1365135--2/19/2009--Western_Union

related topics

{condition, economic, financial}

{regulation, change, law}

{system, service, information}

{financial, litigation, operation}

{product, market, service}

{debt, indebtedness, cash}

{capital, credit, financial}

{investment, property, distribution}

{property, intellectual, protect}

{operation, international, foreign}

{tax, income, asset}

{acquisition, growth, future}

Risks Relating to Our Business and Industry Current difficult conditions in the global financial markets and continued financial market disruptions could adversely affect our business, financial condition and results of operations. Interruptions in migration patterns, including as a result of the current economic conditions, could adversely affect our business, financial condition and results of operations. Our ability to adopt technology in response to changing industry and consumer needs or trends poses a challenge to our business. Our business is subject to a wide range of laws and regulations, especially laws designed to prevent money laundering and terrorist financing. Failure by us, our agents or subagents to comply with those laws and regulations could have an adverse effect on our business, financial position and results of operations. Risks associated with operations outside the United States could adversely affect our business, financial position and results of operations. Our consolidated balance sheet may not contain sufficient amounts or types of regulatory capital to meet the changing requirements of our various regulators worldwide, which could adversely affect our business, financial position and results of operations. If we are unable to maintain our agent or biller networks under terms consistent with those currently in place, or if our agents or subagents fail to comply with Western Union business and technology standards and contract requirements or applicable laws and regulations, our business, financial position and results of operations would be adversely affected. If consumers confidence in our business, or in traditional money transfer providers generally deteriorates, our business, financial position and results of operations could be adversely affected. We face credit, liquidity and fraud risks from our agents and from consumers that could adversely affect our business, financial position and results of operations. Interruptions in our systems or disruptions in our workforce may have a significant effect on our business. Our business, financial position and results of operations could be harmed by adverse rating actions by credit rating agencies. Western Union has been the subject of class-action litigation, and remains the subject of other litigation as well as consent agreements with or enforcement actions by regulators. Unfavorable resolution of tax contingencies could adversely affect our tax expense. 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. Our continued growth depends on our ability to compete effectively in the industry. Our ability to remain competitive depends in part on our ability to protect our brands and our other intellectual property rights and to defend ourselves against potential patent infringement claims. Breaches of our information security policies or safeguards could adversely affect our ability to operate and could damage our reputation, business, financial position and results of operations. Acquisitions and integration of new businesses create risks and may affect operating results. Material changes in the market value or liquidity of the securities we hold may adversely affect our results of operations and financial condition. We receive services from third-party vendors that would be difficult to replace if those vendors ceased providing such services which could cause temporary disruption to our business. We have substantial debt obligations that could restrict our operations. Risks Relating to the Spin-Off If the spin-off does not qualify as a tax-free transaction, First Data and its stockholders could be subject to material amounts of taxes and, in certain circumstances, our company could be required to indemnify First Data for material taxes pursuant to indemnification obligations under the tax allocation agreement. Under some circumstances, we could be prevented from engaging in strategic or capital raising transactions, and we could be liable to First Data for any resulting adverse tax consequences.

Full 10-K form ▸

1365135--2/19/2009--Western_Union_CO