SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

The following lists the condensed financial information for the parent company as of December 31, 2017 and 2016 and statements of income/(loss) and comprehensive income/(loss) and cash flows for each of the three years in the period ended December 31, 2017.

THE WESTERN UNION COMPANY

CONDENSED BALANCE SHEETS

(PARENT COMPANY ONLY)

(in millions, except per share amounts)



	December 31,
	2017			2016
Assets
Cash and cash equivalents	$	1.0		$	0.3
Property and equipment, net of accumulated depreciation of $28.5 and $26.6, respectively	33.9			34.7
Other assets	34.2			39.4
Investment in subsidiaries	7,236.2			7,291.7
Total assets	$	7,305.3		$	7,366.1

Liabilities and Stockholders’ Equity/(Deficit)
Liabilities:
Accounts payable and accrued liabilities	$	74.6		$	645.5
Income taxes payable	887.0			20.9
Payable to subsidiaries, net	3,800.8			3,010.6
Borrowings	3,033.6			2,786.1
Other liabilities	0.7			0.8
Total liabilities	7,796.7			6,463.9
Stockholders’ equity/(deficit):
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued	—			—
Common stock, $0.01 par value; 2,000 shares authorized; 459.0 shares and 481.5 shares issued and outstanding as of December 31, 2017 and 2016, respectively	4.6			4.8
Capital surplus	697.8			640.9
Retained earnings/(accumulated deficit)	(965.9		)	419.3
Accumulated other comprehensive loss	(227.9		)	(162.8		)
Total stockholders’ equity/(deficit)	(491.4		)	902.2
Total liabilities and stockholders’ equity/(deficit)	$	7,305.3		$	7,366.1

See Notes to Condensed Financial Statements.

THE WESTERN UNION COMPANY

CONDENSED STATEMENTS OF INCOME/(LOSS) AND COMPREHENSIVE INCOME/(LOSS)

(PARENT COMPANY ONLY)

(in millions)



	For the Years Ended December 31,
	2017			2016			2015
Revenues	$	—		$	—		$	—
Expenses	—			—			—
Operating income	—			—			—
Interest income	—			—			0.2
Interest expense	(177.0		)	(168.1		)	(171.2		)
Other expense	(0.6		)	—			—
Loss before equity in earnings/(losses) of affiliates and income taxes	(177.6		)	(168.1		)	(171.0		)
Equity in earnings/(losses) of affiliates, net of tax	(436.1		)	357.1			943.3
Income tax benefit	56.6			64.2			65.5
Net income/(loss)	(557.1		)	253.2			837.8
Other comprehensive income, net of tax	2.1			2.3			2.2
Other comprehensive loss of affiliates, net of tax	(67.2		)	(21.2		)	(27.2		)
Comprehensive income/(loss)	$	(622.2	)	$	234.3		$	812.8

See Notes to Condensed Financial Statements.

THE WESTERN UNION COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

(PARENT COMPANY ONLY)

(in millions)



	For the Years Ended December 31,
	2017			2016			2015
Cash flows from operating activities
Net cash (used in)/provided by operating activities	$	(605.0	)	$	192.0		$	327.1
Cash flows from investing activities
Purchases of property and equipment and other	(0.7		)	(5.9		)	(0.1		)
Capital contributed to subsidiaries, net	—			(7.3		)	(17.9		)
Distributions received from subsidiaries, net	307.3			—			—
Net cash provided by/(used in) investing activities	306.6			(13.2		)	(18.0		)
Cash flows from financing activities
Advances from subsidiaries, net	868.3			1,024.0			796.1
Net proceeds from issuance of borrowings	746.2			575.0			—
Principal payments on borrowings	(500.0		)	(1,000.0		)	(500.0		)
Proceeds from exercise of options and other	13.0			35.0			79.7
Cash dividends paid	(325.6		)	(312.2		)	(316.5		)
Common stock repurchased	(502.8		)	(501.6		)	(511.3		)
Net cash provided by/(used in) financing activities	299.1			(179.8		)	(452.0		)
Net change in cash and cash equivalents	0.7			(1.0		)	(142.9		)
Cash and cash equivalents at beginning of year	0.3			1.3			144.2
Cash and cash equivalents at end of year	$	1.0		$	0.3		$	1.3
Supplemental cash flow information:
Non-cash investing activity, capital contribution to subsidiary (Note 3)	$	916.0		$	591.0		$	—
Non-cash financing activity, distribution of note from subsidiary (Note 3)	$	80.3		$	—		$	—

See Notes to Condensed Financial Statements.

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 $265 million 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. Additionally, certain of the Parent's subsidiaries must meet minimum capital requirements in some countries in order to maintain operating licenses.

3. Related Party Transactions

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 ("FFMC") 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:



Date Issued	Amount (in millions)		Due Date	Interest Rate (per annum)
June 1, 2015	$	87.5	February 28, 2018	0.43	%
July 1, 2015 (a)	$	268.2	March 31, 2018	0.43	%
September 1, 2015	$	226.2	May 31, 2018	0.54	%
January 1, 2017	$	158.8	September 30, 2019	0.96	%
March 1, 2017 (a)	$	65.5	November 30, 2019	1.01	%

____________

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

On August 2, 2014, the Parent entered into a credit agreement (the "Facility") with its 100% owned subsidiary Custom House Holdings (USA), Ltd., which expires August 2, 2034, providing for unsecured financing facilities in an aggregate amount of $700.0 million. As of December 31, 2017 and 2016, borrowings outstanding under the Facility were $232.6 million and $382.2 million, respectively. The interest rate applicable for outstanding borrowings under the Facility is the six-month LIBOR rate set on the first day of the calendar year, which was 1.84% and 0.84% for the years ended December 31, 2017 and 2016, respectively. Outstanding borrowings under the Facility are included within "Payable to subsidiaries, net" in the Condensed Balance Sheets as of December 31, 2017 and 2016.

On November 8, 2015, the Parent entered into a Revolving Credit Facility agreement (the “Revolver”) with its 100% owned subsidiary RII Holdings, Inc, which expires on November 8, 2035, providing for unsecured financing facilities in an aggregate amount of $3.0 billion. As of December 31, 2017 and 2016, borrowings outstanding under the Revolver were $2.6 billion and $1.5 billion, respectively. The interest rate applicable for outstanding borrowings under the Revolver is the six-month LIBOR rate set on the first day of the calendar year, which was 1.84% and 0.84% for the years ended December 31, 2017 and 2016, respectively. Outstanding borrowings under the Revolver are included within "Payable to subsidiaries, net" in the Condensed Balance Sheets as of December 31, 2017 and 2016.

CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

THE WESTERN UNION COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued)

The Parent files its United States federal consolidated income tax return on its and certain of its affiliates' behalf. Accordingly, the Parent has recorded income taxes payable on behalf of its subsidiaries, and these income taxes payable were significant in the year ended December 31, 2017 due to the enactment of the Tax Act into United States law. Effective as of December 31, 2017, the Parent made a non-cash capital contribution of $916.0 million to a subsidiary that was subject to the taxation of certain previously undistributed earnings of its foreign subsidiaries under the Tax Act, and this contribution is reflected as a non-cash investing activity in the Condensed Statements of Cash Flows.

The Parent agreed to fund certain payments related to the Joint Settlement Agreements on behalf of its subsidiaries. As of December 31, 2017, these amounts have been paid and are reflected in operating activities in the Condensed Statements of Cash Flows. As of December 31, 2016, $591.0 million increased the Parent's investment in its subsidiaries, was included within "Accounts payable and accrued liabilities" in the Condensed Balance Sheets, and was reflected as a non-cash investing activity in the Condensed Statements of Cash Flows.

On November 30, 2017, FFMC distributed a promissory note owed by the Parent in the amount of $80.3 million, and this distribution to the Parent is reflected as a non-cash financing activity in the Condensed Statements of Cash Flows in the year ended December 31, 2017.

Excess cash generated from operations of the Parent's subsidiaries that is not required to meet certain regulatory requirements is paid periodically to the Parent and is also included within "Payable to subsidiaries, net" in the Condensed Balance Sheets as of December 31, 2017 and 2016. The Parent's subsidiaries also periodically distribute excess cash balances to the Parent in the form of a dividend, although the amounts of such dividends may vary from year to year.

The Parent files a consolidated United States federal income tax return, and also a number of consolidated state income tax returns on behalf of its subsidiaries. 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.

4. Commitments and Contingencies

The Parent had $60.4 million in outstanding letters of credit and bank guarantees as of December 31, 2017 with expiration dates through 2020. The letters of credit and bank guarantees are primarily held in connection with certain agent agreements. The Company expects to renew the letters of credit and bank guarantees prior to expiration in most circumstances.