		476.8
Due after 10 years		157.3		147.2
Total	$	1,398.9	$	1,333.7


	Fair Value Measurement Using				Total		Fair Value Measurement Using				Total
December 31, 2021	Level 1		Level 2		Fair Value
December 31, 2022							Level 1		Level 2		Fair Value
Assets:
Settlement assets:
Measured at fair value through net income:
Money market funds	$	7.9	$	—	$	7.9	$	11.7	$	—	$	11.7
Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income):
State and municipal debt securities		—		1,219.9		1,219.9		—		933.3		933.3
Asset-backed securities								—		184.1		184.1
Corporate debt securities								—		146.9		146.9
State and municipal variable-rate demand notes		—		84.8		84.8		—		48.9		48.9
Corporate and other debt securities		—		57.8		57.8
United States government agency mortgage-backed securities		—		36.4		36.4		—		20.5		20.5
Other assets:
Derivatives		—		247.7		247.7		—		126.1		126.1
Total assets	$	7.9	$	1,646.6	$	1,654.5	$	11.7	$	1,459.8	$	1,471.5
Liabilities:
Other liabilities:
Derivatives	$	—	$	183.8	$	183.8	$	—	$	98.9	$	98.9
Total liabilities	$	—	$	183.8	$	183.8	$	—	$	98.9	$	98.9


	December 31, 2021
Due within 1 year	$	45.9
Due after 1 year through 2 years		38.8
Due after 2 years through 3 years		33.8
Due after 3 years through 4 years		28.7
Due after 4 years through 5 years		23.8
Due after 5 years		69.9
Total lease payments		240.9
Less imputed interest		(37.9	)
Total operating lease liabilities	$	203.0


	December 31, 2022
Due within 1 year	$	38.1
Due after 1 year through 2 years		32.4
Due after 2 years through 3 years		27.9
Due after 3 years through 4 years		23.2
Due after 4 years through 5 years		18.0
Due after 5 years		50.9
Total lease payments		190.5
Less imputed interest		(29.2	)
Total operating lease liabilities	$	161.3


	Amounts Reclassified from AOCL to Net Income										Amounts Reclassified from AOCL to Net Income
	Income Statement	Year Ended December 31,									Income Statement	Year Ended December 31,
Income for the period (in millions)	Location	2021			2020			2019			Location	2022			2021			2020
Accumulated other comprehensive loss components:
Gains/(losses) on investment securities:
Available-for-sale securities	Revenues	$	3.7		$	0.6		$	0.6		Revenues	$	(8.9	)	$	3.7		$	0.6
Income tax expense	Provision for income taxes		(0.8	)		(0.1	)		(0.1	)
Income tax benefit/(expense)											Provision for income taxes		1.7			(0.8	)		(0.1	)
Total reclassification adjustments related to investment securities, net of tax			2.9			0.5			0.5				(7.2	)		2.9			0.5
Gains/(losses) on cash flow hedges:
Foreign currency contracts	Revenues		(7.6	)		1.2			14.2		Revenues		47.7			(7.6	)		1.2
Interest rate contracts	Interest expense		(0.6	)		(0.6	)		—		Interest expense		—			(0.6	)		(0.6	)
Interest rate contracts	Other income/(expense), net		0.7			—			—		Other income/(expense), net		—			0.7			—
Income tax benefit/(expense)	Provision for income taxes		—			0.1			(0.1	)	Provision for income taxes		(0.4	)		—			0.1
Total reclassification adjustments related to cash flow hedges, net of tax			(7.5	)		0.7			14.1				47.3			(7.5	)		0.7
Foreign currency translation adjustments:
Foreign currency translation											Gain on divestiture of business		17.8			—			—
Total reclassification adjustments related to foreign currency translation adjustments, net of tax													17.8			—			—
Effects of 2021 settlement and amortization of components of defined benefit plans:
Settlement charges	Pension settlement charges		(109.8	)		—			—		Pension settlement charges		—			(109.8	)		—
Actuarial loss	Other income/(expense), net		(9.9	)		(12.1	)		(10.8	)	Other income/(expense), net		—			(9.9	)		(12.1	)
Income tax benefit	Provision for income taxes		25.7			2.7			2.4		Provision for income taxes		—			25.7			2.7
Total reclassification adjustments related to defined benefit plans, net of tax			(94.0	)		(9.4	)		(8.4	)			—			(94.0	)		(9.4	)
Total reclassifications, net of tax		$	(98.6	)	$	(8.2	)	$	6.2			$	57.9		$	(98.6	)	$	(8.2	)


	Investment			Hedging			Foreign Currency
	Securities			Activities			Translation			Total
As of December 31, 2021	$	30.4		$	18.7		$	(101.2	)	$	(52.1	)
Unrealized gains/(losses)		(130.8	)		49.5			—			(81.3	)
Tax benefit/(expense)		23.8			(0.4	)		—			23.4
Amounts reclassified from AOCL into earnings, net of tax		7.2			(47.3	)		(17.8	)		(57.9	)
As of December 31, 2022	$	(69.4	)	$	20.5		$	(119.0	)	$	(167.9	)


Year	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
2022									$	0.235	$	0.235	$	0.235	$	0.235
2021	$	0.235	$	0.235	$	0.235	$	0.235	$	0.235	$	0.235	$	0.235	$	0.235
2020	$	0.225	$	0.225	$	0.225	$	0.225	$	0.225	$	0.225	$	0.225	$	0.225
2019	$	0.20	$	0.20	$	0.20	$	0.20


	December 31, 2021		December 31, 2022
Contracts designated as hedges:
Euro	$	399.9	$	321.6
Canadian dollar		134.0		117.3
Australian dollar		58.4		53.2
Swiss franc		45.9		40.4
British pound		43.8		40.4
Swedish krona		30.7		25.8
Japanese yen		30.4
Other(a)		0.9		22.1
Contracts not designated as hedges:
Euro	$	755.7	$	603.2
Mexican peso				132.9
British pound		148.1		115.1
Indian rupee				52.6
Australian dollar				48.7
Canadian dollar		144.2		32.2
Australian dollar		98.1
Mexican peso		96.3
Philippine peso		76.2
Indian rupee		63.4
Japanese yen		46.0		30.5
Russian ruble		44.4
Chinese yuan		31.6		30.1
New Zealand dollar		26.6
Swiss franc		25.1		28.3
Swedish krona		25.1		26.7
Philippine peso				26.2
Other(a)		132.7		137.0


	Derivative Assets					Derivative Liabilities					Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value					Fair Value					Fair Value
	Balance Sheet	December 31,		December 31,		Balance Sheet	December 31,		December 31,		Balance Sheet	December 31,		December 31,		Balance Sheet	December 31,		December 31,
	Location	2021		2020		Location	2021		2020		Location	2022		2021		Location	2022		2021
Derivatives designated as hedges:
Foreign currency cash flow hedges	Other assets	$	30.6	$	9.1	Other liabilities	$	2.6	$	24.9	Other assets	$	35.2	$	30.6	Other liabilities	$	4.7	$	2.6
Interest rate cash flow hedges	Other assets		—		—	Other liabilities		—		0.1
Total derivatives designated as hedges		$	30.6	$	9.1		$	2.6	$	25.0		$	35.2	$	30.6		$	4.7	$	2.6
Derivatives not designated as hedges:
Business Solutions operations - foreign currency(a)	Other assets	$	213.1	$	441.4	Other liabilities	$	174.1	$	402.5	Assets held for sale	$	88.6	$	213.1	Liabilities associated with assets held for sale	$	89.5	$	174.1
Foreign currency	Other assets		4.0		2.8	Other liabilities		7.1		2.8	Other assets		2.3		4.0	Other liabilities		4.7		7.1
Total derivatives not designated as hedges		$	217.1	$	444.2		$	181.2	$	405.3		$	90.9	$	217.1		$	94.2	$	181.2
Total derivatives		$	247.7	$	453.3		$	183.8	$	430.3		$	126.1	$	247.7		$	98.9	$	183.8


	Gross		Gross		Net Amounts		Derivatives					Gross		Gross		Net Amounts		Derivatives
	Amounts of		Amounts Offset		Presented		Not Offset					Amounts of		Amounts Offset		Presented		Not Offset
												Recognized		in the Consolidated		in the Consolidated		in the Consolidated			Net
December 31, 2022												Assets		Balance Sheets		Balance Sheets		Balance Sheets			Amounts
Derivatives subject to a master netting arrangement or similar agreement												$	55.8	$	—	$	55.8	$	(26.3	)	$	29.5
Derivatives that are not or may not be subject to master netting arrangement or similar agreement													70.3
Total												$	126.1
	Recognized		in the Consolidated		in the Consolidated		in the Consolidated			Net
December 31, 2021	Assets		Balance Sheets		Balance Sheets		Balance Sheets			Amounts
Derivatives subject to a master netting arrangement or similar agreement	$	163.9	$	—	$	163.9	$	(92.4	)	$	71.5	$	163.9	$	—	$	163.9	$	(92.4	)	$	71.5
Derivatives that are not or may not be subject to master netting arrangement or similar agreement		83.8											83.8
Total	$	247.7										$	247.7

December 31, 2020
Derivatives subject to a master netting arrangement or similar agreement	$	165.1	$	—	$	165.1	$	(155.1	)	$	10.0
Derivatives that are not or may not be subject to master netting arrangement or similar agreement		288.2
Total	$	453.3


		Year Ended December 31,							Year Ended December 31,
Derivatives(a)	Location	2021		2020		2019		Location	2022		2021		2020
Foreign currency derivatives(b)	Selling, general, and administrative	$	52.0	$	15.9	$	23.9	Selling, general, and administrative	$	66.5	$	52.0	$	15.9
Foreign currency derivatives	Revenues		—		—		0.3
Total gain		$	52.0	$	15.9	$	24.2		$	66.5	$	52.0	$	15.9


				Weighted- Average Exercise		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic					Weighted- Average Exercise		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic
	Options			Price		(Years)		Value		Options			Price		(Years)		Value
Outstanding as of January 1		4.9		$	19.11						7.0		$	18.98
Granted		2.6		$	18.87						0.5		$	18.62
Exercised		(0.6	)	$	19.59						(0.6	)	$	17.56
Cancelled/forfeited		0		$	21.00						(0.5	)	$	23.64
Outstanding as of December 31		7.0		$	18.98		6.9	$	2.3		6.4		$	18.68		6.6	$	—
Options exercisable as of December 31		3.6		$	18.48		4.5	$	1.9		4.1		$	18.97		5.3	$	—


				Weighted-Average					Weighted-Average
	Units			Grant-Date Fair Value		Units			Grant-Date Fair Value
Non-vested as of January 1		6.9		$	20.88		7.5		$	21.91
Granted		3.7		$	22.63		4.0		$	19.45
Vested		(2.1	)	$	20.03		(2.2	)	$	21.11
Forfeited		(1.0	)	$	21.52		(2.9	)	$	21.17
Non-vested as of December 31		7.5		$	21.91		6.4		$	21.01


	Amount			Interest Rate			Amount			Interest Rate
Date Issued	(in millions)		Due Date	(per annum)			(in millions)		Due Date	(per annum)
October 1, 2019 (a)	$	162.8	June 30, 2022		1.69	%
December 1, 2019 (a)	$	67.4	August 31, 2022		1.61	%
December 1, 2020 (a)	$	93.3	August 31, 2023		0.15	%	$	93.3	August 31, 2023		0.15	%
January 1, 2021 (a)	$	289.0	September 30, 2023		0.14	%	$	289.0	September 30, 2023		0.14	%
March 1, 2021 (a)	$	244.3	November 30, 2023		0.12	%	$	244.3	November 30, 2023		0.12	%
July 1, 2022 (a)							$	170.4	March 31, 2025		2.21	%
September 1, 2022 (a)							$	70.3	May 31, 2025		2.88	%
December 31, 2022 (b)							$	210.9	May 31, 2023		2.40	%


Exhibit Number		Description

2.1		Separation and Distribution Agreement, dated as of September 29, 2006, between First Data Corporation and The Western Union Company (filed as Exhibit 2.1 to the Company’s Current Report on Form 8‑K filed on October 3, 2006 and incorporated herein by reference thereto).

~~2.2~~		Stock Purchase Agreement, dated as of February 28, 2019, among The Western Union Company, ACI Worldwide Corp. and ACI Worldwide, Inc. (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on May 9, 2019 and incorporated herein by reference thereto).**

3.1		Amended and Restated Certificate of Incorporation of The Western Union Company, as amended on May 18, 2018 (filed as Exhibit 3.1 to the Company’s Current Report on form 8‑K filed on May 22, 2018 and incorporated herein by reference thereto).

3.2		~~By-Laws~~Amended and Restated By-laws of The Western Union Company ~~as amended~~adopted on December ~~11, 2020~~8, 2022 (filed as Exhibit ~~3.2~~3.1 to the Company’s Current Report on Form 8‑K filed on December ~~11, 2020~~9, 2022 and incorporated herein by reference thereto).

4.1		Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities and Exchange Act of 1934 (filed as Exhibit 4.1 to the Company’s Annual Report on Form 10-K filed on February 20, 2020 and incorporated herein by reference thereto).

4.2		Indenture, dated as of November 17, 2006, between The Western Union Company and Wells Fargo Bank, National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8‑K filed on November 20, 2006 and incorporated herein by reference thereto).

4.3		Supplemental Indenture, dated as of September 6, 2007, among The Western Union Company and Wells Fargo Bank, National Association, as trustee (filed as Exhibit 4.13 to the Company’s Annual Report on Form 10‑K filed on February 26, 2008 and incorporated herein by reference thereto).

4.4		Second Supplemental Indenture, dated as of May 3, 2019, between The Western Union Company and Wells Fargo Bank, National Association, as trustee (filed as Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q filed on May 7, 2019 and incorporated herein by reference thereto).

4.5		Form of 6.200% Note due 2036 (filed as Exhibit 4.14 to the Company’s Registration Statement on Form S‑4 filed on December 22, 2006 and incorporated herein by reference thereto).

4.6		Form of 6.200% Note due 2040 (filed as Exhibit 4.1 to the Company’s Current Report on Form 8‑K filed on June 21, 2010 and incorporated herein by reference thereto).



4.7		Form of 4.250% Note due 2023 (filed as Exhibit 4.1 to the Company’s Current Report on Form 8‑K filed on June 11, 2018 and incorporated herein by reference thereto).


4.8		Form of 2.850% Note due 2025 (filed as Exhibit 4.1 to the Company’s Current Report on Form 8‑K filed on November 25, 2019 and incorporated herein by reference thereto).

4.9		Form of 1.350% Note due 2026 (filed as Exhibit 4.1 to the Company’s Current Report on Form 8‑K filed on March 10, 2021 and incorporated herein by reference thereto).

4.10		Form of 2.750% Note due 2031 (filed as Exhibit 4.2 to the Company’s Current Report on Form 8‑K filed on March 10, 2021 and incorporated herein by reference thereto).

10.1		Amended and Restated Credit Agreement, dated as of December 18, 2018, among The Western Union Company, the banks named therein, as lenders, Citibank, N.A., Bank of America, N.A. and Wells Fargo Bank, National Association, in their respective capacities as Issuing Lenders, Bank of America, N.A. and Wells Fargo Bank, National Association, as Syndication Agents, Barclays Bank PLC, JPMorgan Chase Bank, N.A. and U.S. Bank National Association, as Documentation Agents, and Citibank, N.A., as Administrative Agent for the banks thereunder (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on December 20, 2018 and incorporated herein by reference thereto).

10.2		Letter Amendment No. 1 to the Amended and Restated Credit Agreement, dated as of May 11, 2020, among The Western Union Company, the banks, financial institutions and other institutional lenders party thereto as Banks, and Citibank, N.A., as administrative agent for the Banks (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10‑Q filed on August 4, 2020 and incorporated herein by reference thereto).

10.3		Amendment No. 2 to the Amended and Restated Credit Agreement, dated as of October 31, 2022, between The Western Union Company and Citibank, N.A. as administrative agent for the Banks (filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on November 1, 2022 and incorporated herein by reference thereto).

10.4		Form of Director Indemnification Agreement (filed as Exhibit 10.10 to Amendment No. 2 to the Company’s Registration Statement on Form 10 (file no. 001‑32903) filed on August 28, 2006 and incorporated herein by reference thereto).*

~~10.4~~10.5		The Western Union Company Severance/Change in Control Policy (Executive Committee Level), as Amended and Restated ~~Effective July 28, 2015 (filed as Exhibit 10.16 to the Company’s Annual Report on Form 10‑K filed~~ on February ~~19, 2016 and incorporated herein by reference thereto).~~22, 2023, effective May 1, 2023.,*

~~10.5~~10.6		The Western Union Company 2006 Long-Term Incentive Plan, as ~~amended~~Amended and ~~restated~~Restated on January 31, 2014 (filed as Exhibit 10.11 to the Company’s Annual Report on Form 10‑K filed on February 24, 2014 and incorporated herein by reference thereto).*

~~10.6~~10.7		The Western Union Company 2006 Non-Employee Director Equity Compensation Plan, as Amended and Restated Effective January 31, 2014 (filed as Exhibit 10.12 to the Company’s Annual Report on Form 10‑K filed on February 24, 2014 and incorporated herein by reference thereto).*

~~10.7~~10.8		The Western Union Company Non-Employee Director Deferred Compensation Plan, as Amended and Restated Effective December 31, 2008 (filed as Exhibit 10.12 to the Company’s Annual Report on Form 10‑K filed on February 19, 2009 and incorporated herein by reference thereto).*

~~10.8~~10.9		The Western Union Company Senior Executive Performance Incentive Plan, Established February 20, 2019 (filed as Exhibit 10.21 to the Company’s Annual Report on Form 10‑K filed on February 21, 2019 and incorporated herein by reference thereto).*

~~10.9~~10.10		Form of Unrestricted Stock Unit Award Agreement Under The Western Union Company 2006 Non-Employee Director Equity Compensation Plan, as Amended and Restated Effective February 17, 2009 (filed as Exhibit 10.15 to the Company’s Annual Report on Form 10‑K filed on February 26, 2010 and incorporated herein by reference thereto).*


~~10.10~~10.11		Form of Unrestricted Stock Unit Award Agreement for Non-Employee Directors Residing in the United States Under The Western Union Company 2006 Non-Employee Director Equity Compensation Plan (filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10‑Q filed on May 6, 2010 and incorporated herein by reference thereto).*

~~10.11~~10.12		Form of Nonqualified Stock Option Award Agreement for Non-Employee Directors Residing in the United States Under The Western Union Company 2006 Non-Employee Director Equity Compensation Plan (filed as Exhibit 10.5 to the Company’s Quarterly Report on Form 10‑Q filed on May 6, 2010 and incorporated herein by reference thereto).*

~~10.12~~10.13		Form of Nonqualified Stock Option Award Agreement for Section 16 Officers (U.S.) Under The Western Union Company 2006 Long-Term Incentive Plan (filed as Exhibit 10.29 to the Company’s Annual Report on Form 10‑K filed on February 25, 2011 and incorporated herein by reference thereto).*

~~10.13~~10.14		Form of Nonqualified Stock Option Award Agreement for Section 16 Officers (Non - U.S.) Under The Western Union Company 2006 Long-Term Incentive Plan (filed as Exhibit 10.30 to the Company’s Annual Report on Form 10‑K filed on February 25, 2011 and incorporated herein by reference thereto).*

~~10.14~~10.15		Form of Bonus Stock Unit Award Agreement for Non-Employee Directors Residing in the United States Under The Western Union Company 2006 Long-Term Incentive Plan (filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10‑Q filed on May 1, 2012 and incorporated herein by reference thereto).*

~~10.15~~10.16		Form of Nonqualified Stock Option Award Agreement for Non-Employee Directors Residing in the United States Under The Western Union Company 2006 Long-Term Incentive Plan (filed as Exhibit 10.47 to the Company’s Annual Report on Form 10‑K filed on February 24, 2014 and incorporated herein by reference thereto).*

~~10.16~~10.17		Form of Award Agreement Under The Western Union Company Senior Executive Performance Incentive Plan (filed as Exhibit 10.38 to the Company’s Annual Report on Form 10‑K filed on February 21, 2019 and incorporated herein by reference thereto).*

~~10.17~~10.18		Form of Nonqualified Stock Option Award Agreement for Section 16 Officers (Non - U.S.) Under The Western Union Company 2006 Long-Term Incentive Plan For Awards Granted in 2014 and Thereafter (filed as Exhibit 10.10 to the Company’s Quarterly Report on Form 10‑Q filed on May 1, 2014 and incorporated herein by reference thereto).*

~~10.18~~10.19		Form of Nonqualified Stock Option Award Agreement for Section 16 Officers (U.S.) Under The Western Union Company 2006 Long-Term Incentive Plan For Awards Granted in 2014 and Thereafter (filed as Exhibit 10.11 to the Company’s Quarterly Report on Form 10‑Q filed on May 1, 2014 and incorporated herein by reference thereto).*

~~10.19~~10.20		The Western Union Company 2015 Long-Term Incentive Plan, as ~~amended~~Amended and ~~restated~~Restated on February 21, 2018 (filed as Exhibit 10.47 to the Company’s Annual Report on Form 10‑K filed on February 22, 2018 and incorporated herein by reference thereto).*

~~10.20~~10.21		Form of Deferred Stock Unit Award Agreement for U.S. Non-Employee Directors Under The Western Union Company 2015 Long-Term Incentive Plan, Effective May 15, 2015 (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10‑Q filed on July 30, 2015 and incorporated herein by reference thereto).*

~~10.21~~10.22		Form of Nonqualified Stock Option Award Agreement for U.S. Non-Employee Directors Under The Western Union Company 2015 Long-Term Incentive Plan, Effective May 15, 2015 (filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10‑Q filed on July 30, 2015 and incorporated herein by reference thereto).*


~~10.22~~10.23		The Western Union Company Supplemental Incentive Savings Plan, as Amended and Restated Effective January 1, 2022.,2022 (filed as Exhibit 10.22 to the Company’s Annual Report on Form 10-K filed on February 24, 2022, and incorporated herein by reference thereto).

~~10.23~~10.24		Form of Nonqualified Stock Option Award Agreement for Section 16 Officers (Non - U.S.) Under The Western Union Company 2015 Long-Term Incentive Plan (filed as Exhibit 10.8 to the Company’s Quarterly Report on Form 10‑Q filed on May 3, 2016 and incorporated herein by reference thereto).*

~~10.24~~10.25		Form of Nonqualified Stock Option Award Agreement for Section 16 Officers (Non - U.S.) Under The Western Union Company 2015 Long-Term Incentive Plan (filed as Exhibit 10.6 to the Company’s Quarterly Report on Form 10‑Q filed on May 2, 2017 and incorporated herein by reference thereto).*

~~10.25~~10.26		Deferred Prosecution Agreement dated January 19, 2017 by and between The Western Union Company, 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 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8‑K filed on January 20, 2017 and incorporated herein by reference thereto).

~~10.26~~10.27		Stipulated Order for Permanent Injunction and Final Judgment dated January 19, 2017 by and between The Western Union Company and the United States Federal Trade Commission (filed as Exhibit 10.2 to the Company’s Current Report on Form 8‑K filed on January 20, 2017 and incorporated herein by reference thereto).

~~10.27~~10.28		Consent to the Assessment of Civil Money Penalty dated January 19, 2017 by and between Western Union Financial Services, Inc. and the Financial Crimes Enforcement Network of the United States Department of Treasury (filed as Exhibit 10.3 to the Company’s Current Report on Form 8‑K filed on January 20, 2017 and incorporated herein by reference thereto).

~~10.28~~10.29		Form of Nonqualified Stock Option Grant Award Agreement for Non-U.S. Section 16 Officer under The Western Union Company 2015 Long-Term Incentive Plan (filed as Exhibit 10.65 to the Company’s Annual Report on Form 10‑K filed on February 21, 2019 and incorporated herein by reference thereto).*

~~10.29~~10.30		Form of Restricted Stock Unit Award Agreement for U.S. Section 16 Officers under The Western Union Company 2015 Long-Term Incentive Plan (filed as Exhibit 10.66 to the Company’s Annual Report on Form 10‑K filed on February 21, 2019 and incorporated herein by reference thereto).*

~~10.30~~10.31		Form of Financial Performance-Based Restricted Stock Unit Award Agreement for U.S. Section 16 Officers under The Western Union Company 2015 Long-Term Incentive Plan (filed as Exhibit 10.67 to the Company’s Annual Report on Form 10‑K filed on February 21, 2019 and incorporated herein by reference thereto).*

~~10.31~~10.32		Form of Total Shareholder Return Performance-Based Restricted Stock Unit Award Agreement for U.S. Section 16 Officers under The Western Union Company 2015 Long-Term Incentive Plan (filed as Exhibit 10.68 to the Company’s Annual Report on Form 10‑K filed on February 21, 2019 and incorporated herein by reference thereto).*

~~10.32~~10.33		Form of Restricted Stock Unit Award Agreement for Non-U.S. Section 16 Officers under The Western Union Company 2015 Long-Term Incentive Plan (filed as Exhibit 10.69 to the Company’s Annual Report on Form 10‑K filed on February 21, 2019 and incorporated herein by reference thereto).*

~~10.33~~10.34		Form of Financial Performance-Based Restricted Stock Unit Award Agreement for Non-U.S. Section 16 Officers under The Western Union Company 2015 Long-Term Incentive Plan (filed as Exhibit 10.70 to the Company’s Annual Report on Form 10‑K filed on February 21, 2019 and incorporated herein by reference thereto).*