WU
#Sure.
Let me start, and see if this answers your question.
The hedges that we had this quarter, we had a gain of $16 million on our hedges.
That helped our revenue line.
That also helped our profit line.
That helped margins by about 100 basis points, margin percentage.
However, the currency translation on our revenue and profits, the impact of margins from that translation largely offset the margin benefit that we had from the hedges.
Currency impact in total was net neutral on the margins in the first quarter.
What you're actually seeing come through in the margin improvement is the net benefit of the cost savings initiatives, offset slightly by the higher compliance costs in the quarter.
Well, the cost savings are things that we already have under way.
The compliance costs will vary from quarter to quarter.
But those are the two impacts that are showing up in the first quarter.
Obviously the currency impacts will be potentially different each quarter, and it's based on where currency rates are ultimately, on how that equation will play out.
No, it's ---+ we did anticipate it.
We had planned on making price changes in our DMT business.
Even during the course of last year, you recall, <UNK>, that we've been telling you that the cross-border environment has been quite stable.
Having said that, we always look at our 16,000 corridors.
We do price increases in some parts.
We do price decreases.
There's a balance of both of those things that are going on in the world.
But generally, we haven't seen a big need for large pricing in the cross-border business.
We knew and have in our outlook the planned pricing in our DMT business.
Also, putting in perspective <UNK>, the DMT prices ---+ as you know, it's only for certain bents, and it's only for certain parts of the country where we feel competitive pressure.
It's like a street corp in our pricing, which we were doing earlier.
We always choose pricing actions, if we do that, except the 2012 one, one-time correction.
We always do in a very intelligent way looking at the corridors and where the competition is, where to do it.
<UNK>, we are very focused on optimizing our compliance programs.
In the short term, and it's still the short term, we have had to hire a significant number of people in the compliance organization, now over 2,000 people.
That was more than 60% of the cost in the first quarter on the compliance number.
But we also are continuing to invest in technology and automation of our processes.
Over the long term, I do believe that we'll be able to optimize our compliance spend.
I don't see it really stepping down from where we are in the near future, because the regulatory environment continues to evolve, and it is complex, and it's a global effort.
I see us ---+I think we are at a more stable place in the current range that we have for this year.
But our goal is always to optimize (inaudible, multiple speaker) ---+
I really believe that it will differentiate us to be partnered with different parts of the world.
I think it's an investment that makes it Western Union special, that makes it Western Union to apply in different parts of the world with the regulations.
I believe it's a competitive advantage long term.
We always raise prices or decrease prices different parts of the world.
We even change bands within the price within the 16,000 corridors.
That's a part of the business.
We have been doing it for many years.
That's about ---+ it's nothing that big price actions that we're going to change our pricing strategy for a certain time for near term.
Just to clarify, <UNK>.
In the first quarter the domestic money transfer pricing wasn't in place yet, so we didn't have that impact on pricing.
Not by quarter, but we are still expecting about $70-million benefit on the hedges for the full year.
That can vary a little bit depending on where rates, currency rates, are.
But yes, still expecting about $70 million.
We've assumed ---+ just so you know ---+ we've assumed about $1.10 euro rate.
Obviously that continues to fluctuate around.
Okay.
Laura, I understand that's the end of the queue.
We want to thank everybody for joining the call today, and wish you a good afternoon.
Thanks.
Thank you.
