WESTERN UNION CO, 10-K filed on 2/19/2021
Annual Report
v3.20.4
Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2020
Feb. 16, 2021
Jun. 30, 2020
Document and Entity Information      
Document Type 10-K    
Document Annual Report true    
Document Transition Report false    
Document Period End Date Dec. 31, 2020    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 8.8
Entity Common Stock, Shares Outstanding   410,921,508  
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001365135    
Amendment Flag false    
v3.20.4
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
CONSOLIDATED STATEMENTS OF INCOME      
Revenues $ 4,835.0 $ 5,292.1 $ 5,589.9
Type of Revenue us-gaap:ServiceMember us-gaap:ServiceMember us-gaap:ServiceMember
Expenses:      
Cost of services $ 2,826.5 $ 3,086.5 $ 3,300.8
Type of Cost of Service us-gaap:ServiceMember us-gaap:ServiceMember us-gaap:ServiceMember
Selling, general, and administrative $ 1,041.2 $ 1,271.6 $ 1,167.0
Total expenses 3,867.7 4,358.1 4,467.8
Operating income 967.3 934.0 1,122.1
Other income/(expense):      
Gain on divestitures of businesses (Note 5)   524.6  
Interest income 3.2 6.3 4.8
Interest expense (118.5) (152.0) (149.6)
Other income, net 3.1 8.5 14.1
Total other income/(expense), net (112.2) 387.4 (130.7)
Income before income taxes 855.1 1,321.4 991.4
Provision for income taxes 110.8 263.1 139.5
Net income $ 744.3 $ 1,058.3 $ 851.9
Earnings per share:      
Basic (USD per share) $ 1.81 $ 2.47 $ 1.89
Diluted (USD per share) $ 1.79 $ 2.46 $ 1.87
Weighted-average shares outstanding:      
Basic (shares) 412.3 427.6 451.8
Diluted (shares) 415.2 430.9 454.4
v3.20.4
CONSOLIDATED STATEMENTS OF INCOME (Parentheticals) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
CONSOLIDATED STATEMENTS OF INCOME      
Related party expenses $ 54.6 $ 57.1 $ 57.6
v3.20.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME      
Net income $ 744.3 $ 1,058.3 $ 851.9
Other comprehensive income, net of reclassifications and tax (Note 14):      
Unrealized gains/(losses) on investment securities 33.6 25.8 (4.3)
Unrealized gains/(losses) on hedging activities (26.9) (11.0) 50.3
Foreign currency translation adjustments     (19.5)
Defined benefit pension plan adjustments (Note 12) 42.8 7.2 1.8
Total other comprehensive income 49.5 22.0 28.3
Comprehensive income $ 793.8 $ 1,080.3 $ 880.2
v3.20.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Assets    
Cash and cash equivalents $ 1,428.2 $ 1,450.5
Settlement assets 3,821.4 3,296.7
Property and equipment, net of accumulated depreciation of $659.9 and $616.5, respectively 150.4 186.9
Goodwill 2,566.6 2,566.6
Other intangible assets, net of accumulated amortization of $1,044.6 and $961.5, respectively 505.0 494.9
Other assets 1,024.7 762.9
Total assets 9,496.3 8,758.5
Liabilities:    
Accounts payable and accrued liabilities 500.9 601.9
Settlement obligations 3,821.4 3,296.7
Income taxes payable 928.9 1,019.7
Deferred tax liability, net 188.9 152.1
Borrowings 3,067.2 3,229.3
Other liabilities 802.4 498.3
Total liabilities 9,309.7 8,798.0
Commitments and contingencies (Note 6)
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; 411.2 shares and 418.0 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively 4.1 4.2
Capital surplus 885.1 841.2
Accumulated deficit (543.1) (675.9)
Accumulated other comprehensive loss (159.5) (209.0)
Total stockholders' equity/(deficit) 186.6 (39.5)
Total liabilities and stockholders' equity/(deficit) $ 9,496.3 $ 8,758.5
v3.20.4
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)
shares in Millions, $ in Millions
Dec. 31, 2020
Dec. 31, 2019
Assets    
Accumulated Depreciation on Property Plant and Equipment $ 659.9 $ 616.5
Accumulated Amortization on Other Intangible Assets $ 1,044.6 $ 961.5
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 411.2 418.0
Common stock, shares outstanding 411.2 418.0
v3.20.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities      
Net income $ 744.3 $ 1,058.3 $ 851.9
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation 61.3 79.6 76.9
Amortization 164.3 178.1 187.8
Gain on divestitures of businesses, excluding transaction costs (Note 5)   (532.1)  
Deferred income tax provision/(benefit) (Note 11) 13.9 (24.5) (15.1)
Other non-cash items, net 145.8 118.4 66.2
Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in:      
Other assets (44.4) 7.5 (31.0)
Accounts payable and accrued liabilities (96.6) 94.3 (126.5)
Income taxes payable (Note 11) (94.4) (36.8) (193.1)
Other liabilities (16.7) (28.2) 4.2
Net cash provided by operating activities 877.5 914.6 821.3
Cash flows from investing activities      
Payments for capitalized contract costs (69.1) (46.6) (150.3)
Payments for internal use software (51.2) (33.0) (52.0)
Purchases of property and equipment (36.5) (48.1) (136.7)
Proceeds from the sale of former corporate headquarters and other property (Note 5) 49.4    
Proceeds from divestitures of businesses, net of cash divested (Note 5)   711.7  
Purchases of non-settlement related investments (4.9) (6.8) (24.2)
Proceeds from maturity of non-settlement related investments 0.9 23.4 13.7
Purchases of held-to-maturity non-settlement related investments   (1.3) (2.8)
Proceeds from held-to-maturity non-settlement related investments   33.0 23.5
Other investing activities (2.0)    
Net cash (used in)/provided by investing activities (113.4) 632.3 (328.8)
Cash flows from financing activities      
Cash dividends and dividend equivalents paid (370.3) (340.8) (341.7)
Common stock repurchased (Note 14) (239.7) (552.6) (412.4)
Net (repayments of)/proceeds from commercial paper (165.0) 120.0 125.0
Net proceeds from issuance of borrowings   495.9 685.4
Principal payments on borrowings   (824.9) (414.4)
Proceeds from exercise of options 2.2 36.7 10.1
Other financing activities (0.7) (4.1) (9.2)
Net cash used in financing activities (773.5) (1,069.8) (357.2)
Net change in cash, cash equivalents, and restricted cash (9.4) 477.1 135.3
Cash, cash equivalents, and restricted cash at beginning of period 1,456.8 979.7 844.4
Cash, cash equivalents, and restricted cash at end of period 1,447.4 1,456.8 979.7
Supplemental cash flow information:      
Interest paid 109.6 151.3 142.5
Income taxes paid 187.3 318.9 339.4
Cash paid for lease liabilities 65.9 53.8  
Non-cash lease liabilities arising from obtaining right-of-use assets (Note 13) 38.6 269.1  
Restricted cash at end of year (included in Other assets) $ 19.2 $ 6.3 $ 6.3
v3.20.4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT) - USD ($)
shares in Millions, $ in Millions
Adoption of new accounting pronouncements
Accumulated Deficit
Adoption of new accounting pronouncements
Accumulated Other Comprehensive Loss
Adoption of new accounting pronouncements
Common Stock
Capital Surplus
Accumulated Deficit
Accumulated Other Comprehensive Loss
Total
Beginning balance at Dec. 31, 2017 $ 30.7 $ (31.4) $ (0.7) $ 4.6 $ 697.8 $ (965.9) $ (227.9) $ (491.4)
Beginning balance (shares) at Dec. 31, 2017       459.0        
Increase/(Decrease) in Stockholders' Equity [Roll Forward]                
Net income           851.9   851.9
Stock-based compensation         47.7     47.7
Common stock dividends and dividend equivalents declared           (341.7)   (341.7)
Repurchase and retirement of common shares       $ (0.2)   (413.8)   (414.0)
Repurchase and retirement of common shares (shares)       (20.9)        
Shares issued under stock-based compensation plans         10.1     10.1
Shares issued under stock-based compensation plans (shares)       3.1        
Other comprehensive income (Note 14)             28.3 28.3
Ending balance at Dec. 31, 2018       $ 4.4 755.6 (838.8) (231.0) (309.8)
Ending balance (shares) at Dec. 31, 2018       441.2        
Increase/(Decrease) in Stockholders' Equity [Roll Forward]                
Net income           1,058.3   1,058.3
Stock-based compensation         48.9     48.9
Common stock dividends and dividend equivalents declared           (342.6)   (342.6)
Repurchase and retirement of common shares       $ (0.2)   (552.8)   (553.0)
Repurchase and retirement of common shares (shares)       (27.6)        
Shares issued under stock-based compensation plans         36.7     36.7
Shares issued under stock-based compensation plans (shares)       4.4        
Other comprehensive income (Note 14)             22.0 22.0
Ending balance at Dec. 31, 2019 $ (0.6)   $ (0.6) $ 4.2 841.2 (675.9) (209.0) $ (39.5)
Ending balance (shares) at Dec. 31, 2019       418.0       418.0
Increase/(Decrease) in Stockholders' Equity [Roll Forward]                
Net income           744.3   $ 744.3
Stock-based compensation         41.7     41.7
Common stock dividends and dividend equivalents declared           (373.2)   (373.2)
Repurchase and retirement of common shares       $ (0.1)   (237.7)   (237.8)
Repurchase and retirement of common shares (shares)       (9.4)        
Shares issued under stock-based compensation plans         2.2     2.2
Shares issued under stock-based compensation plans (shares)       2.6        
Other comprehensive income (Note 14)             49.5 49.5
Ending balance at Dec. 31, 2020       $ 4.1 $ 885.1 $ (543.1) $ (159.5) $ 186.6
Ending balance (shares) at Dec. 31, 2020       411.2       411.2
v3.20.4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT) (Parentheticals) - $ / shares
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT)                              
Common stock dividends (USD per share) $ 0.225 $ 0.225 $ 0.225 $ 0.225 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.90 $ 0.80 $ 0.76
v3.20.4
Business and Basis of Presentation
 12 Months Ended
Dec. 31, 2020
Business and Basis of Presentation  
Business and Basis of Presentation

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 primarily available through a network of agent locations in more than 200 countries and territories and through money transfer transactions conducted and funded through websites and mobile applications marketed under the Company’s brands (“westernunion.com”) and transactions initiated on internet 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.

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. In May 2019, the Company sold a substantial majority of its United States based electronic bill payments services, as discussed in Note 5. 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 18 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 financial statements in this Annual Report on Form 10-K are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated.

Consistent with industry practice, the accompanying 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.

​
v3.20.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2020
Summary of Significant Accounting Policies  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (“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.

In March 2020, the World Health Organization declared the outbreak associated with a novel coronavirus a pandemic (“COVID-19”), and governments throughout the world instituted various actions such as lockdowns, stay-at-home orders, travel restrictions, and closures of non-essential businesses in an effort to reduce the spread of COVID-19. These actions negatively impacted the Company’s ability to offer its services, at least temporarily, through a portion of its locations and its retail agent locations, during the year ended December 31, 2020. Beginning in March 2020 and continuing throughout the remainder of the year, the Company experienced a decrease in transaction volumes from retail locations, and a decrease in foreign exchange and payment services activity, which also negatively impacted revenues in these periods, partially offset by revenue and transaction growth from Digital Money Transfer services. The Company believes this decrease is mainly due to economic decline and uncertainty resulting from the pandemic. The extent to which the COVID-19 pandemic continues to impact the Company’s business, financial condition, results of operations, or cash flows will depend on future developments, which are highly uncertain and are difficult to predict. To the extent the pandemic or the related macro-economic consequences continue, the Company could potentially experience changes in estimates, including increased credit losses or intangible asset impairments in future periods.

Principles of Consolidation

The Company consolidates financial results when it has a controlling financial interest in a subsidiary via voting rights or when it has both the power to direct the activities of an entity that most significantly impact the entity’s economic performance and the ability to absorb losses or the right to receive benefits of the entity that could potentially be significant to the entity. The Company utilizes the equity method of accounting when it is able to exercise significant influence over an entity’s operations, which generally occurs when the Company has an ownership interest between 20% and 50%.

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.

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 average share price during the periods and their effect was anti-dilutive, were 1.6 million, 1.9 million, and 2.6 million, respectively, of shares for the years ended December 31, 2020, 2019, and 2018.

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

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

    

2020

    

2019

    

2018

Basic weighted-average shares outstanding

 

412.3

 

427.6

​

451.8

Common stock equivalents

 

2.9

 

3.3

​

2.6

Diluted weighted-average shares outstanding

 

415.2

 

430.9

​

454.4

​

Fair Value Measurements

The Company determines the fair values of its assets and liabilities that are recognized or disclosed at fair value in accordance with the hierarchy described below. The fair values of the assets and liabilities held in the Company’s defined benefit plan trust (“Trust”) are recognized or disclosed utilizing the same hierarchy. The following three levels of inputs may be used to measure fair value:

●Level 1 - Quoted prices in active markets for identical assets or liabilities.
●Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. For most of these assets, the Company utilizes pricing services that use multiple prices as inputs to determine daily market values.
●Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires significant management judgment or estimation. The Company holds assets classified as Level 3 that are recognized and disclosed at fair value on a non-recurring basis related to the Company’s business combinations, where the values of the intangible assets and goodwill acquired in a purchase are derived utilizing one of the three recognized approaches: the market approach, the income approach, or the cost approach.

In addition, the Trust has other investments that are valued at net asset value, which are not quoted on an active market; however, the unit price is based on underlying investments which are traded on an active market.

Carrying amounts for many of the Company’s financial instruments, including cash and cash equivalents, settlement cash and cash equivalents, and settlement receivables and settlement obligations approximate fair value due to their short maturities. Available-for-sale investment securities, as further discussed in Notes 8 and 9, and derivative financial instruments, as further discussed in Notes 9 and 15, are carried at fair value. Fixed-rate notes are carried at their original issuance values and adjusted over time to accrete that value to par, except for portions of notes that were hedged by interest rate swap agreements in prior years, as disclosed in Note 15. The fair values of fixed-rate notes are disclosed in Note 9 and are based on market quotations.

The fair values of non-financial assets and liabilities related to the Company’s business combinations are disclosed in Note 5. The fair value of the assets in the Trust, which holds the assets for the Company’s defined benefit pension plan, is disclosed in Note 12.

Business Combinations

The Company accounts for all business combinations where control over another entity is obtained using the acquisition method of accounting, which requires that most assets (both tangible and intangible), liabilities (including contingent consideration), and remaining noncontrolling interests be recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets less liabilities and noncontrolling interests is recognized as

goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or noncontrolling interests made subsequent to the acquisition date, but within the measurement period, which is one year or less, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded within Net income. Any cost or equity method interest that the Company holds in the acquired company prior to the acquisition is remeasured to fair value at acquisition with a resulting gain or loss recognized within Other income, net for the difference between fair value and existing book value. Results of operations of the acquired company are included in the Company’s results from the date of the acquisition forward and include amortization expense arising from acquired intangible assets. The Company expenses all costs as incurred related to or involved with an acquisition in Selling, general, and administrative expenses.

Cash and Cash Equivalents

Highly liquid investments (other than those included in settlement assets) with maturities of three months or less at the date of purchase (that are readily convertible to cash) are considered cash equivalents and are stated at cost, which approximates fair value.

The Company maintains cash and cash equivalent balances, including a portion in money market funds, with a group of globally diversified banks and financial institutions. The Company limits the concentration of its cash and cash equivalents with any one institution and regularly reviews investment concentrations and credit worthiness of these institutions.

Allowance for Credit Losses

For the Company’s accounting policies with respect to the allowance for credit losses, refer to Note 8.

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 consist of cash and cash equivalents, receivables from agents, Business Solutions customers, and others, and investment securities. Cash received by Western Union agents generally becomes available to the Company within one week after initial receipt by the agent. Cash equivalents consist of short-term time deposits, commercial paper, and other highly liquid investments. Receivables from agents represent funds collected by such agents, but in transit to the Company. 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. 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.

Settlement obligations consist of money transfer, money order and payment service payables, and payables to agents. Money transfer payables represent amounts to be paid to transferees when they request their funds. Most agents typically settle with transferees first and then obtain reimbursement from the Company. Money order payables represent amounts not yet presented for payment. Payment service payables represent amounts to be paid to utility companies, auto finance companies, mortgage servicers, financial service providers, government agencies, and others. Due to the agent funding

and settlement process, payables to agents represent amounts due to agents for money transfers that have been settled with transferees.

Refer to Note 8 for additional details on the Company’s settlement assets and obligations.

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the lesser of the estimated life of the related assets (generally three to ten years for equipment and furniture and fixtures, and 30 years for buildings) or the lease term. Maintenance and repairs, which do not extend the useful life of the respective assets, are charged to expense as incurred.

Property and equipment consisted of the following (in millions):

​

​

​

​

​

​

​

​

    

December 31,

​

    

2020

    

2019

Equipment

​

$

608.9

​

$

591.4

Leasehold improvements

​

 

153.3

​

 

159.2

Furniture and fixtures

​

 

45.4

​

 

49.4

Buildings

​

 

0.4

​

 

0.4

Projects in process

​

 

2.3

​

 

3.0

Total property and equipment, gross

​

 

810.3

​

 

803.4

Less accumulated depreciation

​

 

(659.9)

​

 

(616.5)

Property and equipment, net (a)

​

$

150.4

​

$

186.9

(a)As of December 31, 2019, Property and equipment, net excluded assets held for sale of $49.3 million, which primarily consisted of the Company’s former headquarters and land. These assets were sold in 2020 and were included in Other assets in the Company’s Consolidated Balance Sheets as of December 31, 2019.

Amounts charged to expense for depreciation of property and equipment were $61.3 million, $79.6 million, and $76.9 million during the years ended December 31, 2020, 2019, and 2018, respectively.

Goodwill

Goodwill represents the excess of purchase price over the fair value of tangible and other intangible assets acquired less liabilities assumed, arising from business combinations. In the event a reporting unit’s carrying amount exceeds its fair value, the Company recognizes an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. The Company’s annual impairment assessment did not identify any goodwill impairment during the years ended December 31, 2020, 2019, and 2018.

Other Intangible Assets

Other intangible assets primarily consist of contract costs (primarily amounts paid to agents in connection with establishing and renewing long-term contracts), acquired contracts, and software. Other intangible assets are generally amortized on a straight-line basis over the length of the contract or benefit periods. Included in the Consolidated Statements of Income is amortization expense of $164.3 million, $178.1 million, and $187.8 million for the years ended December 31, 2020, 2019, and 2018, respectively.

The Company capitalizes initial payments for new and renewed agent contracts to the extent recoverable through future operations or penalties in the case of early termination. The Company’s accounting policy is to limit the amount of

capitalized costs for a given contract to the lesser of the estimated future cash flows from the contract or the termination fees the Company would receive in the event of early termination of the contract.

Acquired contracts include customer and contractual relationships and networks of subagents that are recognized in connection with the Company’s acquisitions.

The Company purchases and develops software that is used in providing services and in performing administrative functions. Internal and external software development costs incurred that are directly related to the chosen design, development, and testing phases of the software are capitalized once the Company has completed all planning and analysis activities. Any other software development related costs are expensed as incurred. Capitalization of costs ceases when the product is available for general use. Software development costs and purchased software are generally amortized over a term of three to seven years.

The following table provides the components of other intangible assets (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

December 31, 2020

    

December 31, 2019

​

    

Weighted-

    

​

​

    

​

​

    

​

​

    

​

​

​

​

Average

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortization

​

​

​

​

Net of

​

​

​

​

Net of

​

​

Period

​

​

​

​

Accumulated

​

​

​

​

Accumulated

​

​

(in years)

​

Initial Cost

​

Amortization

​

Initial Cost

​

Amortization

Capitalized contract costs

​

6.1

​

$

574.4

​

$

308.0

​

$

510.3

​

$

271.7

Acquired contracts

​

11.6

​

​

561.7

​

​

75.8

​

​

584.2

​

​

124.1

Internal use software

​

3.7

​

 

310.3

​

 

55.5

​

 

281.2

​

 

54.7

Acquired trademarks

​

25.4

​

 

30.1

​

 

12.0

​

 

30.1

​

 

13.2

Other intangibles

​

4.3

​

 

19.4

​

 

—

​

 

19.4

​

 

—

Projects in process

​

(a)

​

 

53.7

​

 

53.7

​

 

31.2

​

 

31.2

Total other intangible assets

​

8.0

​

$

1,549.6

​

$

505.0

​

$

1,456.4

​

$

494.9

(a)Not applicable as the assets have not been placed in service.

​

The estimated future aggregate amortization expense for existing other intangible assets as of December 31, 2020 is expected to be $148.5 million in 2021, $106.8 million in 2022, $78.8 million in 2023, $61.4 million in 2024, $35.1 million in 2025, and $20.7 million thereafter.

Other intangible assets are reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In such reviews, estimated undiscounted cash flows associated with these assets or operations are compared with their carrying values to determine if a write-down to fair value (normally measured by the present value technique) is required. The Company recorded immaterial impairments related to other intangible assets during the years ended December 31, 2020, 2019, and 2018.

Revenue Recognition

For the Company’s accounting policies with respect to revenue recognition, refer to Note 3.

Cost of Services

Cost of services primarily consists of agent commissions and expenses for call centers, settlement operations, and related information technology costs. Expenses within these functions include personnel, software, equipment, telecommunications, bank fees, credit losses, depreciation, amortization, and other expenses incurred in connection with providing money transfer and other payment services.

Advertising Costs

Advertising costs are charged to operating expenses as incurred. Advertising costs for the years ended December 31, 2020, 2019, and 2018 were $177.0 million, $209.1 million, and $180.9 million, respectively.

Income Taxes

The Company accounts for income taxes under the liability method, which requires that deferred tax assets and liabilities be determined based on the expected future income tax consequences of events that have been recognized in the consolidated financial statements. Deferred tax assets and liabilities are recognized based on temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. The Company assesses the realizability of its deferred tax assets. A valuation allowance must be established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized.

The Company recognizes the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution.

The Company accounts for the effects of global intangible low-taxed income taxed in the United States as a component of income tax expense in the period the tax arises.

Foreign Currency Translation

The United States dollar is the functional currency for substantially all of the Company’s businesses. Revenues and expenses are translated at average exchange rates prevailing during the period. Foreign currency denominated assets and liabilities for those businesses for which the local currency is the functional currency are translated into United States dollars based on exchange rates at the end of the year. The effects of foreign exchange gains and losses arising from the translation of assets and liabilities of these businesses are included as a component of Accumulated other comprehensive loss (“AOCL”) in the accompanying Consolidated Balance Sheets. Foreign currency denominated monetary assets and liabilities of businesses for which the United States dollar is the functional currency are remeasured based on exchange rates at the end of the period, and the resulting remeasurement gains and losses are recognized in Net income. Non-monetary assets and liabilities of these operations are remeasured at historical rates in effect when the asset was recognized or the liability was incurred.

Derivatives

The Company has used derivatives to: (i) minimize its exposures related to changes in foreign currency exchange rates and, periodically, interest rates and (ii) facilitate cross-currency Business Solutions payments by writing derivatives to customers. The Company recognizes all derivatives in the Other assets and Other liabilities captions in the accompanying Consolidated Balance Sheets at their fair value. All cash flows associated with derivatives are included in Cash flows from operating activities in the Consolidated Statements of Cash Flows. Certain of the Company’s derivative arrangements are designated as either cash flow hedges or fair value hedges at the time of inception, and others are not designated as accounting hedges.

●Cash flow hedges – Cash flow hedges consist of foreign currency hedging of forecasted revenues, as well as hedges of the forecasted issuance of fixed-rate debt. Derivative fair value changes that are captured in AOCL are reclassified to earnings in the same period the hedged item affects earnings when the instrument is effective in offsetting the change in cash flows attributable to the risk being hedged. On January 1, 2018, the Company early
adopted an accounting pronouncement related to hedging activities. As a result of the new accounting pronouncement, for foreign currency cash flow hedges entered into on or after January 1, 2018, the Company excludes time value from the assessment of effectiveness, and the initial value of the excluded components is amortized into Revenues within the Consolidated Statements of Income. For foreign currency cash flow hedges entered into before January 1, 2018, all changes in the fair value of the excluded components were recognized immediately in Revenues during the years ended December 31, 2019 and 2018.
●Fair value hedges - Fair value hedges consist of hedges of fixed-rate debt, through interest rate swaps. Changes in the fair value of derivatives that are designated as fair value hedges of fixed-rate debt are recorded in Interest expense. The offsetting change in value of the related debt instrument attributable to changes in the benchmark interest rate is also recorded in Interest expense. There were no fair value hedges outstanding as of December 31, 2020 and 2019.
●Undesignated - Derivative contracts entered into to reduce the foreign exchange variability related to: (i) money transfer settlement assets and obligations, generally with maturities from a few days up to one month, and (ii) certain foreign currency denominated cash and other asset and liability positions, typically with maturities of less than one year at inception, are not designated as hedges for accounting purposes and changes in their fair value are included in Selling, general, and administrative. The Company is also exposed to risk from derivative contracts written to its customers arising from its cross-currency Business Solutions payments operations. The significant majority of these derivative contracts have a duration at inception of less than one year. The Company aggregates its Business Solutions payments 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) as part of a broader foreign currency portfolio, including significant spot exchanges of currency in addition to forwards and options. The changes in fair value related to these contracts are recorded in Revenues.

The fair value of the Company’s derivatives is derived from standardized models that use market-based inputs (e.g., forward prices for foreign currency).

The details of each designated hedging relationship are formally documented at the inception of the arrangement, including the risk management objective, hedging strategy, hedged item, specific risks being hedged, the derivative instrument, and how effectiveness is being assessed. The derivative must be highly effective in offsetting the changes in cash flows or fair value of the hedged item, and effectiveness is evaluated quarterly on a retrospective and prospective basis.

Legal Contingencies

The Company is a party to certain legal and regulatory proceedings with respect to a variety of matters. The Company records an accrual for these contingencies to the extent that a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than other amounts within the range, that amount is accrued. When no amount within a range of loss appears to be a better estimate than any other amount, the lowest amount in the range is accrued.

Stock-Based Compensation

The Company has a stock-based compensation plan that provides for grants of Western Union stock options, restricted stock awards, and restricted and unrestricted stock units to employees and non-employee directors of the Company.

All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. The Company generally recognizes compensation expense on awards on a straight-line basis over the

requisite service period for the entire award, with an estimate for forfeitures. Refer to Note 17 for additional discussion regarding details of the Company’s stock-based compensation plans.

Severance and Other Related Expenses

The Company records severance-related expenses once they are both probable and estimable in accordance with the provisions of the applicable accounting guidance for severance provided under an ongoing benefit arrangement. One-time involuntary benefit arrangements and other costs are generally recognized when the liability is incurred. The Company also evaluates impairment issues associated with restructuring and other activities when the carrying amount of the related assets may not be fully recoverable, in accordance with the appropriate accounting guidance.

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 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. In accordance with the modified retrospective approach, the comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. Refer to Note 8 for additional information and the related disclosures.

On January 1, 2019, the Company adopted a new accounting standard, as amended, that requires the Company to record assets and liabilities on the balance sheet for lease-related rights and obligations and disclose key information about its leasing arrangements. The Company elected the effective date method, utilized the modified retrospective approach upon adoption, and elected the package of practical expedients available under the new standard, including the expedients to not reassess whether an existing contract is a lease or contains a lease and whether the lease is an operating or finance lease. This new standard establishes a right-of-use (“ROU”) model that requires the Company to recognize ROU assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months at commencement of the lease. Refer to Note 13 for additional information and the related disclosures.

On January 1, 2018, the Company adopted a new accounting standard, as amended, regarding revenue from contracts with customers using the modified retrospective approach. This standard provides guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The adoption of this standard did not have a material impact on the Company’s financial position and results of operations. Refer to Note 3 for the related additional disclosures.

In the first quarter of 2018, the Company adopted a new accounting pronouncement that provides entities the option to reclassify tax effects included within AOCL as a result of the United States tax reform legislation enacted in December 2017 (the “Tax Act”) to retained earnings. The adoption of this standard resulted in an increase to AOCL and a decrease to Accumulated deficit in the Consolidated Balance Sheets of $31.4 million, which represents the tax effects of the lower federal tax rate on unrealized gains/(losses) on investment securities, hedging activities, and adjustments related to the Company’s defined benefit pension plan, in addition to the release of deferred taxes accrued on undistributed earnings of one of the Company’s subsidiaries that are no longer owed under the Tax Act. The Company will continue to release tax effects remaining in AOCL into income as the individual units of account are sold or otherwise extinguished. Refer to Note 14 for additional information.
v3.20.4
Revenue
 12 Months Ended
Dec. 31, 2020
Revenue  
Revenue

3. Revenue

On January 1, 2018, the Company adopted a new accounting standard, as amended, regarding revenue from contracts with customers using the modified retrospective approach, which was applied to all contracts with customers. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of Accumulated deficit in the Consolidated Balance Sheet, and the adoption of the new accounting standard did not have a material impact on the Company’s January 1, 2018 accumulated deficit.

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 $4,625.1 million, $5,033.2 million, and $5,382.6 million in revenues from contracts with customers for the years ended December 31, 2020, 2019, and 2018, respectively. 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 for the years ended December 31, 2020, 2019, and 2018, and the Company has immaterial contract liability balances as of December 31, 2020 and 2019, which primarily relate to its customer loyalty programs and other services. Contract asset balances related to customers were also immaterial as of December 31, 2020 and 2019, 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 18 for further information on the Company’s segments.

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

The Company offers several different bill payment services that vary by considerations such as: (i) who pays the fee to the Company (consumer or biller), (ii) whether the service is offered to all potential consumers, or only to those for which the Company has a relationship with the biller, and (iii) whether the service utilizes a physical agent network offered for consumers’ convenience, among other factors. The determination of which party is the Company’s customer for revenue recognition purposes is based on these considerations for each of the Company’s bill payment services. For all transactions, the Company’s customers agree to the Company’s terms and conditions, either at the time of initiating a transaction (where the consumer is determined to be the customer for revenue recognition purposes) or upon signing a contract with the Company to provide services on the biller’s behalf (where the biller is determined to be the customer for revenue recognition purposes). As with consumer money transfers, customers engage the Company to perform one integrated service — collect money from the consumer and process the bill payment transaction, thereby providing the billers real-time or near real-time information regarding their customers’ payments and simplifying the billers’ collection efforts. In May 2019, the Company sold a substantial majority of its United States based electronic bill payments services, as discussed in Note 5.

Management has determined that the significant 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 years ended December 31, 2020, 2019, and 2018 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2020

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

1,605.5

​

$

83.6

​

$

75.1

​

$

57.0

​

$

1,821.2

Europe and Russia/CIS

​

 

1,330.0

​

 

121.1

​

 

3.6

​

 

1.8

​

 

1,456.5

Middle East, Africa, and South Asia

​

 

630.0

​

 

1.5

​

 

0.4

​

 

—

​

 

631.9

Latin America and the Caribbean

​

 

310.1

​

 

2.4

​

 

75.8

​

 

7.9

​

 

396.2

East Asia and Oceania

​

 

257.4

​

 

60.5

​

 

1.4

​

 

—

​

 

319.3

Revenues from contracts with customers

​

$

4,133.0

​

$

269.1

​

$

156.3

​

$

66.7

​

$

4,625.1

Other revenues (a)

​

 

87.0

​

 

87.0

​

 

14.0

​

 

21.9

​

 

209.9

Total revenues

​

$

4,220.0

​

$

356.1

​

$

170.3

​

$

88.6

​

$

4,835.0

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2019

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments (b)

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

1,653.5

​

$

95.4

​

$

223.0

​

$

55.9

​

$

2,027.8

Europe and Russia/CIS

​

 

1,350.1

​

 

127.1

​

 

3.2

​

 

4.1

​

 

1,484.5

Middle East, Africa, and South Asia

​

 

642.0

​

 

1.8

​

 

0.4

​

 

—

​

 

644.2

Latin America and the Caribbean

​

 

395.2

​

 

3.4

​

 

129.4

​

 

15.3

​

 

543.3

East Asia and Oceania

​

 

263.5

​

 

68.4

​

 

1.5

​

 

—

​

 

333.4

Revenues from contracts with customers

​

$

4,304.3

​

$

296.1

​

$

357.5

​

$

75.3

​

$

5,033.2

Other revenues (a)

​

 

103.5

​

 

92.7

​

 

37.3

​

 

25.4

​

 

258.9

Total revenues

​

$

4,407.8

​

$

388.8

​

$

394.8

​

$

100.7

​

$

5,292.1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2018

​

    

​

​

    

Foreign 

    

​

​

    

​

​

    

​

​

​

​

Consumer 

​

Exchange 

​

​

​

​

​

​

​

​

​

​

​

Money 

​

and Payment 

​

Consumer 

​

Other 

​

​

​

​

​

Transfers

​

Services

​

Bill Payments (b)

​

Services

​

Total

Regions:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

North America

​

$

1,632.3

​

$

97.6

​

$

463.9

​

$

57.4

​

$

2,251.2

Europe and Russia/CIS

​

 

1,399.5

​

 

130.0

​

 

3.1

​

 

3.9

​

 

1,536.5

Middle East, Africa, and South Asia

​

 

654.4

​

 

1.5

​

 

0.3

​

 

—

​

 

656.2

Latin America and the Caribbean

​

 

393.2

​

 

3.1

​

 

152.7

​

 

13.7

​

 

562.7

East Asia and Oceania

​

 

304.6

​

 

69.9

​

 

1.5

​

 

—

​

 

376.0

Revenues from contracts with customers

​

$

4,384.0

​

$

302.1

​

$

621.5

​

$

75.0

​

$

5,382.6

Other revenues (a)

​

 

69.6

​

 

84.7

​

 

30.8

​

 

22.2

​

 

207.3

Total revenues

​

$

4,453.6

​

$

386.8

​

$

652.3

​

$

97.2

​

$

5,589.9

(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.
(b)On February 28, 2019, the Company entered into an agreement with ACI Worldwide Corp. and ACW Worldwide, Inc. to sell its United States electronic bill payments business known as “Speedpay,” and closed the transaction on May 9, 2019. Included within North America revenues are Speedpay revenues of $125.4 million and $352.0 million for the years ended December 31, 2019 and 2018, respectively.

​
v3.20.4
Restructuring-Related Expenses
 12 Months Ended
Dec. 31, 2020
Restructuring-Related Expenses  
Restructuring-Related Expenses

4. Restructuring-Related Expenses

On August 1, 2019, the Company’s Board of Directors approved a plan to change the Company’s operating model and improve its business processes and cost structure by reorganizing the Company’s senior management, including those managers reporting to the Chief Executive Officer (“CEO”), reducing its headcount, and consolidating various facilities.  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 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 therefore excluded from the Company’s segment operating income results. 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, all expenses associated with this plan have been incurred and substantially all have been and will continue to be paid in cash.

​

The following table summarizes the activity for the years ended December 31, 2020 and 2019 for expenses related to the restructuring accruals, which are included in Accounts payable and accrued liabilities in the Company’s Consolidated Balance Sheets as of December 31, 2020 and 2019, and the total expenses incurred since the inception of the restructuring plan (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

    

Severance and 

    

Facility Relocations

    

​

​

​

​

Related 

​

and Closures,

​

​

​

​

​

Employee 

​

Consulting,

​

​

​

​

​

Benefits

​

and Other

​

Total

Balance, December 31, 2018

​

$

—

​

$

—

​

$

—

Expenses (a)

​

 

98.0

​

 

17.5

​

 

115.5

Cash payments

​

​

(28.6)

​

​

(9.6)

​

​

(38.2)

Non-cash benefits/(charges) (a)

​

​

1.8

​

​

(5.8)

​

​

(4.0)

Balance, December 31, 2019

​

$

71.2

​

$

2.1

​

$

73.3

Expenses (a)

​

 

11.8

​

 

25.0

​

 

36.8

Cash payments

​

​

(58.7)

​

​

(24.0)

​

​

(82.7)

Non-cash benefits/(charges) (a)

​

​

0.6

​

​

(1.8)

​

​

(1.2)

Balance, December 31, 2020

​

$

24.9

​

$

1.3

​

$

26.2

​

​

​

​

​

​

​

​

​

​

Total expenses incurred

​

$

109.8

​

$

42.5

​

$

152.3

(a)Non-cash benefits/(charges) include non-cash write-offs and accelerated depreciation of ROU assets and leasehold improvements and a non-cash benefit for adjustments to stock compensation for awards forfeited by employees. These amounts have been removed from the liability balance in the table above as they do not impact the restructuring accruals.

​

The following table presents restructuring-related expenses as reflected in the Consolidated Statements of Income (in millions):

​

​

​

​

​

​

​

​

​

Year Ended December 31,

​

​

2020

​

2019

Cost of services

​

$

4.5

​

$

39.8

Selling, general, and administrative

​

 

32.3

​

 

75.7

Total expenses, pre-tax

​

$

36.8

​

$

115.5

Total expenses, net of tax

​

$

31.5

​

$

90.0

​

​
v3.20.4
Divestitures, Acquisitions, and Goodwill
 12 Months Ended
Dec. 31, 2020
Divestitures, Acquisitions, and Goodwill  
Divestitures, Acquisitions, and Goodwill

5. Divestitures, Acquisitions, and Goodwill

Divestitures of Businesses

On February 28, 2019, the Company entered into an agreement with ACI Worldwide Corp. and ACW Worldwide, Inc. (together, “ACI”) to sell its United States electronic bill payments business known as Speedpay, which had been included as a component of Other in the Company’s segment reporting. The Company received approximately $750 million and recorded a pre-tax gain on the sale of approximately $523 million, which is included in Gain on divestitures of businesses in the accompanying Consolidated Statements of Income, in the all-cash transaction that closed on May 9, 2019. Speedpay revenues included in the Company’s results were $125.4 million and $352.0 million for the years ended December 31, 2019 and 2018, respectively. Speedpay direct operating expenses were $98.2 million and $251.2 million for the years ended December 31, 2019 and 2018, respectively.

On May 6, 2019, the Company completed the sale of Paymap Inc. (“Paymap”), which provides electronic mortgage bill payment services, for contingent consideration and immaterial cash proceeds received at closing. The Company recorded an immaterial pre-tax gain related to this sale during 2019.

​

In 2020, the Company sold its former corporate headquarters and other property and recorded an immaterial pre-tax net gain on the sales. The proceeds from these sales have been included in Cash flows from investing activities within the Company’s Consolidated Statements of Cash Flows for the year ended December 31, 2020.

​

Investment in Saudi Digital Payments Company

​

On November 21, 2020, the Company entered into an agreement to acquire an ownership interest in Saudi Digital Payments Company (“stc pay”), a subsidiary of Saudi Telecom Company and one of the Company’s Consumer-to-Consumer digital white label partners. Under the terms of the agreement, the transaction is intended to occur in two tranches. In the first tranche, the Company agreed to invest approximately $133 million for a 10% investment in stc pay, and, in the second tranche, the Company agreed to invest an additional approximately $67 million for an additional 5% investment in stc pay. The first tranche is expected to close in the first quarter of 2021 and the closing of the second tranche is contingent upon stc pay satisfying certain conditions. In conjunction with the transaction, the Company and stc pay have also agreed to extend and expand 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 pay.

​

Goodwill

The following table presents changes to goodwill for the years ended December 31, 2020 and 2019 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Consumer-to-

    

Business

    

​

​

    

​

​

​

​

Consumer

​

Solutions

​

Other

​

Total

January 1, 2019 goodwill, net

​

$

1,980.7

​

$

532.0

​

$

212.3

​

$

2,725.0

Divestitures (a)

​

 

—

​

 

—

​

 

(158.4)

​

 

(158.4)

December 31, 2019 goodwill, net

​

$

1,980.7

​

$

532.0

​

$

53.9

​

$

2,566.6

Additions

​

​

—

​

​

—

​

​

—

​

​

—

December 31, 2020 goodwill, net

​

$

1,980.7

​

$

532.0

​

$

53.9

​

$

2,566.6

(a)Related to the Speedpay and Paymap divestitures, as described above.

​

The following table presents accumulated impairment losses as of December 31, 2020, 2019, and 2018 (in millions):

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31,

​

    

2020

    

2019

    

2018

Goodwill, gross

​

$

3,030.6

​

$

3,030.6

​

$

3,189.0

Accumulated impairment losses

​

 

(464.0)

​

 

(464.0)

​

 

(464.0)

Goodwill, net

​

$

2,566.6

​

$

2,566.6

​

$

2,725.0

​

The Company did not record any goodwill impairments during the years ended December 31, 2020, 2019, and 2018.

​
v3.20.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2020
Commitments and Contingencies  
Commitments and Contingencies

6. Commitments and Contingencies

Letters of Credit and Bank Guarantees

The Company had approximately $390 million in outstanding letters of credit and bank guarantees as of December 31, 2020 primarily held in connection with safeguarding consumer funds, lease arrangements, and certain agent agreements. The significant majority of the Company’s letters of credit and bank guarantees have a one-year renewal option, and the Company expects to renew prior to expiration in most circumstances.

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 December 31, 2020. 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 January 16, 2020, Stanley 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 had previously filed a shareholder derivative action asserting related claims in the United States District Court

for the District of Colorado, which was subsequently consolidated with multiple pending related derivative actions. Following the filing of multiple amended complaints, 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.

On August 1, 2019, Mr. 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 (“AML”) compliance programs, including certain alleged misconduct at issue in the consolidated derivative action. The Company’s Board of Directors formed a special committee to evaluate Mr. Lieblein’s demand together with a related shareholder demand (the “Demand Letters”), and the special committee’s investigation was still ongoing at the time Mr. Lieblein filed the Delaware Complaint. Mr. Lieblein alleges 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. Within 60 days after December 31, 2020, Mr. Lieblein is required either to specify whether the Delaware Complaint will serve as the operative complaint in the action or file an amended complaint.

The Delaware Complaint filed by Mr. Lieblein on January 16, 2020 includes allegations that the director and officer defendants declined to implement effective anti-fraud and AML compliance systems after receiving numerous red flags indicating prolonged willful illegality, condoned executive officers’ obstruction of efforts by various regulators to impose an effective compliance system on the Company, approved executive compensation packages for management that were not aligned with development of effective anti-fraud and AML compliance programs, allowed management to fail to timely report known or likely impropriety by Company employees or agents to regulatory authorities, failed to require management to adopt a risk assessment for all very high risk areas, refused to remedy the board’s oversight of executive officers, and, in effect, refused Mr. Lieblein’s shareholder demand and related request for tolling agreements.

It also includes allegations that the officer defendants declined to ensure that the Company implemented effective anti-fraud and AML compliance programs after receiving red flags that those programs were inadequate, allowed Company agents to willfully ignore anti-fraud and AML recording and reporting requirements for a prolonged period, opposed efforts by various regulators to implement effective anti-fraud and AML complaint programs, caused the Company to fail to comply with its obligations under settlements with regulators, and knowingly exposed the Company to criminal and civil sanctions.

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 shareholders who sent the Demand Letters that their demands have been rejected. On February 12, 2021, one of the shareholders who sent a Demand Letter 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.

The Company intends to oppose any effort by Mr. Lieblein to continue his action. The Company believes the action is without merit. The Company will likewise oppose any future action by the other shareholders who sent the Demand Letters.

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 is currently in 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 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.

v3.20.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2020
Related Party Transactions  
Related Party Transactions

7. 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 years ended December 31, 2020, 2019, and 2018 totaled $54.6 million, $57.1 million, and $57.6 million, respectively.
v3.20.4
Settlement Assets and Obligations
 12 Months Ended
Dec. 31, 2020
Settlement Assets and Obligations  
Settlement Assets and Obligations

8. 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):

​

​

​

​

​

    

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

​

​

​

​

​

    

December 31, 2019

Settlement assets:

 

​

  

Cash and cash equivalents

​

$

368.2

Receivables from agents, Business Solutions customers, and others

​

 

1,230.1

Investment securities

​

 

1,698.4

Total settlement assets

​

$

3,296.7

Settlement obligations:

​

 

  

Money transfer, money order, and payment service payables

​

$

2,571.5

Payables to agents

​

 

725.2

Total settlement obligations

​

$

3,296.7

​

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 2. 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 $1,081.2 million as of December 31, 2020. 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 $53.9 million as of December 31, 2020. 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, including those related to COVID-19. 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 December 31, 2020.

The following table summarizes 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, 2020

​

$

20.4

​

$

4.5

Current period provision for expected credit losses (a)

​

​

39.9

​

​

2.0

Write-offs charged against the allowance

​

​

(11.9)

​

​

(3.1)

Recoveries of amounts previously written off

​

​

2.3

​

​

—

Impacts of foreign currency exchange rates and other

​

​

(1.4)

​

​

0.5

Allowance for credit losses as of December 31, 2020

​

$

49.3

​

$

3.9

(a)

Provision 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. For the year ended December 31, 2020, the Company recognized $41.3 million of losses that were not credit-related.

Prior to the adoption of the new accounting standard discussed above, the Company recorded an allowance for doubtful accounts when it was probable that the related receivable balance would not be collected based on its history of collection experience, known collection issues, such as agent suspensions and bankruptcies, consumer chargebacks and insufficient funds, and other matters the Company identified in its routine collection monitoring. The allowance for doubtful accounts was $42.2 million as of December 31, 2019 and is recorded in the same balance sheet captions as the related receivable. During the years ended December 31, 2019 and 2018, the provision for doubtful accounts (bad debt expense) reflected in the Consolidated Statements of Income was $47.1 million and $43.9 million, 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 Consolidated Balance Sheets. As of December 31, 2020, amounts advanced to agents were $135.9 million, and the related allowance for credit losses was immaterial.

Investment Securities

Investment securities included in Settlement assets in the Company’s 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 2057. 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. As of and for the year ended December 31, 2020, the Company’s allowance for credit losses and provision for credit losses on its available-for-sale securities were immaterial. Proceeds from the sale and maturity of available-for-sale securities during the years ended December 31, 2020, 2019, and 2018 were $6.2 billion, $5.4 billion, and $7.7 billion.

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

​

    

Gross

    

Gross

    

Net

​

 

Amortized

 

Fair

 

Unrealized

 

Unrealized

 

Unrealized

December 31, 2019

​

Cost

​

Value

 

Gains

 

Losses

 

Gains/(Losses)

Settlement assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents:

 

​

  

 

​

  

 

​