RECONCILIATION OF NON-GAAP MEASURES
Western Union’s management believes the non-GAAP financial measures presented provide meaningful supplemental information regarding our operating results to assist management, investors, analysts, and others in understanding our financial results and to better analyze trends in our underlying business, because they provide consistency and comparability to prior periods.
A non-GAAP financial measure should not be considered in isolation or as a substitute for the most comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the reconciliation to the corresponding GAAP financial measure, provides a more complete understanding of our business. Users of the financial statements are encouraged to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included below. All adjusted year-over-year changes were calculated using prior year amounts.
|Revenues, as reported (GAAP)||$5,292.1|
|Foreign currency translation impact(a)||238.9|
|Revenues, constant currency adjusted and excluding divestitures||$5,400.3|
|Revenues, as reported (GAAP)||$5,589.9|
|Revenues, excluding divestitures||$5,221.7|
|Revenue change, as reported (GAAP)||(5%)|
|Revenue change, constant currency adjusted and excluding divestitures||3%|
|Operating income, as reported (GAAP)||$934.0|
|Foreign currency translation impact(a)||63.5|
|Acquisition and divestiture costs(d)||16.0|
|Operating income, constant currency adjusted, excluding restructuring-related expenses and acquisition and divestiture costs||$1,129.0|
|Operating income margin, as reported||17.6%|
|Operating margin, excluding restructuring-related expenses and acquisition and divestiture costs||20.1%|
|Operating income, as reported (GAAP)||$1,122.1|
|Acquisition and divestiture costs(d)||14.9|
|Operating income, adjusted, excluding acquisition and divestiture costs||$1,137.0|
|Operating income margin, as reported||20.1%|
|Operating margin, adjusted, excluding acquisition and divestiture costs||20.3%|
Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, which would not have occurred if there had been a constant exchange rate. We believe that this measure provides management and investors with information about operating results and trends that eliminates currency volatility and provides greater clarity regarding, and increases the comparability of, our underlying results and trends.
Represents the revenue generated by the Speedpay and Paymap businesses which were divested in 2019. We have included this information because management believes that presenting revenues as adjusted to exclude divestitures will provide investors with a more meaningful comparison of results within the periods presented.
Represents the impact from expenses incurred in connection with an overall restructuring plan, approved by the Board of Directors on August 1, 2019, to improve our business processes and cost structure by reducing headcount and consolidating various facilities. While these expenses are specific to this initiative, the types of expenses related to this initiative are similar to expenses that we have previously incurred and can reasonably be expected to incur in the future. We believe that, by excluding the effect of these charges associated with restructuring-related activities that can impact operating trends, management and investors are provided with a measure that increases the comparability of our underlying operating results.
Represents the impact from expenses incurred in connection with our acquisition and divestiture activity, including the Speedpay and Paymap divestitures. We believe that, by excluding the effect of these charges that can impact operating trends, management and investors are provided with a measure that increases the comparability of our underlying operating results.