Schedule I - Condensed Financial Information of the Registrant

12 Months Ended

Dec. 31, 2025

Condensed Financial Information Disclosure [Abstract]

Schedule I - Condensed Financial Information of the Registrant

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

The following lists the condensed financial information for the parent company as of December 31, 2025 and 2024 and Condensed Statements of Income and Comprehensive Income and Condensed Statements of Cash Flows for each of the three years in the period ended December 31, 2025.

THE WESTERN UNION COMPANY

CONDENSED BALANCE SHEETS

(PARENT COMPANY ONLY)

(in millions, except per share amounts)


	December 31,
	2025			2024
Assets
Cash and cash equivalents	$	2.5		$	1.4
Property and equipment, net of accumulated depreciation of $81.3 and $75.0, respectively		5.5			11.8
Income taxes receivable		39.4			—
Other assets		69.6			76.9
Investment in subsidiaries		5,036.7			4,838.2
Total assets	$	5,153.7		$	4,928.3
Liabilities and stockholders' equity
Liabilities:
Accounts payable and accrued liabilities	$	48.0		$	54.0
Income taxes payable		—			185.0
Payable to subsidiaries, net		1,248.0			703.9
Borrowings		2,834.9			2,940.8
Other liabilities		65.0			75.7
Total liabilities		4,195.9			3,959.4
Stockholders' equity:
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued		—			—
Common stock, $0.01 par value; 2,000 shares authorized; 315.7 shares and 337.9 shares issued and outstanding as of December 31, 2025 and 2024, respectively		3.2			3.4
Capital surplus		1,117.4			1,070.8
Retained earnings/(accumulated deficit)		(11.5	)		35.2
Accumulated other comprehensive loss		(151.3	)		(140.5	)
Total stockholders' equity		957.8			968.9
Total liabilities and stockholders' equity	$	5,153.7		$	4,928.3

See Notes to Condensed Financial Statements.

THE WESTERN UNION COMPANY

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(PARENT COMPANY ONLY)

(in millions)


	Year Ended December 31,
	2025			2024			2023
Revenues	$	—		$	—		$	—
Expenses		—			—			—
Operating income		—			—			—
Interest income		—			0.1			1.2
Interest expense		(182.7	)		(158.7	)		(121.5	)
Other expense, net		(0.6	)		(0.5	)		—
Loss before equity earnings of affiliates and income taxes		(183.3	)		(159.1	)		(120.3	)
Equity in earnings of affiliates, net of tax		640.2			1,059.2			720.6
Income tax benefit		42.7			34.1			25.7
Net income		499.6			934.2			626.0
Other comprehensive income/(loss), net of tax		(0.1	)		(0.2	)		0.3
Other comprehensive income/(loss) of affiliates, net of tax		(10.7	)		27.0			0.3
Comprehensive income	$	488.8		$	961.0		$	626.6

See Notes to Condensed Financial Statements.

THE WESTERN UNION COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(PARENT COMPANY


	Year Ended December 31,
	2025			2024			2023
Cash flows from operating activities
Net cash provided by operating activities	$	101.2		$	757.5		$	514.7
Cash flows from investing activities
Purchases of property and equipment		(0.2	)		(1.3	)		(1.7	)
Proceeds from the sale of non-settlement investments		—			—			100.0
Capital contributed to subsidiaries, net		(13.4	)		(232.5	)		(6.0	)
Other investing activities		(1.8	)		(1.0	)		(2.5	)
Net cash provided by/(used in) investing activities		(15.4	)		(234.8	)		89.8
Cash flows from financing activities
Advances from/(payments to) subsidiaries, net		566.9			(448.2	)		170.3
Net proceeds from/(repayments of) commercial paper		392.0			(364.9	)		184.9
Net proceeds from issuance of borrowings		—			798.1			—
Principal payments on borrowings		(500.0	)		—			(300.0	)
Proceeds from exercise of options		—			—			0.2
Cash dividends and dividend equivalents paid		(309.0	)		(321.5	)		(349.0	)
Common stock repurchased		(234.6	)		(186.2	)		(308.4	)
Other financing activities		—			(0.7	)		(2.0	)
Net cash used in financing activities		(84.7	)		(523.4	)		(604.0	)
Net change in cash and cash equivalents		1.1			(0.7	)		0.5
Cash and cash equivalents at beginning of year		1.4			2.1			1.6
Cash and cash equivalents at end of year	$	2.5		$	1.4		$	2.1
Supplemental cash flow information:
Non-cash financing activity, distribution of note from subsidiary (Note 3)	$	23.2		$	84.6		$	210.9
Cash paid for lease liabilities	$	15.2		$	17.3		$	14.2

CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

THE WESTERN UNION COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS

1. Basis of Presentation

The Western Union Company (the “Parent”) is a holding company that conducts substantially all of its business operations through its subsidiaries. Under a parent company only presentation, the Parent’s investments in its consolidated subsidiaries are presented under the equity method of accounting, and the condensed financial statements do not present the financial statements of the Parent and its subsidiaries on a consolidated basis. These financial statements should be read in conjunction with The Western Union Company’s consolidated financial statements.

2. Restricted Net Assets

Certain assets of the Parent’s subsidiaries totaling approximately $320 million as of December 31, 2025 constitute restricted net assets, as there are legal or regulatory limitations on transferring such assets outside of the countries where the respective assets are located, or certain of the Parent’s subsidiaries must meet minimum capital requirements in order to maintain operating licenses.

The Parent enters into contracts with third-party vendors on behalf of its subsidiaries. Because the Parent is a holding company, as noted above, these corporate costs are incurred by the Parent, and the expenses are then allocated to its subsidiaries based primarily on the subsidiaries’ percentage of revenues compared to total revenues.

All transactions described below are with subsidiaries of the Parent. The Parent has issued multiple promissory notes payable to its 100% owned subsidiary, First Financial Management Corporation, in exchange for funds distributed to the Parent. All notes pay interest at a fixed rate, may be repaid at any time without penalty, and are included within Payable to subsidiaries, net in the Condensed Balance Sheets. These promissory notes are as follows:


	Amount			Interest Rate
Date Issued	(in millions)		Due Date	(per annum)
September 1, 2023(a)	$	93.7	May 31, 2026		5.07	%
October 1, 2023(a)	$	290.1	June 30, 2026		5.12	%
December 1, 2023(a)	$	245.2	August 31, 2026		5.30	%
April 1, 2025(a)	$	180.8	December 31, 2027		4.31	%
June 1, 2025(a)	$	75.9	May 31, 2027		4.00	%

(a)

This note refinanced a note originally issued on a prior date.

The Parent files its United States federal consolidated income tax return and also a number of consolidated state income tax returns on its and certain of its affiliates’ behalf. In these circumstances, the Parent is responsible for remitting income tax payments on behalf of the consolidated group. The Parent’s provision for income taxes has been computed as if it were a separate tax-paying entity. Accordingly, the Parent has recorded income taxes payable on behalf of certain of its subsidiaries.

Excess cash generated from operations of the Parent’s subsidiaries that is not required to meet certain regulatory requirements may be periodically distributed to the Parent in the form of a distribution, although the amounts of such distributions may vary from year to year.

CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

THE WESTERN UNION COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued)

4. Divestiture

On August 4, 2021, the Parent entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC for cash consideration of $910.0 million. The sale was completed in three closings, with the entire cash consideration collected at the first closing and allocated to the closings on a relative fair value basis. The final closing occurred on July 1, 2023 and included the European Union operations. The gain on the sale from each closing was recognized by the Parent’s subsidiaries, and portions of the proceeds payable to the Parent’s subsidiaries were settled by means of non-cash distributions by those subsidiaries.

5. Commitments, Contingencies, and Guarantees

The Parent had approximately $120 million in outstanding letters of credit and bank guarantees as of December 31, 2025 primarily held in connection with regulatory requirements, certain agent agreements, and the Parent’s guarantees of its subsidiaries’ performance under these letters of credit and bank guarantees. The Parent has provided guarantee to an underwriter of surety bonds, payable in the event the Parent’s subsidiaries default on their obligations, in the amount of $295 million.

6. Leases

The Parent leases real properties primarily for use as administrative and sales offices, in addition to transportation and other equipment. The Parent determines if a contract contains a lease arrangement at the inception of the contract. For leases in which the Parent is the lessee, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Operating lease ROU assets are initially measured at the present value of lease payments over the lease term plus initial direct costs, if any. If a lease does not provide a discount rate and the rate cannot be readily determined, an incremental borrowing rate is used to determine the present value of future lease payments. Lease and variable non-lease components within the Parent’s lease agreements are accounted for separately. The Parent has no material leases in which the Parent is the lessor.

The Parent’s leasing arrangements are classified as operating leases, for which expense is recognized on a straight-line basis. As of December 31, 2025 and 2024, the total ROU assets were $40.2 million and $45.8 million, respectively, and lease liabilities were $62.8 million and $73.4 million, respectively. The ROU assets and operating lease liabilities were included in Other assets and Other liabilities, respectively, in the Parent’s Condensed Balance Sheets. Cash paid for operating lease liabilities is recorded as Cash flows from operating activities in the Parent’s Condensed Statements of Cash Flows. Short-term and variable lease costs were not material for the years ended December 31, 2025, 2024, and 2023.

The Parent’s leases have remaining terms from 1 year to nearly 6 years. Certain of these leases contain escalation provisions and/or renewal options, giving the Parent the right to extend the lease by up to 10 years. However, these options are not reflected in the calculation of the ROU asset and lease liability due to uncertainty surrounding the likelihood of renewal.

CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

THE WESTERN UNION COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued)

The following table summarizes the weighted-average lease term and discount rate for operating lease liabilities as of December 31, 2025 and 2024:


	December 31, 2025			December 31, 2024
Weighted-average remaining lease term (in years)		5.0			5.8
Weighted-average discount rate		5.8	%		5.7	%

The following table represents maturities of operating lease liabilities as of December 31, 2025 (in millions):


	December 31, 2025
Due within 1 year	$	15.0
Due after 1 year through 2 years		14.9
Due after 2 years through 3 years		13.8
Due after 3 years through 4 years		12.2
Due after 4 years through 5 years		12.2
Due after 5 years		4.3
Total lease payments		72.4
Less imputed interest		(9.6	)
Total operating lease liabilities	$	62.8

2. Restricted Net Assets

3. Related Party Transactions

5. Commitments, Contingencies, and Guarantees

Western Union CO 10-K