WESTERN UNION CO, 10-Q filed on 11/2/2021
Quarterly Report
v3.21.2
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2021
Oct. 29, 2021
Document and Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2021  
Entity File Number 001-32903  
Entity Registrant Name Western Union CO  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-4531180  
Entity Address, Address Line One 7001 EAST BELLEVIEW AVENUE  
Entity Address, City or Town Denver  
Entity Address, State or Province CO  
Entity Address, Postal Zip Code 80237  
City Area Code 866  
Local Phone Number 405-5012  
Title of 12(b) Security Common Stock, $0.01 Par Value  
Trading Symbol WU  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   402,006,648
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Entity Central Index Key 0001365135  
Amendment Flag false  
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF INCOME        
Revenues $ 1,286.3 $ 1,258.5 $ 3,786.0 $ 3,563.2
Type of Revenue us-gaap:ServiceMember us-gaap:ServiceMember us-gaap:ServiceMember us-gaap:ServiceMember
Expenses:        
Cost of services $ 720.1 $ 721.7 $ 2,181.1 $ 2,067.3
Type of Cost of Service us-gaap:ServiceMember us-gaap:ServiceMember us-gaap:ServiceMember us-gaap:ServiceMember
Selling, general, and administrative $ 247.6 $ 251.6 $ 798.6 $ 755.7
Total expenses 967.7 973.3 2,979.7 2,823.0
Operating income 318.6 285.2 806.3 740.2
Other income/(expense):        
Interest income 0.4 0.5 1.1 2.9
Interest expense (25.7) (28.2) (79.7) (90.4)
Other income/(expense), net (1.8) 3.5 26.8 3.4
Total other expense, net (27.1) (24.2) (51.8) (84.1)
Income before income taxes 291.5 261.0 754.5 656.1
Provision for income taxes 58.8 32.4 117.5 88.9
Net income $ 232.7 $ 228.6 $ 637.0 $ 567.2
Earnings per share:        
Basic (USD per share) $ 0.57 $ 0.56 $ 1.56 $ 1.38
Diluted (USD per share) $ 0.57 $ 0.55 $ 1.55 $ 1.37
Weighted-average shares outstanding:        
Basic (shares) 406.3 411.6 409.1 412.5
Diluted (shares) 408.0 414.6 411.3 415.5
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME        
Net income $ 232.7 $ 228.6 $ 637.0 $ 567.2
Other comprehensive income, net of reclassifications and tax (Note 10):        
Unrealized gains/(losses) on investment securities (7.9) 7.1 (18.7) 32.3
Unrealized gains/(losses) on hedging activities 18.2 (18.2) 44.4 (16.6)
Defined benefit pension plan adjustments 2.3 2.3 7.1 6.7
Total other comprehensive income/(loss) 12.6 (8.8) 32.8 22.4
Comprehensive income $ 245.3 $ 219.8 $ 669.8 $ 589.6
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Assets    
Cash and cash equivalents $ 1,003.4 $ 1,428.2
Settlement assets 3,007.1 3,821.4
Property and equipment, net of accumulated depreciation of $644.2 and $659.9, respectively 131.5 150.4
Goodwill 2,034.6 2,566.6
Other intangible assets, net of accumulated amortization of $723.9 and $1,044.6, respectively 441.0 505.0
Other assets 761.2 1,024.7
Assets held for sale (Note 4) 1,492.2  
Total assets 8,871.0 9,496.3
Liabilities:    
Accounts payable and accrued liabilities 442.9 500.9
Settlement obligations 3,007.1 3,821.4
Income taxes payable 864.7 928.9
Deferred tax liability, net 206.4 188.9
Borrowings 2,852.6 3,067.2
Other liabilities 273.3 802.4
Liabilities associated with assets held for sale (Note 4) 855.4  
Total liabilities 8,502.4 9,309.7
Commitments and contingencies (Note 7)
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; 403.6 shares and 411.2 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively 4.0 4.1
Capital surplus 927.9 885.1
Accumulated deficit (436.6) (543.1)
Accumulated other comprehensive loss (126.7) (159.5)
Total stockholders' equity 368.6 186.6
Total liabilities and stockholders' equity $ 8,871.0 $ 9,496.3
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)
shares in Millions, $ in Millions
Sep. 30, 2021
Dec. 31, 2020
Assets    
Accumulated Depreciation on Property Plant and Equipment $ 644.2 $ 659.9
Accumulated Amortization on Other Intangible Assets $ 723.9 $ 1,044.6
Stockholders' Equity:    
Preferred stock, par value (USD per share) $ 1.00 $ 1.00
Preferred stock, shares authorized 10.0 10.0
Preferred stock, shares issued 0.0 0.0
Common stock, par value (USD per share) $ 0.01 $ 0.01
Common stock, shares authorized 2,000.0 2,000.0
Common stock, shares issued 403.6 411.2
Common stock, shares outstanding 403.6 411.2
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Cash flows from operating activities    
Net income $ 637.0 $ 567.2
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 38.4 46.3
Amortization 121.9 123.2
Gain on the sale of noncontrolling interest in a private company (Note 4) (47.9)  
Other non-cash items, net 124.2 106.4
Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in:    
Other assets (78.3) (11.5)
Accounts payable and accrued liabilities (27.9) (142.7)
Income taxes payable (61.7) (97.6)
Other liabilities (19.7) (5.7)
Net cash provided by operating activities 686.0 585.6
Cash flows from investing activities    
Payments for capitalized contract costs (94.7) (51.7)
Payments for internal use software (59.1) (30.1)
Purchases of property and equipment (26.4) (24.5)
Proceeds from the sale of former corporate headquarters   44.2
Proceeds from the sale of noncontrolling interest in a private company (Note 4) 50.9  
Regulatory deposit made to purchase a noncontrolling interest in stc Bank (Note 4) (200.0)  
Other investing activities (3.6) (6.6)
Net cash used in investing activities (332.9) (68.7)
Cash flows from financing activities    
Cash dividends and dividend equivalents paid (288.7) (277.8)
Common stock repurchased (Note 10) (235.8) (238.0)
Net proceeds from/(repayments of) commercial paper 40.0 (195.0)
Net proceeds from issuance of borrowings 891.7  
Principal payments on borrowings (1,150.0)  
Make-whole premium on early extinguishment of debt (Note 12) (14.3)  
Proceeds from exercise of options 11.6 1.7
Other financing activities 0.0 (0.7)
Net cash used in financing activities (745.5) (709.8)
Net change in cash, cash equivalents, and restricted cash (392.4) (192.9)
Cash, cash equivalents, and restricted cash at beginning of period 1,447.4 1,456.8
Cash, cash equivalents, and restricted cash at end of period 1,055.0 1,263.9
Supplemental cash flow information:    
Interest paid 69.7 75.7
Income taxes paid 156.5 169.1
Cash included in Assets held for sale (Note 4) 43.0  
Restricted cash at end of period (included in Other assets) 8.6 12.5
Internal use software capitalized but not yet paid $ 24.1 $ 4.4
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT) - USD ($)
shares in Millions, $ in Millions
Adoption of new accounting pronouncements
Retained Earnings/(Accumulated Deficit)
Adoption of new accounting pronouncements
Common Stock
Capital Surplus
Retained Earnings/(Accumulated Deficit)
Accumulated Other Comprehensive Loss
Total
Beginning balance at Dec. 31, 2019 $ (0.6) $ (0.6) $ 4.2 $ 841.2 $ (675.9) $ (209.0) $ (39.5)
Beginning balance (shares) at Dec. 31, 2019     418.0        
Increase/(Decrease) in Stockholders' Equity [Roll Forward]              
Net income         176.7   176.7
Stock-based compensation       12.5     12.5
Common stock dividends and dividend equivalents declared         (93.3)   (93.3)
Repurchase and retirement of common shares     $ (0.1)   (235.1)   (235.2)
Repurchase and retirement of common shares (shares)     (9.2)        
Shares issued under stock-based compensation plans       1.0     1.0
Shares issued under stock-based compensation plans (shares)     2.1        
Other comprehensive income/(loss) (Note 10)           28.7 28.7
Ending balance at Mar. 31, 2020     $ 4.1 854.7 (828.2) (180.3) (149.7)
Ending balance (shares) at Mar. 31, 2020     410.9        
Beginning balance at Dec. 31, 2019 $ (0.6) $ (0.6) $ 4.2 841.2 (675.9) (209.0) (39.5)
Beginning balance (shares) at Dec. 31, 2019     418.0        
Increase/(Decrease) in Stockholders' Equity [Roll Forward]              
Net income             567.2
Other comprehensive income/(loss) (Note 10)             22.4
Ending balance at Sep. 30, 2020     $ 4.1 874.9 (625.3) (186.6) 67.1
Ending balance (shares) at Sep. 30, 2020     411.0        
Beginning balance at Mar. 31, 2020     $ 4.1 854.7 (828.2) (180.3) (149.7)
Beginning balance (shares) at Mar. 31, 2020     410.9        
Increase/(Decrease) in Stockholders' Equity [Roll Forward]              
Net income         161.9   161.9
Stock-based compensation       5.3     5.3
Common stock dividends and dividend equivalents declared         (93.3)   (93.3)
Repurchase and retirement of common shares         (0.6)   (0.6)
Repurchase and retirement of common shares (shares)     (0.1)        
Shares issued under stock-based compensation plans       0.5     0.5
Shares issued under stock-based compensation plans (shares)     0.2        
Other comprehensive income/(loss) (Note 10)           2.5 2.5
Ending balance at Jun. 30, 2020     $ 4.1 860.5 (760.2) (177.8) (73.4)
Ending balance (shares) at Jun. 30, 2020     411.0        
Increase/(Decrease) in Stockholders' Equity [Roll Forward]              
Net income         228.6   228.6
Stock-based compensation       14.2     14.2
Common stock dividends and dividend equivalents declared         (93.3)   (93.3)
Repurchase and retirement of common shares         (0.4)   (0.4)
Shares issued under stock-based compensation plans       0.2     0.2
Other comprehensive income/(loss) (Note 10)           (8.8) (8.8)
Ending balance at Sep. 30, 2020     $ 4.1 874.9 (625.3) (186.6) 67.1
Ending balance (shares) at Sep. 30, 2020     411.0        
Beginning balance at Dec. 31, 2020     $ 4.1 885.1 (543.1) (159.5) $ 186.6
Beginning balance (shares) at Dec. 31, 2020     411.2       411.2
Increase/(Decrease) in Stockholders' Equity [Roll Forward]              
Net income         181.8   $ 181.8
Stock-based compensation       10.8     10.8
Common stock dividends and dividend equivalents declared         (97.9)   (97.9)
Repurchase and retirement of common shares         (89.0)   (89.0)
Repurchase and retirement of common shares (shares)     (3.7)        
Shares issued under stock-based compensation plans       8.1     8.1
Shares issued under stock-based compensation plans (shares)     2.3        
Other comprehensive income/(loss) (Note 10)           18.4 18.4
Ending balance at Mar. 31, 2021     $ 4.1 904.0 (548.2) (141.1) 218.8
Ending balance (shares) at Mar. 31, 2021     409.8        
Beginning balance at Dec. 31, 2020     $ 4.1 885.1 (543.1) (159.5) $ 186.6
Beginning balance (shares) at Dec. 31, 2020     411.2       411.2
Increase/(Decrease) in Stockholders' Equity [Roll Forward]              
Net income             $ 637.0
Other comprehensive income/(loss) (Note 10)             32.8
Ending balance at Sep. 30, 2021     $ 4.0 927.9 (436.6) (126.7) $ 368.6
Ending balance (shares) at Sep. 30, 2021     403.6       403.6
Beginning balance at Mar. 31, 2021     $ 4.1 904.0 (548.2) (141.1) $ 218.8
Beginning balance (shares) at Mar. 31, 2021     409.8        
Increase/(Decrease) in Stockholders' Equity [Roll Forward]              
Net income         222.5   222.5
Stock-based compensation       12.0     12.0
Common stock dividends and dividend equivalents declared         (97.0)   (97.0)
Repurchase and retirement of common shares         (75.3)   (75.3)
Repurchase and retirement of common shares (shares)     (3.0)        
Shares issued under stock-based compensation plans       3.5     3.5
Shares issued under stock-based compensation plans (shares)     0.2        
Other comprehensive income/(loss) (Note 10)           1.8 1.8
Ending balance at Jun. 30, 2021     $ 4.1 919.5 (498.0) (139.3) 286.3
Ending balance (shares) at Jun. 30, 2021     407.0        
Increase/(Decrease) in Stockholders' Equity [Roll Forward]              
Net income         232.7   232.7
Stock-based compensation       8.4     8.4
Common stock dividends and dividend equivalents declared         (95.9)   (95.9)
Repurchase and retirement of common shares     $ (0.1)   (75.4)   (75.5)
Repurchase and retirement of common shares (shares)     (3.5)        
Shares issued under stock-based compensation plans (shares)     0.1        
Other comprehensive income/(loss) (Note 10)           12.6 12.6
Ending balance at Sep. 30, 2021     $ 4.0 $ 927.9 $ (436.6) $ (126.7) $ 368.6
Ending balance (shares) at Sep. 30, 2021     403.6       403.6
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT) (Parentheticals) - $ / shares
 3 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT)            
Common stock dividends (USD per share) $ 0.235 $ 0.235 $ 0.235 $ 0.225 $ 0.225 $ 0.225
v3.21.2
Business and Basis of Presentation
 9 Months Ended
Sep. 30, 2021
Business and Basis of Presentation  
Business and Basis of Presentation

THE WESTERN UNION COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Business and Basis of Presentation

Business

The Western Union Company ("Western Union" or the "Company") is a leader in global money movement and payment services, providing people and businesses with fast, reliable, and convenient ways to send money and make payments around the world. The Western Union® brand is globally recognized. The Company’s services are available through a network of agent locations in more than 200 countries and territories and also through money transfer transactions conducted and funded through websites and mobile applications marketed under the Company’s brands (“westernunion.com”) and transactions initiated on websites and mobile applications hosted by the Company’s third-party white label or co-branded digital partners (together with westernunion.com, “Digital Money Transfer”). Each location in the Company’s agent network is capable of providing one or more of the Company’s services.

The Western Union business consists of the following segments:

●Consumer-to-Consumer - The Consumer-to-Consumer operating segment facilitates money transfers which are sent from retail agent locations worldwide or through websites and mobile devices, including Digital Money Transfer services. The Company’s money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers.
●Business Solutions - The Business Solutions operating segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises, and other organizations and individuals. The majority of the segment’s business relates to exchanges of currency at spot rates, which enable customers to make cross-currency payments. In addition, in certain countries, the Company writes foreign currency forward and option contracts for customers to facilitate future payments. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group. See Note 4 for further information regarding this transaction.

All businesses and other services that have not been classified in the above segments are reported as Other, which primarily includes the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services. The Company’s other services, in addition to certain corporate costs such as costs related to strategic initiatives, including costs for the review and closing of mergers, acquisitions, and divestitures, are also included in Other. See Note 15 for further information regarding the Company’s segments.

There are legal or regulatory limitations on transferring certain assets of the Company outside of the countries where these assets are located. However, there are generally no limitations on the use of these assets within those countries. Additionally, the Company must meet minimum capital requirements in some countries in order to maintain operating licenses. As of December 31, 2020, the amount of these net asset limitations totaled approximately $680 million.

Various aspects of the Company’s services and businesses are subject to United States federal, state, and local regulation, as well as regulation by foreign jurisdictions, including certain banking and other financial services regulations.

Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited and were prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X. In compliance with those instructions, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") have been condensed or omitted.

The unaudited condensed consolidated financial statements in this quarterly report are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. Results of operations and cash flows for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All significant intercompany transactions and accounts were eliminated as of September 30, 2021 and December 31, 2020 and for all periods presented.

In the opinion of management, these condensed consolidated financial statements include all the normal recurring adjustments necessary to fairly present the Company’s condensed consolidated results of operations, financial position, and cash flows as of September 30, 2021 and for all periods presented. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements within the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Consistent with industry practice, the accompanying Condensed Consolidated Balance Sheets are unclassified due to the short-term nature of the Company’s settlement obligations contrasted with the Company’s ability to invest cash awaiting settlement in long-term investment securities.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.

Recently Adopted Accounting Pronouncements

On January 1, 2020, the Company adopted a new accounting standard that requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. Additionally, the standard requires certain credit losses relating to investment securities classified as available-for-sale to be recorded through an allowance for credit losses. The Company recognized the cumulative effect of the new accounting standard as an adjustment to the January 1, 2020 balance of Accumulated deficit in the Condensed Consolidated Balance Sheets, and the adoption of the new accounting standard did not have a material impact on the Company’s January 1, 2020 accumulated deficit. Refer to Note 9 for additional information and the related disclosures.

​
v3.21.2
Revenue
 9 Months Ended
Sep. 30, 2021
Revenue  
Revenue

2. Revenue

The Company’s revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the principal amount sent, whether the money transfer involves different send and receive currencies, the difference between the exchange rate set by the Company to the customer and the rate available in the wholesale foreign exchange market, and speed of service, as applicable. The Company also offers several other services, including foreign exchange and payment services and other bill payment services, for which revenue is impacted by similar factors. For the substantial majority of the Company’s revenues, the Company acts as the principal in transactions and reports revenue on a gross basis, as the Company controls the service at all times prior to transfer to the customer, is primarily responsible for fulfilling the customer contracts, has the risk of loss, and has the ability to establish transaction prices. The Company also provides services to financial institutions and other third parties to enable such entities to offer money transfer services to their own customers under their brands. Generally, in these arrangements, consumers agree to terms and conditions specified by the financial institution or other third party that, among other things, establish pricing paid by the consumer for the service. The Company recognizes revenue on a net basis under these arrangements. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.

The Company recognized $1,230.3 million and $1,214.3 million for the three months ended September 30, 2021 and 2020, respectively, and $3,635.7 million and $3,392.5 million for the nine months ended September 30, 2021 and 2020, respectively, in revenues from contracts with customers. There were no material upfront costs incurred to obtain contracts with customers during these same periods. Under the Company’s loyalty programs, which are primarily offered in its money transfer services, the Company must fulfill loyalty program rewards earned by customers. The loyalty program redemption activity has been and continues to be insignificant to the Company’s results of operations, and the Company has immaterial contract liability balances, which primarily relate to its customer loyalty programs and other services. Contract asset balances related to customers were also immaterial as of the periods presented, as the Company typically receives payment of consideration from its customers prior to satisfying performance obligations under the customer contracts. In addition to revenue generated from contracts with customers, the Company recognizes revenue from other sources, including the sale of derivative financial instruments and investment income generated on settlement assets primarily related to money transfer and money order services.

The Company analyzes its different services individually to determine the appropriate basis for revenue recognition, as further described below. Revenues from consumer money transfers are included in the Company’s Consumer-to- Consumer segment, revenues from foreign exchange and payment services are included in the Company’s Business Solutions segment, and revenues from consumer bill payments and other services are not included in the Company’s segments and are reported as Other. See Note 15 for further information on the Company’s segments. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group. See Note 4 for further information regarding this transaction.

Consumer Money Transfers

For the Company’s money transfer services, customers agree to the Company’s terms and conditions at the time of initiating a transaction. In a money transfer, the Company has one performance obligation as the customer engages the Company to perform one integrated service which typically occurs within minutes — collect the customer’s money and make funds available for payment to a designated person in the currency requested. Therefore, the Company recognizes revenue upon completion of the following: (i) the customer’s acknowledgment of the Company’s terms and conditions and payment information has been received by the Company, (ii) the Company has agreed to process the money transfer, (iii) the Company has provided the customer a unique transaction identification number, and (iv) funds are available to be picked up by the customer’s designated receiving party. The transaction price is comprised of a transaction fee and the difference between the exchange rate set by the Company to the customer and the rate available in the wholesale foreign exchange market, as applicable, both of which are readily determinable at the time the transaction is initiated.

Foreign Exchange and Payment Services

For the Company’s foreign exchange and payment services, customers agree to terms and conditions for all transactions, either at the time of initiating a transaction or signing a contract with the Company to provide payment services on the customer’s behalf. In the majority of the Company’s foreign exchange and payment services, the Company makes payments to the recipient to satisfy its performance obligation to the customer, and therefore, the Company recognizes revenue on foreign exchange and payment services when this performance obligation has been fulfilled. Revenues from foreign exchange and payment services are primarily comprised of the difference between the exchange rate set by the Company to the customer and the rate available in the wholesale foreign exchange market.

Consumer Bill Payments and Other

The Company offers bill payments and other services that vary by contractual features, including the types and amounts of fixed charges and with respect to how fees are billed and collected. The identification of the contract with the customer for revenue recognition purposes is consistent with these features for each of the Company’s bill payment and other services. As with consumer money transfers, customers engage the Company to perform one integrated service —

collect money from the consumer and process the transaction, thereby providing billers with real-time or near real-time information regarding consumer payments and simplifying the billers’ collection efforts.

Management has determined that the substantial majority of the Company’s revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the three and nine months ended September 30, 2021 and 2020 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated.

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​

​

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​

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​

​

​

​

​

Three Months Ended September 30, 2021

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

406.7

​

$

30.9

​

$

18.0

​

$

14.4

​

$

470.0

Europe and Russia/CIS

​

 

345.0

​

 

39.3

​

 

1.4

​

 

0.4

​

 

386.1

Middle East, Africa, and South Asia

​

 

165.8

​

 

0.5

​

 

0.2

​

 

—

​

 

166.5

Latin America and the Caribbean

​

 

97.5

​

 

0.9

​

 

20.2

​

 

1.7

​

 

120.3

East Asia and Oceania

​

 

69.2

​

 

17.9

​

 

0.3

​

 

—

​

 

87.4

Revenues from contracts with customers

​

$

1,084.2

​

$

89.5

​

$

40.1

​

$

16.5

​

$

1,230.3

Other revenues (a)

​

 

20.3

​

 

27.3

​

 

3.6

​

 

4.8

​

 

56.0

Total revenues

​

$

1,104.5

​

$

116.8

​

$

43.7

​

$

21.3

​

$

1,286.3

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2021

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

1,211.0

​

$

75.6

​

$

54.6

​

$

43.2

​

$

1,384.4

Europe and Russia/CIS

​

 

1,047.8

​

 

107.3

​

 

3.6

​

 

1.0

​

 

1,159.7

Middle East, Africa, and South Asia

​

 

492.2

​

 

1.5

​

 

0.4

​

 

—

​

 

494.1

Latin America and the Caribbean

​

 

276.7

​

 

2.5

​

 

56.8

​

 

5.6

​

 

341.6

East Asia and Oceania

​

 

204.0

​

 

51.1

​

 

0.8

​

 

—

​

 

255.9

Revenues from contracts with customers

​

$

3,231.7

​

$

238.0

​

$

116.2

​

$

49.8

​

$

3,635.7

Other revenues (a)

​

 

50.8

​

 

74.6

​

 

10.0

​

 

14.9

​

 

150.3

Total revenues

​

$

3,282.5

​

$

312.6

​

$

126.2

​

$

64.7

​

$

3,786.0

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2020

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

414.8

​

$

23.3

​

$

17.4

​

$

14.2

​

$

469.7

Europe and Russia/CIS

​

 

358.6

​

 

30.6

​

 

0.8

​

 

0.5

​

 

390.5

Middle East, Africa, and South Asia

​

 

169.4

​

 

0.3

​

 

0.1

​

 

—

​

 

169.8

Latin America and the Caribbean

​

 

78.3

​

 

0.5

​

 

19.3

​

 

2.0

​

 

100.1

East Asia and Oceania

​

 

69.1

​

 

14.7

​

 

0.4

​

 

—

​

 

84.2

Revenues from contracts with customers

​

$

1,090.2

​

$

69.4

​

$

38.0

​

$

16.7

​

$

1,214.3

Other revenues (a)

​

 

16.3

​

 

19.7

​

 

2.9

​

 

5.3

​

 

44.2

Total revenues

​

$

1,106.5

​

$

89.1

​

$

40.9

​

$

22.0

​

$

1,258.5

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2020

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

1,199.2

​

$

62.5

​

$

57.2

​

$

42.9

​

$

1,361.8

Europe and Russia/CIS

​

 

960.7

​

 

88.3

​

 

2.1

​

 

1.4

​

 

1,052.5

Middle East, Africa, and South Asia

​

 

464.0

​

 

1.1

​

 

0.2

​

 

—

​

 

465.3

Latin America and the Caribbean

​

 

217.0

​

 

1.7

​

 

58.9

​

 

6.1

​

 

283.7

East Asia and Oceania

​

 

183.7

​

 

44.4

​

 

1.1

​

 

—

​

 

229.2

Revenues from contracts with customers

​

$

3,024.6

​

$

198.0

​

$

119.5

​

$

50.4

​

$

3,392.5

Other revenues (a)

​

 

73.9

​

 

68.9

​

 

10.8

​

 

17.1

​

 

170.7

Total revenues

​

$

3,098.5

​

$

266.9

​

$

130.3

​

$

67.5

​

$

3,563.2

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(a)Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources.
v3.21.2
Earnings Per Share
 9 Months Ended
Sep. 30, 2021
Earnings Per Share  
Earnings Per Share

3. Earnings Per Share

The calculation of basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Outstanding options to purchase Western Union stock and unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested, using the treasury stock method. The treasury stock method assumes proceeds from the exercise price of stock options and the unamortized compensation expense of options and restricted stock are available to acquire shares at an average market price throughout the period, and therefore, reduce the dilutive effect.

For the three months ended September 30, 2021 and 2020, there were 2.2 million and 1.3 million, respectively, and for both the nine months ended September 30, 2021 and 2020, there were 1.7 million of shares excluded from the diluted earnings per share calculation under the treasury stock method, primarily due to outstanding restricted stock units and options to purchase shares of Western Union stock, as the assumed proceeds of the restricted stock and options per unit were above the Company’s weighted-average share price during the periods and their effect was anti-dilutive.

​

The following table provides the calculation of diluted weighted-average shares outstanding (in millions):

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

September 30, 

​

September 30, 

​

    

2021

    

2020

    

2021

    

2020

Basic weighted-average shares outstanding

 

406.3

 

411.6

 

409.1

 

412.5

Common stock equivalents

 

1.7

 

3.0

 

2.2

 

3.0

Diluted weighted-average shares outstanding

 

408.0

 

414.6

 

411.3

 

415.5

​
v3.21.2
Assets Held For Sale and Investment Activities
 9 Months Ended
Sep. 30, 2021
Assets Held For Sale and Investment Activities  
Assets Held For Sale and Investment Activities

4. Assets Held for Sale and Investment Activities

Assets Held for Sale

On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group (“Buyer”) for cash consideration of $910 million, subject to regulatory and working capital adjustments. The divestiture is expected to result in a gain on the sale and is subject to regulatory approval and other closing conditions. The sale is expected to be completed in two closings, with the entirety of the cash consideration due at the first closing. The first closing is expected to be completed during the first quarter of 2022 and to exclude the operations in the European Union and the United Kingdom. The second closing, comprised of the operations in the European Union and the United Kingdom, is currently expected by late 2022. The Company has presented the assets of its Business Solutions business as held for sale, along with the associated liabilities, as it believes completion of the sale is probable. However, in the event that: (a) the first closing has not occurred by August 4, 2022, due to a failure to obtain regulatory approvals by that date, and such failure is not primarily caused by the Company’s material breach, or (b) the agreement is terminated prior to August 4, 2022, and at the time of such termination either (i) there is a final order or other legal prohibition (not primarily caused by the Company’s material breach) precluding the first closing, or (ii) there is a material, unresolved breach by Buyer or its affiliates of their undertakings relating to obtaining the regulatory approvals, the Company would be entitled to a termination fee of $63.7 million.

Business Solutions revenues were $116.8 million and $89.1 million for the three months ended September 30, 2021 and 2020, respectively, and $312.6 million and $266.9 million for the nine months ended September 30, 2021 and 2020, respectively. Business Solutions direct operating expenses, which exclude corporate allocations, were $77.1 million and $77.0 million for the three months ended September 30, 2021 and 2020, respectively, and $244.5 million and $233.3 million for the nine months ended September 30, 2021 and 2020, respectively. Operating costs directly associated with this divestiture and incurred through the three and nine months ended September 30, 2021 were $5.2 million and $10.7 million, respectively.

​

The following table reflects the assets held for sale and associated liabilities of the Business Solutions business in the accompanying Condensed Consolidated Balance Sheet (in millions). These balances are subject to regulatory capital and other requirements and will be finalized upon the closing of the deal.

​

​

​

​

​

    

September 30, 

​

    

2021

Cash and cash equivalents

​

$

43.0

Settlement assets

​

​

570.6

Property and equipment, net of accumulated depreciation of $39.9

​

​

5.6

Goodwill

​

 

532.0

Other intangible assets, net of accumulated amortization of $383.8

​

​

49.9

Other assets

​

 

291.1

Total assets

​

$

1,492.2

​

​

 

  

Accounts payable and accrued liabilities

​

$

59.7

Settlement obligations

​

 

570.6

Other liabilities

​

​

225.1

Total liabilities

​

$

855.4

​

The Company also expects to reclassify approximately $17.8 million of unrealized currency translation gains currently included within Accumulated other comprehensive loss (“AOCL”) into net income at the first closing.

Investment Activities

The Company entered into an agreement in November 2020, and as subsequently amended, to acquire an ownership interest in stc Bank (formerly Saudi Digital Payments Company), a subsidiary of Saudi Telecom Company and one of the Company’s Consumer-to-Consumer digital white label partners. Under the terms of the amended agreement, the Company agreed to invest $200.0 million for a 15% investment in stc Bank (“Investment”), and this transaction closed in October 2021. In conjunction with the transaction, the Company and stc Bank extended and expanded the terms of their commercial agreement. The Company expects to measure this Investment at cost, less any impairment, adjusted for any changes resulting from observable price changes in orderly transactions for identical or similar investments in stc Bank.

In April 2021, the Company sold a substantial majority of the noncontrolling interest it held in a private company for cash proceeds of $50.9 million. The Company recorded a gain of $47.9 million within Other income/(expense), net, during the nine months ended September 30, 2021. The Company retains an immaterial equity interest in this private company.  
v3.21.2
Restructuring-Related Expenses
 9 Months Ended
Sep. 30, 2021
Restructuring-Related Expenses  
Restructuring-Related Expenses

5. Restructuring-Related Expenses

​

During the three and nine months ended September 30, 2020, the Company incurred $9.1 million and $24.8 million, respectively, of expenses related to a restructuring initiative approved by the Company’s Board of Directors on August 1, 2019. All expenses for this initiative had been incurred as of December 31, 2020, and substantially all have been paid in cash. For the three and nine months ended September 30, 2020, $0.8 million and $2.5 million, respectively, of these expenses were included in Cost of services, and $8.3 million and $22.3 million, respectively, of these expenses were included in Selling, general, and administrative in the Condensed Consolidated Statements of Income. While certain of the expenses may be identifiable to the Company’s segments, primarily to the Company’s Consumer-to-Consumer segment, the expenses are excluded from the Company’s segment operating income results as they are not included in the measurement of segment operating income provided to the Chief Operating Decision Maker (“CODM”) for purposes of performance assessment and resource allocation. These expenses are specific to this initiative; however, the types of expenses related to this initiative are similar to expenses that the Company has previously incurred and can reasonably be expected to incur in the future.

​

As of December 31, 2020, the total restructuring-related accrual was $26.2 million and as of September 30, 2021, the accrual balance was not material. These amounts are included in Accounts payable and accrued liabilities in the Company’s Condensed Consolidated Balance Sheets.

​
v3.21.2
Fair Value Measurements
 9 Months Ended
Sep. 30, 2021
Fair Value Measurements  
Fair Value Measurements

6. Fair Value Measurements

Fair value, as defined by the relevant accounting standards, represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For additional information on how the Company measures fair value, refer to the Company’s consolidated financial statements within the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The following tables present the Company’s assets and liabilities which are measured at fair value on a recurring basis, by balance sheet line item (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurement Using

​

Total

September 30, 2021

    

Level 1

    

Level 2

    

Fair Value

Assets:

 

​

  

 

​

  

 

​

  

Settlement assets:

 

​

  

 

​

  

 

​

  

Measured at fair value through net income:

 

​

  

 

​

  

 

​

  

Money market funds

​

$

7.6

​

$

—

​

$

7.6

Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income):

​

 

  

​

​

  

​

​

  

State and municipal debt securities

​

​

—

​

​

1,232.6

​

​

1,232.6

State and municipal variable-rate demand notes

​

 

—

​

 

100.9

​

 

100.9

Corporate and other debt securities

​

​

—

​

​

63.7

​

​

63.7

United States government agency mortgage-backed securities

​

 

—

​

 

40.7

​

 

40.7

Other assets:

​

 

  

​

 

​

​

 

  

Derivatives

​

 

—

​

 

286.3

​

 

286.3

Total assets

​

$

7.6

​

$

1,724.2

​

$

1,731.8

Liabilities:

​

 

  

​

 

  

​

 

  

Other liabilities:

​

​

​

​

​

​

​

​

​

Derivatives

​

$

—

​

$

211.7

​

$

211.7

Total liabilities

​

$

—

​

$

211.7

​

$

211.7

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurement Using

​

Total

December 31, 2020

    

Level 1

    

Level 2

    

Fair Value

Assets:

 

​

  

 

​

  

 

​

  

Settlement assets:

 

​

  

 

​

  

 

​

  

Measured at fair value through net income:

 

​

  

 

​

  

 

​

  

Money market funds

​

$

13.1

​

$

—

​

$

13.1

Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income):

​

 

  

​

​

  

​

​

  

State and municipal debt securities

​

​

—

​

​

1,303.9

​

​

1,303.9

State and municipal variable-rate demand notes

​

 

—

​

 

562.1

​

 

562.1

Corporate and other debt securities

​

 

—

​

 

72.8

​

 

72.8

United States government agency mortgage-backed securities

​

​

—

​

​

51.8

​

​

51.8

Other assets:

​

 

  

​

 

  

​

 

  

Derivatives

​

 

—

​

 

453.3

​

 

453.3

Total assets

​

$

13.1

​

$

2,443.9

​

$

2,457.0

Liabilities:

​

 

  

​

 

  

​

 

  

Other liabilities:

​

​

​

​

​

​

​

​

​

Derivatives

​

$

—

​

$

430.3

​

$

430.3

Total liabilities

​

$

—

​

$

430.3

​

$

430.3

​

There were no material, non-recurring fair value adjustments or transfers between Level 1 and Level 2 measurements during the three and nine months ended September 30, 2021 and 2020.

Other Fair Value Measurements

The carrying amounts for many of the Company’s financial instruments, including certain cash and cash equivalents, settlement cash and cash equivalents, and settlement receivables and obligations approximate fair value due to their short maturities. The Company’s borrowings are classified as Level 2 within the valuation hierarchy, and the aggregate fair value of these borrowings was based on quotes from multiple banks. Fixed-rate notes are carried in the Company’s Condensed Consolidated Balance Sheets at their original issuance values as adjusted over time to accrete that value to par. As of September 30, 2021, the carrying value and fair value of the Company’s borrowings were $2,852.6 million and $3,108.7 million, respectively (see Note 12). As of December 31, 2020, the carrying value and fair value of the Company’s borrowings were $3,067.2 million and $3,348.0 million, respectively.
v3.21.2
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2021
Commitments and Contingencies  
Commitments and Contingencies

7. Commitments and Contingencies

Letters of Credit and Bank Guarantees

The Company had approximately $470 million in outstanding letters of credit and bank guarantees as of September 30, 2021 primarily held in connection with safeguarding consumer funds, lease arrangements, and certain agent agreements. The Company expects to renew most of its letters of credit and bank guarantees prior to expiration.

Litigation and Related Contingencies

The Company is subject to certain claims and litigation that could result in losses, including damages, fines, and/or civil penalties, which could be significant, and in some cases, criminal charges. The Company regularly evaluates the status of legal matters to assess whether a loss is probable and reasonably estimable in determining whether an accrual is appropriate. Furthermore, in determining whether disclosure is appropriate, the Company evaluates each legal matter to assess if there is at least a reasonable possibility that a loss or additional losses may have been incurred and whether an estimate of possible loss or range of loss can be made. Unless otherwise specified below, the Company believes that there

is at least a reasonable possibility that a loss or additional loss may have been incurred for each of the matters described below.

For those matters that the Company believes there is at least a reasonable possibility that a loss or additional loss may have been incurred and can reasonably estimate the loss or potential loss, the reasonably possible potential litigation losses in excess of the Company’s recorded liability for probable and estimable losses was approximately $30 million as of September 30, 2021. For the remaining matters, management is unable to provide a meaningful estimate of the possible loss or range of loss because, among other reasons: (i) the proceedings are in preliminary stages; (ii) specific damages have not been sought; (iii) damage claims are unsupported and/or unreasonable; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; or (vi) novel legal issues or unsettled legal theories are being asserted.

The outcomes of legal actions are unpredictable and subject to significant uncertainties, and it is inherently difficult to determine whether any loss is probable or even possible. It is also inherently difficult to estimate the amount of any loss and there may be matters for which a loss is probable or reasonably possible but not currently estimable. Accordingly, actual losses may be in excess of the established liability or the range of reasonably possible loss.

Shareholder Derivative Action

​

On August 1, 2019, Stanley Lieblein made a written demand on the Company’s Board of Directors to investigate and address alleged misconduct related to the Company’s anti-fraud and anti-money laundering compliance programs, including certain alleged misconduct at issue in a shareholder derivative action he previously filed in in the United States District Court for the District of Colorado, which was subsequently consolidated with multiple pending related derivative actions. The United States Court of Appeals for the Tenth Circuit affirmed dismissal of the consolidated derivative action on April 16, 2019 on the ground that the plaintiffs did not have standing to proceed on behalf of the Company without making a demand on the Company’s Board of Directors. The consolidated derivative action is described in further detail in the Company’s prior disclosures.  

The Company’s Board of Directors formed a special committee to evaluate Mr. Lieblein’s demand together with a related demand by another shareholder (collectively, the “Demand Letters”). On January 16, 2020, while the special committee’s investigation was still on-going, Mr. Lieblein filed a shareholder derivative complaint in the Court of Chancery of the State of Delaware naming the Company’s President and Chief Executive Officer, certain current and former directors, and a former executive officer as individual defendants and the Company as a nominal defendant (the “Delaware Complaint”). Mr. Lieblein alleged that he filed the Delaware Complaint prior to the completion of the special committee’s investigation because of concerns regarding the statute of limitations on some of the claims asserted. Mr. Lieblein agreed to stay the action until December 31, 2020, pending completion of the special committee’s investigation.

The special committee completed its investigation in early December 2020 and, on the basis of its findings, recommended that the Company’s Board of Directors reject the Demand Letters and direct the Company to oppose any effort to assert claims based on or related to the Demand Letters on behalf of the Company, that no action on behalf of the Company should be brought or pursued against any of the current or former officers or directors of the Company based on the Demand Letters, and that none of the corporate governance reforms raised in the Demand Letters is necessary or appropriate. On December 16, 2020, the Board of Directors resolved to adopt the recommendations of the special committee. The Board of Directors further resolved, among other things, that none of the asserted claims has factual or legal merit. The Company thereafter informed Mr. Lieblein and the other shareholder that sent the related written demand that their demands have been rejected.

On February 12, 2021, the shareholder who sent the related written demand sent the Company a request to inspect books and records related to the consideration of the Demand Letters pursuant to Section 220 of the Delaware General Corporation Law.

On February 25, 2021, Mr. Lieblein filed a Stipulation and Proposed Order Regarding Voluntary Dismissal of the Delaware Complaint. The Delaware Court of Chancery reviewed and entered the Proposed Order on the same day. The Delaware Complaint and the associated action therefore has been dismissed and is now over. The dismissal is with prejudice as to Mr. Lieblein, the named plaintiff, only. The Company will oppose any future action by the shareholder who sent the related written demand.

Other Matters

In October 2015, Consumidores Financieros Asociación Civil para su Defensa, an Argentinian consumer association, filed a purported class action lawsuit in Argentina’s National Commercial Court No. 19 against the Company’s subsidiary Western Union Financial Services Argentina S.R.L. (“WUFSA”). The lawsuit alleges, among other things, that WUFSA’s fees for money transfers sent from Argentina are excessive and that WUFSA does not provide consumers with adequate information about foreign exchange rates. The plaintiff is seeking, among other things, an order requiring WUFSA to reimburse consumers for the fees they paid and the foreign exchange revenue associated with money transfers sent from Argentina, plus punitive damages. The complaint does not specify a monetary value of the claim or a time period. In November 2015, the Court declared the complaint formally admissible as a class action. The notice of claim was served on WUFSA in May 2016, and in June 2016 WUFSA filed a response to the claim and moved to dismiss it on statute of limitations and standing grounds. In April 2017, the Court deferred ruling on the motion until later in the proceedings. The process for notifying potential class members has been completed and the case proceeded to the evidentiary stage. The case will be stayed until (i) the Attorney-General instructs the Prosecutor to continue to litigate the claims on behalf of the plaintiff (during the time the registration of Consumidores Financieros before the Secretary of Commerce remains suspended); or (ii) the parties report to the Court that the plaintiff recovered its legal capacity. Due to the stage of this matter, the Company is unable to predict the outcome or the possible loss or range of loss, if any, associated with this matter. WUFSA intends to defend itself vigorously.

In April 2019, certain family members of Quinn Schansman filed a complaint seeking damages and other relief against a number of financial institutions, including The Western Union Company and Western Union Financial Services, Inc., in the United States District Court for the Southern District of New York, alleging that the defendants violated the United States Anti-Terrorism Act. The operative complaint alleges that the defendants provided funding to a terrorist organization by processing money transfers to groups or individuals associated with the Donetsk People’s Republic (“DPR”), a pro-Russian separatist group in eastern Ukraine. The complaint alleges that DPR downed Malaysian Airlines Flight 17, on which Mr. Schansman was a passenger. On September 30, 2021, the Court denied the defendants’ motion to dismiss the operative complaint. Due to the preliminary stage of this matter, the ultimate outcome and any potential financial impact to the Company cannot be reasonably determined at this time. The Company intends to defend itself vigorously in this matter.

​

In addition to the principal matters described above, the Company is a party to a variety of other legal matters that arise in the normal course of the Company’s business. While the results of these other legal matters cannot be predicted with certainty, management believes that the final outcome of these matters will not have a material adverse effect either individually or in the aggregate on the Company’s financial condition, results of operations, or cash flows.

​

​
v3.21.2
Related Party Transactions
 9 Months Ended
Sep. 30, 2021
Related Party Transactions  
Related Party Transactions

8. Related Party Transactions

The Company has ownership interests in certain of its agents accounted for under the equity method of accounting. The Company pays these agents commissions for money transfer and other services provided on the Company’s behalf. Commission expense recognized for these agents for the three months ended September 30, 2021 and 2020 totaled $14.0 million and $14.5 million, respectively, and $41.2 million and $40.0 million for the nine months ended September 30, 2021 and 2020, respectively.
v3.21.2
Settlement Assets and Obligations
 9 Months Ended
Sep. 30, 2021
Settlement Assets and Obligations  
Settlement Assets and Obligations

9. Settlement Assets and Obligations

Settlement assets represent funds received or to be received from agents and others for unsettled money transfers, money orders, and consumer payments. The Company records corresponding settlement obligations relating to amounts payable under money transfers, money orders, and consumer payment service arrangements. Settlement assets and obligations also include amounts receivable from, and payable to, customers for the value of their cross-currency payment transactions related to the Business Solutions segment.

Settlement assets and obligations consisted of the following (in millions):

​

​

​

​

​

    

September 30, 2021

Settlement assets:

 

​

  

Cash and cash equivalents

​

$

1,082.9

Receivables from agents, Business Solutions customers, and others

​

 

1,080.4

Less: Allowance for credit losses

​

​

(23.5)

Receivables from agents, Business Solutions customers, and others, net

​

​

1,056.9

Investment securities

​

 

1,437.9

Total settlement assets (a)

​

$

3,577.7

Settlement obligations:

​

 

  

Money transfer, money order, and payment service payables

​

$

2,809.5

Payables to agents

​

 

768.2

Total settlement obligations (a)

​

$

3,577.7

​

​

​

​

​

    

December 31, 2020

Settlement assets:

 

​

  

Cash and cash equivalents

​

$

695.7

Receivables from agents, Business Solutions customers, and others

​

 

1,188.3

Less: Allowance for credit losses

​

​

(53.2)

Receivables from agents, Business Solutions customers, and others, net

​

​

1,135.1

Investment securities

​

 

1,990.6

Total settlement assets

​

$

3,821.4

Settlement obligations:

​

 

  

Money transfer, money order, and payment service payables

​

$

2,902.9

Payables to agents

​

 

918.5

Total settlement obligations

​

$

3,821.4

(a)As of September 30, 2021, both Settlement assets and Settlement obligations include $570.6 million classified as Assets held for sale and Liabilities associated with assets held for sale (see Note 4).

Allowance for Credit Losses

On January 1, 2020, the Company adopted a new accounting standard related to the estimation of the allowance for credit losses, as discussed in Note 1. However, due to the short-term nature of the Company’s receivables and the Company’s historical and expected collections practice, the adoption did not have a material impact on the Company’s financial position or results of operations.

Receivables from agents and others primarily represent funds collected by such agents, but in transit to the Company, and were $967.2 million and $1,081.2 million as of September 30, 2021 and December 31, 2020, respectively. Cash received by Western Union agents generally becomes available to the Company within one week after initial receipt by the agent. Western Union has a large and diverse agent base, thereby reducing the credit risk of the Company from any one agent. The Company performs ongoing credit evaluations of its agents’ financial condition and credit worthiness.

Receivables from Business Solutions customers arise from cross-currency payment transactions in the Business Solutions segment. Business Solutions receivables totaled $89.7 million and $53.9 million as of September 30, 2021 and December 31, 2020, respectively. Receivables occur when funds have been paid out to a beneficiary but not yet received from the customer. Collection of these receivables ordinarily occurs within a few days. To mitigate risk associated with potential Business Solutions customer defaults, the Company performs credit reviews on an ongoing basis.

The Company establishes and monitors an allowance for credit losses related to receivables from agents and others, and Business Solutions customers. The Company estimates the allowance based on its historical collections experience, adjusted for current conditions and forecasts of future economic conditions. Given the short-term nature of these receivables, the Company does not expect the impact of forecasted economic conditions on its allowance for credit losses to be significant. The Company has estimated credit losses based on information known as of September 30, 2021.

The following tables summarize the activity in the allowance for credit losses on receivables from agents and others, and Business Solutions customers (in millions):

​

​

​

​

​

​

​

​

​

Agents and

​

Business Solutions

​

​

Others

​

Customers

Allowance for credit losses as of January 1, 2021

​

$

49.3

​

$

3.9

Current period provision for expected credit losses (a)

​

​

2.3

​

​

1.5

Write-offs charged against the allowance

​

​

(3.3)

​

​

(0.4)

Recoveries of amounts previously written off

​

​

1.9

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(0.5)

​

​

(0.1)

Allowance for credit losses as of March 31, 2021

​

​

49.7

​

​

4.9

Current period provision for expected credit losses (a)

​

​

3.2

​

​

1.9

Write-offs charged against the allowance

​

​

(34.4)

​

​

(0.4)

Recoveries of amounts previously written off

​

​

0.6

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(0.6)

​

​

(0.1)

Allowance for credit losses as of June 30, 2021

​

​

18.5

​

​

6.3

Current period provision for expected credit losses (a)

​

​

2.3

​

​

0.5

Write-offs charged against the allowance

​

​

(4.0)

​

​

(0.8)

Recoveries of amounts previously written off

​

​

1.4

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(0.7)

​

​

—

Allowance for credit losses as of September 30, 2021

​

$

17.5

​

$

6.0

​

​

​

​

​

​

​

​

​

​

​

​

Agents and

​

Business Solutions

​

​

Others

​

Customers

Allowance for credit losses as of January 1, 2020

​

$

20.4

​

$

4.5

Current period provision for expected credit losses (a)

​

​

8.1

​

​

0.2

Write-offs charged against the allowance

​

​

(1.7)

​

​

(1.0)

Recoveries of amounts previously written off

​

​

0.3

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(1.2)

​

​

—

Allowance for credit losses as of March 31, 2020

​

​

25.9

​

​

3.7

Current period provision for expected credit losses (a)

​

​

11.8

​

​

1.2

Write-offs charged against the allowance

​

​

(3.0)

​

​

(0.7)

Recoveries of amounts previously written off

​

​

0.9

​

​

—

Impacts of foreign currency exchange rates and other

​

​

0.3

​

​

0.6

Allowance for credit losses as of June 30, 2020

​

​

35.9

​

​

4.8

Current period provision for expected credit losses (a)

​

​

8.4

​

​

0.7

Write-offs charged against the allowance

​

​

(3.3)

​

​

(0.8)

Recoveries of amounts previously written off

​

​

0.6

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(0.7)

​

​

—

Allowance for credit losses as of September 30, 2020

​

$

40.9

​

$

4.7

​

(a)Current period provision for expected credit losses does not include losses from chargebacks or fraud associated with transactions initiated through the Company’s digital channels, as these losses are not credit related. The Company recognized losses that were not credit related of $13.7 million, $14.5 million, and $13.8 million for the three months ended March 31, 2021, June 30, 2021, and September 30, 2021, respectively, and $9.2 million, $11.5 million, and $9.1 million for the three months ended March 31, 2020, June 30, 2020, and September 30, 2020, respectively.

​

In addition, from time to time, the Company has made advances to its agents. The Company generally owes settlement funds payable to these agents that offset these advances. These amounts advanced to agents are included within Other assets in the accompanying Condensed Consolidated Balance Sheets. As of September 30, 2021 and December 31, 2020, amounts advanced to agents were $148.5 million and $135.9 million, respectively, and the related allowances for credit losses were immaterial.

Investment Securities

Investment securities included in Settlement assets in the Company’s Condensed Consolidated Balance Sheets consist primarily of highly-rated state and municipal debt securities, including fixed-rate term notes and variable-rate demand notes. Variable-rate demand note securities can be put (sold at par) typically on a daily basis with settlement periods ranging from the same day to one week but have varying maturities through 2050. These securities may be used by the Company for short-term liquidity needs and held for short periods of time. Investment securities are exposed to market risk due to changes in interest rates and credit risk. The Company is required to hold highly-rated, investment grade securities and such investments are restricted to satisfy outstanding settlement obligations in accordance with applicable regulatory requirements.

The Company’s investment securities are classified as available-for-sale and recorded at fair value. Western Union regularly monitors credit risk and attempts to mitigate its exposure by investing in highly-rated securities and through investment diversification.

Unrealized gains on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes. Available-for-sale securities with a fair value below the amortized cost basis are evaluated on an individual basis to determine whether the impairment is due to credit-related

factors or noncredit-related factors. Factors that could indicate a credit loss exists include but are not limited to: (i) negative earnings performance, (ii) credit rating downgrades, or (iii) adverse changes in the regulatory or economic environment of the asset. Any impairment that is not credit-related is excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes, unless the Company intends to sell the impaired security or it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. Credit-related impairments are recognized immediately as an adjustment to earnings, regardless of whether the Company has the ability or intent to hold the security to maturity, and are limited to the difference between fair value and the amortized cost basis. The Company’s provision for credit losses on its available-for-sale securities during the three and nine months ended September 30, 2021 and 2020 and the related allowance for credit losses as of September 30, 2021 and December 31, 2020 were immaterial.

The components of investment securities are as follows (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Gross

    

Gross

    

Net

​

 

Amortized

 

Fair

 

Unrealized

 

Unrealized

 

Unrealized

September 30, 2021

​

Cost

​

Value

 

Gains

 

Losses

​

Gains/(Losses)

Settlement assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Money market funds

​

$

7.6

​

$

7.6

​

$

—

​

$

—

​

$

—

Available-for-sale securities:

​

 

​

​

 

​

​

 

​

​

 

​

​

 

  

State and municipal debt securities (a)

​

 

1,185.0

​

 

1,232.6

​

 

48.3

​

 

(0.7)

​

 

47.6

State and municipal variable-rate demand notes

​

 

100.9

​

 

100.9

​

 

—

​

 

—

​

 

—

Corporate and other debt securities

​

​

63.3

​

​

63.7

​

​

0.6

​

​

(0.2)

​

​

0.4

United States government agency mortgage-backed securities

​

 

39.5

​

 

40.7

​

 

1.2

​

 

—

​

 

1.2

Total available-for-sale securities

​

 

1,388.7

​

 

1,437.9

​

 

50.1

​

 

(0.9)

​

 

49.2

Total investment securities

​

$

1,396.3

​

$

1,445.5

​

$

50.1

​

$

(0.9)

​

$

49.2

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Gross

    

Gross

    

Net

​

 

Amortized

 

Fair

 

Unrealized

 

Unrealized

 

Unrealized

December 31, 2020

​

Cost

​

Value

 

Gains

 

Losses

 

Gains/(Losses)

Settlement assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Money market funds

​

$

13.1

​

$

13.1

​

$

—

​

$

—

​

$

—

Available-for-sale securities:

 

​

​

 

​

​

 

​

​

 

​

​

 

​

  

State and municipal debt securities (a)

​

​

1,234.1

​

​

1,303.9

​

​

69.8

​

​

—

​

​

69.8

State and municipal variable-rate demand notes

​

 

562.1

​

 

562.1

​

 

—

​

 

—

​

 

—

Corporate and other debt securities

​

 

71.6

​

 

72.8

​

 

1.2

​

 

—

​

 

1.2

United States government agency mortgage-backed securities

​

​

50.3

​

​

51.8

​

​

1.5

​

​

—

​

​

1.5

Total available-for-sale securities

​

 

1,918.1

​

 

1,990.6

​

 

72.5

​

 

—

​

 

72.5

Total investment securities

​

$

1,931.2

​

$

2,003.7

​

$

72.5

​

$

—

​

$

72.5

(a)The majority of these securities are fixed-rate instruments.

​

The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of September 30, 2021 (in millions):

​

​

​

​

​

​

Fair Value

Due within 1 year

​

$

180.2

Due after 1 year through 5 years

​

 

604.6

Due after 5 years through 10 years

​

 

465.8

Due after 10 years

​

 

187.3

Total

​

$

1,437.9

​

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay the obligations or the Company may have the right to put the obligation prior to its contractual maturity, as with variable-rate demand notes. Variable-rate demand notes, having a fair value of $7.0 million and $93.9 million are included in the "Due within 1 year" and "Due after 10 years," categories, respectively, in the table above.

​
v3.21.2
Stockholders' Equity
 9 Months Ended
Sep. 30, 2021
Stockholders' Equity  
Stockholders' Equity

10. Stockholders’ Equity

Accumulated Other Comprehensive Loss

The following table details reclassifications out of AOCL and into Net income. All amounts reclassified from AOCL affect the line items as indicated below and the amounts in parentheses indicate decreases to Net income in the Condensed Consolidated Statements of Income.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts Reclassified from AOCL to Net Income

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

Income Statement

​

September 30, 

​

September 30, 

Income for the period (in millions)

​

Location

    

2021

    

2020

    

2021

    

2020

Accumulated other comprehensive loss components:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gains/(losses) on investment securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Available-for-sale securities

​

Revenues

​

$

2.5

​

$

—

​

$

2.3

​

$

0.9

Income tax expense

​

Provision for income taxes

​

​

(0.5)

​

​

—

​

​

(0.5)

​

​

(0.2)

Total reclassification adjustments related to investment securities, net of tax

​

​

​

​

2.0

​

​

—

​

​

1.8

​

​

0.7

Gains/(losses) on cash flow hedges:

​

​

​

 

​

​

​

​

​

​

​

​

​

​

Foreign currency contracts

​

Revenues

​

​

(0.6)

​

​

(3.6)

​

​

(10.0)

​

​

7.2

Interest rate contracts

​

Interest expense

​

​

(0.1)

​

​

(0.1)

​

​

(0.5)

​

​

(0.4)

Interest rate contracts

​

Other income/(expense), net

​

​

—

​

​

—

​

​

0.7

​

​

—

Income tax benefit/(expense)

​

Provision for income taxes

​

​

0.1

​

​

—

​

​

0.1

​

​

(0.1)

Total reclassification adjustments related to cash flow hedges, net of tax

​

​

​

​

(0.6)

​

 

(3.7)

​

 

(9.7)

​

 

6.7

Amortization of components of defined benefit plans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Actuarial loss

​

Other income/(expense), net

​

​

(3.0)

​

​

(2.9)

​

​

(9.1)

​

​

(9.0)

Income tax benefit

​

Provision for income taxes

​

 

0.7

​

 

0.6

​

 

2.0

​

 

2.3

Total reclassification adjustments related to defined benefit plans, net of tax

​

​

​

 

(2.3)

​

 

(2.3)

​

 

(7.1)

​

 

(6.7)

Total reclassifications, net of tax

​

​

​

$

(0.9)

​

$

(6.0)

​

$

(15.0)

​

$

0.7

​

​

The following tables summarize the components of AOCL, net of tax in the accompanying Condensed Consolidated Balance Sheets (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment

​

Hedging

​

Foreign Currency

​

Defined Benefit

​

​

​

​

Securities

​

Activities

​

Translation

​

Pension Plan

​

Total

As of December 31, 2020

​

$

58.3

​

$

(30.5)

​

$

(101.2)

​

$

(86.1)

​

$

(159.5)

Unrealized gains/(losses)

​

 

(16.0)

​

 

24.2

​

 

—

​

 

—

​

 

8.2

Tax benefit/(expense)

​

 

2.9

​

 

(0.9)

​

 

—

​

 

—

​

 

2.0

Amounts reclassified from AOCL into earnings, net of tax

​

 

0.1

​

 

5.6

​

 

—

​

 

2.5

​

 

8.2

As of March 31, 2021

​

​

45.3

​

​

(1.6)

​

​

(101.2)

​

​

(83.6)

​

​

(141.1)

Unrealized gains/(losses)

​

 

2.3

​

 

(6.2)

​

 

—

​

 

—

​

 

(3.9)

Tax expense

​

 

(0.2)

​

 

—

​

 

—

​

 

—

​

 

(0.2)

Amounts reclassified from AOCL into earnings, net of tax

​

 

0.1

​

 

3.5

​

 

—

​

 

2.3

​

 

5.9

As of June 30, 2021

​

​

47.5

​

​

(4.3)

​

​

(101.2)

​

​

(81.3)

​

​

(139.3)

Unrealized gains/(losses)

​

 

(7.3)

​

 

17.7

​

 

—

​

 

—

​

 

10.4

Tax benefit/(expense)

​

 

1.4

​

​

(0.1)

​

 

—

​

 

—

​

 

1.3

Amounts reclassified from AOCL into earnings, net of tax

​

 

(2.0)

​

 

0.6

​

 

—

​

 

2.3

​

 

0.9

As of September 30, 2021

​

$

39.6

​

$

13.9

​

$

(101.2)

​

$

(79.0)

​

$

(126.7)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment

​

Hedging

​

Foreign Currency

​

Defined Benefit

​

​

​

​

Securities

​

Activities

​

Translation

​

Pension Plan

​

Total

As of December 31, 2019

​

$

24.7

​

$

(3.6)

​

$

(101.2)

​

$

(128.9)

​

$

(209.0)

Unrealized gains

​

 

7.2

​

 

27.3

​

 

—

​

 

—

​

 

34.5

Tax expense

​

 

(1.1)

​

 

(0.3)

​

 

—

​

 

—

​

 

(1.4)

Amounts reclassified from AOCL into earnings, net of tax

​

 

(0.4)

​

 

(6.3)

​

 

—

​

 

2.3

​

 

(4.4)

As of March 31, 2020

​

​

30.4

​

​

17.1

​

​

(101.2)

​

​

(126.6)

​

​

(180.3)

Unrealized gains/(losses)

​

​

24.6

​

​

(15.1)

​

​

—

​

​

—

​

​

9.5

Tax benefit/(expense)

​

​

(4.8)

​

​

0.1

​

​

—

​

​

—

​

​

(4.7)

Amounts reclassified from AOCL into earnings, net of tax

​

​

(0.3)

​

​

(4.1)

​

​

—

​

​

2.1

​

​

(2.3)

As of June 30, 2020

​

​

49.9

​

​

(2.0)

​

​

(101.2)

​

​

(124.5)

​

​

(177.8)

Unrealized gains/(losses)

​

 

8.5

​

 

(22.1)

​

 

—

​

 

—

​

 

(13.6)

Tax benefit/(expense)

​

 

(1.4)

​

 

0.2

​

 

—

​

 

—

​

 

(1.2)

Amounts reclassified from AOCL into earnings, net of tax

​

 

—

​

 

3.7

​

 

—

​

 

2.3

​

 

6.0

As of September 30, 2020

​

$

57.0

​

$

(20.2)

​

$

(101.2)

​

$

(122.2)

​

$

(186.6)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

On July 22, 2021, the Company’s Board of Directors approved a plan to terminate and settle the Company’s frozen defined benefit pension plan, which was in an overfunded position as of September 30, 2021 and December 31, 2020. Upon termination and settlement, which is expected in the fourth quarter of 2021 and subject to required notices, filings, and reviews, the pre-tax balance in AOCL will be reclassified as a component of Total other expense, net, with the related income tax effects recorded in Provision for income taxes, in the Condensed Consolidated Statements of Income.

Cash Dividends Paid

The Company’s Board of Directors declared quarterly cash dividends of $0.235 per common share for each of the first three quarters of 2021, representing $287.6 million in total dividends. Of this amount, $95.1 million was paid on September 30, 2021, $95.9 million was paid on June 30, 2021, and $96.6 million was paid on March 31, 2021. The Company’s Board of Directors declared quarterly cash dividends of $0.225 per common share for each of the first three quarters of 2020, representing $277.4 million in total dividends. Of this amount, $92.5 million was paid on September 30, 2020, $92.5 million was paid on June 30, 2020, and $92.4 million was paid on March 31, 2020.

Share Repurchases

During the nine months ended September 30, 2021 and 2020, 9.6 million and 8.5 million shares were repurchased for $225.0 million and $217.4 million, respectively, excluding commissions, at an average cost of $23.45 and $25.45, respectively. These amounts represent shares authorized by the Board of Directors for repurchase under publicly announced authorizations. As of September 30, 2021, $557.6 million remained available under the share repurchase authorization approved by the Company’s Board of Directors through December 31, 2021. The amounts included in the Common stock repurchased line in the Company’s Condensed Consolidated Statements of Cash Flows represent both shares authorized by the Board of Directors for repurchase under publicly announced authorizations and shares withheld from employees to cover tax withholding obligations on restricted stock units that have vested.
v3.21.2
Derivatives
 9 Months Ended
Sep. 30, 2021
Derivatives  
Derivatives

11. Derivatives

The Company is exposed to foreign currency exchange risk resulting from fluctuations in exchange rates, primarily the euro, and, to a lesser degree, the British pound, the Canadian dollar, and other currencies, related to forecasted revenues and settlement assets and obligations, as well as on certain foreign currency denominated cash and other asset and liability positions. The Company is also exposed to risk from derivative contracts, primarily from customer derivatives, arising from its cross-currency Business Solutions payment operations. Additionally, the Company is exposed to interest rate risk related to changes in market rates both prior to and subsequent to the issuance of debt. The Company has used derivatives to: (i) minimize its exposures related to changes in foreign currency exchange rates and interest rates and (ii) facilitate cross-currency Business Solutions payments by writing derivatives to customers.

The Company executes derivatives with established financial institutions; the substantial majority of these financial institutions have a credit rating of "A-" or higher from a major credit rating agency. Customer derivatives written by the Company’s Business Solutions operations primarily involve small and medium size enterprises. The primary credit risk inherent in derivative agreements represents the possibility that a loss may occur from the nonperformance of a counterparty to the agreements. The Company performs a review of the credit risk of these counterparties at the inception of the contract and on an ongoing basis, while also monitoring the concentration of its contracts with any individual counterparty. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements, but takes action when doubt arises about the counterparties’ ability to perform. These actions may include requiring Business Solutions customers to post or increase collateral, and for all counterparties, the possible termination of the related contracts. The Company’s hedged foreign currency exposures are in liquid currencies; consequently, there is minimal risk that appropriate derivatives to maintain the hedging program would not be available in the future.

Foreign Currency Derivatives

The Company’s policy is to use longer duration foreign currency forward contracts, with maturities of up to 36 months at inception and a targeted weighted-average maturity of approximately one year, to help mitigate some of the risk that changes in foreign currency exchange rates compared to the United States dollar could have on forecasted revenues denominated in other currencies related to its business. As of September 30, 2021, these foreign currency forward contracts had maturities of a maximum of 24 months with a weighted-average maturity of approximately one year. These contracts are accounted for as cash flow hedges of forecasted revenue with effectiveness assessed based on changes in the spot rate of the affected currencies during the period of designation and thus time value is excluded from the assessment of effectiveness. The initial value of the excluded components is amortized into Revenues within the Company’s Condensed Consolidated Statements of Income.

The Company also uses short duration foreign currency forward contracts, generally with maturities ranging from a few days to one month, to offset foreign exchange rate fluctuations on settlement assets and obligations between initiation and settlement. In addition, forward contracts, typically with maturities of less than one year at inception, are utilized to offset foreign exchange rate fluctuations on certain foreign currency denominated cash and other asset and liability positions. None of these contracts are designated as accounting hedges.

​

The aggregate equivalent United States dollar notional amounts of foreign currency forward contracts as of September 30, 2021 and December 31, 2020 were as follows (in millions):

​

​

​

​

​

​

September 30, 2021

Contracts designated as hedges:

    

​

​

Euro

​

$

403.2

Canadian dollar

​

​

141.7

British pound

​

 

69.6

Australian dollar

​

​

64.3

Swiss franc

​

​

44.5

Japanese yen

​

​

37.0

Swedish krona

​

​

28.6

Other (a)

​

 

1.8

Contracts not designated as hedges:

​

 

​

Euro

​

$

592.0

British pound

​

 

152.6

Australian dollar

​

​

97.7

Mexican peso

​

 

92.4

Canadian dollar

​

 

78.5

Indian rupee

​

 

64.8

Japanese yen

​

​

45.7

Russian ruble

​

​

42.5

Chinese yuan

​

​

32.5

Swiss franc

​

​

28.3

Other (a)

​

​

198.0

​

​

​

​

​

​

​

December 31, 2020

Contracts designated as hedges:

    

​

​

Euro

​

$

428.9

Canadian dollar

​

 

131.9

British pound

​

 

71.9

Australian dollar

​

 

58.3

Swiss franc

​

 

41.1

Japanese yen

​

​

36.6

Other (a)

​

 

29.5

Contracts not designated as hedges:

​

 

  

Euro

​

$

533.0

British pound

​

 

153.9

Mexican peso

​

​

105.0

Indian rupee

​

 

81.0

Canadian dollar

​

 

71.5

Australian dollar

​

 

68.1

Japanese yen

​

 

39.6

Philippine peso

​

​

35.2

Russian ruble

​

​

31.2

Indonesian rupiah

​

​

29.1

Swedish krona

​

 

26.0

Other (a)

​

 

151.5

(a)Comprised of exposures to various currencies; none of these individual currency exposures is greater than $25 million.

​

Business Solutions Operations

The Company writes derivatives, primarily foreign currency forward contracts and option contracts, mostly with small and medium size enterprises and derives a currency spread from this activity as part of its Business Solutions operations. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business, as described in Note 4. The Company aggregates its Business Solutions foreign currency exposures arising from customer contracts, including the derivative contracts described above, and hedges the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties (economic hedge contracts). The derivatives written are part of the broader portfolio of foreign currency positions arising from the Company’s cross-currency payments operations, which primarily include spot exchanges of currency in addition to forwards and options. Foreign exchange revenues from the total portfolio of positions included in Revenues in the Company’s Condensed Consolidated Statements of Income were $99.5 million and $76.9 million for the three months ended September 30, 2021 and 2020, respectively, and $271.4 million and $234.4 million for the nine months ended September 30, 2021 and 2020, respectively. None of the derivative contracts used in Business Solutions operations are designated as accounting hedges and the majority of these derivative contracts have a duration at inception of less than one year.

The aggregate equivalent United States dollar notional amount of derivative customer contracts held by the Company in its Business Solutions operations was approximately $8.0 billion as of September 30, 2021 and December 31, 2020. The significant majority of customer contracts are written in the following currencies: the United States dollar, euro, and the Canadian dollar.

Interest Rate Hedging

Periodically, the Company utilizes interest rate swaps to effectively change the interest rate payments on a portion of its notes from fixed-rate payments to short-term, variable-rate payments in order to manage its overall exposure to interest rate fluctuations. The Company designates these derivatives as fair value hedges. The change in fair value of the interest rate swaps is offset by a change in the carrying value of the debt being hedged within Borrowings in the Condensed Consolidated Balance Sheets. Interest expense in the Condensed Consolidated Statements of Income has been adjusted to include the effects of interest accrued on the swaps.

During the fourth quarter of 2020, the Company entered into two treasury locks to partially fix the treasury yield component associated with the refinance of unsecured notes set to expire in 2022. The notional amounts of these treasury locks were $100.0 million and $150.0 million and were designated as cash flow hedges at the time the agreements were executed.

These treasury locks were terminated in the first quarter of 2021 in conjunction with the issuance of $600.0 million of aggregate principal amount of 1.350% unsecured notes due March 15, 2026 (“2026 Notes”). The Company received a total of $3.3 million upon termination, of which $2.6 million was deferred as a component of AOCL and will be amortized to Interest expense in the Condensed Consolidated Statements of Income over the term of the 2026 Notes. As a portion of the forecasted interest payments on the 2026 Notes will occur outside the time period originally specified at designation of the treasury locks as cash flow hedges, $0.7 million was recognized in Other income/(expense), net in the Condensed Consolidated Statements of Income, upon termination.

​

Balance Sheet

The following table summarizes the fair value of derivatives reported in the Company’s Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivative Assets

​

Derivative Liabilities

​

​

​

Fair Value

​

​

​

Fair Value

​

Balance Sheet

    

September 30, 

    

December 31, 

    

Balance Sheet

    

September 30, 

    

December 31, 

​

Location

​

2021

​

2020

​

Location

​

2021

​

2020

Derivatives designated as hedges:

  

 

​

  

 

​

  

 

  

 

​

  

 

​

  

Foreign currency cash flow hedges

Other assets

​

$

28.1

​

$

9.1

 

Other liabilities

​

$

4.1

​

$

24.9

Interest rate cash flow hedges

Other assets

​

​

—

​

​

—

​

Other liabilities

​

​

—

​

​

0.1

Total derivatives designated as hedges

  

​

$

28.1

​

$

9.1

 

  

​

$

4.1

​

$

25.0

Derivatives not designated as hedges:

  

​

 

  

​

 

  

 

  

​

 

  

​

 

  

Business Solutions operations - foreign currency (a)

Other assets

​

$

244.8

​

$

441.4

 

Other liabilities

​

$

203.5

​

$

402.5

Foreign currency

Other assets

​

 

13.4

​

 

2.8

 

Other liabilities

​

 

4.1

​

 

2.8

Total derivatives not designated as hedges

  

​

$

258.2

​

$

444.2

 

  

​

$

207.6

​

$

405.3

Total derivatives

  

​

$

286.3

​

$

453.3

 

  

​

$

211.7

​

$

430.3

(a)In many circumstances, the Company allows its Business Solutions customers to settle part or all of their derivative contracts prior to maturity. However, the offsetting positions originally entered into with financial institution counterparties do not allow for similar settlement. To mitigate this, additional foreign currency contracts are entered into with financial institution counterparties to offset the original economic hedge contracts. This frequently results in changes in the Company’s derivative assets and liabilities that may not directly align with the performance in the underlying derivatives business.

The fair values of derivative assets and liabilities, associated with contracts that include netting language that the Company believes to be enforceable, have been netted in the following tables to present the Company’s net exposure with these counterparties. The Company’s rights under these agreements generally allow for transactions to be settled on a net basis, including upon early termination, which could occur upon the counterparty’s default, a change in control, or other conditions.

In addition, certain of the Company’s other agreements include netting provisions, the enforceability of which may vary from jurisdiction to jurisdiction, depending on the circumstances. Due to the uncertainty related to the enforceability of these provisions, the derivative balances associated with these agreements are included within "Derivatives that are not or may not be subject to master netting arrangement or similar agreement" in the following tables. In certain circumstances, the Company may require its Business Solutions customers to maintain collateral balances which may mitigate the risk associated with potential customer defaults.

The following tables summarize the gross and net fair value of derivative assets and liabilities as of September 30, 2021 and December 31, 2020 (in millions):

Offsetting of Derivative Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Gross

    

Net Amounts

    

Derivatives

    

​

​

​

​

Gross

​

Amounts Offset

​

Presented

​

Not Offset

​

​

​

​

​

Amounts of

​

 in the Condensed

​

 in the Condensed

​

 in the Condensed

​

​

​

​

​

Recognized

​

Consolidated

​

Consolidated

​

Consolidated

​

​

​

September 30, 2021

​

Assets

​

Balance Sheets

​

Balance Sheets

​

Balance Sheets

​

Net Amounts

Derivatives subject to a master netting arrangement or similar agreement

​

$

197.7

​

$

—

​

$

197.7

​

$

(105.6)

​

$

92.1

Derivatives that are not or may not be subject to master netting arrangement or similar agreement

​

 

88.6

​

 

  

​

 

  

​

 

  

​

 

  

Total

​

$

286.3

​

 

  

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Derivatives subject to a master netting arrangement or similar agreement

​

$

165.1

​

$

—

​

$

165.1

​

$

(155.1)

​

$

10.0

Derivatives that are not or may not be subject to master netting arrangement or similar agreement

​

 

288.2

​

 

  

​

 

  

​

 

  

​

 

  

Total

​

$

453.3

​

 

  

​

 

  

​

 

  

​

 

  

​

Offsetting of Derivative Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Gross

    

Net Amounts

    

Derivatives

    

​

​

​

​

Gross

​

Amounts Offset

​

Presented

​

Not Offset

​

​

​

​

​

Amounts of 

​

 in the Condensed

​

 in the Condensed

​

 in the Condensed

​

​

​

​

​

Recognized

​

Consolidated

​

Consolidated

​

Consolidated

​

​

​

September 30, 2021

​

Liabilities

​

Balance Sheets

​

Balance Sheets

​

Balance Sheets

​

Net Amounts

Derivatives subject to a master netting arrangement or similar agreement

​

$

120.1

​

$

—

​

$

120.1

​

$

(105.6)

​

$

14.5

Derivatives that are not or may not be subject to master netting arrangement or similar agreement

​

 

91.6

​

 

  

​

 

  

​

 

  

​

 

  

Total

​

$

211.7

​

 

  

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Derivatives subject to a master netting arrangement or similar agreement

​

$

356.2

​

$

—

​

$

356.2

​

$

(155.1)

​

$

201.1

Derivatives that are not or may not be subject to master netting arrangement or similar agreement

​

 

74.1

​

 

  

​

 

  

​

 

  

​

 

  

Total

​

$

430.3

​

 

  

​

 

  

​

 

  

​

 

  

​

Income Statement

Cash Flow Hedges

The effective portion of the change in fair value of derivatives that qualify as cash flow hedges is recorded in AOCL in the Company’s Condensed Consolidated Balance Sheets. Generally, amounts are recognized in income when the related forecasted transaction affects earnings.

The following table presents the pre-tax amount of unrealized gains/(losses) recognized in other comprehensive income from cash flow hedges for the three and nine months ended September 30, 2021 and 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 

​

Nine Months Ended September 30, 

​

    

2021

    

2020

    

2021

    

2020

Foreign currency derivatives (a)

​

$

17.7

​

$

(22.1)

​

$

32.4

​

$

(9.9)

Interest rate derivatives

​

​

—

​

​

—

​

​

3.3

​

​

—

(a)Gains/(losses) of $(0.2) million and $(1.6) million for the three months ended September 30, 2021 and 2020, respectively, and $(1.2) million and $1.2 million for the nine months ended September 30, 2021 and 2020, respectively, represent amounts excluded from the assessment of effectiveness and recognized in other comprehensive income, for which an amortization approach is applied.

The following table presents the location and amounts of pre-tax net gains/(losses) from cash flow hedging relationships recognized in the Condensed Consolidated Statements of Income for the three months ended September 30, 2021 and 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 

​

​

2021

​

​

2020

​

​

​

​

​

Interest

​

​

​

​

Interest

​

​

Revenues

​

Expense

​

Revenues

​

Expense

Total amounts presented in the Consolidated Statements of Income in which the effects of cash flow hedges are recorded

​

$

1,286.3

​

$

(25.7)

​

$

1,258.5

​

$

(28.2)

Gain/(loss) on cash flow hedges:

​

 

  

​

 

  

​

 

  

​

 

  

Foreign currency derivatives:

​

 

  

​

 

  

​

 

  

​

 

  

Gains/(losses) reclassified from AOCL into earnings

​

 

(0.6)

​

 

—

​

 

(3.6)

​

 

—

Amount excluded from effectiveness testing recognized in earnings based on an amortization approach

​

 

1.4

​

 

—

​

 

2.4

​

 

—

Interest rate derivatives:

​

​

​

​

​

​

​

​

​

​

​

​

Gains/(losses) reclassified from AOCL into earnings

​

​

—

​

 

(0.1)

​

 

—

​

​

(0.1)

​

​

The following table presents the location and amounts of pre-tax net gains/(losses) from cash flow hedging relationships recognized in the Condensed Consolidated Statements of Income for the nine months ended September 30, 2021 and 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 

​

​

2021

​

2020

​

​

​

​

​

​

​

​

Other

​

​

​

​

​

​

​

​

​

​

​

Interest

​

Income/
(Expense), 

​

​

​

​

Interest

​

​

Revenues

​

Expense

​

net

​

Revenues

​

Expense

Total amounts presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded

​

$

3,786.0

​

$

(79.7)

​

$

26.8

​

$

3,563.2

​

$

(90.4)

Gain/(loss) on cash flow hedges:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Foreign currency derivatives:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Gains/(losses) reclassified from AOCL into earnings

​

 

(10.0)

​

 

—

​

 

—

​

 

7.2

​

 

—

Amount excluded from effectiveness testing recognized in earnings based on an amortization approach

​

 

4.9

​

 

—

​

 

—

​

 

8.7

​

 

—

Interest rate derivatives:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gains/(losses) reclassified from AOCL into earnings

​

​

—

​

​

(0.5)

​

 

0.7

​

 

—

​

​

(0.4)

​

Undesignated Hedges

​

The following table presents the location and amount of pre-tax net gains/(losses) from undesignated hedges in the Condensed Consolidated Statements of Income on derivatives for the three and nine months ended September 30, 2021 and 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

​

​

September 30, 

​

September 30, 

Derivatives (a)

    

Location

    

2021

    

2020

    

2021

    

2020

Foreign currency derivatives (b)

 

Selling, general, and administrative

​

$

23.4

​

$

(1.9)

​

$

41.3

​

$

24.2

(a)

The Company uses foreign currency forward and option contracts as part of its Business Solutions payments operations. These derivative contracts are excluded from this table as they are managed as part of a broader currency portfolio that includes non-derivative currency exposures. The gains and losses on these derivatives are included as part of the broader disclosure of portfolio revenue for this business discussed above.

(b)The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations as well as certain foreign currency denominated positions. Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivative activity as displayed above and included in Selling, general, and administrative in the Condensed Consolidated Statements of Income, were $(25.7) million and $1.4 million for the three months ended September 30, 2021 and 2020, respectively, and $(50.7) million and $(46.6) million for the nine months ended September 30, 2021 and 2020, respectively.

All cash flows associated with derivatives are included in Cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows.

Based on September 30, 2021 foreign exchange rates, an accumulated other comprehensive pre-tax gain of $10.5 million related to the foreign currency forward contracts is expected to be reclassified into Revenues within the next 12 months.
v3.21.2
Borrowings
 9 Months Ended
Sep. 30, 2021
Borrowings  
Borrowings

12. Borrowings

The Company’s outstanding borrowings consisted of the following (in millions):

​

​

​

​

​

​

​

​

    

September 30, 2021

    

December 31, 2020

Commercial paper (a)

​

$

120.0

​

$

80.0

Notes:

​

 

  

​

 

  

3.600% notes due 2022 (b)

​

 

—

​

 

500.0

4.250% notes due 2023 (c)

​

 

300.0

​

 

300.0

2.850% notes due 2025 (c)

​

​

500.0

​

​

500.0

1.350% notes due 2026 (effective rate of 1.5%) (b)

​

​

600.0

​

​

—

2.750% notes due 2031 (effective rate of 2.9%) (b)

​

​

300.0

​

​

—

6.200% notes due 2036 (c)

​

 

500.0

​

 

500.0

6.200% notes due 2040 (c)

​

 

250.0

​

 

250.0

Term loan facility borrowing (effective rate of 1.4%) (b)

​

 

300.0

​

 

950.0

Total borrowings at par value

​

 

2,870.0

​

 

3,080.0

Debt issuance costs and unamortized discount, net

​

 

(17.4)

​

 

(12.8)

Total borrowings at carrying value (d)

​

$

2,852.6

​

$

3,067.2

(a)Pursuant to the Company’s commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $1.5 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Company’s revolving credit facility. The commercial paper notes may have maturities of up to 397 days from date of issuance. The Company’s commercial paper borrowings as of September 30, 2021 had a weighted-average annual interest rate of approximately 0.2% and a weighted-average term of approximately 1 day.
(b)See the Issuance of 2026 and 2031 Unsecured Notes section below for details of borrowings and repayments in 2021.
(c)The difference between the stated interest rate and the effective interest rate is not significant.
(d)As of September 30, 2021, the Company’s weighted-average effective rate on total borrowings was approximately 3.4%.

​

Issuance of 2026 and 2031 Unsecured Notes

On March 9, 2021, the Company issued $600.0 million of the 2026 Notes and $300.0 million of aggregate principal amount of 2.750% unsecured notes due March 15, 2031 (“2031 Notes”). Interest with respect to these notes is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. If a change of control triggering event occurs, holders of the 2026 Notes and 2031 Notes may require the Company to repurchase some or all of their notes at a price equal to 101% of the principal amount of their notes, plus any accrued and unpaid interest. The Company may redeem the 2026 Notes and the 2031 Notes, in whole or in part, at any time prior to February 15, 2026 and December 15, 2030, respectively, at the greater of par or a price based on the applicable treasury rate plus 15 and 25 basis points, respectively. The Company may redeem the 2026 Notes and the 2031 Notes at any time after February 15, 2026 and December 15, 2030, respectively, at a price equal to par, plus accrued interest. Proceeds from the 2026 Notes and 2031 Notes and cash, including cash generated from operations, were used to repay $650.0 million of the term loan facility in the first quarter of 2021 and $500.0 million of the aggregate principal amount of 3.600% unsecured notes due in March 2022 (“2022 Notes”) in the second quarter of 2021.

The cost associated with the early termination of the 2022 Notes, including the make-whole premium of $14.3 million, was recorded to Other income/(expense), net, during the nine months ended September 30, 2021.  

​

The following summarizes the Company’s maturities of notes and term loan at par value as of September 30, 2021 (in millions):

​

​

​

​

Due within 1 year

    

$

—

Due after 1 year through 2 years

​

 

300.0

Due after 2 years through 3 years

​

 

300.0

Due after 3 years through 4 years

​

 

500.0

Due after 4 years through 5 years

​

 

600.0

Due after 5 years

​

 

1,050.0

Total

​

$

2,750.0

​

The Company’s obligations with respect to its outstanding borrowings, as described above, rank equally.
v3.21.2
Income Taxes
 9 Months Ended
Sep. 30, 2021
Income Taxes  
Income Taxes

13. Income Taxes

The Company’s provision for income taxes for the three and nine months ended September 30, 2021 and 2020 is based on the estimated annual effective tax rate, in addition to discrete items. The Company’s effective tax rates on pre-tax income were 20.2% and 12.4% for the three months ended September 30, 2021 and 2020, respectively, and 15.6% and 13.5% for the nine months ended September 30, 2021 and 2020, respectively. The increase in the Company’s effective tax rate for the three and nine months ended September 30, 2021 compared to the corresponding periods in the prior year was primarily due to increased deferred tax expense arising from changes to certain of the Company’s permanent reinvestment assertions related to its decision to classify its Business Solutions business as held for sale in the current period. The Company derives its pre-tax income from both foreign and domestic sources. Certain portions of the Company’s foreign source income are subject to United States federal and state income tax as earned due to the nature of the income.

Uncertain Tax Positions

The Company has established contingency reserves for a variety of material, known tax exposures. The Company’s tax reserves reflect management’s judgment as to the resolution of the issues involved if subject to judicial review or other settlement. While the Company believes its reserves are adequate to cover reasonably expected tax risks, there can be no assurance that, in all instances, an issue raised by a tax authority will be resolved at a financial cost that does not exceed its related reserve. With respect to these reserves, the Company’s income tax expense would include (i) any changes in tax reserves arising from material changes during the period in the facts and circumstances (i.e. new information) surrounding a tax issue and (ii) any difference from the Company’s tax position as recorded in the financial statements and the final resolution of a tax issue during the period. Such resolution could materially increase or decrease income tax expense in the Company’s consolidated financial statements in future periods and could impact operating cash flows.

Unrecognized tax benefits represent the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s consolidated financial statements and are reflected in Income taxes payable in the Condensed Consolidated Balance Sheets. The total amount of unrecognized tax benefits as of September 30, 2021 and December 31, 2020 was $341.9 million and $340.7 million, respectively, excluding interest and penalties. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $330.7 million and $329.2 million as of September 30, 2021 and December 31, 2020, respectively, excluding interest and penalties.

The Company recognizes interest and penalties with respect to unrecognized tax benefits in Provision for income taxes in its Condensed Consolidated Statements of Income and records the associated liability in Income taxes payable in its Condensed Consolidated Balance Sheets. The Company recognized $1.9 million and $0.8 million of interest and

penalties during the three months ended September 30, 2021 and 2020, respectively, and $3.0 million and $1.5 million during the nine months ended September 30, 2021 and 2020, respectively. The Company has accrued $31.6 million and $28.6 million for the payment of interest and penalties as of September 30, 2021 and December 31, 2020, respectively.

The Company and its subsidiaries file tax returns for the United States, for multiple states and localities, and for various non-United States jurisdictions, and the Company has identified the United States as its major tax jurisdiction, as the income tax imposed by any one foreign country is not material to the Company. The Company’s United States federal income tax returns since 2017 are eligible to be examined. The Internal Revenue Service (“IRS”) commenced an examination of the Company’s United States consolidated income tax returns for 2017 and 2018 during 2020. The IRS anticipates completion of the examination phase in 2022.

v3.21.2
Stock-Based Compensation Plans
 9 Months Ended
Sep. 30, 2021
Stock-Based Compensation Plans  
Stock-Based Compensation Plans

14. Stock-Based Compensation Plans

For the three months ended September 30, 2021 and 2020, the Company recognized stock-based compensation expense of $8.4 million and $14.2 million, respectively, resulting from stock options, restricted stock units, performance-based restricted stock units, and deferred stock units in the Condensed Consolidated Statements of Income. For the nine months ended September 30, 2021 and 2020, the Company recognized stock-based compensation expense of $31.2 million and $32.0 million, respectively.

During the nine months ended September 30, 2021, the Company granted 0.5 million options at a weighted-average exercise price of $23.91 and 2.9 million performance-based restricted stock units and restricted stock units at a weighted-average grant date fair value of $23.53. As of September 30, 2021, the Company had 4.7 million outstanding options at a weighted-average exercise price of $19.55, of which 3.6 million options were exercisable at a weighted-average exercise price of $18.48. The Company had 6.9 million outstanding performance-based restricted stock units (based on target performance) and restricted stock units at a weighted-average grant date fair value of $22.24 as of September 30, 2021.

v3.21.2
Segments
 9 Months Ended
Sep. 30, 2021
Segments  
Segments

15. Segments

As further described in Note 1, the Company classifies its business into two segments: Consumer-to-Consumer and Business Solutions. Operating segments are defined as components of an enterprise that engage in business activities, about which separate financial information is available that is evaluated regularly by the Company’s CODM in allocating resources and assessing performance.

The Consumer-to-Consumer operating segment facilitates money transfers between two consumers. The segment includes five geographic regions whose functions are primarily related to generating, managing, and maintaining agent relationships and localized marketing activities. The Company includes Digital Money Transfer transactions in its regions, including transactions from the Company’s arrangements with financial institutions and other third parties to enable such entities to offer money transfer services to their own customers under their brands. By means of common processes and systems, these regions, including Digital Money Transfer transactions, create one interconnected global network for consumer transactions, thereby constituting one Consumer-to-Consumer money transfer business and one operating segment.

The Business Solutions operating segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises, and other organizations and individuals. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group. See Note 4 for further information regarding this transaction.

All businesses and other services that have not been classified in the above segments are reported as Other, which primarily includes the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services.

Corporate costs, including stock-based compensation and other overhead, are allocated to the segments primarily based on a percentage of the segments’ revenue compared to total revenue.

The following table presents the Company’s segment results for the three and nine months ended September 30, 2021 and 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

​

September 30, 

​

September 30, 

​

​

   

2021

   

2020

   

2021

   

2020

​

Revenues:

 

​

  

 

​

  

 

​

  

 

​

  

​

Consumer-to-Consumer

​

$

1,104.5

​

$

1,106.5

​

$

3,282.5

​

$

3,098.5

​

Business Solutions (a)

​

 

116.8

​

 

89.1

​

 

312.6

​

 

266.9

​

Other

​

 

65.0

​

 

62.9

​

 

190.9

​

 

197.8

​

Total consolidated revenues

​

$

1,286.3

​

$

1,258.5

​

$

3,786.0

​

$

3,563.2

​

Operating income:

​

 

  

​

 

  

​

 

  

​

 

  

​

Consumer-to-Consumer

​

$

268.2

​

$

272.4

​

$

708.1

​

$

695.1

​

Business Solutions (a)

​

 

38.4

​

 

9.4

​

 

61.9

​

 

24.6

​

Other

​

 

12.0

​

 

12.5

​

 

36.3

​

 

45.3

​

Total segment operating income

​

 

318.6

​

 

294.3

​

 

806.3

​

 

765.0

​

Restructuring-related expenses (Note 5)

​

 

—

​

 

(9.1)

​

 

—

​

 

(24.8)

​

Total consolidated operating income

​

$

318.6

​

$

285.2

​

$

806.3

​

$

740.2

​

​

(a)On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business, as described in Note 4.
v3.21.2
Business and Basis of Presentation (Policies)
 9 Months Ended
Sep. 30, 2021
Business and Basis of Presentation  
Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited and were prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X. In compliance with those instructions, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") have been condensed or omitted.

The unaudited condensed consolidated financial statements in this quarterly report are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. Results of operations and cash flows for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All significant intercompany transactions and accounts were eliminated as of September 30, 2021 and December 31, 2020 and for all periods presented.

In the opinion of management, these condensed consolidated financial statements include all the normal recurring adjustments necessary to fairly present the Company’s condensed consolidated results of operations, financial position, and cash flows as of September 30, 2021 and for all periods presented. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements within the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Consistent with industry practice, the accompanying Condensed Consolidated Balance Sheets are unclassified due to the short-term nature of the Company’s settlement obligations contrasted with the Company’s ability to invest cash awaiting settlement in long-term investment securities.
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.
New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

On January 1, 2020, the Company adopted a new accounting standard that requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. Additionally, the standard requires certain credit losses relating to investment securities classified as available-for-sale to be recorded through an allowance for credit losses. The Company recognized the cumulative effect of the new accounting standard as an adjustment to the January 1, 2020 balance of Accumulated deficit in the Condensed Consolidated Balance Sheets, and the adoption of the new accounting standard did not have a material impact on the Company’s January 1, 2020 accumulated deficit. Refer to Note 9 for additional information and the related disclosures.
Revenue Recognition

The Company’s revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the principal amount sent, whether the money transfer involves different send and receive currencies, the difference between the exchange rate set by the Company to the customer and the rate available in the wholesale foreign exchange market, and speed of service, as applicable. The Company also offers several other services, including foreign exchange and payment services and other bill payment services, for which revenue is impacted by similar factors. For the substantial majority of the Company’s revenues, the Company acts as the principal in transactions and reports revenue on a gross basis, as the Company controls the service at all times prior to transfer to the customer, is primarily responsible for fulfilling the customer contracts, has the risk of loss, and has the ability to establish transaction prices. The Company also provides services to financial institutions and other third parties to enable such entities to offer money transfer services to their own customers under their brands. Generally, in these arrangements, consumers agree to terms and conditions specified by the financial institution or other third party that, among other things, establish pricing paid by the consumer for the service. The Company recognizes revenue on a net basis under these arrangements. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.
Earnings Per Share

The calculation of basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Outstanding options to purchase Western Union stock and unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested, using the treasury stock method. The treasury stock method assumes proceeds from the exercise price of stock options and the unamortized compensation expense of options and restricted stock are available to acquire shares at an average market price throughout the period, and therefore, reduce the dilutive effect.
Investment Securities

Investment securities included in Settlement assets in the Company’s Condensed Consolidated Balance Sheets consist primarily of highly-rated state and municipal debt securities, including fixed-rate term notes and variable-rate demand notes. Variable-rate demand note securities can be put (sold at par) typically on a daily basis with settlement periods ranging from the same day to one week but have varying maturities through 2050. These securities may be used by the Company for short-term liquidity needs and held for short periods of time. Investment securities are exposed to market risk due to changes in interest rates and credit risk. The Company is required to hold highly-rated, investment grade securities and such investments are restricted to satisfy outstanding settlement obligations in accordance with applicable regulatory requirements.

The Company’s investment securities are classified as available-for-sale and recorded at fair value. Western Union regularly monitors credit risk and attempts to mitigate its exposure by investing in highly-rated securities and through investment diversification.

Unrealized gains on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes. Available-for-sale securities with a fair value below the amortized cost basis are evaluated on an individual basis to determine whether the impairment is due to credit-related

factors or noncredit-related factors. Factors that could indicate a credit loss exists include but are not limited to: (i) negative earnings performance, (ii) credit rating downgrades, or (iii) adverse changes in the regulatory or economic environment of the asset. Any impairment that is not credit-related is excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes, unless the Company intends to sell the impaired security or it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. Credit-related impairments are recognized immediately as an adjustment to earnings, regardless of whether the Company has the ability or intent to hold the security to maturity, and are limited to the difference between fair value and the amortized cost basis. The Company’s provision for credit losses on its available-for-sale securities during the three and nine months ended September 30, 2021 and 2020 and the related allowance for credit losses as of September 30, 2021 and December 31, 2020 were immaterial.
Foreign Currency - Derivatives

Foreign Currency Derivatives

The Company’s policy is to use longer duration foreign currency forward contracts, with maturities of up to 36 months at inception and a targeted weighted-average maturity of approximately one year, to help mitigate some of the risk that changes in foreign currency exchange rates compared to the United States dollar could have on forecasted revenues denominated in other currencies related to its business. As of September 30, 2021, these foreign currency forward contracts had maturities of a maximum of 24 months with a weighted-average maturity of approximately one year. These contracts are accounted for as cash flow hedges of forecasted revenue with effectiveness assessed based on changes in the spot rate of the affected currencies during the period of designation and thus time value is excluded from the assessment of effectiveness. The initial value of the excluded components is amortized into Revenues within the Company’s Condensed Consolidated Statements of Income.

The Company also uses short duration foreign currency forward contracts, generally with maturities ranging from a few days to one month, to offset foreign exchange rate fluctuations on settlement assets and obligations between initiation and settlement. In addition, forward contracts, typically with maturities of less than one year at inception, are utilized to offset foreign exchange rate fluctuations on certain foreign currency denominated cash and other asset and liability positions. None of these contracts are designated as accounting hedges.

​
Foreign Currency - Business Solutions

Business Solutions Operations

The Company writes derivatives, primarily foreign currency forward contracts and option contracts, mostly with small and medium size enterprises and derives a currency spread from this activity as part of its Business Solutions operations. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business, as described in Note 4. The Company aggregates its Business Solutions foreign currency exposures arising from customer contracts, including the derivative contracts described above, and hedges the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties (economic hedge contracts). The derivatives written are part of the broader portfolio of foreign currency positions arising from the Company’s cross-currency payments operations, which primarily include spot exchanges of currency in addition to forwards and options. Foreign exchange revenues from the total portfolio of positions included in Revenues in the Company’s Condensed Consolidated Statements of Income were $99.5 million and $76.9 million for the three months ended September 30, 2021 and 2020, respectively, and $271.4 million and $234.4 million for the nine months ended September 30, 2021 and 2020, respectively. None of the derivative contracts used in Business Solutions operations are designated as accounting hedges and the majority of these derivative contracts have a duration at inception of less than one year.
Interest Rate Hedging

Interest Rate Hedging

Periodically, the Company utilizes interest rate swaps to effectively change the interest rate payments on a portion of its notes from fixed-rate payments to short-term, variable-rate payments in order to manage its overall exposure to interest rate fluctuations. The Company designates these derivatives as fair value hedges. The change in fair value of the interest rate swaps is offset by a change in the carrying value of the debt being hedged within Borrowings in the Condensed Consolidated Balance Sheets. Interest expense in the Condensed Consolidated Statements of Income has been adjusted to include the effects of interest accrued on the swaps.
v3.21.2
Revenue (Tables)
 9 Months Ended
Sep. 30, 2021
Revenue  
Disaggregation of revenue earned from contracts with customers

Management has determined that the substantial majority of the Company’s revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the three and nine months ended September 30, 2021 and 2020 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2021

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

406.7

​

$

30.9

​

$

18.0

​

$

14.4

​

$

470.0

Europe and Russia/CIS

​

 

345.0

​

 

39.3

​

 

1.4

​

 

0.4

​

 

386.1

Middle East, Africa, and South Asia

​

 

165.8

​

 

0.5

​

 

0.2

​

 

—

​

 

166.5

Latin America and the Caribbean

​

 

97.5

​

 

0.9

​

 

20.2

​

 

1.7

​

 

120.3

East Asia and Oceania

​

 

69.2

​

 

17.9

​

 

0.3

​

 

—

​

 

87.4

Revenues from contracts with customers

​

$

1,084.2

​

$

89.5

​

$

40.1

​

$

16.5

​

$

1,230.3

Other revenues (a)

​

 

20.3

​

 

27.3

​

 

3.6

​

 

4.8

​

 

56.0

Total revenues

​

$

1,104.5

​

$

116.8

​

$

43.7

​

$

21.3

​

$

1,286.3

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2021

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

1,211.0

​

$

75.6

​

$

54.6

​

$

43.2

​

$

1,384.4

Europe and Russia/CIS

​

 

1,047.8

​

 

107.3

​

 

3.6

​

 

1.0

​

 

1,159.7

Middle East, Africa, and South Asia

​

 

492.2

​

 

1.5

​

 

0.4

​

 

—

​

 

494.1

Latin America and the Caribbean

​

 

276.7

​

 

2.5

​

 

56.8

​

 

5.6

​

 

341.6

East Asia and Oceania

​

 

204.0

​

 

51.1

​

 

0.8

​

 

—

​

 

255.9

Revenues from contracts with customers

​

$

3,231.7

​

$

238.0

​

$

116.2

​

$

49.8

​

$

3,635.7

Other revenues (a)

​

 

50.8

​

 

74.6

​

 

10.0

​

 

14.9

​

 

150.3

Total revenues

​

$

3,282.5

​

$

312.6

​

$

126.2

​

$

64.7

​

$

3,786.0

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2020

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

414.8

​

$

23.3

​

$

17.4

​

$

14.2

​

$

469.7

Europe and Russia/CIS

​

 

358.6

​

 

30.6

​

 

0.8

​

 

0.5

​

 

390.5

Middle East, Africa, and South Asia

​

 

169.4

​

 

0.3

​

 

0.1

​

 

—

​

 

169.8

Latin America and the Caribbean

​

 

78.3

​

 

0.5

​

 

19.3

​

 

2.0

​

 

100.1

East Asia and Oceania

​

 

69.1

​

 

14.7

​

 

0.4

​

 

—

​

 

84.2

Revenues from contracts with customers

​

$

1,090.2

​

$

69.4

​

$

38.0

​

$

16.7

​

$

1,214.3

Other revenues (a)

​

 

16.3

​

 

19.7

​

 

2.9

​

 

5.3

​

 

44.2

Total revenues

​

$

1,106.5

​

$

89.1

​

$

40.9

​

$

22.0

​

$

1,258.5

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2020

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

1,199.2

​

$

62.5

​

$

57.2

​

$

42.9

​

$

1,361.8

Europe and Russia/CIS

​

 

960.7

​

 

88.3

​

 

2.1

​

 

1.4

​

 

1,052.5

Middle East, Africa, and South Asia

​

 

464.0

​

 

1.1

​

 

0.2

​

 

—

​

 

465.3

Latin America and the Caribbean

​

 

217.0

​

 

1.7

​

 

58.9

​

 

6.1

​

 

283.7

East Asia and Oceania

​

 

183.7

​

 

44.4

​

 

1.1

​

 

—

​

 

229.2

Revenues from contracts with customers

​

$

3,024.6

​

$

198.0

​

$

119.5

​

$

50.4

​

$

3,392.5

Other revenues (a)

​

 

73.9

​

 

68.9

​

 

10.8

​

 

17.1

​

 

170.7

Total revenues

​

$

3,098.5

​

$

266.9

​

$

130.3

​

$

67.5

​

$

3,563.2

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(a)Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources.
v3.21.2
Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2021
Earnings Per Share  
Schedule of diluted weighted-average shares outstanding

The following table provides the calculation of diluted weighted-average shares outstanding (in millions):

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

September 30, 

​

September 30, 

​

    

2021

    

2020

    

2021

    

2020

Basic weighted-average shares outstanding

 

406.3

 

411.6

 

409.1

 

412.5

Common stock equivalents

 

1.7

 

3.0

 

2.2

 

3.0

Diluted weighted-average shares outstanding

 

408.0

 

414.6

 

411.3

 

415.5
v3.21.2
Assets Held For Sale and Investment Activities (Tables)
 9 Months Ended
Sep. 30, 2021
Assets Held For Sale and Investment Activities  
Schedule of assets and liabilities held for sale

The following table reflects the assets held for sale and associated liabilities of the Business Solutions business in the accompanying Condensed Consolidated Balance Sheet (in millions). These balances are subject to regulatory capital and other requirements and will be finalized upon the closing of the deal.

​

​

​

​

​

    

September 30, 

​

    

2021

Cash and cash equivalents

​

$

43.0

Settlement assets

​

​

570.6

Property and equipment, net of accumulated depreciation of $39.9

​

​

5.6

Goodwill

​

 

532.0

Other intangible assets, net of accumulated amortization of $383.8

​

​

49.9

Other assets

​

 

291.1

Total assets

​

$

1,492.2

​

​

 

  

Accounts payable and accrued liabilities

​

$

59.7

Settlement obligations

​

 

570.6

Other liabilities

​

​

225.1

Total liabilities

​

$

855.4
v3.21.2
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2021
Fair Value Measurements  
Schedule of assets and liabilities by balance sheet line item measured on a recurring basis

The following tables present the Company’s assets and liabilities which are measured at fair value on a recurring basis, by balance sheet line item (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurement Using

​

Total

September 30, 2021

    

Level 1

    

Level 2

    

Fair Value

Assets:

 

​

  

 

​

  

 

​

  

Settlement assets:

 

​

  

 

​

  

 

​

  

Measured at fair value through net income:

 

​

  

 

​

  

 

​

  

Money market funds

​

$

7.6

​

$

—

​

$

7.6

Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income):

​

 

  

​

​

  

​

​

  

State and municipal debt securities

​

​

—

​

​

1,232.6

​

​

1,232.6

State and municipal variable-rate demand notes

​

 

—

​

 

100.9

​

 

100.9

Corporate and other debt securities

​

​

—

​

​

63.7

​

​

63.7

United States government agency mortgage-backed securities

​

 

—

​

 

40.7

​

 

40.7

Other assets:

​

 

  

​

 

​

​

 

  

Derivatives

​

 

—

​

 

286.3

​

 

286.3

Total assets

​

$

7.6

​

$

1,724.2

​

$

1,731.8

Liabilities:

​

 

  

​

 

  

​

 

  

Other liabilities:

​

​

​

​

​

​

​

​

​

Derivatives

​

$

—

​

$

211.7

​

$

211.7

Total liabilities

​

$

—

​

$

211.7

​

$

211.7

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurement Using

​

Total

December 31, 2020

    

Level 1

    

Level 2

    

Fair Value

Assets:

 

​

  

 

​

  

 

​

  

Settlement assets:

 

​

  

 

​

  

 

​

  

Measured at fair value through net income:

 

​

  

 

​

  

 

​

  

Money market funds

​

$

13.1

​

$

—

​

$

13.1

Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income):

​

 

  

​

​

  

​

​

  

State and municipal debt securities

​

​

—

​

​

1,303.9

​

​

1,303.9

State and municipal variable-rate demand notes

​

 

—

​

 

562.1

​

 

562.1

Corporate and other debt securities

​

 

—

​

 

72.8

​

 

72.8

United States government agency mortgage-backed securities

​

​

—

​

​

51.8

​

​

51.8

Other assets:

​

 

  

​

 

  

​

 

  

Derivatives

​

 

—

​

 

453.3

​

 

453.3

Total assets

​

$

13.1

​

$

2,443.9

​

$

2,457.0

Liabilities:

​

 

  

​

 

  

​

 

  

Other liabilities:

​

​

​

​

​

​

​

​

​

Derivatives

​

$

—

​

$

430.3

​

$

430.3

Total liabilities

​

$

—

​

$

430.3

​

$

430.3
v3.21.2
Settlement Assets and Obligations (Tables)
 9 Months Ended
Sep. 30, 2021
Settlement Assets and Obligations  
Schedule of settlement assets and obligations

Settlement assets and obligations consisted of the following (in millions):

​

​

​

​

​

    

September 30, 2021

Settlement assets:

 

​

  

Cash and cash equivalents

​

$

1,082.9

Receivables from agents, Business Solutions customers, and others

​

 

1,080.4

Less: Allowance for credit losses

​

​

(23.5)

Receivables from agents, Business Solutions customers, and others, net

​

​

1,056.9

Investment securities

​

 

1,437.9

Total settlement assets (a)

​

$

3,577.7

Settlement obligations:

​

 

  

Money transfer, money order, and payment service payables

​

$

2,809.5

Payables to agents

​

 

768.2

Total settlement obligations (a)

​

$

3,577.7

​

​

​

​

​

    

December 31, 2020

Settlement assets:

 

​

  

Cash and cash equivalents

​

$

695.7

Receivables from agents, Business Solutions customers, and others

​

 

1,188.3

Less: Allowance for credit losses

​

​

(53.2)

Receivables from agents, Business Solutions customers, and others, net

​

​

1,135.1

Investment securities

​

 

1,990.6

Total settlement assets

​

$

3,821.4

Settlement obligations:

​

 

  

Money transfer, money order, and payment service payables

​

$

2,902.9

Payables to agents

​

 

918.5

Total settlement obligations

​

$

3,821.4

(a)As of September 30, 2021, both Settlement assets and Settlement obligations include $570.6 million classified as Assets held for sale and Liabilities associated with assets held for sale (see Note 4).
Schedule of activity in the allowance for credit losses

The following tables summarize the activity in the allowance for credit losses on receivables from agents and others, and Business Solutions customers (in millions):

​

​

​

​

​

​

​

​

​

Agents and

​

Business Solutions

​

​

Others

​

Customers

Allowance for credit losses as of January 1, 2021

​

$

49.3

​

$

3.9

Current period provision for expected credit losses (a)

​

​

2.3

​

​

1.5

Write-offs charged against the allowance

​

​

(3.3)

​

​

(0.4)

Recoveries of amounts previously written off

​

​

1.9

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(0.5)

​

​

(0.1)

Allowance for credit losses as of March 31, 2021

​

​

49.7

​

​

4.9

Current period provision for expected credit losses (a)

​

​

3.2

​

​

1.9

Write-offs charged against the allowance

​

​

(34.4)

​

​

(0.4)

Recoveries of amounts previously written off

​

​

0.6

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(0.6)

​

​

(0.1)

Allowance for credit losses as of June 30, 2021

​

​

18.5

​

​

6.3

Current period provision for expected credit losses (a)

​

​

2.3

​

​

0.5

Write-offs charged against the allowance

​

​

(4.0)

​

​

(0.8)

Recoveries of amounts previously written off

​

​

1.4

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(0.7)

​

​

—

Allowance for credit losses as of September 30, 2021

​

$

17.5

​

$

6.0

​

​

​

​

​

​

​

​

​

​

​

​

Agents and

​

Business Solutions

​

​

Others

​

Customers

Allowance for credit losses as of January 1, 2020

​

$

20.4

​

$

4.5

Current period provision for expected credit losses (a)

​

​

8.1

​

​

0.2

Write-offs charged against the allowance

​

​

(1.7)

​

​

(1.0)

Recoveries of amounts previously written off

​

​

0.3

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(1.2)

​

​

—

Allowance for credit losses as of March 31, 2020

​

​

25.9

​

​

3.7

Current period provision for expected credit losses (a)

​

​

11.8

​

​

1.2

Write-offs charged against the allowance

​

​

(3.0)

​

​

(0.7)

Recoveries of amounts previously written off

​

​

0.9

​

​

—

Impacts of foreign currency exchange rates and other

​

​

0.3

​

​

0.6

Allowance for credit losses as of June 30, 2020

​

​

35.9

​

​

4.8

Current period provision for expected credit losses (a)

​

​

8.4

​

​

0.7

Write-offs charged against the allowance

​

​

(3.3)

​

​

(0.8)

Recoveries of amounts previously written off

​

​

0.6

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(0.7)

​

​

—

Allowance for credit losses as of September 30, 2020

​

$

40.9

​

$

4.7

​

(a)Current period provision for expected credit losses does not include losses from chargebacks or fraud associated with transactions initiated through the Company’s digital channels, as these losses are not credit related. The Company recognized losses that were not credit related of $13.7 million, $14.5 million, and $13.8 million for the three months ended March 31, 2021, June 30, 2021, and September 30, 2021, respectively, and $9.2 million, $11.5 million, and $9.1 million for the three months ended March 31, 2020, June 30, 2020, and September 30, 2020, respectively.
Schedule of components of investment securities

The components of investment securities are as follows (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Gross

    

Gross

    

Net

​

 

Amortized

 

Fair

 

Unrealized

 

Unrealized

 

Unrealized

September 30, 2021

​

Cost

​

Value

 

Gains

 

Losses

​

Gains/(Losses)

Settlement assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Money market funds

​

$

7.6

​

$

7.6

​

$

—

​

$

—

​

$

—

Available-for-sale securities:

​

 

​

​

 

​

​

 

​

​

 

​

​

 

  

State and municipal debt securities (a)

​

 

1,185.0

​

 

1,232.6

​

 

48.3

​

 

(0.7)

​

 

47.6

State and municipal variable-rate demand notes

​

 

100.9

​

 

100.9

​

 

—

​

 

—

​

 

—

Corporate and other debt securities

​

​

63.3

​

​

63.7

​

​

0.6

​

​

(0.2)

​

​

0.4

United States government agency mortgage-backed securities

​

 

39.5

​

 

40.7

​

 

1.2

​

 

—

​

 

1.2

Total available-for-sale securities

​

 

1,388.7

​

 

1,437.9

​

 

50.1

​

 

(0.9)

​

 

49.2

Total investment securities

​

$

1,396.3

​

$

1,445.5

​

$

50.1

​

$

(0.9)

​

$

49.2

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Gross

    

Gross

    

Net

​

 

Amortized

 

Fair

 

Unrealized

 

Unrealized

 

Unrealized

December 31, 2020

​

Cost

​

Value

 

Gains

 

Losses

 

Gains/(Losses)

Settlement assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Money market funds

​

$

13.1

​

$

13.1

​

$

—

​

$

—

​

$

—

Available-for-sale securities:

 

​

​

 

​

​

 

​

​

 

​

​

 

​

  

State and municipal debt securities (a)

​

​

1,234.1

​

​

1,303.9

​

​

69.8

​

​

—

​

​

69.8

State and municipal variable-rate demand notes

​

 

562.1

​

 

562.1

​

 

—

​

 

—

​

 

—

Corporate and other debt securities

​

 

71.6

​

 

72.8

​

 

1.2

​

 

—

​

 

1.2

United States government agency mortgage-backed securities

​

​

50.3

​

​

51.8

​

​

1.5

​

​

—

​

​

1.5

Total available-for-sale securities

​

 

1,918.1

​

 

1,990.6

​

 

72.5

​

 

—

​

 

72.5

Total investment securities

​

$

1,931.2

​

$

2,003.7

​

$

72.5

​

$

—

​

$

72.5

(a)The majority of these securities are fixed-rate instruments.

​
Schedule of contractual maturities of investment securities within Settlement assets

The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of September 30, 2021 (in millions):

​

​

​

​

​

​

Fair Value

Due within 1 year

​

$

180.2

Due after 1 year through 5 years

​

 

604.6

Due after 5 years through 10 years

​

 

465.8

Due after 10 years

​

 

187.3

Total

​

$

1,437.9
v3.21.2
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2021
Stockholders' Equity  
Schedule of reclassifications out of Accumulated other comprehensive loss

The following table details reclassifications out of AOCL and into Net income. All amounts reclassified from AOCL affect the line items as indicated below and the amounts in parentheses indicate decreases to Net income in the Condensed Consolidated Statements of Income.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts Reclassified from AOCL to Net Income

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

Income Statement

​

September 30, 

​

September 30, 

Income for the period (in millions)

​

Location

    

2021

    

2020

    

2021

    

2020

Accumulated other comprehensive loss components:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gains/(losses) on investment securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Available-for-sale securities

​

Revenues

​

$

2.5

​

$

—

​

$

2.3

​

$

0.9

Income tax expense

​

Provision for income taxes

​

​

(0.5)

​

​

—

​

​

(0.5)

​

​

(0.2)

Total reclassification adjustments related to investment securities, net of tax

​

​

​

​

2.0

​

​

—

​

​

1.8

​

​

0.7

Gains/(losses) on cash flow hedges:

​

​

​

 

​

​

​

​

​

​

​

​

​

​

Foreign currency contracts

​

Revenues

​

​

(0.6)

​

​

(3.6)

​

​

(10.0)

​

​

7.2

Interest rate contracts

​

Interest expense

​

​

(0.1)

​

​

(0.1)

​

​

(0.5)

​

​

(0.4)

Interest rate contracts

​

Other income/(expense), net

​

​

—

​

​

—

​

​

0.7

​

​

—

Income tax benefit/(expense)

​

Provision for income taxes

​

​

0.1

​

​

—

​

​

0.1

​

​

(0.1)

Total reclassification adjustments related to cash flow hedges, net of tax

​

​

​

​

(0.6)

​

 

(3.7)

​

 

(9.7)

​

 

6.7

Amortization of components of defined benefit plans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Actuarial loss

​

Other income/(expense), net

​

​

(3.0)

​

​

(2.9)

​

​

(9.1)

​

​

(9.0)

Income tax benefit

​

Provision for income taxes

​

 

0.7

​

 

0.6

​

 

2.0

​

 

2.3

Total reclassification adjustments related to defined benefit plans, net of tax

​

​

​

 

(2.3)

​

 

(2.3)

​

 

(7.1)

​

 

(6.7)

Total reclassifications, net of tax

​

​

​

$

(0.9)

​

$

(6.0)

​

$

(15.0)

​

$

0.7
Schedule of components of accumulated other comprehensive income/(loss), net of tax

The following tables summarize the components of AOCL, net of tax in the accompanying Condensed Consolidated Balance Sheets (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment

​

Hedging

​

Foreign Currency

​

Defined Benefit

​

​

​

​

Securities

​

Activities

​

Translation

​

Pension Plan

​

Total

As of December 31, 2020

​

$

58.3

​

$

(30.5)

​

$

(101.2)

​

$

(86.1)

​

$

(159.5)

Unrealized gains/(losses)

​

 

(16.0)

​

 

24.2

​

 

—

​

 

—

​

 

8.2

Tax benefit/(expense)

​

 

2.9

​

 

(0.9)

​

 

—

​

 

—

​

 

2.0

Amounts reclassified from AOCL into earnings, net of tax

​

 

0.1

​

 

5.6

​

 

—

​

 

2.5

​

 

8.2

As of March 31, 2021

​

​

45.3

​

​

(1.6)

​

​

(101.2)

​

​

(83.6)

​

​

(141.1)

Unrealized gains/(losses)

​

 

2.3

​

 

(6.2)

​

 

—

​

 

—

​

 

(3.9)

Tax expense

​

 

(0.2)

​

 

—

​

 

—

​

 

—

​

 

(0.2)

Amounts reclassified from AOCL into earnings, net of tax

​

 

0.1

​

 

3.5

​

 

—

​

 

2.3

​

 

5.9

As of June 30, 2021

​

​

47.5

​

​

(4.3)

​

​

(101.2)

​

​

(81.3)

​

​

(139.3)

Unrealized gains/(losses)

​

 

(7.3)

​

 

17.7

​

 

—

​

 

—

​

 

10.4

Tax benefit/(expense)

​

 

1.4

​

​

(0.1)

​

 

—

​

 

—

​

 

1.3

Amounts reclassified from AOCL into earnings, net of tax

​

 

(2.0)

​

 

0.6

​

 

—

​

 

2.3

​

 

0.9

As of September 30, 2021

​

$

39.6

​

$

13.9

​

$

(101.2)

​

$

(79.0)

​

$

(126.7)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment

​

Hedging

​

Foreign Currency

​

Defined Benefit

​

​

​

​

Securities

​

Activities

​

Translation

​

Pension Plan

​

Total

As of December 31, 2019

​

$

24.7

​

$

(3.6)

​

$

(101.2)

​

$

(128.9)

​

$

(209.0)

Unrealized gains

​

 

7.2

​

 

27.3

​

 

—

​

 

—

​

 

34.5

Tax expense

​

 

(1.1)

​

 

(0.3)

​

 

—

​

 

—

​

 

(1.4)

Amounts reclassified from AOCL into earnings, net of tax

​

 

(0.4)

​

 

(6.3)

​

 

—

​

 

2.3

​

 

(4.4)

As of March 31, 2020

​

​

30.4

​

​

17.1

​

​

(101.2)

​

​

(126.6)

​

​

(180.3)

Unrealized gains/(losses)

​

​

24.6

​

​

(15.1)

​

​

—

​

​

—

​

​

9.5

Tax benefit/(expense)

​

​

(4.8)

​

​

0.1

​

​

—

​

​

—

​

​

(4.7)

Amounts reclassified from AOCL into earnings, net of tax

​

​

(0.3)

​

​

(4.1)

​

​

—

​

​

2.1

​

​

(2.3)

As of June 30, 2020

​

​

49.9

​

​

(2.0)

​

​

(101.2)

​

​

(124.5)

​

​

(177.8)

Unrealized gains/(losses)

​

 

8.5

​

 

(22.1)

​

 

—

​

 

—

​

 

(13.6)

Tax benefit/(expense)

​

 

(1.4)

​

 

0.2

​

 

—

​

 

—

​

 

(1.2)

Amounts reclassified from AOCL into earnings, net of tax

​

 

—

​

 

3.7

​

 

—

​

 

2.3

​

 

6.0

As of September 30, 2020

​

$

57.0

​

$

(20.2)

​

$

(101.2)

​

$

(122.2)

​

$

(186.6)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​
v3.21.2
Derivatives (Tables)
 9 Months Ended
Sep. 30, 2021
Derivatives  
Schedule of notional amounts of foreign currency forward contracts

The aggregate equivalent United States dollar notional amounts of foreign currency forward contracts as of September 30, 2021 and December 31, 2020 were as follows (in millions):

​

​

​

​

​

​

September 30, 2021

Contracts designated as hedges:

    

​

​

Euro

​

$

403.2

Canadian dollar

​

​

141.7

British pound

​

 

69.6

Australian dollar

​

​

64.3

Swiss franc

​

​

44.5

Japanese yen

​

​

37.0

Swedish krona

​

​

28.6

Other (a)

​

 

1.8

Contracts not designated as hedges:

​

 

​

Euro

​

$

592.0

British pound

​

 

152.6

Australian dollar

​

​

97.7

Mexican peso

​

 

92.4

Canadian dollar

​

 

78.5

Indian rupee

​

 

64.8

Japanese yen

​

​

45.7

Russian ruble

​

​

42.5

Chinese yuan

​

​

32.5

Swiss franc

​

​

28.3

Other (a)

​

​

198.0

​

​

​

​

​

​

​

December 31, 2020

Contracts designated as hedges:

    

​

​

Euro

​

$

428.9

Canadian dollar

​

 

131.9

British pound

​

 

71.9

Australian dollar

​

 

58.3

Swiss franc

​

 

41.1

Japanese yen

​

​

36.6

Other (a)

​

 

29.5

Contracts not designated as hedges:

​

 

  

Euro

​

$

533.0

British pound

​

 

153.9

Mexican peso

​

​

105.0

Indian rupee

​

 

81.0

Canadian dollar

​

 

71.5

Australian dollar

​

 

68.1

Japanese yen

​

 

39.6

Philippine peso

​

​

35.2

Russian ruble

​

​

31.2

Indonesian rupiah

​

​

29.1

Swedish krona

​

 

26.0

Other (a)

​

 

151.5

(a)Comprised of exposures to various currencies; none of these individual currency exposures is greater than $25 million.

​
Schedule of fair value of derivatives

The following table summarizes the fair value of derivatives reported in the Company’s Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Derivative Assets

​

Derivative Liabilities

​

​

​

Fair Value

​

​

​

Fair Value

​

Balance Sheet

    

September 30, 

    

December 31, 

    

Balance Sheet

    

September 30, 

    

December 31, 

​

Location

​

2021

​

2020

​

Location

​

2021

​

2020

Derivatives designated as hedges:

  

 

​

  

 

​

  

 

  

 

​

  

 

​

  

Foreign currency cash flow hedges

Other assets

​

$

28.1

​

$

9.1

 

Other liabilities

​

$

4.1

​

$

24.9

Interest rate cash flow hedges

Other assets

​

​

—

​

​

—

​

Other liabilities

​

​

—

​

​

0.1

Total derivatives designated as hedges

  

​

$

28.1

​

$

9.1

 

  

​

$

4.1

​

$

25.0

Derivatives not designated as hedges:

  

​

 

  

​

 

  

 

  

​

 

  

​

 

  

Business Solutions operations - foreign currency (a)

Other assets

​

$

244.8

​

$

441.4

 

Other liabilities

​

$

203.5

​

$

402.5

Foreign currency

Other assets

​

 

13.4

​

 

2.8

 

Other liabilities

​

 

4.1

​

 

2.8

Total derivatives not designated as hedges

  

​

$

258.2

​

$

444.2

 

  

​

$

207.6

​

$

405.3

Total derivatives

  

​

$

286.3

​

$

453.3

 

  

​

$

211.7

​

$

430.3

(a)In many circumstances, the Company allows its Business Solutions customers to settle part or all of their derivative contracts prior to maturity. However, the offsetting positions originally entered into with financial institution counterparties do not allow for similar settlement. To mitigate this, additional foreign currency contracts are entered into with financial institution counterparties to offset the original economic hedge contracts. This frequently results in changes in the Company’s derivative assets and liabilities that may not directly align with the performance in the underlying derivatives business.
Schedule of gross and net fair value of derivative assets

The following tables summarize the gross and net fair value of derivative assets and liabilities as of September 30, 2021 and December 31, 2020 (in millions):

Offsetting of Derivative Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Gross

    

Net Amounts

    

Derivatives

    

​

​

​

​

Gross

​

Amounts Offset

​

Presented

​

Not Offset

​

​

​

​

​

Amounts of

​

 in the Condensed

​

 in the Condensed

​

 in the Condensed

​

​

​

​

​

Recognized

​

Consolidated

​

Consolidated

​

Consolidated

​

​

​

September 30, 2021

​

Assets

​

Balance Sheets

​

Balance Sheets

​

Balance Sheets

​

Net Amounts

Derivatives subject to a master netting arrangement or similar agreement

​

$

197.7

​

$

—

​

$

197.7

​

$

(105.6)

​

$

92.1

Derivatives that are not or may not be subject to master netting arrangement or similar agreement

​

 

88.6

​

 

  

​

 

  

​

 

  

​

 

  

Total

​

$

286.3

​

 

  

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Derivatives subject to a master netting arrangement or similar agreement

​

$

165.1

​

$

—

​

$

165.1

​

$

(155.1)

​

$

10.0

Derivatives that are not or may not be subject to master netting arrangement or similar agreement

​

 

288.2

​

 

  

​

 

  

​

 

  

​

 

  

Total

​

$

453.3

​

 

  

​

 

  

​

 

  

​

 

  
Schedule of gross and net fair value of derivative liabilities

Offsetting of Derivative Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Gross

    

Net Amounts

    

Derivatives

    

​

​

​

​

Gross

​

Amounts Offset

​

Presented

​

Not Offset

​

​

​

​

​

Amounts of 

​

 in the Condensed

​

 in the Condensed

​

 in the Condensed

​

​

​

​

​

Recognized

​

Consolidated

​

Consolidated

​

Consolidated

​

​

​

September 30, 2021

​

Liabilities

​

Balance Sheets

​

Balance Sheets

​

Balance Sheets

​

Net Amounts

Derivatives subject to a master netting arrangement or similar agreement

​

$

120.1

​

$

—

​

$

120.1

​

$

(105.6)

​

$

14.5

Derivatives that are not or may not be subject to master netting arrangement or similar agreement

​

 

91.6

​

 

  

​

 

  

​

 

  

​

 

  

Total

​

$

211.7

​

 

  

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Derivatives subject to a master netting arrangement or similar agreement

​

$

356.2

​

$

—

​

$

356.2

​

$

(155.1)

​

$

201.1

Derivatives that are not or may not be subject to master netting arrangement or similar agreement

​

 

74.1

​

 

  

​

 

  

​

 

  

​

 

  

Total

​

$

430.3

​

 

  

​

 

  

​

 

  

​

 

  
Schedule of amount and location of gains/(losses) from hedging activities

The following table presents the pre-tax amount of unrealized gains/(losses) recognized in other comprehensive income from cash flow hedges for the three and nine months ended September 30, 2021 and 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 

​

Nine Months Ended September 30, 

​

    

2021

    

2020

    

2021

    

2020

Foreign currency derivatives (a)

​

$

17.7

​

$

(22.1)

​

$

32.4

​

$

(9.9)

Interest rate derivatives

​

​

—

​

​

—

​

​

3.3

​

​

—

(a)Gains/(losses) of $(0.2) million and $(1.6) million for the three months ended September 30, 2021 and 2020, respectively, and $(1.2) million and $1.2 million for the nine months ended September 30, 2021 and 2020, respectively, represent amounts excluded from the assessment of effectiveness and recognized in other comprehensive income, for which an amortization approach is applied.

The following table presents the location and amounts of pre-tax net gains/(losses) from cash flow hedging relationships recognized in the Condensed Consolidated Statements of Income for the three months ended September 30, 2021 and 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 

​

​

2021

​

​

2020

​

​

​

​

​

Interest

​

​

​

​

Interest

​

​

Revenues

​

Expense

​

Revenues

​

Expense

Total amounts presented in the Consolidated Statements of Income in which the effects of cash flow hedges are recorded

​

$

1,286.3

​

$

(25.7)

​

$

1,258.5

​

$

(28.2)

Gain/(loss) on cash flow hedges:

​

 

  

​

 

  

​

 

  

​

 

  

Foreign currency derivatives:

​

 

  

​

 

  

​

 

  

​

 

  

Gains/(losses) reclassified from AOCL into earnings

​

 

(0.6)

​

 

—

​

 

(3.6)

​

 

—

Amount excluded from effectiveness testing recognized in earnings based on an amortization approach

​

 

1.4

​

 

—

​

 

2.4

​

 

—

Interest rate derivatives:

​

​

​

​

​

​

​

​

​

​

​

​

Gains/(losses) reclassified from AOCL into earnings

​

​

—

​

 

(0.1)

​

 

—

​

​

(0.1)

​

​

The following table presents the location and amounts of pre-tax net gains/(losses) from cash flow hedging relationships recognized in the Condensed Consolidated Statements of Income for the nine months ended September 30, 2021 and 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 

​

​

2021

​

2020

​

​

​

​

​

​

​

​

Other

​

​

​

​

​

​

​

​

​

​

​

Interest

​

Income/
(Expense), 

​

​

​

​

Interest

​

​

Revenues

​

Expense

​

net

​

Revenues

​

Expense

Total amounts presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded

​

$

3,786.0

​

$

(79.7)

​

$

26.8

​

$

3,563.2

​

$

(90.4)

Gain/(loss) on cash flow hedges:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Foreign currency derivatives:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Gains/(losses) reclassified from AOCL into earnings

​

 

(10.0)

​

 

—

​

 

—

​

 

7.2

​

 

—

Amount excluded from effectiveness testing recognized in earnings based on an amortization approach

​

 

4.9

​

 

—

​

 

—

​

 

8.7

​

 

—

Interest rate derivatives:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gains/(losses) reclassified from AOCL into earnings

​

​

—

​

​

(0.5)

​

 

0.7

​

 

—

​

​

(0.4)

​

Undesignated Hedges

​

The following table presents the location and amount of pre-tax net gains/(losses) from undesignated hedges in the Condensed Consolidated Statements of Income on derivatives for the three and nine months ended September 30, 2021 and 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

​

​

September 30, 

​

September 30, 

Derivatives (a)

    

Location

    

2021

    

2020

    

2021

    

2020

Foreign currency derivatives (b)

 

Selling, general, and administrative

​

$

23.4

​

$

(1.9)

​

$

41.3

​

$

24.2

(a)

The Company uses foreign currency forward and option contracts as part of its Business Solutions payments operations. These derivative contracts are excluded from this table as they are managed as part of a broader currency portfolio that includes non-derivative currency exposures. The gains and losses on these derivatives are included as part of the broader disclosure of portfolio revenue for this business discussed above.

(b)The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations as well as certain foreign currency denominated positions. Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivative activity as displayed above and included in Selling, general, and administrative in the Condensed Consolidated Statements of Income, were $(25.7) million and $1.4 million for the three months ended September 30, 2021 and 2020, respectively, and $(50.7) million and $(46.6) million for the nine months ended September 30, 2021 and 2020, respectively.
v3.21.2
Borrowings (Tables)
 9 Months Ended
Sep. 30, 2021
Borrowings  
Schedule of outstanding borrowings

The Company’s outstanding borrowings consisted of the following (in millions):

​

​

​

​

​

​

​

​

    

September 30, 2021

    

December 31, 2020

Commercial paper (a)

​

$

120.0

​

$

80.0

Notes:

​

 

  

​

 

  

3.600% notes due 2022 (b)

​

 

—

​

 

500.0

4.250% notes due 2023 (c)

​

 

300.0

​

 

300.0

2.850% notes due 2025 (c)

​

​

500.0

​

​

500.0

1.350% notes due 2026 (effective rate of 1.5%) (b)

​

​

600.0

​

​

—

2.750% notes due 2031 (effective rate of 2.9%) (b)

​

​

300.0

​

​

—

6.200% notes due 2036 (c)

​

 

500.0

​

 

500.0

6.200% notes due 2040 (c)

​

 

250.0

​

 

250.0

Term loan facility borrowing (effective rate of 1.4%) (b)

​

 

300.0

​

 

950.0

Total borrowings at par value

​

 

2,870.0

​

 

3,080.0

Debt issuance costs and unamortized discount, net

​

 

(17.4)

​

 

(12.8)

Total borrowings at carrying value (d)

​

$

2,852.6

​

$

3,067.2

(a)Pursuant to the Company’s commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $1.5 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Company’s revolving credit facility. The commercial paper notes may have maturities of up to 397 days from date of issuance. The Company’s commercial paper borrowings as of September 30, 2021 had a weighted-average annual interest rate of approximately 0.2% and a weighted-average term of approximately 1 day.
(b)See the Issuance of 2026 and 2031 Unsecured Notes section below for details of borrowings and repayments in 2021.
(c)The difference between the stated interest rate and the effective interest rate is not significant.
(d)As of September 30, 2021, the Company’s weighted-average effective rate on total borrowings was approximately 3.4%.
Schedule of maturities of borrowings

The following summarizes the Company’s maturities of notes and term loan at par value as of September 30, 2021 (in millions):

​

​

​

​

Due within 1 year

    

$

—

Due after 1 year through 2 years

​

 

300.0

Due after 2 years through 3 years

​

 

300.0

Due after 3 years through 4 years

​

 

500.0

Due after 4 years through 5 years

​

 

600.0

Due after 5 years

​

 

1,050.0

Total

​

$

2,750.0
v3.21.2
Segments (Tables)
 9 Months Ended
Sep. 30, 2021
Segments  
Schedule of segment results

The following table presents the Company’s segment results for the three and nine months ended September 30, 2021 and 2020 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

​

September 30, 

​

September 30, 

​

​

   

2021

   

2020

   

2021

   

2020

​

Revenues:

 

​

  

 

​

  

 

​

  

 

​

  

​

Consumer-to-Consumer

​

$

1,104.5

​

$

1,106.5

​

$

3,282.5

​

$

3,098.5

​

Business Solutions (a)

​

 

116.8

​

 

89.1

​

 

312.6

​

 

266.9

​

Other

​

 

65.0

​

 

62.9

​

 

190.9

​

 

197.8

​

Total consolidated revenues

​

$

1,286.3

​

$

1,258.5

​

$

3,786.0

​

$

3,563.2

​

Operating income:

​

 

  

​

 

  

​

 

  

​

 

  

​

Consumer-to-Consumer

​

$

268.2

​

$

272.4

​

$

708.1

​

$

695.1

​

Business Solutions (a)

​

 

38.4

​

 

9.4

​

 

61.9

​

 

24.6

​

Other

​

 

12.0

​

 

12.5

​

 

36.3

​

 

45.3

​

Total segment operating income

​

 

318.6

​

 

294.3

​

 

806.3

​

 

765.0

​

Restructuring-related expenses (Note 5)

​

 

—

​

 

(9.1)

​

 

—

​

 

(24.8)

​

Total consolidated operating income

​

$

318.6

​

$

285.2

​

$

806.3

​

$

740.2

​

​

(a)On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business, as described in Note 4.
v3.21.2
Business and Basis of Presentation - Narrative (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2021
country
Dec. 31, 2020
USD ($)
Business and Basis of Presentation    
Number of countries and territories where services are primarily available through a network of agent locations (more than) | country 200  
Net assets subject to limitations | $   $ 680
ASU 2016-13    
Business and Basis of Presentation    
Change in accounting principle due to adopted Accounting Standards Update true  
Transition option elected wu:AccountingStandardsUpdate201613CumulativeEffectPeriodOfAdoptionMember  
v3.21.2
Revenue - Narrative (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
USD ($)
item
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
item
Sep. 30, 2020
USD ($)
Revenue        
Revenues from contracts with customers | $ $ 1,230.3 $ 1,214.3 $ 3,635.7 $ 3,392.5
Consumer money transfers        
Revenue        
Revenues from contracts with customers | $ $ 1,084.2 1,090.2 $ 3,231.7 3,024.6
Number of performance obligations | item 1   1  
Number of integrated services involved in a transaction | item 1   1  
Consumer bill payments        
Revenue        
Revenues from contracts with customers | $ $ 40.1 $ 38.0 $ 116.2 $ 119.5
Number of integrated services involved in a transaction | item 1   1  
v3.21.2
Revenue - Disaggregation of revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Revenue        
Revenues from contracts with customers $ 1,230.3 $ 1,214.3 $ 3,635.7 $ 3,392.5
Other revenues 56.0 44.2 150.3 170.7
Revenues 1,286.3 1,258.5 3,786.0 3,563.2
Consumer money transfers        
Revenue        
Revenues from contracts with customers 1,084.2 1,090.2 3,231.7 3,024.6
Other revenues 20.3 16.3 50.8 73.9
Revenues 1,104.5 1,106.5 3,282.5 3,098.5
Foreign exchange and payment services        
Revenue        
Revenues from contracts with customers 89.5 69.4 238.0 198.0
Other revenues 27.3 19.7 74.6 68.9
Revenues 116.8 89.1 312.6 266.9
Consumer bill payments        
Revenue        
Revenues from contracts with customers 40.1 38.0 116.2 119.5
Other revenues 3.6 2.9 10.0 10.8
Revenues 43.7 40.9 126.2 130.3
Other services        
Revenue        
Revenues from contracts with customers 16.5 16.7 49.8 50.4
Other revenues 4.8 5.3 14.9 17.1
Revenues 21.3 22.0 64.7 67.5
North America        
Revenue        
Revenues from contracts with customers 470.0 469.7 1,384.4 1,361.8
North America | Consumer money transfers        
Revenue        
Revenues from contracts with customers 406.7 414.8 1,211.0 1,199.2
North America | Foreign exchange and payment services        
Revenue        
Revenues from contracts with customers 30.9 23.3 75.6 62.5
North America | Consumer bill payments        
Revenue        
Revenues from contracts with customers 18.0 17.4 54.6 57.2
North America | Other services        
Revenue        
Revenues from contracts with customers 14.4 14.2 43.2 42.9
Europe and Russia/CIS        
Revenue        
Revenues from contracts with customers 386.1 390.5 1,159.7 1,052.5
Europe and Russia/CIS | Consumer money transfers        
Revenue        
Revenues from contracts with customers 345.0 358.6 1,047.8 960.7
Europe and Russia/CIS | Foreign exchange and payment services        
Revenue        
Revenues from contracts with customers 39.3 30.6 107.3 88.3
Europe and Russia/CIS | Consumer bill payments        
Revenue        
Revenues from contracts with customers 1.4 0.8 3.6 2.1
Europe and Russia/CIS | Other services        
Revenue        
Revenues from contracts with customers 0.4 0.5 1.0 1.4
Middle East, Africa, and South Asia        
Revenue        
Revenues from contracts with customers 166.5 169.8 494.1 465.3
Middle East, Africa, and South Asia | Consumer money transfers        
Revenue        
Revenues from contracts with customers 165.8 169.4 492.2 464.0
Middle East, Africa, and South Asia | Foreign exchange and payment services        
Revenue        
Revenues from contracts with customers 0.5 0.3 1.5 1.1
Middle East, Africa, and South Asia | Consumer bill payments        
Revenue        
Revenues from contracts with customers 0.2 0.1 0.4 0.2
Latin America and the Caribbean        
Revenue        
Revenues from contracts with customers 120.3 100.1 341.6 283.7
Latin America and the Caribbean | Consumer money transfers        
Revenue        
Revenues from contracts with customers 97.5 78.3 276.7 217.0
Latin America and the Caribbean | Foreign exchange and payment services        
Revenue        
Revenues from contracts with customers 0.9 0.5 2.5 1.7
Latin America and the Caribbean | Consumer bill payments        
Revenue        
Revenues from contracts with customers 20.2 19.3 56.8 58.9
Latin America and the Caribbean | Other services        
Revenue        
Revenues from contracts with customers 1.7 2.0 5.6 6.1
East Asia and Oceania        
Revenue        
Revenues from contracts with customers 87.4 84.2 255.9 229.2
East Asia and Oceania | Consumer money transfers        
Revenue        
Revenues from contracts with customers 69.2 69.1 204.0 183.7
East Asia and Oceania | Foreign exchange and payment services        
Revenue        
Revenues from contracts with customers 17.9 14.7 51.1 44.4
East Asia and Oceania | Consumer bill payments        
Revenue        
Revenues from contracts with customers $ 0.3 $ 0.4 $ 0.8 $ 1.1
v3.21.2
Earnings Per Share (Details) - shares
shares in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Earnings Per Share        
Outstanding restricted stock units and options to purchase shares of stock excluded from the diluted earnings per share calculation 2.2 1.3 1.7 1.7
Calculation of diluted weighted-average shares outstanding        
Basic weighted-average shares outstanding 406.3 411.6 409.1 412.5
Common stock equivalents 1.7 3.0 2.2 3.0
Diluted weighted-average shares outstanding 408.0 414.6 411.3 415.5
v3.21.2
Assets Held For Sale and Investment Activities - Assets Held for Sale (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Aug. 04, 2021
USD ($)
item
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Assets held for sale and associated liabilities          
Total assets   $ 1,492.2   $ 1,492.2  
Total liabilities   855.4   855.4  
Business Solutions | Sale of Business Solutions Operations          
Assets Held For Sale          
Consideration from sale of business $ 910.0        
Number of closings | item 2        
Termination fee $ 63.7        
Revenues   116.8 $ 89.1 312.6 $ 266.9
Operating expenses   77.1 $ 77.0 244.5 $ 233.3
Operating costs directly associated with divestiture   5.2   10.7  
Assets held for sale and associated liabilities          
Cash and cash equivalents   43.0   43.0  
Settlement assets   570.6   570.6  
Property and equipment, net of accumulated depreciation of $39.9   5.6   5.6  
Accumulated Depreciation on Property and Equipment   39.9   39.9  
Goodwill   532.0   532.0  
Other intangible assets, net of accumulated amortization of $383.8   49.9   49.9  
Accumulated Amortization on Other Intangible Assets   383.8   383.8  
Other assets   291.1   291.1  
Total assets   1,492.2   1,492.2  
Accounts payable and accrued liabilities   59.7   59.7  
Settlement obligations   570.6   570.6  
Other liabilities   225.1   225.1  
Total liabilities   $ 855.4   855.4  
Unrealized currency translation gains       $ 17.8  
v3.21.2
Assets Held For Sale and Investment Activities - Investment Activities (Details) - USD ($)
$ in Millions
 1 Months Ended 9 Months Ended
Apr. 12, 2021
Oct. 31, 2021
Sep. 30, 2021
Investment Activities      
Proceeds from shares sold     $ 50.9
Gain on sale of minority investment     47.9
Saudi Digital Payments Company | Subsequent Event      
Investment Activities      
Investment in Saudi Digital Payments Company   $ 200.0  
Investment (as a percent)   15.00%  
Private Company      
Investment Activities      
Proceeds from shares sold $ 50.9    
Gain on sale of minority investment     $ 47.9
v3.21.2
Restructuring-Related Expenses (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2020
Dec. 31, 2020
Restructuring-related expenses      
Expenses $ 9.1 $ 24.8  
Restructuring-related accrual     $ 26.2
Cost of services      
Restructuring-related expenses      
Expenses 0.8 2.5  
Selling, general and administrative      
Restructuring-related expenses      
Expenses $ 8.3 $ 22.3  
v3.21.2
Fair Value Measurements - Fair Value of Assets and Liabilities (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Assets:    
Settlement assets $ 3,007.1 $ 3,821.4
Derivatives 286.3 453.3
Liabilities:    
Derivatives 211.7 430.3
Recurring    
Assets:    
Derivatives 286.3 453.3
Total assets 1,731.8 2,457.0
Liabilities:    
Derivatives 211.7 430.3
Total liabilities 211.7 430.3
Recurring | Money market funds    
Assets:    
Settlement assets 7.6 13.1
Recurring | State and municipal debt securities    
Assets:    
Settlement assets 1,232.6 1,303.9
Recurring | State and municipal variable rate demand notes    
Assets:    
Settlement assets 100.9 562.1
Recurring | United States government agency mortgage-backed securities    
Assets:    
Settlement assets 40.7 51.8
Recurring | Corporate and other debt securities    
Assets:    
Settlement assets 63.7 72.8
Recurring | Level 1    
Assets:    
Total assets 7.6 13.1
Recurring | Level 1 | Money market funds    
Assets:    
Settlement assets 7.6 13.1
Recurring | Level 2    
Assets:    
Derivatives 286.3 453.3
Total assets 1,724.2 2,443.9
Liabilities:    
Derivatives 211.7 430.3
Total liabilities 211.7 430.3
Recurring | Level 2 | State and municipal debt securities    
Assets:    
Settlement assets 1,232.6 1,303.9
Recurring | Level 2 | State and municipal variable rate demand notes    
Assets:    
Settlement assets 100.9 562.1
Recurring | Level 2 | United States government agency mortgage-backed securities    
Assets:    
Settlement assets 40.7 51.8
Recurring | Level 2 | Corporate and other debt securities    
Assets:    
Settlement assets $ 63.7 $ 72.8
v3.21.2
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Fair Value Adjustments          
Amount of assets transferred from Level 1 to Level 2 within Fair Value Measurements $ 0.0 $ 0.0 $ 0.0 $ 0.0  
Amount of assets transferred from Level 2 to Level 1 within Fair Value Measurements 0.0 0.0 0.0 0.0  
Amount of liabilities transferred from Level 1 to Level 2 within Fair Value Measurements 0.0 0.0 0.0 0.0  
Amount of liabilities transferred from Level 2 to Level 1 within Fair Value Measurements 0.0 0.0 0.0 0.0  
Carrying Value          
Other Fair Value Measurements          
Borrowings 2,852.6   2,852.6   $ 3,067.2
Level 2 | Fair Value          
Other Fair Value Measurements          
Borrowings 3,108.7   3,108.7   $ 3,348.0
Non-recurring          
Fair Value Adjustments          
Non-recurring asset fair value adjustments 0.0 0.0 0.0 0.0  
Non-recurring liability fair value adjustments $ 0.0 $ 0.0 $ 0.0 $ 0.0  
v3.21.2
Commitments and Contingencies - Narrative (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Commitments and Contingencies  
Letters of credit outstanding and bank guarantees $ 470
Pending Litigation  
Commitments and Contingencies  
Range of possible loss, portion not accrued $ 30
v3.21.2
Related Party Transactions - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Equity Method Investee        
Related Party Transactions        
Commission expense $ 14.0 $ 14.5 $ 41.2 $ 40.0
v3.21.2
Settlement Assets and Obligations - Settlement Assets and Obligations (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Settlement assets:    
Cash and cash equivalents $ 1,082.9 $ 695.7
Receivables from agents, Business Solutions customers, and others 1,080.4 1,188.3
Less: Allowance for credit losses (23.5) (53.2)
Receivables from agents, Business Solutions customers, and others, net 1,056.9 1,135.1
Investment securities 1,437.9 1,990.6
Total settlement assets 3,577.7 3,821.4
Settlement obligations:    
Money transfer, money order, and payment service payables 2,809.5 2,902.9
Payables to agents 768.2 918.5
Total settlement obligations 3,577.7 $ 3,821.4
Business Solutions | Sale of Business Solutions Operations    
Settlement assets:    
Settlement assets held for sale 570.6  
Settlement obligations:    
Settlement obligations associated with assets held for sale. $ 570.6  
v3.21.2
Settlement Assets and Obligations - Receivables from selling agents and Business Solutions customers (Details) - USD ($)
$ in Millions
 3 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2020
Receivables              
Receivables from agents, Business Solutions customers, and others, net $ 1,056.9           $ 1,135.1
Summary of activity in allowance for credit losses              
Allowance for credit losses, Beginning Balance     $ 53.2        
Allowance for credit losses, Ending Balance 23.5            
Losses from chargebacks or fraud that are not credit-related 13.8 $ 14.5 13.7 $ 9.1 $ 11.5 $ 9.2  
Advances to agents 148.5           135.9
Receivables from agents and others              
Receivables              
Receivables from agents, Business Solutions customers, and others, net 967.2           1,081.2
Summary of activity in allowance for credit losses              
Allowance for credit losses, Beginning Balance 18.5 49.7 49.3 35.9 25.9 20.4  
Current period provision for expected credit losses 2.3 3.2 2.3 8.4 11.8 8.1  
Write-offs charged against the allowance (4.0) (34.4) (3.3) (3.3) (3.0) (1.7)  
Recoveries of amounts previously written off 1.4 0.6 1.9 0.6 0.9 0.3  
Impacts of foreign currency exchange rates and other (0.7) (0.6) (0.5) (0.7) 0.3 (1.2)  
Allowance for credit losses, Ending Balance 17.5 18.5 49.7 40.9 35.9 25.9  
Receivables from Business Solutions customers              
Receivables              
Receivables from agents, Business Solutions customers, and others, net 89.7           $ 53.9
Summary of activity in allowance for credit losses              
Allowance for credit losses, Beginning Balance 6.3 4.9 3.9 4.8 3.7 4.5  
Current period provision for expected credit losses 0.5 1.9 1.5 0.7 1.2 0.2  
Write-offs charged against the allowance (0.8) (0.4) (0.4) (0.8) (0.7) (1.0)  
Impacts of foreign currency exchange rates and other   (0.1) (0.1)   0.6    
Allowance for credit losses, Ending Balance $ 6.0 $ 6.3 $ 4.9 $ 4.7 $ 4.8 $ 3.7  
v3.21.2
Settlement Assets and Obligations - Components of Investment Securities (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Investment Securities    
Variable rate demand notes, maximum maturity year 2050  
Cash and cash equivalents    
Amortized Cost $ 1,003.4 $ 1,428.2
Available-for-sale securities:    
Amortized Cost 1,388.7 1,918.1
Fair Value 1,437.9 1,990.6
Gross Unrealized Gains 50.1 72.5
Gross Unrealized Losses (0.9)  
Net Unrealized Gains/ (Losses) 49.2 72.5
Amortized Cost 1,396.3 1,931.2
Fair Value 1,445.5 2,003.7
Gross Unrealized Gains 50.1 72.5
Gross Unrealized Losses (0.9)  
Net Unrealized Gains/ (Losses) 49.2 72.5
Money market funds | Settlement Assets    
Cash and cash equivalents    
Amortized Cost 7.6 13.1
Fair Value 7.6 13.1
State and municipal debt securities    
Available-for-sale securities:    
Amortized Cost 1,185.0 1,234.1
Fair Value 1,232.6 1,303.9
Gross Unrealized Gains 48.3 69.8
Gross Unrealized Losses (0.7)  
Net Unrealized Gains/ (Losses) 47.6 69.8
State and municipal variable rate demand notes    
Available-for-sale securities:    
Amortized Cost 100.9 562.1
Fair Value 100.9 562.1
Corporate and other debt securities    
Available-for-sale securities:    
Amortized Cost 63.3 71.6
Fair Value 63.7 72.8
Gross Unrealized Gains 0.6 1.2
Gross Unrealized Losses (0.2)  
Net Unrealized Gains/ (Losses) 0.4 1.2
United States government agency mortgage-backed securities    
Available-for-sale securities:    
Amortized Cost 39.5 50.3
Fair Value 40.7 51.8
Gross Unrealized Gains 1.2 1.5
Net Unrealized Gains/ (Losses) $ 1.2 $ 1.5
v3.21.2
Settlement Assets and Obligations - Contractual Maturities of Debt Securities (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Fair Value    
Due within 1 year $ 180.2  
Due after 1 year through 5 years 604.6  
Due after 5 years through 10 years 465.8  
Due after 10 years 187.3  
Total 1,437.9 $ 1,990.6
State and municipal variable rate demand notes    
Fair Value    
Due within 1 year 7.0  
Due after 10 years 93.9  
Total $ 100.9 $ 562.1
v3.21.2
Stockholders' Equity - Amounts Reclassified from AOCL (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Accumulated other comprehensive income (loss)                
Reclassification from AOCL, net of tax $ (0.9)     $ (6.0)     $ (15.0) $ 0.7
Investment Securities                
Accumulated other comprehensive income (loss)                
Reclassification from AOCL, Provision for income taxes (0.5)           (0.5) (0.2)
Reclassification from AOCL, net of tax 2.0 $ (0.1) $ (0.1)   $ 0.3 $ 0.4 1.8 0.7
Investment Securities | Revenues                
Accumulated other comprehensive income (loss)                
Reclassification from AOCL, before tax 2.5           2.3 0.9
Hedging Activities                
Accumulated other comprehensive income (loss)                
Reclassification from AOCL, Provision for income taxes 0.1           0.1 (0.1)
Reclassification from AOCL, net of tax (0.6) (3.5) (5.6) (3.7) 4.1 6.3 (9.7) 6.7
Hedging Activities | Foreign currency contracts | Revenues                
Accumulated other comprehensive income (loss)                
Reclassification from AOCL, before tax (0.6)     (3.6)     (10.0) 7.2
Hedging Activities | Interest rate contracts | Interest Expense                
Accumulated other comprehensive income (loss)                
Reclassification from AOCL, before tax (0.1)     (0.1)     (0.5) (0.4)
Hedging Activities | Interest rate contracts | Other income/(expense), net                
Accumulated other comprehensive income (loss)                
Reclassification from AOCL, before tax             0.7  
Defined benefit plans                
Accumulated other comprehensive income (loss)                
Reclassification from AOCL, Provision for income taxes 0.7     0.6     2.0 2.3
Reclassification from AOCL, net of tax (2.3) $ (2.3) $ (2.5) (2.3) $ (2.1) $ (2.3) (7.1) (6.7)
Defined benefit plans | Other income/(expense), net                
Accumulated other comprehensive income (loss)                
Reclassification from AOCL, before tax $ (3.0)     $ (2.9)     $ (9.1) $ (9.0)
v3.21.2
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]                
Beginning balance $ 286.3 $ 218.8 $ 186.6 $ (73.4) $ (149.7) $ (39.5) $ 186.6 $ (39.5)
Amounts reclassified from AOCL into earnings, net of tax 0.9     6.0     15.0 (0.7)
Ending balance 368.6 286.3 218.8 67.1 (73.4) (149.7) 368.6 67.1
Investment Securities                
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]                
Beginning balance 47.5 45.3 58.3 49.9 30.4 24.7 58.3 24.7
Unrealized gains/(losses) (7.3) 2.3 (16.0) 8.5 24.6 7.2    
Tax benefit/(expense) 1.4 (0.2) 2.9 (1.4) (4.8) (1.1)    
Amounts reclassified from AOCL into earnings, net of tax (2.0) 0.1 0.1   (0.3) (0.4) (1.8) (0.7)
Ending balance 39.6 47.5 45.3 57.0 49.9 30.4 39.6 57.0
Hedging Activities                
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]                
Beginning balance (4.3) (1.6) (30.5) (2.0) 17.1 (3.6) (30.5) (3.6)
Unrealized gains/(losses) 17.7 (6.2) 24.2 (22.1) (15.1) 27.3    
Tax benefit/(expense) (0.1)   (0.9) 0.2 0.1 (0.3)    
Amounts reclassified from AOCL into earnings, net of tax 0.6 3.5 5.6 3.7 (4.1) (6.3) 9.7 (6.7)
Ending balance 13.9 (4.3) (1.6) (20.2) (2.0) 17.1 13.9 (20.2)
Foreign Currency Translation                
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]                
Beginning balance (101.2) (101.2) (101.2) (101.2) (101.2) (101.2) (101.2) (101.2)
Ending balance (101.2) (101.2) (101.2) (101.2) (101.2) (101.2) (101.2) (101.2)
Defined benefit plans                
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]                
Beginning balance (81.3) (83.6) (86.1) (124.5) (126.6) (128.9) (86.1) (128.9)
Amounts reclassified from AOCL into earnings, net of tax 2.3 2.3 2.5 2.3 2.1 2.3 7.1 6.7
Ending balance (79.0) (81.3) (83.6) (122.2) (124.5) (126.6) (79.0) (122.2)
Total AOCL                
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]                
Beginning balance (139.3) (141.1) (159.5) (177.8) (180.3) (209.0) (159.5) (209.0)
Unrealized gains/(losses) 10.4 (3.9) 8.2 (13.6) 9.5 34.5    
Tax benefit/(expense) 1.3 (0.2) 2.0 (1.2) (4.7) (1.4)    
Amounts reclassified from AOCL into earnings, net of tax 0.9 5.9 8.2 6.0 (2.3) (4.4)    
Ending balance $ (126.7) $ (139.3) $ (141.1) $ (186.6) $ (177.8) $ (180.3) $ (126.7) $ (186.6)
v3.21.2
Stockholders' Equity - Cash Dividends Paid (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Cash Dividends Paid                
Common stock dividends (USD per share) $ 0.235 $ 0.235 $ 0.235 $ 0.225 $ 0.225 $ 0.225    
Cash dividends paid $ 95.1 $ 95.9 $ 96.6 $ 92.5 $ 92.5 $ 92.4 $ 287.6 $ 277.4
v3.21.2
Stockholders' Equity - Share Repurchases (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Share Repurchases    
Stock repurchased and retired, publicly announced authorizations (shares) 9.6 8.5
Stock repurchased and retired, publicly announced authorizations, value excluding commissions $ 225.0 $ 217.4
Stock repurchased and retired, publicly announced authorizations, average cost per share excluding commissions (USD per share) $ 23.45 $ 25.45
Authorized through December 31, 2021    
Share Repurchases    
Remaining amount available under share repurchase authorization through December 31, 2021 $ 557.6  
v3.21.2
Derivatives - Narrative (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2021
Mar. 09, 2021
USD ($)
Dec. 31, 2020
USD ($)
derivative
Derivatives                
Total borrowings at par value $ 2,870.0     $ 2,870.0       $ 3,080.0
Accumulated other comprehensive pre-tax gain (loss) to be reclassified into revenue within the next 12 months 10.5     10.5        
3.600% notes due 2022                
Derivatives                
Total borrowings at par value               $ 500.0
Stated interest rate (as a percent)           3.60%   3.60%
1.350% notes due 2026                
Derivatives                
Total borrowings at par value $ 600.0 $ 600.0   $ 600.0     $ 600.0  
Stated interest rate (as a percent) 1.35% 1.35%   1.35%        
Business Solutions                
Derivatives                
Foreign exchange revenues $ 99.5   $ 76.9 $ 271.4 $ 234.4      
Cash Flow Hedges | Interest rate contracts | 3.600% notes due 2022                
Derivatives                
Number of derivative instruments held | derivative               2
Cash payment received for terminated swap agreement   $ 3.3            
Deferred gain on termination of treasury locks   2.6            
Gain on derivative recognized in Other income/(expense), net   $ 0.7            
Cash Flow Hedges | Interest rate contracts | 3.600% notes due 2022 | Interest Rate Swap Contract 1                
Derivatives                
Notional amounts               $ 100.0
Cash Flow Hedges | Interest rate contracts | 3.600% notes due 2022 | Interest Rate Swap Contract 2                
Derivatives                
Notional amounts               150.0
Designated as hedges | Foreign currency contracts                
Derivatives                
Derivative policy - contract maturity period maximum       36 months        
Derivative policy - targeted weighted-average maturity       1 year        
Maximum remaining maturity of foreign currency derivatives       24 months        
Derivative weighted-average maturity       1 year        
Not designated as hedges | Foreign currency contracts | Business Solutions                
Derivatives                
Notional amounts $ 8,000.0     $ 8,000.0       $ 8,000.0
Minimum | Not designated as hedges | Uncollected settlement assets and obligations                
Derivatives                
Foreign currency forward contracts maturity range       2 days        
Maximum | Not designated as hedges | Uncollected settlement assets and obligations                
Derivatives                
Foreign currency forward contracts maturity range       1 month        
Maximum | Not designated as hedges | Foreign currency contracts | Business Solutions                
Derivatives                
Foreign currency forward contracts maturity range       1 year        
Maximum | Not designated as hedges | Foreign currency denominated cash and other asset and other liability positions                
Derivatives                
Foreign currency forward contracts maturity range       1 year        
v3.21.2
Derivatives - Notional Amounts of Foreign Currency Forward Contracts (Details) - Foreign currency contracts - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Designated as hedges | Euro    
Notional amounts of foreign currency forward contracts    
Notional amounts $ 403.2 $ 428.9
Designated as hedges | British pound    
Notional amounts of foreign currency forward contracts    
Notional amounts 69.6 71.9
Designated as hedges | Canadian dollar    
Notional amounts of foreign currency forward contracts    
Notional amounts 141.7 131.9
Designated as hedges | Australian dollar    
Notional amounts of foreign currency forward contracts    
Notional amounts 64.3 58.3
Designated as hedges | Swiss franc    
Notional amounts of foreign currency forward contracts    
Notional amounts 44.5 41.1
Designated as hedges | Japanese yen    
Notional amounts of foreign currency forward contracts    
Notional amounts 37.0 36.6
Designated as hedges | Swedish krona    
Notional amounts of foreign currency forward contracts    
Notional amounts 28.6  
Designated as hedges | Other currencies    
Notional amounts of foreign currency forward contracts    
Notional amounts 1.8 29.5
Not designated as hedges | Euro    
Notional amounts of foreign currency forward contracts    
Notional amounts 592.0 533.0
Not designated as hedges | British pound    
Notional amounts of foreign currency forward contracts    
Notional amounts 152.6 153.9
Not designated as hedges | Mexican peso    
Notional amounts of foreign currency forward contracts    
Notional amounts 92.4 105.0
Not designated as hedges | Indian rupee    
Notional amounts of foreign currency forward contracts    
Notional amounts 64.8 81.0
Not designated as hedges | Canadian dollar    
Notional amounts of foreign currency forward contracts    
Notional amounts 78.5 71.5
Not designated as hedges | Australian dollar    
Notional amounts of foreign currency forward contracts    
Notional amounts 97.7 68.1
Not designated as hedges | Swiss franc    
Notional amounts of foreign currency forward contracts    
Notional amounts 28.3  
Not designated as hedges | Japanese yen    
Notional amounts of foreign currency forward contracts    
Notional amounts 45.7 39.6
Not designated as hedges | Philippine peso    
Notional amounts of foreign currency forward contracts    
Notional amounts   35.2
Not designated as hedges | Russian ruble    
Notional amounts of foreign currency forward contracts    
Notional amounts 42.5 31.2
Not designated as hedges | Chinese yuan    
Notional amounts of foreign currency forward contracts    
Notional amounts 32.5  
Not designated as hedges | Indonesian rupiah    
Notional amounts of foreign currency forward contracts    
Notional amounts   29.1
Not designated as hedges | Swedish krona    
Notional amounts of foreign currency forward contracts    
Notional amounts   26.0
Not designated as hedges | Other currencies    
Notional amounts of foreign currency forward contracts    
Notional amounts 198.0 151.5
Maximum individual currency exposure within various other currencies $ 25.0 $ 25.0
v3.21.2
Derivatives - Fair Value of Derivatives (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Fair Value of Derivatives    
Derivative Assets $ 286.3 $ 453.3
Derivative Liabilities 211.7 430.3
Designated as hedges    
Fair Value of Derivatives    
Derivative Assets 28.1 9.1
Derivative Liabilities 4.1 25.0
Designated as hedges | Other assets | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Assets 28.1 9.1
Designated as hedges | Other liabilities | Interest rate contracts    
Fair Value of Derivatives    
Derivative Liabilities   0.1
Designated as hedges | Other liabilities | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Liabilities 4.1 24.9
Not designated as hedges    
Fair Value of Derivatives    
Derivative Assets 258.2 444.2
Derivative Liabilities 207.6 405.3
Not designated as hedges | Other assets | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Assets 13.4 2.8
Not designated as hedges | Other liabilities | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Liabilities 4.1 2.8
Not designated as hedges | Business Solutions | Other assets | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Assets 244.8 441.4
Not designated as hedges | Business Solutions | Other liabilities | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Liabilities $ 203.5 $ 402.5
v3.21.2
Derivatives - Gross and Net Fair Value of Derivative Assets and Liabilities (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Offsetting of Derivative Assets    
Gross Amounts of Recognized Assets $ 197.7 $ 165.1
Net Amounts Presented in the Condensed Consolidated Balance Sheets 197.7 165.1
Derivatives Not Offset in the Condensed Consolidated Balance Sheets (105.6) (155.1)
Net Amounts 92.1 10.0
Derivatives that are not or may not be subject to master netting arrangement or similar agreement 88.6 288.2
Total 286.3 453.3
Offsetting of Derivative Liabilities    
Gross Amounts of Recognized Liabilities 120.1 356.2
Net Amounts Presented in the Condensed Consolidated Balance Sheets 120.1 356.2
Derivatives Not Offset in the Condensed Consolidated Balance Sheets (105.6) (155.1)
Net Amounts 14.5 201.1
Derivatives that are not or may not be subject to master netting arrangement or similar agreement 91.6 74.1
Total $ 211.7 $ 430.3
v3.21.2
Derivatives - Unrealized Gains/(Losses) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Foreign currency contracts        
Derivatives        
Gain/(Loss) recognized in OCI $ 17.7 $ (22.1) $ 32.4 $ (9.9)
Gains/(losses) excluded from effectiveness testing recognized in other comprehensive income $ (0.2) $ (1.6) (1.2) $ 1.2
Interest rate contracts        
Derivatives        
Gain/(Loss) recognized in OCI     $ 3.3  
v3.21.2
Derivatives - Gains/(Losses) from Hedging Activities (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Gains/(Losses) from Derivatives        
Revenues. $ 1,286.3 $ 1,258.5 $ 3,786.0 $ 3,563.2
Interest expense (25.7) (28.2) (79.7) (90.4)
Other income/(expense) (1.8) 3.5 26.8 3.4
Cash Flow Hedges | Foreign currency contracts | Revenues        
Cash Flow and Fair Value Hedges        
Gains/(losses) reclassified from AOCL into earnings (0.6) (3.6) (10.0) 7.2
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach 1.4 2.4 4.9 8.7
Cash Flow Hedges | Interest rate contracts | Interest Expense        
Cash Flow and Fair Value Hedges        
Gains/(losses) reclassified from AOCL into earnings $ (0.1) $ (0.1) (0.5) $ (0.4)
Cash Flow Hedges | Interest rate contracts | Other income/(expense), net        
Cash Flow and Fair Value Hedges        
Gains/(losses) reclassified from AOCL into earnings     $ 0.7  
v3.21.2
Derivatives - Undesignated Hedges (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Cash Flow and Fair Value Hedges        
Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities $ (25.7) $ 1.4 $ (50.7) $ (46.6)
Not designated as hedges | Selling, general and administrative        
Cash Flow and Fair Value Hedges        
Gain/(Loss) recognized in Income on Foreign currency derivatives $ 23.4 $ (1.9) $ 41.3 $ 24.2
v3.21.2
Borrowings - Outstanding Borrowings (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2021
Mar. 09, 2021
Dec. 31, 2020
Outstanding Borrowings          
Total borrowings at par value     $ 2,870.0   $ 3,080.0
Debt issuance costs and unamortized discount, net     (17.4)   (12.8)
Total borrowings at carrying value     $ 2,852.6   3,067.2
Weighted-average effective interest rate (as a percent)     3.40%    
Repayment of long-term debt     $ 1,150.0    
Commercial paper          
Outstanding Borrowings          
Total borrowings at par value     120.0   80.0
Maximum borrowing capacity     $ 1,500.0    
Maximum days to maturity     397 days    
Weighted-average effective interest rate (as a percent)     0.20%    
Weighted-average term     1 day    
3.600% notes due 2022          
Outstanding Borrowings          
Total borrowings at par value         $ 500.0
Stated interest rate (as a percent) 3.60%       3.60%
Repayment of long-term debt $ 500.0        
4.250% notes due 2023          
Outstanding Borrowings          
Total borrowings at par value     $ 300.0   $ 300.0
Stated interest rate (as a percent)     4.25%   4.25%
2.850% notes due 2025          
Outstanding Borrowings          
Total borrowings at par value     $ 500.0   $ 500.0
Stated interest rate (as a percent)     2.85%   2.85%
1.350% notes due 2026          
Outstanding Borrowings          
Total borrowings at par value   $ 600.0 $ 600.0 $ 600.0  
Stated interest rate (as a percent)   1.35% 1.35%    
Effective interest rate (as a percent)     1.50%    
2.750% notes due 2031          
Outstanding Borrowings          
Total borrowings at par value     $ 300.0 $ 300.0  
Stated interest rate (as a percent)     2.75% 2.75%  
Effective interest rate (as a percent)     2.90%    
6.200% notes due 2036          
Outstanding Borrowings          
Total borrowings at par value     $ 500.0   $ 500.0
Stated interest rate (as a percent)     6.20%   6.20%
6.200% notes due 2040          
Outstanding Borrowings          
Total borrowings at par value     $ 250.0   $ 250.0
Stated interest rate (as a percent)     6.20%   6.20%
Term loan facility borrowing (effective rate of 3.0%)          
Outstanding Borrowings          
Total borrowings at par value     $ 300.0   $ 950.0
Effective interest rate (as a percent)     1.40%    
Repayment of long-term debt   $ 650.0      
v3.21.2
Borrowings - Maturity Schedule of Borrowings (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Borrowings maturities at par value  
Due after 1 year through 2 years $ 300.0
Due after 2 years through 3 years 300.0
Due after 3 years through 4 years 500.0
Due after 4 years through 5 years 600.0
Due after 5 years 1,050.0
Total $ 2,750.0
v3.21.2
Borrowings - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Mar. 09, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2021
Dec. 31, 2020
Outstanding Borrowings          
Total borrowings at par value       $ 2,870.0 $ 3,080.0
Repayment of long-term debt       1,150.0  
Cost associated with the early termination of debt       14.3  
1.350% notes due 2026          
Outstanding Borrowings          
Total borrowings at par value $ 600.0   $ 600.0 $ 600.0  
Stated interest rate (as a percent)     1.35% 1.35%  
Redemption price (as a percent) 101.00%        
1.350% notes due 2026 | Base Rate          
Outstanding Borrowings          
Basis spread on applicable treasury rate (as a percent) 0.15%        
2.750% notes due 2031          
Outstanding Borrowings          
Total borrowings at par value $ 300.0     $ 300.0  
Stated interest rate (as a percent) 2.75%     2.75%  
Redemption price (as a percent) 101.00%        
2.750% notes due 2031 | Base Rate          
Outstanding Borrowings          
Basis spread on applicable treasury rate (as a percent) 0.25%        
Term loan facility borrowing (effective rate of 3.0%)          
Outstanding Borrowings          
Total borrowings at par value       $ 300.0 950.0
Repayment of long-term debt     $ 650.0    
3.600% notes due 2022          
Outstanding Borrowings          
Total borrowings at par value         $ 500.0
Stated interest rate (as a percent)   3.60%     3.60%
Repayment of long-term debt   $ 500.0      
Cost associated with the early termination of debt       $ 14.3  
v3.21.2
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Unrecognized Tax Benefits          
Effective tax rate 20.20% 12.40% 15.60% 13.50%  
Unrecognized tax benefits, excluding interest and penalties $ 341.9   $ 341.9   $ 340.7
Unrecognized tax benefits that, if recognized, would affect the effective tax rate 330.7   330.7   329.2
Interest and penalties, recognized 1.9 $ 0.8 3.0 $ 1.5  
Interest and penalties, accrued $ 31.6   $ 31.6   $ 28.6
v3.21.2
Stock Compensation Plans (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Stock-Based Compensation Plans        
Stock-based compensation expense $ 8.4 $ 14.2 $ 31.2 $ 32.0
Options granted (shares)     0.5  
Options granted exercise price (in dollars per share)     $ 23.91  
Performance-based restricted stock units and Restricted stock units granted (in shares)     2.9  
Performance-based restricted stock units and Restricted stock units weighted average grant date fair value (in dollars per share)     $ 23.53  
Number of options outstanding (in shares) 4.7   4.7  
Exercise price of options outstanding (in dollars per share) $ 19.55   $ 19.55  
Number of options exercisable (in shares) 3.6   3.6  
Exercise price of options exercisable (in dollars per share) $ 18.48   $ 18.48  
Number of non-vested Performance-based restricted stock units and Restricted stock units (in shares) 6.9   6.9  
Grant date fair value of Performance-based restricted stock units and Restricted stock units (in dollars per share) $ 22.24   $ 22.24  
v3.21.2
Segments - Narrative (Details) - Operating Segments
 9 Months Ended
Sep. 30, 2021
customer
region
segment
Segments  
Number of operating segments | segment 2
Consumer-to-Consumer  
Segments  
Number of consumers in money transfer | customer 2
Number of geographic regions in segment | region 5
v3.21.2
Segments - Reportable Segments Results (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Revenues:        
Total consolidated revenues $ 1,286.3 $ 1,258.5 $ 3,786.0 $ 3,563.2
Operating income:        
Total operating income 318.6 285.2 806.3 740.2
Restructuring-related expenses   (9.1)   (24.8)
Operating Segments        
Operating income:        
Total operating income 318.6 294.3 806.3 765.0
Operating Segments | Consumer-to-Consumer        
Revenues:        
Total consolidated revenues 1,104.5 1,106.5 3,282.5 3,098.5
Operating income:        
Total operating income 268.2 272.4 708.1 695.1
Operating Segments | Business Solutions        
Revenues:        
Total consolidated revenues 116.8 89.1 312.6 266.9
Operating income:        
Total operating income 38.4 9.4 61.9 24.6
Operating Segments | Other        
Revenues:        
Total consolidated revenues 65.0 62.9 190.9 197.8
Operating income:        
Total operating income $ 12.0 $ 12.5 $ 36.3 $ 45.3