Marketing totaled approximately 4.5% of revenue for the quarter, investing in marketing remains a priority for Western Union to build awareness and drive transaction growth and we plan to spend 5% of revenue on marketing for the full-year.
Consolidated operating margin was 21% in the quarter or 27% excluding the settlement accrual. This compares to 27% in the third quarter of 2008.
Our cost structure is about two-thirds variable. This fact combined with headcount reductions, call center relocations, selective agent commission initiatives and the consolidation of C2C regions contributed to strong margin performance on an operational basis. When the market improves and revenue grows, we believe our business model will support margin expansion.
The tax rate for the third quarter was 27%, compared with 28% in the third quarter of 2008. In 2009, we had benefited from a higher proportion of foreign derived profits, which were taxed at a lower rate compared to U.S. derived profits and the effects of tax efficient strategies implemented in 2008.
Now turning to our segments. C2C which was 85% of total revenue declined 5%. Constant currency adjusted revenue was down 3%. Transaction growth was up 3% in the third quarter in line with the second quarter of 2009. Our international C2C business saw revenue decline 3% or flat constant currency adjusted, while transactions grew 6%.
The portion of the international business representing transactions that originate outside of the U.S. saw revenue decline 2% or growth of 1% constant currency adjusted on transaction growth of 9%.
C2C operating margin was 28%, consistent with the comparable period last year. The settlement accrual is not included in segment results.
The difference between revenue and transaction growth rates for the C2C segment was approximately 8 percentage points. The difference was primarily due to currency translation, geographic mix, product mix between intra and cross-border transfers and pricing. Currency translation totaled about one-quarter of the difference.
The combined impact from the other factors has remained generally consistent with recent quarters. The company continues to expect pricing decreases for the full-year to be approximately 2% of revenue.
Our global business payment segment which includes results from the recently completed Custom House acquisition was 13% of Western Union revenue in the quarter. Segment revenue declined 3% or declined 7% excluding Custom House.
The operating margin was 24%, although excluding the Custom House acquisition it would have been consistent with last year''s margin of 26%. In the near future, segment margins will continue to be impacted by Custom House related costs, including investments to grow the business.
The company''s financial position as demonstrated by our cash balance, cash flow generation and our A minus A3 credit ratings remain strong. In the third quarter, we repurchased 6.9 million shares at an average price of $18.19 for a total of $125 million.
Year-to-date, cash flow from operations was $958 million, capital expenditures were $67 million and stock repurchases totaled $225 million. We now expect our full-year capital expenditures to be closer to $100 million than $150 million. We continue to target full-year share repurchases of $400 million.
As expected on October 1st, Western Union received cash from First Data which was invested in a portfolio supporting our retail money order business. Beginning in the fourth quarter of 2009, these investments which should average approximately $800 million will appear as settlement assets on our balance sheet with a related increase in settlement liabilities. We maintain our prudent investment philosophy by investing in highly rated liquid debt securities.
At quarter end, we had $1.6 billion of cash on hand with slightly more than half in the United States and $3 billion of debts. Our nearest debt maturity is November 2011 and we also have a fully available $1.5 billion line of credits that expires in 2012.
The company has narrowed its revenue and EPS outlook to the higher end of its previous expectations, excluding the impact of the settlement accrual. The company now expects the following full-year 2009 financial results, including Custom House.
Constant currency revenue to decline 1% to 2%, GAAP revenue to decline 4% to 5%, GAAP operating income margin of approximately 25% or approximately 27%, excluding the settlement accrual, GAAP EPS of $1.15 to $1.20 or $1.23 to $1.28, excluding the settlement accrual, constant currency EPS $0.01 lower, cash flow from operations to exceed $1.1 billion and a tax rate of 25% to 26%.
Our previous outlook was for constant currency EPS of $1.16 to $1.26 and GAAP EPS of $1.18 to $1.28, which did not include the diluted impacts of $0.08 from the settlement accrual or $0.01 from the Custom House acquisition. In the current outlook, Custom House positively impacted revenues by less than 1%.
Through nine months of 2009, operating income margin excluding the settlement accrual was 27.5%, while our full-year outlook was approximately 27%. Key operating reasons for the fourth quarter margin change include the timing of marketing and investment spending. For example, marking spending is more heavily weighted to the fourth quarter to support the holidays, including the additional investment behind the domestic business.
A full quarter of Custom House amortization and integration costs and investments for growth and the retail money order conversion, which will negatively impact operating margin by approximately 50 basis points in the fourth quarter due to investing the flow in tax exempt securities. Although the conversion negatively impacts operating margin, the overall EPS impact will be minimal as there are offsets in interest income expense and the tax rate.
In addition, foreign exchange rates may also swing against operating margin percentages relative to the first nine months. Although a weakened dollar benefits topline revenue, our foreign denominated profits are largely hedged so the margin percentage maybe negatively impacted.
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