Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 30, 2019
Document and Entity Information
Entity Registrant Name	Western Union CO
Entity Central Index Key	0001365135
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Trading Symbol	wu
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		430,708,512
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Revenues	$ 1,337.0	$ 1,389.4
Type of Revenue	us-gaap:ServiceMember	us-gaap:ServiceMember
Expenses:
Cost of services	$ 785.0	$ 825.4
Type of Cost of Service	us-gaap:ServiceMember	us-gaap:ServiceMember
Selling, general and administrative	$ 300.8	$ 299.1
Total expenses	1,085.8	1,124.5
Operating income	251.2	264.9
Other income/(expense):
Interest income	2.1	0.7
Interest expense	(39.7)	(35.5)
Other income, net	2.5	4.4
Total other expense, net	(35.1)	(30.4)
Income before income taxes	216.1	234.5
Provision for income taxes	43.0	20.9
Net income	$ 173.1	$ 213.6
Earnings per share:
Basic (USD per share)	$ 0.40	$ 0.46
Diluted (USD per share)	$ 0.39	$ 0.46
Weighted-average shares outstanding:
Basic (shares)	437.7	460.3
Diluted (shares)	439.9	463.6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 173.1	$ 213.6
Other comprehensive income/(loss), net of tax (Note 10):
Unrealized gains/(losses) on investment securities	13.0	(8.7)
Unrealized gains/(losses) on hedging activities	3.9	(3.1)
Foreign currency translation adjustments		(7.0)
Defined benefit pension plan adjustments	2.5	2.1
Total other comprehensive income/(loss)	19.4	(16.7)
Comprehensive income	$ 192.5	$ 196.9

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 833.1	$ 973.4
Settlement assets	3,497.5	3,813.8
Property and equipment, net of accumulated depreciation of $668.8 and $702.4 respectively	229.0	270.4
Goodwill	2,568.5	2,725.0
Other intangible assets, net of accumulated amortization of $1,044.6 and $1,047.6, respectively	562.7	598.2
Other assets (Note 5)	767.0	616.0
Assets held for sale (Note 4)	974.2
Total assets	9,432.0	8,996.8
Liabilities:
Accounts payable and accrued liabilities	471.3	564.9
Settlement obligations	3,497.5	3,813.8
Income taxes payable	1,085.1	1,054.0
Deferred tax liability, net	165.3	161.1
Borrowings	3,370.3	3,433.7
Other liabilities (Note 5)	492.0	279.1
Liabilities associated with assets held for sale (Note 4)	724.7
Total liabilities	9,806.2	9,306.6
Commitments and contingencies (Note 7)
Stockholders' deficit:
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued
Common stock, $0.01 par value; 2,000 shares authorized; 432.9 shares and 441.2 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively	4.3	4.4
Capital surplus	771.1	755.6
Accumulated deficit	(938.0)	(838.8)
Accumulated other comprehensive loss	(211.6)	(231.0)
Total stockholders' deficit	(374.2)	(309.8)
Total liabilities and stockholders' deficit	$ 9,432.0	$ 8,996.8

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Millions, $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Assets
Accumulated Depreciation on Property Plant and Equipment	$ 668.8	$ 702.4
Accumulated Amortization on Other Intangible Assets	$ 1,044.6	$ 1,047.6
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	432.9	441.2
Common stock, shares outstanding	432.9	441.2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities
Net income	$ 173.1	$ 213.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	19.2	19.3
Amortization	45.6	47.4
Other non-cash items, net	28.4	8.9
Increase/(decrease) in cash resulting from changes in:
Other assets	(7.3)	(47.3)
Accounts payable and accrued liabilities	(44.1)	(123.2)
Income taxes payable	31.1	11.5
Other liabilities	(6.4)	2.5
Net cash provided by operating activities	239.6	132.7
Cash flows from investing activities
Capitalization of contract costs	(15.1)	(10.3)
Capitalization of purchased and developed software	(6.4)	(6.7)
Purchases of property and equipment	(16.1)	(20.2)
Purchases of non-settlement related investments and other	(4.1)	(4.3)
Proceeds from maturity of non-settlement related investments and other	19.8	10.0
Purchases of held-to-maturity non-settlement related investments	(0.7)	(1.4)
Proceeds from held-to-maturity non-settlement related investments	5.9
Net cash used in investing activities	(16.7)	(32.9)
Cash flows from financing activities
Cash dividends paid	(87.4)	(87.5)
Common stock repurchased (Note 10)	(171.6)	(11.6)
Net (repayments of)/proceeds from commercial paper	(65.0)	110.0
Proceeds from exercise of options	1.8	3.8
Other financing activities	(0.1)	(5.2)
Net cash (used in)/provided by financing activities	(322.3)	9.5
Net change in cash, cash equivalents and restricted cash	(99.4)	109.3
Cash, cash equivalents and restricted cash at beginning of year	979.7	844.4
Cash, cash equivalents and restricted cash at end of year	880.3	953.7
Supplemental cash flow information:
Interest paid	24.0	23.0
Income taxes paid	10.3	13.7
Cash paid for lease liabilities	12.0
Non-cash lease liabilities arising from obtaining right-of-use assets (Note 5)	269.1
Cash included in Assets held for sale (Note 4)	41.0
Restricted cash at end of period (included in Other assets)	$ 6.2	$ 19.4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) shares in Millions, $ in Millions	Common Stock	Capital Surplus	Retained Earnings/(Accumulated Deficit)	Accumulated Other Comprehensive Loss	Total
Increase/(Decrease) in Stockholders' Equity [Roll Forward]
Adoption of new accounting pronouncements as of January 1, 2018			$ 30.7	$ (31.4)	$ (0.7)
Beginning balance at Dec. 31, 2017	$ 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			213.6		213.6
Stock-based compensation		13.8			13.8
Common stock dividends			(87.5)		(87.5)
Repurchase and retirement of common shares			(11.8)		(11.8)
Repurchase and retirement of common shares (shares)	(0.5)
Shares issued under stock-based compensation plans		3.8			3.8
Shares issued under stock-based compensation plans (shares)	2.1
Unrealized gains (losses) on investment securities, net of tax				(8.7)	(8.7)
Unrealized gains (losses) on hedging activities, net of tax				(3.1)	(3.1)
Foreign currency translation adjustments, net of tax				(7.0)	(7.0)
Defined benefit pension plan adjustments, net of tax				2.1	2.1
Ending balance at Mar. 31, 2018	$ 4.6	715.4	(820.9)	(276.0)	(376.9)
Ending balance (shares) at Mar. 31, 2018	460.6
Beginning balance at Dec. 31, 2018	$ 4.4	755.6	(838.8)	(231.0)	$ (309.8)
Beginning balance, Shares at Dec. 31, 2018	441.2				441.2
Increase/(Decrease) in Stockholders' Equity [Roll Forward]
Net income			173.1		$ 173.1
Stock-based compensation		13.7			13.7
Common stock dividends			(87.4)		(87.4)
Repurchase and retirement of common shares	$ (0.1)		(184.9)		(185.0)
Repurchase and retirement of common shares (shares)	(10.2)
Shares issued under stock-based compensation plans		1.8			1.8
Shares issued under stock-based compensation plans (shares)	1.9
Unrealized gains (losses) on investment securities, net of tax				13.0	13.0
Unrealized gains (losses) on hedging activities, net of tax				3.9	3.9
Defined benefit pension plan adjustments, net of tax				2.5	2.5
Ending balance at Mar. 31, 2019	$ 4.3	$ 771.1	$ (938.0)	$ (211.6)	$ (374.2)
Ending balance (shares) at Mar. 31, 2019	432.9				432.9

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
Common stock dividends (USD per share)	$ 0.20	$ 0.19

Business and Basis of Presentation

3 Months Ended

Mar. 31, 2019

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 online money transfer transactions conducted through Western Union branded websites and mobile apps (“westernunion.com”). 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 between two consumers, primarily through a network of third-party agents. The Company views its multi-currency money transfer service as one interconnected global network where a money transfer can be sent from one location to another, around the world. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. This segment also includes money transfer transactions that can be initiated through websites and mobile devices.

·

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 electronic-based and cash-based bill payment services which facilitate payments from consumers to businesses and other organizations. On February 28, 2019, the Company entered into an agreement to sell the substantial majority of its United States based electronic bill payments services, as discussed in Note 4. The Company expects to close the transaction during the second quarter of 2019. The Company’s money order and other services, in addition to certain corporate costs such as costs related to strategic initiatives, including 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, 2018, the amount of these net asset limitations totaled approximately $365 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 March 31, 2019 and December 31, 2018 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 March 31, 2019 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, 2018.

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, 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 5 for additional information and the related disclosures.

Accounting Pronouncements Not Yet Adopted

In June 2016, the Financial Accounting Standards Board issued a new accounting pronouncement regarding credit losses for financial instruments. The new standard 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 is required to adopt the new standard on January 1, 2020. Management is currently evaluating the potential impact that the adoption of this standard will have on the Company’s financial position, results of operations, and related disclosures.

Revenue

3 Months Ended

Mar. 31, 2019

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 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. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.

For the three months ended March 31, 2019 and 2018, the Company recognized $1,275.4 million and $1,346.0 million in revenues from contracts with customers, respectively. There are no material upfront costs incurred to obtain contracts with customers. 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.

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: 1) the customer’s acknowledgment of the Company’s terms and conditions and payment information has been received by the Company, 2) the Company has agreed to process the money transfer, 3) the Company has provided the customer a unique transaction identification number, and 4) funds are available to be picked up by the customer 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: 1) who pays the fee to the Company (consumer or biller), 2) whether the service is offered to all potential consumers, or only to those for which the Company has a relationship with the biller, and 3) 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. The significant majority of the Company’s revenues from bill payment services are generated from contracts to process transactions at any time during the duration of the contract. The transaction price on bill payment services is contractual and determinable. Certain biller agreements may include per-transaction or fixed periodic rebates, which the Company records as a reduction to revenue.

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 three months ended March 31, 2019 and 2018 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated.


	Three Months Ended March 31, 2019
			Foreign
	Consumer		Exchange
	Money		and Payment		Consumer		Other
	Transfers		Services		Bill Payments (c)		Services		Total
Regions:
North America	$	395.5	$	22.1	$	115.1	$	14.5	$	547.2
Europe and Russia/CIS		323.2		31.9		0.6		0.9		356.6
Middle East, Africa, and South Asia		153.3		0.5		0.1		—		153.9
Latin America and the Caribbean		95.3		1.0		33.6		3.5		133.4
East Asia and Oceania		66.5		17.5		0.3		—		84.3
Revenues from contracts with customers	$	1,033.8	$	73.0	$	149.7	$	18.9	$	1,275.4
Other revenues (a)		23.1		22.6		9.5		6.4		61.6
Total revenues (b)	$	1,056.9	$	95.6	$	159.2	$	25.3	$	1,337.0


	Three Months Ended March 31, 2018
			Foreign
	Consumer		Exchange
	Money		and Payment		Consumer		Other
	Transfers		Services		Bill Payments (c)		Services		Total
Regions:
North America	$	394.6	$	24.9	$	123.1	$	14.6	$	557.2
Europe and Russia/CIS		345.5		32.3		0.8		1.0		379.6
Middle East, Africa, and South Asia		166.8		—		0.1		—		166.9
Latin America and the Caribbean		97.7		0.2		45.0		3.2		146.1
East Asia and Oceania		78.5		17.3		0.4		—		96.2
Revenues from contracts with customers	$	1,083.1	$	74.7	$	169.4	$	18.8	$	1,346.0
Other revenues (a)		7.9		22.0		8.1		5.4		43.4
Total revenues (b)	$	1,091.0	$	96.7	$	177.5	$	24.2	$	1,389.4

(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)

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.

(c)

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.” The Company expects to close the transaction during the second quarter of 2019. Included within North America revenues are Speedpay revenues of $88.2 million and $95.0 million for the three months ended March 31, 2019 and 2018, respectively.

Earnings Per Share

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and 2018, there were 4.4 million and 2.0 million, respectively, of shares excluded from the diluted earnings per share calculation under the treasury stock method, primarily due to outstanding options to purchase shares of Western Union stock, as their exercise prices 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
	March 31,
	2019	2018
Basic weighted-average shares outstanding	437.7	460.3
Common stock equivalents	2.2	3.3
Diluted weighted-average shares outstanding	439.9	463.6

Assets and Liabilities Held For Sale

3 Months Ended

Mar. 31, 2019

Assets and Liabilities Held For Sale

Assets and Liabilities Held For Sale

4. Assets and Liabilities Held For Sale

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,” which is included as a component of “Other” in the Company’s segment reporting. The Company will receive approximately $750 million in the all-cash transaction that is expected to close during the second quarter of 2019, and the Company will record a gain on the sale. Speedpay revenues were $88.2 million and $95.0 million, and direct operating expenses were $67.6 million and $66.1 million for the three months ended March 31, 2019 and 2018, respectively.

The following table reflects the assets and liabilities held for sale of Speedpay in the accompanying Condensed Consolidated Balance Sheet (in millions):


	March 31,
	2019
Cash and cash equivalents	$	41.0
Settlement assets		705.7
Property and equipment, net of accumulated depreciation of $17.6		0.3
Goodwill		162.5
Other intangible assets, net of accumulated amortization of $27.3		10.3
Other assets		18.8
Total assets	$	938.6

Settlement obligations	$	705.7
Accounts payable and accrued liabilities		17.6
Deferred tax liability		1.4
Total liabilities	$	724.7

In addition to Speedpay, the Company has included property and equipment related to the Company’s former headquarters of $35.6 million, which is net of accumulated depreciation of $35.1 million, in “Assets held for sale” in the accompanying Condensed Consolidated Balance Sheet as of March 31, 2019. On April 29, 2019, the Company entered into an agreement to sell its former headquarters and expects to record a gain on the sale.

On May 6, 2019, the Company agreed to sell and completed the sale of Paymap Inc. (“Paymap”), which provides electronic mortgage bill payment services, for contingent consideration and immaterial cash proceeds received at closing. Balances related to Paymap were not held for sale as of March 31, 2019.

Leases

3 Months Ended

Mar. 31, 2019

Leases

Leases

5. Leases

The Company leases real properties for use as administrative and sales offices, in addition to automobiles and office equipment. The Company determines if a contract contains a lease arrangement at the inception of the contract. For leases in which the Company is the lessee, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Operating lease ROU assets are initially measured at the present value of lease payments over the lease term plus initial direct costs, if any. If a lease does not provide a discount rate and the rate cannot be readily determined, an incremental borrowing rate is used to determine the future lease payments. Lease and variable non-lease components within the Company’s lease agreements are accounted for separately. The Company has no material leases in which the Company is the lessor.

Substantially all of the Company’s leasing arrangements are classified as operating leases, for which expense is recognized on a straight-line basis. As of March 31, 2019, the total ROU asset and lease liability were $216.8 million and $261.2 million, respectively, and were included in “Other assets” and “Other liabilities,” respectively, in the Company’s Condensed Consolidated Balance Sheet. The Company’s finance leases were not material as of March 31, 2019. Cash paid for lease liabilities is recorded as cash flows from operating activities in the Company’s Condensed Consolidated Statements of Cash Flows. For the three months ended March 31, 2019, operating lease costs were $15.0 million, which were included in the Company’s Condensed Consolidated Statement of Income. Short term and variable lease costs were not material for the three months ended March 31, 2019.

The Company’s leases have remaining terms from less than 1 year to 12 years. Certain of these leases contain escalation provisions or renewal options, giving the Company the right to extend the lease by up to 12 years. However, a substantial majority of these options are not reflected in the calculation of the ROU asset and lease liability due to uncertainty surrounding the likelihood of renewal.

The following table summarizes the weighted average lease terms and discount rates for operating lease liabilities:


		March 31, 2019
Weighted average remaining lease term (in years)		8.1
Weighted average discount rate		6.1%

The following table represents maturities of operating lease liabilities as of March 31, 2019 (in millions):


Due within 1 year	$	51.9
Due after 1 year through 2 years		46.8
Due after 2 years through 3 years		39.6
Due after 3 years through 4 years		34.5
Due after 4 years through 5 years		31.4
Due after 5 years		125.9
Total future minimum lease payments		330.1
Less imputed interest		(68.9)
Total	$	261.2

Fair Value Measurements

3 Months Ended

Mar. 31, 2019

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, 2018.

The following tables reflect assets and liabilities that were measured at fair value on a recurring basis (in millions):


							Assets/
							Liabilities at
	Fair Value Measurement Using						Fair
March 31, 2019	Level 1		Level 2		Level 3		Value
Assets:
Settlement assets:
Measured at fair value through net income:
Money market funds	$	14.8	$	—	$	—	$	14.8
Measured at fair value through other comprehensive income:
State and municipal debt securities		—		984.8		—		984.8
State and municipal variable rate demand notes		—		295.6		—		295.6
Corporate and other debt securities		—		75.9		—		75.9
United States Treasury securities		9.8		—		—		9.8
Other assets:
Derivatives		—		200.9		—		200.9
Total assets	$	24.6	$	1,557.2	$	—	$	1,581.8
Liabilities:
Derivatives	$	—	$	129.5	$	—	$	129.5
Total liabilities	$	—	$	129.5	$	—	$	129.5


							Assets/
							Liabilities at
	Fair Value Measurement Using						Fair
December 31, 2018	Level 1		Level 2		Level 3		Value
Assets:
Cash:
Measured at fair value through net income:
Money market funds	$	27.0	$	—	$	—	$	27.0
Settlement assets:
Measured at fair value through net income:
Money market funds		23.9		—		—		23.9
Measured at fair value through other comprehensive income:
State and municipal debt securities		—		962.7		—		962.7
State and municipal variable rate demand notes		—		168.7		—		168.7
Corporate and other debt securities		—		69.5		—		69.5
United States Treasury securities		9.7		—		—		9.7
Other assets:
Derivatives		—		245.5		—		245.5
Total assets	$	60.6	$	1,446.4	$	—	$	1,507.0
Liabilities:
Derivatives	$	—	$	176.2	$	—	$	176.2
Total liabilities	$	—	$	176.2	$	—	$	176.2

No non-recurring fair value adjustments were recorded during the three months ended March 31, 2019 and 2018.

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 settlement obligations approximate fair value due to their short maturities. The Company’s borrowings are classified as Level 2 of the valuation hierarchy, and the aggregate fair value of these borrowings was based on quotes from multiple banks and excluded the impact of related interest rate swaps. 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, except for portions of notes hedged by these interest rate swaps, as disclosed in Note 11. As of March 31, 2019, the carrying value and fair value of the Company’s borrowings were $3,370.3 million and $3,415.9 million, respectively (see Note 12). As of December 31, 2018, the carrying value and fair value the Company’s borrowings were $3,433.7 million and $3,394.6 million, respectively.

The Company holds investments in foreign corporate debt securities that are classified as held-to-maturity securities within Level 2 of the valuation hierarchy and are recorded at amortized cost in "Other Assets" in the Company’s Condensed Consolidated Balance Sheets. As of March 31, 2019, the carrying value and fair value of the Company’s foreign corporate debt securities were $27.0 million and $27.1 million, respectively. As of December 31, 2018, both the carrying value and fair value of the Company’s foreign corporate debt securities were $32.9 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	7. Commitments and Contingencies Letters of Credit and Bank Guarantees The Company had approximately $285 million in outstanding letters of credit and bank guarantees as of March 31, 2019 that are primarily held in connection with safeguarding consumer funds, lease arrangements, and certain agent agreements. The letters of credit and bank guarantees have expiration dates through 2024, with many having a one-year renewal option. The Company expects to renew the letters of credit and bank guarantees prior to expiration in most circumstances. These letters of credit and bank guarantees exclude guarantees that the Company may provide as part of its legal matters, as described below. 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 loss 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 $50 million as of March 31, 2019. For the remaining matters, management is unable to provide a meaningful estimate of the possible loss or range of loss because, among other reasons: (a) the proceedings are in preliminary stages; (b) specific damages have not been sought; (c) damage claims are unsupported and/or unreasonable; (d) there is uncertainty as to the outcome of pending appeals or motions; (e) there are significant factual issues to be resolved; or (f) 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. United States Department of Justice, Federal Trade Commission, Financial Crimes Enforcement Network, and State Attorneys General Settlements In late November 2016, the Company entered into discussions with the United States Department of Justice (the “DOJ”), the United States Attorney’s Office for the Central District of California ("USAO-CDCA"), the United States Attorney’s Office for the Eastern District of Pennsylvania ("USAO-EDPA"), the United States Attorney’s Office for the Middle District of Pennsylvania ("USAO-MDPA"), and the United States Attorney’s Office for the Southern District of Florida (“USAO-SDFL”) to resolve the investigations by the USAO-CDCA, USAO-EDPA, USAO-MDPA, and USAO-SDFL (collectively, the “USAOs”) (collectively, the “USAO Investigations”). On January 19, 2017, the Company announced that it, or its subsidiary Western Union Financial Services, Inc. (“WUFSI”), had entered into (1) a Deferred Prosecution Agreement (the “DPA”) with the DOJ and the USAOs; (2) a Stipulated Order for Permanent Injunction and Final Judgment (the “Consent Order”) with the United States Federal Trade Commission (“FTC”) resolving claims by the FTC alleging unfair acts and practices under the Federal Trade Commission Act and for violations of the FTC Telemarketing Sales Rule; and (3) a Consent to the Assessment of Civil Money Penalty with the Financial Crimes Enforcement Network (“FinCEN”) of the United States Department of Treasury (the “FinCEN Agreement”), to resolve the respective investigations of those agencies. FinCEN provided notice to the Company dated December 16, 2016 of its investigation regarding possible violations of the United States Bank Secrecy Act ("BSA"). On January 31, 2017, the Company entered into assurances of discontinuance/assurances of voluntary compliance with the attorneys general of 49 U.S. states and the District of Columbia named therein to resolve investigations by the state attorneys general, which sought information and documents relating to money transfers sent from the United States to certain countries, consumer fraud complaints that the Company had received and the Company’s procedures to help identify and prevent fraudulent transfers. On April 12, 2017, the Company settled with the one remaining state attorney general under effectively the same terms as the January 31, 2017 agreement with no additional monetary payment required. The agreements with the state attorneys general are collectively referred to herein as the "State AG Agreement." The DPA, Consent Order, FinCEN Agreement, and State AG Agreement are collectively referred to herein as the "Joint Settlement Agreements." Pursuant to the DPA, the USAOs filed a two-count criminal information in the United States District Court for the Middle District of Pennsylvania, charging the Company with aiding and abetting wire fraud and willfully failing to implement an effective anti-money laundering ("AML") program. The USAOs agreed that if the Company fully complies with all of its obligations under the DPA, the USAOs will, at the conclusion of the DPA’s term, seek dismissal with prejudice of the criminal information filed against the Company. Under the Joint Settlement Agreements, the Company was required to (1) pay an aggregate amount of $586 million to the DOJ to be used to reimburse consumers who were the victims of third-party fraud conducted through the Company’s money transfer services (the “Compensation Payment”), (2) pay an aggregate amount of $5 million to the State Attorneys General to reimburse investigative, enforcement, and other costs, and (3) retain an independent compliance auditor for three years to review and assess actions taken by the Company under the Consent Order to further enhance its oversight of agents and protection of consumers. The FinCEN Agreement also set forth a civil penalty of $184 million, the full amount of which was deemed satisfied by the Compensation Payment, without any additional payment or non-monetary obligations. No separate payment to the FTC was required under the Joint Settlement Agreements. The Company paid the Compensation Payment and the aggregate amount due to the State Attorneys General during 2017. The Joint Settlement Agreements also require, among other things, the Company to adopt certain new or enhanced practices with respect to its compliance program relating to consumer reimbursement, agent due diligence, agent training, monitoring, reporting, and record-keeping by the Company and its agents, consumer fraud disclosures, agent suspensions and terminations, and other items. The changes in the Company’s compliance program required by the Joint Settlement Agreements have had and are expected to have adverse effects on the Company’s business, including additional costs and potential loss of business. The Company has faced (as described below) and could also face additional actions from other regulators as a result of the Joint Settlement Agreements. Further, if the Company fails to comply with the Joint Settlement Agreements, it could face criminal prosecution, civil litigation, significant fines, damage awards or other regulatory consequences. Any or all of these outcomes could have a material adverse effect on the Company’s business, financial condition, results of operations, and cash flows. Shareholder Derivative Actions On January 13, 2014, Natalie Gordon served the Company with a Verified Shareholder Derivative Complaint and Jury Demand that was filed in District Court, Douglas County, Colorado naming the Company’s President and Chief Executive Officer, one of its former executive officers, one of its former directors, and all but one of its current directors as individual defendants, and the Company as a nominal defendant. The complaint asserts claims for breach of fiduciary duty and gross mismanagement against all of the individual defendants and unjust enrichment against the President and Chief Executive Officer and the former executive officer based on allegations that between February 12, 2012 to October 30, 2012, the individual defendants made or caused the Company to issue false and misleading statements or failed to make adequate disclosures regarding the effects of a settlement agreement signed on February 11, 2010 between WUFSI and the State of Arizona regarding WUFSI’s AML compliance programs along the United States and Mexico border ("Southwest Border Agreement"), including regarding the anticipated costs of compliance with the Southwest Border Agreement, potential effects on business operations, and Company projections. Plaintiff also alleges that the individual defendants caused or allowed the Company to lack requisite internal controls, caused or allowed financial statements to be misstated, and caused the Company to be subject to the costs, expenses and liabilities associated with City of Taylor Police and Fire Retirement System v. The Western Union Company, et al., a lawsuit that was subsequently renamed and dismissed. Plaintiff further alleges that the Company’s President and Chief Executive Officer and the former executive officer received excessive compensation based on the allegedly inaccurate financial statements. On March 12, 2014, the Court entered an order granting the parties’ joint motion to stay proceedings in the case during the pendency of certain of the shareholder derivative actions described below. On February 13, 2019, the case was administratively closed, although the Court indicated that a motion could be filed to re-open the matter. In 2014, Stanley Lieblein, R. Andre Klein, City of Cambridge Retirement System, Mayar Fund Ltd, Louisiana Municipal Police Employees’ Retirement System, MARTA/ATU Local 732 Employees Retirement Plan, and The Police Retirement System of St. Louis filed shareholder derivative complaints in the United States District Court for the District of Colorado (or were removed to the United States District Court for the District of Colorado) naming the Company’s President and Chief Executive Officer and certain current and former directors and a former executive officer as individual defendants, and the Company as a nominal defendant. On January 5, 2015, the court entered an order consolidating the actions and appointing City of Cambridge Retirement System and MARTA/ATU Local 732 Employees Retirement Plan as co-lead plaintiffs. On February 4, 2015, co-lead plaintiffs filed a verified consolidated shareholder derivative complaint naming the Company’s President and Chief Executive Officer and nine current or former executive officers and directors as individual defendants, and the Company as a nominal defendant. The consolidated complaint asserts separate claims for breach of fiduciary duty against the director defendants and the officer defendants, claims against all of the individual defendants for violations of section 14(a) of the Securities Exchange Act of 1934 ("Exchange Act"), corporate waste and unjust enrichment, and a claim against the former executive officer for breach of fiduciary duties for insider selling and misappropriation of information. The breach of fiduciary duty claim against the director defendants includes allegations that they declined to implement an effective AML compliance system after receiving numerous red flags indicating prolonged willful illegality, obstructed the efforts of the monitor assigned to the Company pursuant to the Southwest Border Agreement to impose effective compliance systems on the Company, failed to take action in response to alleged Western Union management efforts to undermine the monitor, reappointed the same directors to the Audit Committee and Corporate Governance and Public Policy Committees constituting a majority of those committees between 2006 and 2014, appointed a majority of directors to the Compliance Committee who were directly involved in overseeing the alleged misconduct as members of the Audit Committee and the Corporate Governance and Public Policy Committee, caused the Company to materially breach the Southwest Border Agreement, caused the Company to repurchase its stock at artificially inflated prices, awarded the Company’s senior executives excessive compensation despite their responsibility for the Company’s alleged willful non-compliance with state and federal AML laws, and failed to prevent the former executive officer from misappropriating and profiting from nonpublic information when making allegedly unlawful stock sales. The breach of fiduciary duty claim against the officer defendants includes allegations that they caused the Company and allowed its agents to ignore the recording and reporting requirements of the BSA and parallel AML laws and regulations for a prolonged period of time, authorized and implemented AML policies and practices that they knew or should have known to be inadequate, caused the Company to fail to comply with the Southwest Border Agreement and refused to implement and maintain adequate internal controls. The claim for violations of section 14(a) of the Exchange Act includes allegations that the individual defendants caused the Company to issue proxy statements in 2012, 2013 and 2014 containing materially incomplete and inaccurate disclosures - in particular, by failing to disclose the extent to which the Company’s financial results depended on the non-compliance with AML requirements, the Board’s awareness of the regulatory and criminal enforcement actions in real time pursuant to the 2003 Consent Agreement with the California Department of Financial Institutions and that the directors were not curing violations and preventing misconduct, the extent to which the Board considered the flood of increasingly severe red flags in their determination to re-nominate certain directors to the Audit Committee between 2006 and 2010, and the extent to which the Board considered ongoing regulatory and criminal investigations in awarding multi-million dollar compensation packages to senior executives. The corporate waste claim includes allegations that the individual defendants paid or approved the payment of undeserved executive and director compensation based on the illegal conduct alleged in the consolidated complaint, which exposed the Company to civil liabilities and fines. The corporate waste claim also includes allegations that the individual defendants made improper statements and omissions, which forced the Company to expend resources in defending itself in City of Taylor Police and Fire Retirement System v. The Western Union Company, et al., a lawsuit that was subsequently renamed and dismissed, authorized the repurchase of over $1.565 billion of the Company’s stock at prices they knew or recklessly were aware, were artificially inflated, failed to maintain sufficient internal controls over the Company’s marketing and sales process, failed to consider the interests of the Company and its shareholders, and failed to conduct the proper supervision. The claim for unjust enrichment includes allegations that the individual defendants derived compensation, fees and other benefits from the Company and were otherwise unjustly enriched by their wrongful acts and omissions in managing the Company. The claim for breach of fiduciary duties for insider selling and misappropriation of information includes allegations that the former executive sold Company stock while knowing material, nonpublic information that would have significantly reduced the market price of the stock. On March 16, 2015, the defendants filed a motion to dismiss the consolidated complaint. On March 31, 2016, the Court entered an order granting the defendants’ collective motion to dismiss without prejudice, denying as moot a separate motion to dismiss that was filed by the former executive officer, and staying the order for 30 days, within which plaintiffs could file an amended complaint that cured the defects noted in the order. On May 2, 2016, co-lead plaintiffs filed a verified amended consolidated shareholder derivative complaint naming the Company’s President and Chief Executive Officer, six of its current directors (including the Company’s President and Chief Executive Officer, who also serves as a director) and three of its former directors as individual defendants, and the Company as a nominal defendant. The amended complaint, among other things, drops the claims against the former executive officer named in the prior complaint, realleges and narrows the breach of fiduciary duty claims, and drops the remaining claims. On June 15, 2016, defendants filed a motion to dismiss the amended consolidated shareholder derivative complaint. On August 1, 2016, plaintiffs filed an opposition to the motion to dismiss. On September 1, 2016, defendants filed a reply brief in support of the motion to dismiss. On February 24, 2017, plaintiffs filed a motion to supplement the amended complaint with allegations relating to the DPA, the criminal information filed in the United States District Court for the Middle District of Pennsylvania, and the FTC’s January 19, 2017 Complaint for Permanent Injunctive and Other Equitable Relief and the Consent Order referenced in the United States Department of Justice, Federal Trade Commission, Financial Crimes Enforcement Network, and State Attorneys General Settlements section above. The same day, the Court granted plaintiffs’ request to supplement the complaint, ordered them to file a second amended complaint, denied without prejudice defendants’ motion to dismiss and granted defendants leave to renew the motion to dismiss. On March 17, 2017, plaintiffs filed a second amended derivative complaint. On September 29, 2017, the Court granted defendants’ motion to dismiss the second amended derivative complaint. On December 19, 2017, plaintiffs filed an appeal brief in the United States Court of Appeals for the Tenth Circuit, seeking reversal of the dismissal, to which the Company filed an opposition on February 20, 2018. Plaintiffs filed a reply brief on March 30, 2018. On April 16, 2019, the United States Court of Appeals for the Tenth Circuit affirmed the dismissal of the second amended derivative complaint. Due to the stages of the actions described above under "Shareholder Derivative Actions," the Company is unable to predict the outcome, or reasonably estimate the possible loss or range of loss, if any, which could be associated with these actions. The Company and the named individuals intend to vigorously defend themselves in all of these matters. Other Matters The Company and one of its subsidiaries are defendants in two purported class action lawsuits: James P. Tennille v. The Western Union Company and Robert P. Smet v. The Western Union Company, both of which are pending in the United States District Court for the District of Colorado. The original complaints asserted claims for violation of various consumer protection laws, unjust enrichment, conversion and declaratory relief, based on allegations that the Company waits too long to inform consumers if their money transfers are not redeemed by the recipients and that the Company uses the unredeemed funds to generate income until the funds are escheated to state governments. During the fourth quarter of 2012, the parties executed a settlement agreement, which the Court preliminarily approved on January 3, 2013. On June 25, 2013, the Court entered an order certifying the class and granting final approval to the settlement. Under the approved settlement, a substantial amount of the settlement proceeds, as well as all of the class counsel’s fees, administrative fees and other expenses, would be paid from the class members’ unclaimed money transfer funds. During the final approval hearing, the Court overruled objections to the settlement that had been filed by several class members. In July 2013, two of those class members filed notices of appeal. On May 1, 2015, the United States Court of Appeals for the Tenth Circuit affirmed the District Court’s decision to overrule the objections filed by the two class members who appealed. On January 11, 2016, the United States Supreme Court denied petitions for certiorari that were filed by the two class members who appealed. On February 1, 2016, pursuant to the settlement agreement and the Court’s June 25, 2013 final approval order, Western Union deposited the class members’ unclaimed money transfer funds into a class settlement fund, from which class member claims, administrative fees and class counsel’s fees, as well as other expenses have been paid, with the remainder to go to eligible jurisdictions to which the unclaimed funds would have escheated in the absence of a settlement. On April 3, 2018, the Court entered an order creating a fund for the remainder of the unclaimed funds, which gave eligible jurisdictions one year to execute a release to receive their proportionate share of the fund. All but one of the eligible jurisdictions have executed a release in order to receive their share of the fund, relieving the Company from potential unclaimed property liability for the transactions covered by the settlement, and the Company believes that the reasonably possible loss associated with the remaining jurisdiction is immaterial. On March 12, 2014, Jason Douglas filed a purported class action complaint in the United States District Court for the Northern District of Illinois asserting a claim under the Telephone Consumer Protection Act, 47 U.S.C. § 227, et seq., based on allegations that since 2009, the Company has sent text messages to class members’ wireless telephones without their consent. During the first quarter of 2015, the Company’s insurance carrier and the plaintiff reached an agreement to create an $8.5 million settlement fund that will be used to pay all class member claims, class counsel’s fees and the costs of administering the settlement. The agreement has been signed by the parties and, on November 10, 2015, the Court granted preliminary approval to the settlement. On January 9, 2018, plaintiff filed a motion requesting decisions on its pending motion to approve the settlement and motion for attorneys’ fees, costs, and incentive award. On August 31, 2018, the Court issued an order approving the settlement, in which the Court modified the class definition slightly and ordered the parties to provide additional notice to the class. The Company accrued an amount equal to the retention under its insurance policy in previous quarters and believes that any amounts in excess of this accrual will be covered by the insurer. However, if the Company’s insurer is unable to or refuses to satisfy its obligations under the policy or the parties are unable to reach a definitive agreement or otherwise agree on a resolution, the Company’s financial condition, results of operations, and cash flows could be adversely impacted. As the parties have reached an agreement in this matter, the Company believes that the potential for additional loss in excess of amounts already accrued is remote. 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. 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. On February 22, 2017, the Company, its President and Chief Executive Officer, its Chief Financial Officer, and a former executive officer of the Company were named as defendants in two purported class action lawsuits, both of which asserted claims under section 10(b) of the Exchange Act and Securities and Exchange Commission rule 10b‑5 and section 20(a) of the Exchange Act. On May 3, 2017, the two cases were consolidated by the United States District Court for the District of Colorado under the caption Lawrence Henry Smallen and Laura Anne Smallen Revocable Living Trust et al. v. The Western Union Company et al., Civil Action No. 1:17‑cv‑00474‑KLM (D. Colo.). On September 6, 2017, the Court appointed Lawrence Henry Smallen and Laura Anne Smallen Revocable Living Trust as the lead plaintiff. On November 6, 2017, the plaintiffs filed a consolidated amended complaint (“Amended Complaint”) that, among other things, added two other former executive officers as defendants, one of whom subsequently was voluntarily dismissed by the plaintiffs. The Amended Complaint asserts claims under section 10(b) of the Exchange Act and Securities and Exchange Commission rule 10b‑5 and section 20(a) of the Exchange Act, and alleges that, during the purported class period of February 24, 2012, through May 2, 2017, the defendants made false or misleading statements or failed to disclose purported adverse material facts regarding, among other things, the Company’s compliance with AML and anti-fraud regulations, the status and likely outcome of certain governmental investigations targeting the Company, the reasons behind the Company’s decisions to make certain regulatory enhancements, and the Company’s premium pricing. The defendants filed a motion to dismiss the complaint on January 16, 2018, and on March 27, 2019, the Court dismissed the action in its entirety with prejudice and entered final judgment in the defendants’ favor on March 28, 2019. On April 26, 2019, plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Tenth Circuit. 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, which could be associated with it. The Company and the individual defendants intend to vigorously defend themselves in this matter. On February 13, 2017, the Company’s subsidiary, Western Union Payment Services Ireland Limited (“WUPSIL”), was served with a writ of accusation from the National Court of Spain. The writ charges 98 former Western Union money transfer agents or agent representatives with fraud and money laundering in connection with consumer fraud scams they allegedly perpetrated using Western Union money transfer transactions. The writ also names WUPSIL as a civil defendant, allegedly responsible under Spanish law to pay any portion of the alleged amount in victim losses that cannot be repaid by any of the criminal defendants who are convicted. In accordance with Spanish law, on January 4, 2018, the Company, through its subsidiary Western Union International Limited, provided a corporate guaranty in an amount of approximately €23 million to cover any liability that could theoretically attach to WUPSIL. Due to the preliminary stage of this matter, the Company is unable to predict the outcome, or the amount of loss, if any, associated with this matter. On March 31, 2017, the Company received a request for the production of documents from the New York State Department of Financial Services (the "NYDFS"), following up on a meeting the Company had with the NYDFS on March 7, 2017. The requests pertain to the Company’s oversight of one current and two former Western Union agents located in New York state. The two former agents were identified in the DPA described in the United States Department of Justice, Federal Trade Commission, Financial Crimes Enforcement Network, and State Attorneys General Settlements section above, and were terminated as agents by the Company prior to 2013. On July 28, 2017, the NYDFS informed the Company that the facts set forth in the DPA regarding the Company’s anti-money laundering programs over the 2004 through 2012 period gave the NYDFS a basis to take additional enforcement action. On January 4, 2018, the Company’s subsidiary, WUFSI, and the NYDFS agreed to a consent order (the "NYDFS Consent Order"), which resolved the NYDFS investigation into these matters. Under the NYDFS Consent Order, the Company was required, among other things, to pay to the NYDFS a civil monetary penalty of $60 million, which the Company paid on January 12, 2018. The NYDFS Consent Order also imposes certain non-monetary obligations, including a requirement to provide to the NYDFS a remediation plan within 90 days after the date of the NYDFS Consent Order, which the Company provided on April 4, 2018. On April 26, 2018, the Company, its WUFSI subsidiary, its President and Chief Executive Officer, and various “Doe Defendants” (purportedly including Western Union officers, directors, and agents) were named as defendants in a purported class action lawsuit asserting claims for alleged violations of civil Racketeer Influenced and Corrupt Organizations Act and the Colorado Organized Crime Act, civil theft, negligence, unjust enrichment, and conversion under the caption Frazier et al. v. The Western Union Company et al., Civil Action No. 1:18‑cv‑00998‑KLM (D. Colo.). The complaint alleges that, during the purported class period of January 1, 2004 to the present, and based largely on the admissions and allegations relating to the DPA, the FTC Consent Order, and the NYDFS Consent Order, the defendants engaged in a scheme to defraud customers through Western Union’s money transfer system. The plaintiffs filed an amended complaint on July 17, 2018. The amended complaint is similar to the original complaint, although it adds additional named plaintiffs and additional counts, including claims on behalf of putative California, Florida, Georgia, Illinois, and New Jersey subclasses for alleged violations of the California Unfair Competition Law, the Florida Deceptive and Unfair Trade Practices Act, the Georgia Fair Business Practices Act, the Illinois Consumer Fraud and Deceptive Business Practices Act, and the New Jersey Consumer Fraud Act. On August 28, 2018, the Company and the other defendants moved to stay the action in favor of individual arbitrations with the named plaintiffs, which defendants contend are contractually required. On March 27, 2019, the Court granted that motion and stayed the action pending individual arbitrations with the named plaintiffs. To date, no such individual arbitration requests have been filed. Due to the stage of the matter, the Company is unable to predict the outcome, or the possible loss or range of loss, if any, which could be associated with it. The Company and the other defendants intend to vigorously defend themselves 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.

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2019
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 March 31, 2019 and 2018 totaled $13.0 million and $13.8 million, respectively.

Settlement Assets and Obligations and Non-Settlement Related Investments

3 Months Ended

Mar. 31, 2019

Settlement Assets and Obligations and Non-Settlement Related Investments

Settlement Assets and Obligations and Non-Settlement Related Investments

9. Settlement Assets and Obligations and Non-Settlement Related Investments

Settlement assets represent funds received or to be received from agents 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):


	March 31,		December 31,
	2019		2018
Settlement assets:
Cash and cash equivalents	$	1,394.9	$	1,247.8
Receivables from selling agents and Business Solutions customers		1,442.2		1,355.4
Investment securities		1,366.1		1,210.6
	$	4,203.2	$	3,813.8
Settlement obligations:
Money transfer, money order and payment service payables	$	2,790.2	$	2,793.6
Payables to agents		1,413.0		1,020.2
	$	4,203.2	$	3,813.8

The table above includes $705.7 million of settlement assets and obligations related to Speedpay, which is classified as held for sale as of March 31, 2019 (see Note 4).

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 2049. These securities may be used by the Company for short-term liquidity needs and held for short periods of time. 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 state and foreign country requirements.

The substantial majority of the Company’s investment securities are classified as available-for-sale and recorded at fair value. Investment securities are exposed to market risk due to changes in interest rates and credit risk. Western Union regularly monitors credit risk and attempts to mitigate its exposure by investing in highly-rated securities and through investment diversification.

Unrealized gains and losses on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes. Proceeds from the sale and maturity of available-for-sale securities during the three months ended March 31, 2019 and 2018 were $1.5 billion and $2.7 billion, respectively.

Gains and losses on investments are calculated using the specific-identification method and are recognized during the period in which the investment is sold or when an investment experiences an other-than-temporary decline in value. Factors that could indicate an impairment exists include, but are not limited to: earnings performance, changes in credit rating or adverse changes in the regulatory or economic environment of the asset. If potential impairment exists, the Company assesses whether it has the intent to sell the debt security, more likely than not will be required to sell the debt security before its anticipated recovery or expects that some of the contractual cash flows will not be received.

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


					Gross		Gross		Net
	Amortized		Fair		Unrealized		Unrealized		Unrealized
March 31, 2019	Cost		Value		Gains		Losses		Gains/(Losses)
Settlement assets:
Cash and cash equivalents:
Money market funds	$	14.8	$	14.8	$	—	$	—	$	—
Available-for-sale securities:
State and municipal debt securities (a)		969.3		984.8		16.5		(1.0)		15.5
State and municipal variable rate demand notes		295.6		295.6		—		—		—
Corporate and other debt securities		75.9		75.9		0.3		(0.3)		—
United States Treasury securities		9.9		9.8		—		(0.1)		(0.1)
		1,350.7		1,366.1		16.8		(1.4)		15.4
Other assets:
Held-to-maturity securities:
Foreign corporate debt securities		27.0		27.1		0.1		—		0.1
	$	1,392.5	$	1,408.0	$	16.9	$	(1.4)	$	15.5


					Gross		Gross		Net
	Amortized		Fair		Unrealized		Unrealized		Unrealized
December 31, 2018	Cost		Value		Gains		Losses		Gains/(Losses)
Cash:
Money market funds	$	27.0	$	27.0	$	—	$	—	$	—
Settlement assets:
Cash and cash equivalents:
Money market funds		23.9		23.9		—		—		—
Available-for-sale securities:
State and municipal debt securities (a)		963.4		962.7		6.1		(6.8)		(0.7)
State and municipal variable rate demand notes		168.7		168.7		—		—		—
Corporate and other debt securities		70.0		69.5		—		(0.5)		(0.5)
United States Treasury securities		9.9		9.7		—		(0.2)		(0.2)
		1,212.0		1,210.6		6.1		(7.5)		(1.4)
Other assets:
Held-to-maturity securities:
Foreign corporate debt securities		32.9		32.9		—		—		—
	$	1,295.8	$	1,294.4	$	6.1	$	(7.5)	$	(1.4)

(a)

The majority of these securities are fixed rate instruments.

The following summarizes the contractual maturities of settlement-related debt securities as of March 31, 2019 (in millions):


	Fair
	Value
Due within 1 year	$	148.8
Due after 1 year through 5 years		489.3
Due after 5 years through 10 years		266.4
Due after 10 years		461.6
	$	1,366.1

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 $295.6 million were included in the "Due after 10 years" category in the table above. The held-to-maturity foreign corporate debt securities are due within one year.

Stockholders' Deficit

3 Months Ended

Mar. 31, 2019

Stockholders' Deficit

Stockholders' Deficit

10. Stockholders’ Deficit

Accumulated other comprehensive loss

The following table summarizes the components of accumulated other comprehensive loss, net of tax (in millions). All amounts reclassified from accumulated other comprehensive loss affect the line items as indicated below within the Condensed Consolidated Statements of Income. Additionally, as described in the Company’s 2018 Annual Report on Form 10‑K, in the first quarter of 2018, the Company adopted an accounting pronouncement and reclassified tax effects included within accumulated other comprehensive income/(loss) as a result of the United States tax reform legislation enacted in December 2017 (the “Tax Act”) to "Accumulated deficit" in the Condensed Consolidated Balance Sheet.


	Three Months Ended
	March 31,
	2019		2018
Unrealized gains/(losses) on investment securities, beginning of period	$	(1.1)	$	2.7
Unrealized gains/(losses)		16.8		(11.7)
Tax (expense)/benefit		(3.8)		2.6
Reclassification of losses into "Revenues"		—		0.5
Tax benefit related to reclassifications		—		(0.1)
Net unrealized gains/(losses) on investment securities		13.0		(8.7)
Reclassification of Tax Act effects into "Accumulated deficit"		—		0.5
Unrealized gains/(losses) on investment securities, end of period	$	11.9	$	(5.5)

Unrealized gains/(losses) on hedging activities, beginning of period	$	7.4	$	(40.6)
Unrealized gains/(losses)		4.4		(12.3)
Tax (expense)/benefit		0.9		(0.5)
Reclassification of (gains)/losses into "Revenues"		(1.4)		9.4
Reclassification of losses into "Interest expense"		—		0.8
Tax expense/(benefit) related to reclassifications		—		(0.5)
Net unrealized gains/(losses) on hedging activities		3.9		(3.1)
Reclassification of Tax Act effects into "Accumulated deficit"		—		(2.3)
Unrealized gains/(losses) on hedging activities, end of period	$	11.3	$	(46.0)

Foreign currency translation adjustments, beginning of period	$	(101.2)	$	(76.9)
Foreign currency translation adjustments (a)		—		(7.0)
Net foreign currency translation adjustments		—		(7.0)
Reclassification of Tax Act effects into "Accumulated deficit"		—		(4.8)
Foreign currency translation adjustments, end of period	$	(101.2)	$	(88.7)

Defined benefit pension plan adjustments, beginning of period	$	(136.1)	$	(113.1)
Reclassification of losses into "Other income, net"		2.7		2.9
Tax benefit related to reclassifications		(0.2)		(0.8)
Net defined benefit pension plan adjustments		2.5		2.1
Reclassification of Tax Act effects into "Accumulated deficit"		—		(24.8)
Defined benefit pension plan adjustments, end of period	$	(133.6)	$	(135.8)
Accumulated other comprehensive loss, end of period	$	(211.6)	$	(276.0)

(a)

Beginning in the third quarter of 2018, all changes in the value of the Argentine peso on the Company's monetary assets and liabilities are reflected in net income, given Argentina’s status as a highly inflationary economy. Prior to the third quarter of 2018, changes in the Argentine peso exchange rate were reflected in net income for the Company's money transfer operations, whereas these effects were reflected in other comprehensive income for the Company's bill payment operations. This designation did not have a material impact on the Company's financial position and results of operations during the three months ended March 31, 2019 and 2018.

Cash Dividends Paid

During the first quarter of 2019 and 2018, the Company's Board of Directors declared quarterly cash dividends of $0.20 and $0.19 per common share, respectively, representing $87.4 million and $87.5 million in total dividends, which were paid on March 29, 2019 and March 30, 2018, respectively.

Share Repurchases

During the three months ended March 31, 2019, 9.7 million shares were repurchased for $175.0 million, excluding commissions, at an average cost of $18.06. These amounts represent shares authorized by the Board of Directors for repurchase under publicly announced authorizations. No shares were repurchased during the three months ended March 31, 2018 under the share repurchase program approved by the Board of Directors. As of March 31, 2019, $369.2 million and $1.0 billion remained available under the share repurchase authorizations approved by the Company’s Board of Directors through December 31, 2019 and December 31, 2021, respectively. 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 as well as shares withheld from employees to cover tax withholding obligations on restricted stock units that have vested.

Derivatives

3 Months Ended

Mar. 31, 2019

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 Canadian dollar, British pound, Australian dollar, Japanese yen, and other currencies, related to forecasted revenues and on 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 payments 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 uses derivatives to (a) minimize its exposures related to changes in foreign currency exchange rates and interest rates and (b) facilitate cross-currency Business Solutions payments by writing derivatives to customers.

The Company executes derivatives with established financial institutions, with the substantial majority of these financial institutions having credit ratings of "A-" or better from a major credit rating agency. The Company also writes Business Solutions derivatives mostly with 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. The Company also monitors 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-term 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 March 31, 2019, the Company’s longer-term 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.

As described in the Company’s 2018 Annual Report on Form 10‑K, the Company early adopted an accounting pronouncement related to hedging activities as of January 1, 2018. 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 Company’s Condensed 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 are recognized immediately in “Revenues.”

The Company also uses short duration foreign currency forward contracts, generally with maturities from a few days up 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 March 31, 2019 were as follows (in millions):


Contracts designated as hedges:
Euro	$	364.8
Canadian dollar		97.7
British pound		68.6
Australian dollar		41.5
Japanese yen		25.9
Other		48.3
Contracts not designated as hedges:
Euro	$	241.0
British pound		59.3
Canadian dollar		41.9
Indian rupee		40.8
Australian dollar		38.8
Brazilian real		38.3
Mexican peso		35.5
Japanese yen		27.6
Other (a)		126.9

(a)

Comprised of exposures to 21 different currencies. None of these individual currency exposures is greater than $20 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. 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 were $84.7 million and $85.8 million for the three months ended March 31, 2019 and 2018, respectively. None of the derivative contracts used in Business Solutions operations are designated as accounting hedges. The duration of these derivative contracts at inception is generally 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 as of March 31, 2019 was approximately $6 billion. The significant majority of customer contracts are written in currencies such as the United States dollar, euro, and Canadian dollar.

Interest Rate Hedging

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 LIBOR-based variable rate payments in order to manage its overall exposure to interest rates. 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 and "Interest expense" in the Condensed Consolidated Statements of Income has been adjusted to include the effects of interest accrued on the swaps.

The Company held interest rate swaps in an aggregate notional amount of $175.0 million as of March 31, 2019 related to notes due in 2020.

Balance Sheet

The following table summarizes the fair value of derivatives reported in the Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 (in millions):


	Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value
	Balance Sheet	March 31,		December 31,		Balance Sheet	March 31,		December 31,
	Location	2019		2018		Location	2019		2018
Derivatives — hedges:
Interest rate fair value hedges	Other assets	$	2.9	$	0.1	Other liabilities	$	—	$	—
Foreign currency cash flow hedges	Other assets		30.5		28.6	Other liabilities		0.8		2.8
Total		$	33.4	$	28.7		$	0.8	$	2.8
Derivatives — undesignated:
Business Solutions operations - foreign currency (a)	Other assets	$	163.7	$	214.2	Other liabilities	$	126.9	$	170.9
Foreign currency	Other assets		3.8		2.6	Other liabilities		1.8		2.5
Total		$	167.5	$	216.8		$	128.7	$	173.4
Total derivatives		$	200.9	$	245.5		$	129.5	$	176.2

(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 to the growth 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 and 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 March 31, 2019 and December 31, 2018 (in millions):

Offsetting of Derivative Assets


			Gross		Net Amounts		Derivatives
			Amounts		Presented		Not Offset
	Gross		Offset in the		in the		in the
	Amounts of		Condensed		Condensed		Condensed
	Recognized		Consolidated		Consolidated		Consolidated
March 31, 2019	Assets		Balance Sheets		Balance Sheets		Balance Sheets		Net Amounts
Derivatives subject to a master netting arrangement or similar agreement	$	136.1	$	—	$	136.1	$	(76.8)	$	59.3
Derivatives that are not or may not be subject to master netting arrangement or similar agreement		64.8
Total	$	200.9

December 31, 2018
Derivatives subject to a master netting arrangement or similar agreement	$	162.6	$	—	$	162.6	$	(95.7)	$	66.9
Derivatives that are not or may not be subject to master netting arrangement or similar agreement		82.9
Total	$	245.5

Offsetting of Derivative Liabilities


			Gross		Net Amounts		Derivatives
			Amounts		Presented		Not Offset
	Gross		Offset in the		in the		in the
	Amounts of		Condensed		Condensed		Condensed
	Recognized		Consolidated		Consolidated		Consolidated
March 31, 2019	Liabilities		Balance Sheets		Balance Sheets		Balance Sheets		Net Amounts
Derivatives subject to a master netting arrangement or similar agreement	$	85.0	$	—	$	85.0	$	(76.8)	$	8.2
Derivatives that are not or may not be subject to master netting arrangement or similar agreement		44.5
Total	$	129.5

December 31, 2018
Derivatives subject to a master netting arrangement or similar agreement	$	104.1	$	—	$	104.1	$	(95.7)	$	8.4
Derivatives that are not or may not be subject to master netting arrangement or similar agreement		72.1
Total	$	176.2

Income Statement

The following tables summarize the location and amount of gains and losses of derivatives in the Condensed Consolidated Statements of Income segregated by designated, qualifying hedging instruments and those that are not.

Cash Flow and Fair Value Hedges

The effective portion of the change in fair value of derivatives that qualify as cash flow hedges is recorded in “Accumulated other comprehensive loss.” Generally, amounts are recognized in income when the related forecasted transaction affects earnings.

The following table presents the amount of gains and losses recognized in other comprehensive income from cash flow hedges for the three months ended March 31, 2019 and 2018 (in millions):


	Amount of Gain/(Loss) Recognized in Other
	Comprehensive Income on Derivatives
	Three Months Ended
	March 31,
Derivatives	2019		2018
Cash flow hedges:
Foreign currency contracts (a)	$	4.4	$	(12.3)

The following table presents the location and amount of gains and losses from fair value and cash flow hedges for the three months ended March 31, 2019 and 2018 (in millions):


	Location and Amount of Gain/(Loss) Recognized in Income on Fair Value and
	Cash Flow Hedging Relationships
	March 31, 2019						March 31, 2018
					Other						Other
			Interest		Income,				Interest		Income,
	Revenues		Expense		net		Revenues		Expense		net
Total amounts presented in the consolidated statements of income/(loss) in which the effects of fair value or cash flow hedges are recorded	$	1,337.0	$	(39.7)	$	2.5	$	1,389.4	$	(35.5)	$	4.4
The effects of fair value and cash flow hedging:
Gain/(loss) on fair value hedges:
Interest rate contracts:
Hedged items		—		(0.3)		—		—		1.4		—
Derivatives designated as hedging instruments		—		0.4		—		—		(1.5)		—
Gain/(loss) on cash flow hedges:
Foreign exchange contracts:
Amount of gain/(loss) reclassified from accumulated other comprehensive loss into income		1.4		—		—		(9.4)		—		—
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach		2.3		—		—		0.2		—		—
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value		1.3		—		—		1.4		—		—

Undesignated Hedges

The following table presents the location and amount of net gains and losses from undesignated hedges for the three months ended March 31, 2019 and 2018 (in millions):


	Gain/(Loss) Recognized in Income on Derivatives (b)
		Amount
		Three Months Ended
		March 31,
Derivatives	Income Statement Location	2019		2018
Foreign currency contracts (c)	Selling, general and administrative	$	6.6	$	(0.1)
Foreign currency contracts (d)	Revenues		0.2		(0.5)
Foreign currency contracts (d)	Other income, net		—		(2.0)
Total gain/(loss)		$	6.8	$	(2.6)

(a)

For the three months ended March 31, 2019 and 2018, gains/(losses) of $0.5 million and ($0.2 million), respectively, represent the amounts excluded from the assessment of effectiveness that were recognized in other comprehensive income, for which an amortization approach is applied.

(b)

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.

(c)

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 derivatives activity as displayed above and included in "Selling, general and administrative" in the Condensed Consolidated Statements of Income, were $(10.8) million and $2.3 million for the three months ended March 31, 2019 and 2018, respectively.

(d)

All derivative contracts executed in the Company’s revenue hedging program prior to January 1, 2018 are not designated as hedges in the final month of the contract. The change in fair value in this final month was recorded to "Revenues" for the three months ended March 31, 2019 and 2018. The amount recorded to "Other income, net" for the three months ended March 31, 2019 relates to losses on certain undesignated foreign currency derivative contracts that were recognized after the Company determined that certain forecasted transactions were no longer probable of occurring.

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

An accumulated other comprehensive pre-tax gain of $14.6 million related to the foreign currency forward contracts is expected to be reclassified into revenue within the next 12 months as of March 31, 2019.

Borrowings

3 Months Ended

Mar. 31, 2019

Borrowings

Borrowings

12. Borrowings

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


	March 31, 2019		December 31, 2018
Commercial paper (a)	$	60.0	$	125.0
Notes:
3.350% notes due 2019 (b)		250.0		250.0
Floating rate notes (effective rate of 3.7%) due 2019		250.0		250.0
5.253% notes due 2020 (effective rate of 5.8%)		324.9		324.9
3.600% notes due 2022 (b)		500.0		500.0
4.250% notes due 2023 (b)		300.0		300.0
6.200% notes due 2036 (b)		500.0		500.0
6.200% notes due 2040 (b)		250.0		250.0
Term loan facility borrowing (effective rate of 3.8%)		950.0		950.0
Total borrowings at par value		3,384.9		3,449.9
Fair value hedge accounting adjustments, net (c)		0.2		(0.1)
Debt issuance costs and unamortized discount, net		(14.8)		(16.1)
Total borrowings at carrying value (d)	$	3,370.3	$	3,433.7

(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 March 31, 2019 had a weighted-average annual interest rate of approximately 2.7% and a weighted-average term of approximately 1 day.

(b)

The difference between the stated interest rate and the effective interest rate is not significant.

(c)

The Company utilizes interest rate swaps designated as fair value hedges to effectively change the interest rate payments on a portion of its notes from fixed-rate payments to short-term LIBOR-based variable rate payments in order to manage its overall exposure to interest rates. The changes in fair value of these interest rate swaps result in an offsetting hedge accounting adjustment recorded to the carrying value of the related note. These hedge accounting adjustments will be reclassified as reductions to or increases in "Interest expense" in the Condensed Consolidated Statements of Income over the life of the related notes, and cause the effective rate of interest to differ from the notes’ stated rate.

(d)

As of March 31, 2019, the Company’s weighted-average effective rate on total borrowings was approximately 4.6%.

The following summarizes the Company’s maturities of notes at par value as of March 31, 2019 (in millions):


Due within 1 year	$	500.0
Due after 1 year through 2 years		336.8
Due after 2 years through 3 years		547.5
Due after 3 years through 4 years		59.4
Due after 4 years through 5 years		1,131.2
Due after 5 years		750.0

The Company’s obligations with respect to its outstanding notes, as described above, rank equally.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2019
Income Taxes
Income Taxes	13. Income Taxes The Company’s provision for income taxes for the three months ended March 31, 2019 and 2018 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 19.9% and 8.9% for the three months ended March 31, 2019 and 2018, respectively. The increase in the Company’s effective tax rate for the three months ended March 31, 2019 compared to the prior period was primarily due to discrete tax benefits recognized in the three months ended March 31, 2018 and an increase in 2019 forecasted domestic pre-tax income relative to the prior year. The discrete benefits in the three months ended March 31, 2018 included adjustments to the Company's accounting for the implementation of the Tax Act during the first quarter of 2018 which reduced the Company’s effective tax rate by 2.6 percentage points, as certain of the Tax Act’s impacts had been provisionally estimated during the prior period. The Company currently expects that approximately 69% of the Company’s pre-tax income will be derived from foreign sources for the year ending December 31, 2019. 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 March 31, 2019 and December 31, 2018 was $295.3 million and $295.0 million, respectively, excluding interest and penalties. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $284.4 million and $284.2 million as of March 31, 2019 and December 31, 2018, 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 immaterial amounts of interest and penalties during the three months ended March 31, 2019 and 2018, respectively. The Company has accrued $24.8 million and $23.9 million for the payment of interest and penalties as of March 31, 2019 and December 31, 2018, 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 2015 are eligible to be examined.

Stock Compensation Plans	3 Months Ended
Stock Compensation Plans	Mar. 31, 2019
Stock Compensation Plans
Stock Compensation Plans	14. Stock Compensation Plans For the three months ended March 31, 2019 and 2018, the Company recognized stock-based compensation expense of $13.7 million and $13.8 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. During the three months ended March 31, 2019, the Company granted 0.6 million options at a weighted-average exercise price of $17.63 and 3.3 million performance-based restricted stock units and restricted stock units at a weighted-average grant date fair value of $15.75. As of March 31, 2019, the Company had 6.6 million outstanding options at a weighted-average exercise price of $17.70, of which 5.5 million options were exercisable at a weighted-average exercise price of $17.48. The Company had 8.2 million performance-based restricted stock units (based on target performance) and restricted stock units at a weighted-average grant date fair value of $17.00 as of March 31, 2019. The majority of stock units do not provide for the payment of dividend equivalents. For those units, their value is reduced by the net present value of the foregone dividend equivalent payments.

Segments

3 Months Ended

Mar. 31, 2019

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 Chief Operating Decision Maker (“CODM”) in deciding where to allocate resources and in assessing performance.

The Consumer-to-Consumer operating segment facilitates money transfers between two consumers. The Company views its money transfer service as one interconnected global network where a money transfer can be sent from one location to another, around the world. 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 westernunion.com in its regions. By means of common processes and systems, these regions, including westernunion.com, create an interconnected network for consumer transactions, thereby constituting one global 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.

All businesses and other services that have not been classified in the above segments are reported as "Other," which primarily include the Company’s electronic-based and cash-based bill payment services which facilitate payments from consumers to businesses and other organizations. The majority of the Company’s cash-based bill payments services are led by one executive, and the majority of the Company’s electronic-based bill payments services are led by another executive. The CODM allocates resources and assesses performance using discrete information for these separate bill payments components, neither of which is material from either a quantitative or qualitative perspective. On February 28, 2019, the Company entered into an agreement to sell Speedpay, as discussed in Note 4. The Company expects to close the transaction during the second quarter of 2019. The Company’s money order and other services are also included in "Other."

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 reportable segment results for the three months ended March 31, 2019 and 2018 (in millions).


	Three Months Ended
	March 31,
	2019		2018
Revenues:
Consumer-to-Consumer	$	1,056.9	$	1,091.0
Business Solutions		95.6		96.7
Other (a)		184.5		201.7
Total consolidated revenues	$	1,337.0	$	1,389.4
Operating income:
Consumer-to-Consumer	$	233.3	$	241.7
Business Solutions		8.6		2.8
Other (a)		9.3		20.4
Total consolidated operating income	$	251.2	$	264.9

(a)

Other primarily consists of Speedpay and the Company’s cash-based bill payments businesses in Argentina. Speedpay revenues were $88.2 million and $95.0 million, and direct operating expenses were $67.6 million and $66.1 million for the three months ended March 31, 2019 and 2018, respectively.

Business and Basis of Presentation (Policies)	3 Months Ended
Business and Basis of Presentation (Policies)	Mar. 31, 2019
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 March 31, 2019 and December 31, 2018 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 March 31, 2019 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, 2018. 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, 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 5 for additional information and the related disclosures. Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board issued a new accounting pronouncement regarding credit losses for financial instruments. The new standard 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 is required to adopt the new standard on January 1, 2020. Management is currently evaluating the potential impact that the adoption of this standard will have on the Company’s financial position, results of operations, and 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 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. 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.
Leases	The Company leases real properties for use as administrative and sales offices, in addition to automobiles and office equipment. The Company determines if a contract contains a lease arrangement at the inception of the contract. For leases in which the Company is the lessee, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Operating lease ROU assets are initially measured at the present value of lease payments over the lease term plus initial direct costs, if any. If a lease does not provide a discount rate and the rate cannot be readily determined, an incremental borrowing rate is used to determine the future lease payments. Lease and variable non-lease components within the Company’s lease agreements are accounted for separately. The Company has no material leases in which the Company is the lessor.
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 2049. These securities may be used by the Company for short-term liquidity needs and held for short periods of time. 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 state and foreign country requirements. The substantial majority of the Company’s investment securities are classified as available-for-sale and recorded at fair value. Investment securities are exposed to market risk due to changes in interest rates and credit risk. Western Union regularly monitors credit risk and attempts to mitigate its exposure by investing in highly-rated securities and through investment diversification. Unrealized gains and losses on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes. Proceeds from the sale and maturity of available-for-sale securities during the three months ended March 31, 2019 and 2018 were $1.5 billion and $2.7 billion, respectively. Gains and losses on investments are calculated using the specific-identification method and are recognized during the period in which the investment is sold or when an investment experiences an other-than-temporary decline in value. Factors that could indicate an impairment exists include, but are not limited to: earnings performance, changes in credit rating or adverse changes in the regulatory or economic environment of the asset. If potential impairment exists, the Company assesses whether it has the intent to sell the debt security, more likely than not will be required to sell the debt security before its anticipated recovery or expects that some of the contractual cash flows will not be received.
Foreign Currency - Derivatives	Foreign Currency Derivatives The Company’s policy is to use longer-term 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 March 31, 2019, the Company’s longer-term 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. As described in the Company’s 2018 Annual Report on Form 10‑K, the Company early adopted an accounting pronouncement related to hedging activities as of January 1, 2018. 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 Company’s Condensed 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 are recognized immediately in “Revenues.” The Company also uses short duration foreign currency forward contracts, generally with maturities from a few days up 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. 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 were $84.7 million and $85.8 million for the three months ended March 31, 2019 and 2018, respectively. None of the derivative contracts used in Business Solutions operations are designated as accounting hedges. The duration of these derivative contracts at inception is generally less than one year.
Interest Rate Hedging	Interest Rate Hedging 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 LIBOR-based variable rate payments in order to manage its overall exposure to interest rates. 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 and "Interest expense" in the Condensed Consolidated Statements of Income has been adjusted to include the effects of interest accrued on the swaps.

Revenue (Tables)

3 Months Ended

Mar. 31, 2019

Revenue

Disaggregation of revenue earned from contracts with customers

The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the three months ended March 31, 2019 and 2018 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated.


	Three Months Ended March 31, 2019
			Foreign
	Consumer		Exchange
	Money		and Payment		Consumer		Other
	Transfers		Services		Bill Payments (c)		Services		Total
Regions:
North America	$	395.5	$	22.1	$	115.1	$	14.5	$	547.2
Europe and Russia/CIS		323.2		31.9		0.6		0.9		356.6
Middle East, Africa, and South Asia		153.3		0.5		0.1		—		153.9
Latin America and the Caribbean		95.3		1.0		33.6		3.5		133.4
East Asia and Oceania		66.5		17.5		0.3		—		84.3
Revenues from contracts with customers	$	1,033.8	$	73.0	$	149.7	$	18.9	$	1,275.4
Other revenues (a)		23.1		22.6		9.5		6.4		61.6
Total revenues (b)	$	1,056.9	$	95.6	$	159.2	$	25.3	$	1,337.0


	Three Months Ended March 31, 2018
			Foreign
	Consumer		Exchange
	Money		and Payment		Consumer		Other
	Transfers		Services		Bill Payments (c)		Services		Total
Regions:
North America	$	394.6	$	24.9	$	123.1	$	14.6	$	557.2
Europe and Russia/CIS		345.5		32.3		0.8		1.0		379.6
Middle East, Africa, and South Asia		166.8		—		0.1		—		166.9
Latin America and the Caribbean		97.7		0.2		45.0		3.2		146.1
East Asia and Oceania		78.5		17.3		0.4		—		96.2
Revenues from contracts with customers	$	1,083.1	$	74.7	$	169.4	$	18.8	$	1,346.0
Other revenues (a)		7.9		22.0		8.1		5.4		43.4
Total revenues (b)	$	1,091.0	$	96.7	$	177.5	$	24.2	$	1,389.4

(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)

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.

(c)

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.” The Company expects to close the transaction during the second quarter of 2019. Included within North America revenues are Speedpay revenues of $88.2 million and $95.0 million for the three months ended March 31, 2019 and 2018, respectively.

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2019

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
	March 31,
	2019	2018
Basic weighted-average shares outstanding	437.7	460.3
Common stock equivalents	2.2	3.3
Diluted weighted-average shares outstanding	439.9	463.6

Assets and Liabilities Held For Sale (Tables)

3 Months Ended

Mar. 31, 2019

Assets and Liabilities Held For Sale

Schedule of assets and liabilities held for sale

The following table reflects the assets and liabilities held for sale of Speedpay in the accompanying Condensed Consolidated Balance Sheet (in millions):


	March 31,
	2019
Cash and cash equivalents	$	41.0
Settlement assets		705.7
Property and equipment, net of accumulated depreciation of $17.6		0.3
Goodwill		162.5
Other intangible assets, net of accumulated amortization of $27.3		10.3
Other assets		18.8
Total assets	$	938.6

Settlement obligations	$	705.7
Accounts payable and accrued liabilities		17.6
Deferred tax liability		1.4
Total liabilities	$	724.7

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases

Schedule of weighted average lease terms and discount rates

The following table summarizes the weighted average lease terms and discount rates for operating lease liabilities:


		March 31, 2019
Weighted average remaining lease term (in years)		8.1
Weighted average discount rate		6.1%

Schedule of maturities of operating lease liabilities

The following table represents maturities of operating lease liabilities as of March 31, 2019 (in millions):


Due within 1 year	$	51.9
Due after 1 year through 2 years		46.8
Due after 2 years through 3 years		39.6
Due after 3 years through 4 years		34.5
Due after 4 years through 5 years		31.4
Due after 5 years		125.9
Total future minimum lease payments		330.1
Less imputed interest		(68.9)
Total	$	261.2

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Measurements

Schedule of assets and liabilities measured at fair value on a recurring basis

The following tables reflect assets and liabilities that were measured at fair value on a recurring basis (in millions):


							Assets/
							Liabilities at
	Fair Value Measurement Using						Fair
March 31, 2019	Level 1		Level 2		Level 3		Value
Assets:
Settlement assets:
Measured at fair value through net income:
Money market funds	$	14.8	$	—	$	—	$	14.8
Measured at fair value through other comprehensive income:
State and municipal debt securities		—		984.8		—		984.8
State and municipal variable rate demand notes		—		295.6		—		295.6
Corporate and other debt securities		—		75.9		—		75.9
United States Treasury securities		9.8		—		—		9.8
Other assets:
Derivatives		—		200.9		—		200.9
Total assets	$	24.6	$	1,557.2	$	—	$	1,581.8
Liabilities:
Derivatives	$	—	$	129.5	$	—	$	129.5
Total liabilities	$	—	$	129.5	$	—	$	129.5


							Assets/
							Liabilities at
	Fair Value Measurement Using						Fair
December 31, 2018	Level 1		Level 2		Level 3		Value
Assets:
Cash:
Measured at fair value through net income:
Money market funds	$	27.0	$	—	$	—	$	27.0
Settlement assets:
Measured at fair value through net income:
Money market funds		23.9		—		—		23.9
Measured at fair value through other comprehensive income:
State and municipal debt securities		—		962.7		—		962.7
State and municipal variable rate demand notes		—		168.7		—		168.7
Corporate and other debt securities		—		69.5		—		69.5
United States Treasury securities		9.7		—		—		9.7
Other assets:
Derivatives		—		245.5		—		245.5
Total assets	$	60.6	$	1,446.4	$	—	$	1,507.0
Liabilities:
Derivatives	$	—	$	176.2	$	—	$	176.2
Total liabilities	$	—	$	176.2	$	—	$	176.2

Settlement Assets and Obligations and Non-Settlement Related Investments (Tables)

3 Months Ended

Mar. 31, 2019

Settlement Assets and Obligations and Non-Settlement Related Investments

Schedule of settlement assets and obligations

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


	March 31,		December 31,
	2019		2018
Settlement assets:
Cash and cash equivalents	$	1,394.9	$	1,247.8
Receivables from selling agents and Business Solutions customers		1,442.2		1,355.4
Investment securities		1,366.1		1,210.6
	$	4,203.2	$	3,813.8
Settlement obligations:
Money transfer, money order and payment service payables	$	2,790.2	$	2,793.6
Payables to agents		1,413.0		1,020.2
	$	4,203.2	$	3,813.8

Components of investment securities, available-for-sale

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


					Gross		Gross		Net
	Amortized		Fair		Unrealized		Unrealized		Unrealized
March 31, 2019	Cost		Value		Gains		Losses		Gains/(Losses)
Settlement assets:
Cash and cash equivalents:
Money market funds	$	14.8	$	14.8	$	—	$	—	$	—
Available-for-sale securities:
State and municipal debt securities (a)		969.3		984.8		16.5		(1.0)		15.5
State and municipal variable rate demand notes		295.6		295.6		—		—		—
Corporate and other debt securities		75.9		75.9		0.3		(0.3)		—
United States Treasury securities		9.9		9.8		—		(0.1)		(0.1)
		1,350.7		1,366.1		16.8		(1.4)		15.4
Other assets:
Held-to-maturity securities:
Foreign corporate debt securities		27.0		27.1		0.1		—		0.1
	$	1,392.5	$	1,408.0	$	16.9	$	(1.4)	$	15.5


					Gross		Gross		Net
	Amortized		Fair		Unrealized		Unrealized		Unrealized
December 31, 2018	Cost		Value		Gains		Losses		Gains/(Losses)
Cash:
Money market funds	$	27.0	$	27.0	$	—	$	—	$	—
Settlement assets:
Cash and cash equivalents:
Money market funds		23.9		23.9		—		—		—
Available-for-sale securities:
State and municipal debt securities (a)		963.4		962.7		6.1		(6.8)		(0.7)
State and municipal variable rate demand notes		168.7		168.7		—		—		—
Corporate and other debt securities		70.0		69.5		—		(0.5)		(0.5)
United States Treasury securities		9.9		9.7		—		(0.2)		(0.2)
		1,212.0		1,210.6		6.1		(7.5)		(1.4)
Other assets:
Held-to-maturity securities:
Foreign corporate debt securities		32.9		32.9		—		—		—
	$	1,295.8	$	1,294.4	$	6.1	$	(7.5)	$	(1.4)

(a)

The majority of these securities are fixed rate instruments.

Schedule of contractual maturities of debt securities

The following summarizes the contractual maturities of settlement-related debt securities as of March 31, 2019 (in millions):


	Fair
	Value
Due within 1 year	$	148.8
Due after 1 year through 5 years		489.3
Due after 5 years through 10 years		266.4
Due after 10 years		461.6
	$	1,366.1

Stockholders' Deficit (Tables)

3 Months Ended

Mar. 31, 2019

Stockholders' Deficit

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

The following table summarizes the components of accumulated other comprehensive loss, net of tax (in millions). All amounts reclassified from accumulated other comprehensive loss affect the line items as indicated below within the Condensed Consolidated Statements of Income. Additionally, as described in the Company’s 2018 Annual Report on Form 10‑K, in the first quarter of 2018, the Company adopted an accounting pronouncement and reclassified tax effects included within accumulated other comprehensive income/(loss) as a result of the United States tax reform legislation enacted in December 2017 (the “Tax Act”) to "Accumulated deficit" in the Condensed Consolidated Balance Sheet.


	Three Months Ended
	March 31,
	2019		2018
Unrealized gains/(losses) on investment securities, beginning of period	$	(1.1)	$	2.7
Unrealized gains/(losses)		16.8		(11.7)
Tax (expense)/benefit		(3.8)		2.6
Reclassification of losses into "Revenues"		—		0.5
Tax benefit related to reclassifications		—		(0.1)
Net unrealized gains/(losses) on investment securities		13.0		(8.7)
Reclassification of Tax Act effects into "Accumulated deficit"		—		0.5
Unrealized gains/(losses) on investment securities, end of period	$	11.9	$	(5.5)

Unrealized gains/(losses) on hedging activities, beginning of period	$	7.4	$	(40.6)
Unrealized gains/(losses)		4.4		(12.3)
Tax (expense)/benefit		0.9		(0.5)
Reclassification of (gains)/losses into "Revenues"		(1.4)		9.4
Reclassification of losses into "Interest expense"		—		0.8
Tax expense/(benefit) related to reclassifications		—		(0.5)
Net unrealized gains/(losses) on hedging activities		3.9		(3.1)
Reclassification of Tax Act effects into "Accumulated deficit"		—		(2.3)
Unrealized gains/(losses) on hedging activities, end of period	$	11.3	$	(46.0)

Foreign currency translation adjustments, beginning of period	$	(101.2)	$	(76.9)
Foreign currency translation adjustments (a)		—		(7.0)
Net foreign currency translation adjustments		—		(7.0)
Reclassification of Tax Act effects into "Accumulated deficit"		—		(4.8)
Foreign currency translation adjustments, end of period	$	(101.2)	$	(88.7)

Defined benefit pension plan adjustments, beginning of period	$	(136.1)	$	(113.1)
Reclassification of losses into "Other income, net"		2.7		2.9
Tax benefit related to reclassifications		(0.2)		(0.8)
Net defined benefit pension plan adjustments		2.5		2.1
Reclassification of Tax Act effects into "Accumulated deficit"		—		(24.8)
Defined benefit pension plan adjustments, end of period	$	(133.6)	$	(135.8)
Accumulated other comprehensive loss, end of period	$	(211.6)	$	(276.0)

(a)

Beginning in the third quarter of 2018, all changes in the value of the Argentine peso on the Company's monetary assets and liabilities are reflected in net income, given Argentina’s status as a highly inflationary economy. Prior to the third quarter of 2018, changes in the Argentine peso exchange rate were reflected in net income for the Company's money transfer operations, whereas these effects were reflected in other comprehensive income for the Company's bill payment operations. This designation did not have a material impact on the Company's financial position and results of operations during the three months ended March 31, 2019 and 2018.

Derivatives (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 were as follows (in millions):


Contracts designated as hedges:
Euro	$	364.8
Canadian dollar		97.7
British pound		68.6
Australian dollar		41.5
Japanese yen		25.9
Other		48.3
Contracts not designated as hedges:
Euro	$	241.0
British pound		59.3
Canadian dollar		41.9
Indian rupee		40.8
Australian dollar		38.8
Brazilian real		38.3
Mexican peso		35.5
Japanese yen		27.6
Other (a)		126.9

(a)

Comprised of exposures to 21 different currencies. None of these individual currency exposures is greater than $20 million.

Schedule of fair value of derivatives

The following table summarizes the fair value of derivatives reported in the Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 (in millions):


	Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value
	Balance Sheet	March 31,		December 31,		Balance Sheet	March 31,		December 31,
	Location	2019		2018		Location	2019		2018
Derivatives — hedges:
Interest rate fair value hedges	Other assets	$	2.9	$	0.1	Other liabilities	$	—	$	—
Foreign currency cash flow hedges	Other assets		30.5		28.6	Other liabilities		0.8		2.8
Total		$	33.4	$	28.7		$	0.8	$	2.8
Derivatives — undesignated:
Business Solutions operations - foreign currency (a)	Other assets	$	163.7	$	214.2	Other liabilities	$	126.9	$	170.9
Foreign currency	Other assets		3.8		2.6	Other liabilities		1.8		2.5
Total		$	167.5	$	216.8		$	128.7	$	173.4
Total derivatives		$	200.9	$	245.5		$	129.5	$	176.2

(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 to the growth 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 March 31, 2019 and December 31, 2018 (in millions):

Offsetting of Derivative Assets


			Gross		Net Amounts		Derivatives
			Amounts		Presented		Not Offset
	Gross		Offset in the		in the		in the
	Amounts of		Condensed		Condensed		Condensed
	Recognized		Consolidated		Consolidated		Consolidated
March 31, 2019	Assets		Balance Sheets		Balance Sheets		Balance Sheets		Net Amounts
Derivatives subject to a master netting arrangement or similar agreement	$	136.1	$	—	$	136.1	$	(76.8)	$	59.3
Derivatives that are not or may not be subject to master netting arrangement or similar agreement		64.8
Total	$	200.9

December 31, 2018
Derivatives subject to a master netting arrangement or similar agreement	$	162.6	$	—	$	162.6	$	(95.7)	$	66.9
Derivatives that are not or may not be subject to master netting arrangement or similar agreement		82.9
Total	$	245.5

Schedule of gross and net fair value of derivative liabilities

Offsetting of Derivative Liabilities


			Gross		Net Amounts		Derivatives
			Amounts		Presented		Not Offset
	Gross		Offset in the		in the		in the
	Amounts of		Condensed		Condensed		Condensed
	Recognized		Consolidated		Consolidated		Consolidated
March 31, 2019	Liabilities		Balance Sheets		Balance Sheets		Balance Sheets		Net Amounts
Derivatives subject to a master netting arrangement or similar agreement	$	85.0	$	—	$	85.0	$	(76.8)	$	8.2
Derivatives that are not or may not be subject to master netting arrangement or similar agreement		44.5
Total	$	129.5

December 31, 2018
Derivatives subject to a master netting arrangement or similar agreement	$	104.1	$	—	$	104.1	$	(95.7)	$	8.4
Derivatives that are not or may not be subject to master netting arrangement or similar agreement		72.1
Total	$	176.2

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

The following table presents the amount of gains and losses recognized in other comprehensive income from cash flow hedges for the three months ended March 31, 2019 and 2018 (in millions):


	Amount of Gain/(Loss) Recognized in Other
	Comprehensive Income on Derivatives
	Three Months Ended
	March 31,
Derivatives	2019		2018
Cash flow hedges:
Foreign currency contracts (a)	$	4.4	$	(12.3)

The following table presents the location and amount of gains and losses from fair value and cash flow hedges for the three months ended March 31, 2019 and 2018 (in millions):


	Location and Amount of Gain/(Loss) Recognized in Income on Fair Value and
	Cash Flow Hedging Relationships
	March 31, 2019						March 31, 2018
					Other						Other
			Interest		Income,				Interest		Income,
	Revenues		Expense		net		Revenues		Expense		net
Total amounts presented in the consolidated statements of income/(loss) in which the effects of fair value or cash flow hedges are recorded	$	1,337.0	$	(39.7)	$	2.5	$	1,389.4	$	(35.5)	$	4.4
The effects of fair value and cash flow hedging:
Gain/(loss) on fair value hedges:
Interest rate contracts:
Hedged items		—		(0.3)		—		—		1.4		—
Derivatives designated as hedging instruments		—		0.4		—		—		(1.5)		—
Gain/(loss) on cash flow hedges:
Foreign exchange contracts:
Amount of gain/(loss) reclassified from accumulated other comprehensive loss into income		1.4		—		—		(9.4)		—		—
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach		2.3		—		—		0.2		—		—
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value		1.3		—		—		1.4		—		—

Undesignated Hedges

The following table presents the location and amount of net gains and losses from undesignated hedges for the three months ended March 31, 2019 and 2018 (in millions):


	Gain/(Loss) Recognized in Income on Derivatives (b)
		Amount
		Three Months Ended
		March 31,
Derivatives	Income Statement Location	2019		2018
Foreign currency contracts (c)	Selling, general and administrative	$	6.6	$	(0.1)
Foreign currency contracts (d)	Revenues		0.2		(0.5)
Foreign currency contracts (d)	Other income, net		—		(2.0)
Total gain/(loss)		$	6.8	$	(2.6)

(a)

For the three months ended March 31, 2019 and 2018, gains/(losses) of $0.5 million and ($0.2 million), respectively, represent the amounts excluded from the assessment of effectiveness that were recognized in other comprehensive income, for which an amortization approach is applied.

(b)

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.

(c)

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 derivatives activity as displayed above and included in "Selling, general and administrative" in the Condensed Consolidated Statements of Income, were $(10.8) million and $2.3 million for the three months ended March 31, 2019 and 2018, respectively.

(d)

All derivative contracts executed in the Company’s revenue hedging program prior to January 1, 2018 are not designated as hedges in the final month of the contract. The change in fair value in this final month was recorded to "Revenues" for the three months ended March 31, 2019 and 2018. The amount recorded to "Other income, net" for the three months ended March 31, 2019 relates to losses on certain undesignated foreign currency derivative contracts that were recognized after the Company determined that certain forecasted transactions were no longer probable of occurring.

Borrowings (Tables)

3 Months Ended

Mar. 31, 2019

Borrowings

Schedule of outstanding borrowings

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


	March 31, 2019		December 31, 2018
Commercial paper (a)	$	60.0	$	125.0
Notes:
3.350% notes due 2019 (b)		250.0		250.0
Floating rate notes (effective rate of 3.7%) due 2019		250.0		250.0
5.253% notes due 2020 (effective rate of 5.8%)		324.9		324.9
3.600% notes due 2022 (b)		500.0		500.0
4.250% notes due 2023 (b)		300.0		300.0
6.200% notes due 2036 (b)		500.0		500.0
6.200% notes due 2040 (b)		250.0		250.0
Term loan facility borrowing (effective rate of 3.8%)		950.0		950.0
Total borrowings at par value		3,384.9		3,449.9
Fair value hedge accounting adjustments, net (c)		0.2		(0.1)
Debt issuance costs and unamortized discount, net		(14.8)		(16.1)
Total borrowings at carrying value (d)	$	3,370.3	$	3,433.7

(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 March 31, 2019 had a weighted-average annual interest rate of approximately 2.7% and a weighted-average term of approximately 1 day.

(b)

The difference between the stated interest rate and the effective interest rate is not significant.

(c)

The Company utilizes interest rate swaps designated as fair value hedges to effectively change the interest rate payments on a portion of its notes from fixed-rate payments to short-term LIBOR-based variable rate payments in order to manage its overall exposure to interest rates. The changes in fair value of these interest rate swaps result in an offsetting hedge accounting adjustment recorded to the carrying value of the related note. These hedge accounting adjustments will be reclassified as reductions to or increases in "Interest expense" in the Condensed Consolidated Statements of Income over the life of the related notes, and cause the effective rate of interest to differ from the notes’ stated rate.

(d)

As of March 31, 2019, the Company’s weighted-average effective rate on total borrowings was approximately 4.6%.

Schedule of maturities of borrowings

The following summarizes the Company’s maturities of notes at par value as of March 31, 2019 (in millions):


Due within 1 year	$	500.0
Due after 1 year through 2 years		336.8
Due after 2 years through 3 years		547.5
Due after 3 years through 4 years		59.4
Due after 4 years through 5 years		1,131.2
Due after 5 years		750.0

Segments (Tables)

3 Months Ended

Mar. 31, 2019

Segments

Schedule of segment results

The following table presents the Company’s reportable segment results for the three months ended March 31, 2019 and 2018 (in millions).


	Three Months Ended
	March 31,
	2019		2018
Revenues:
Consumer-to-Consumer	$	1,056.9	$	1,091.0
Business Solutions		95.6		96.7
Other (a)		184.5		201.7
Total consolidated revenues	$	1,337.0	$	1,389.4
Operating income:
Consumer-to-Consumer	$	233.3	$	241.7
Business Solutions		8.6		2.8
Other (a)		9.3		20.4
Total consolidated operating income	$	251.2	$	264.9

(a)

Other primarily consists of Speedpay and the Company’s cash-based bill payments businesses in Argentina. Speedpay revenues were $88.2 million and $95.0 million, and direct operating expenses were $67.6 million and $66.1 million for the three months ended March 31, 2019 and 2018, respectively.

Business and Basis of Presentation - Narrative (Details) $ in Millions	Mar. 31, 2019 country	Dec. 31, 2018 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 \| $		$ 365

Revenue - Narrative - (Details) $ in Millions	3 Months Ended
Revenue - Narrative - (Details) $ in Millions	Mar. 31, 2019 USD ($) item	Mar. 31, 2018 USD ($)
Revenue
Revenues from contracts with customers \| $	$ 1,275.4	$ 1,346.0
Consumer money transfers
Revenue
Revenues from contracts with customers \| $	$ 1,033.8	1,083.1
Number of performance obligations \| item	1
Number of integrated services involved in a transaction \| item	1
Consumer bill payments
Revenue
Revenues from contracts with customers \| $	$ 149.7	$ 169.4
Number of integrated services involved in a transaction \| item	1

Revenue - Disaggregation of revenue - (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue
Revenues from contracts with customers	$ 1,275.4	$ 1,346.0
Other revenue	61.6	43.4
Revenues	1,337.0	1,389.4
Consumer money transfers
Revenue
Revenues from contracts with customers	1,033.8	1,083.1
Other revenue	23.1	7.9
Revenues	1,056.9	1,091.0
Foreign exchange and payment services
Revenue
Revenues from contracts with customers	73.0	74.7
Other revenue	22.6	22.0
Revenues	95.6	96.7
Consumer bill payments
Revenue
Revenues from contracts with customers	149.7	169.4
Other revenue	9.5	8.1
Revenues	159.2	177.5
Other services
Revenue
Revenues from contracts with customers	18.9	18.8
Other revenue	6.4	5.4
Revenues	25.3	24.2
Other services \| Speedpay \| Disposed of by Sale, Not Discontinued Operations
Revenue
Revenues	88.2	95.0
North America
Revenue
Revenues from contracts with customers	547.2	557.2
North America \| Consumer money transfers
Revenue
Revenues from contracts with customers	395.5	394.6
North America \| Foreign exchange and payment services
Revenue
Revenues from contracts with customers	22.1	24.9
North America \| Consumer bill payments
Revenue
Revenues from contracts with customers	115.1	123.1
North America \| Other services
Revenue
Revenues from contracts with customers	14.5	14.6
North America \| Other services \| Speedpay \| Disposed of by Sale, Not Discontinued Operations
Revenue
Revenues	88.2	95.0
Europe and Russia/CIS
Revenue
Revenues from contracts with customers	356.6	379.6
Europe and Russia/CIS \| Consumer money transfers
Revenue
Revenues from contracts with customers	323.2	345.5
Europe and Russia/CIS \| Foreign exchange and payment services
Revenue
Revenues from contracts with customers	31.9	32.3
Europe and Russia/CIS \| Consumer bill payments
Revenue
Revenues from contracts with customers	0.6	0.8
Europe and Russia/CIS \| Other services
Revenue
Revenues from contracts with customers	0.9	1.0
Middle East, Africa, and South Asia
Revenue
Revenues from contracts with customers	153.9	166.9
Middle East, Africa, and South Asia \| Consumer money transfers
Revenue
Revenues from contracts with customers	153.3	166.8
Middle East, Africa, and South Asia \| Foreign exchange and payment services
Revenue
Revenues from contracts with customers	0.5
Middle East, Africa, and South Asia \| Consumer bill payments
Revenue
Revenues from contracts with customers	0.1	0.1
Latin America and the Caribbean
Revenue
Revenues from contracts with customers	133.4	146.1
Latin America and the Caribbean \| Consumer money transfers
Revenue
Revenues from contracts with customers	95.3	97.7
Latin America and the Caribbean \| Foreign exchange and payment services
Revenue
Revenues from contracts with customers	1.0	0.2
Latin America and the Caribbean \| Consumer bill payments
Revenue
Revenues from contracts with customers	33.6	45.0
Latin America and the Caribbean \| Other services
Revenue
Revenues from contracts with customers	3.5	3.2
East Asia and Oceania
Revenue
Revenues from contracts with customers	84.3	96.2
East Asia and Oceania \| Consumer money transfers
Revenue
Revenues from contracts with customers	66.5	78.5
East Asia and Oceania \| Foreign exchange and payment services
Revenue
Revenues from contracts with customers	17.5	17.3
East Asia and Oceania \| Consumer bill payments
Revenue
Revenues from contracts with customers	$ 0.3	$ 0.4

Earnings Per Share (Details) - shares shares in Millions	3 Months Ended
Earnings Per Share (Details) - shares shares in Millions	Mar. 31, 2019	Mar. 31, 2018
Earnings/(Loss) Per Share
Outstanding options to purchase shares of stock excluded from the diluted earnings per share calculation	4.4	2.0
Calculation of diluted weighted-average shares outstanding
Basic weighted-average shares outstanding	437.7	460.3
Common stock equivalents	2.2	3.3
Diluted weighted-average shares outstanding	439.9	463.6

Assets and Liabilities Held For Sale (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2019
Assets and Liabilities Held for Sale
Total assets	$ 974.2
Total liabilities	724.7
Former Headquarters
Assets and Liabilities Held for Sale
Assets held for sale, net	35.6
Assets held for sale, accumulated depreciation	35.1
Speedpay \| Disposed of by Sale, Not Discontinued Operations
Assets and Liabilities Held for Sale
Cash and cash equivalents	41.0
Settlement assets	705.7
Property and equipment, net of accumulated depreciation	0.3
Goodwill	162.5
Other intangible assets, net of accumulated amortization	10.3
Other assets	18.8
Total assets	938.6
Settlement obligations	705.7
Accounts payable and accrued liabilities	17.6
Deferred tax liability	1.4
Total liabilities	724.7
Accumulated depreciation	17.6
Accumulated amortization	27.3
Speedpay \| Disposed of by Sale, Not Discontinued Operations \| Other services
Assets and Liabilities Held For Sale
Revenues	88.2	$ 95.0
Operating expenses	$ 67.6	$ 66.1
Speedpay \| Disposed of by Sale, Not Discontinued Operations \| Subsequent Event
Assets and Liabilities Held For Sale
Consideration from sale of business			$ 750.0

Leases - Narrative (Details) $ in Millions	3 Months Ended
Leases - Narrative (Details) $ in Millions	Mar. 31, 2019 USD ($)
Leases
ROU asset	$ 216.8
Balance sheet location of ROU asset	us-gaap:OtherAssets
Lease liability	$ 261.2
Balance sheet location of lease liability	us-gaap:OtherLiabilities
Operating lease costs	$ 15.0
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Minimum
Leases
Lease terms	1 year
Maximum
Leases
Lease terms	12 years
Lease extension terms	12 years

Leases - Weighted Average Lease Terms and Discount Rate (Details)	Mar. 31, 2019
Weighted Average Lease Terms and Discount Rates
Weighted average remaining lease term	8 years 1 month 6 days
Weighted average discount rate	6.10%

Leases - Maturities (Details) $ in Millions	Mar. 31, 2019 USD ($)
Maturities of Operating Lease Liabilities
Due within 1 year	$ 51.9
Due after 1 year through 2 years	46.8
Due after 2 years through 3 years	39.6
Due after 3 years through 4 years	34.5
Due after 4 years through 5 years	31.4
Due after 5 years	125.9
Total future minimum lease payments	330.1
Less imputed interest	(68.9)
Total	$ 261.2

Fair Value Measurements - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Assets:
Settlement assets	$ 3,497.5	$ 3,813.8
Derivatives	200.9	245.5
Liabilities:
Derivatives	129.5	176.2
Recurring
Assets:
Derivatives	200.9	245.5
Total assets	1,581.8	1,507.0
Liabilities:
Derivatives	129.5	176.2
Total liabilities	129.5	176.2
Recurring \| State and municipal debt securities
Assets:
Settlement assets	984.8	962.7
Recurring \| State and municipal variable rate demand notes
Assets:
Settlement assets	295.6	168.7
Recurring \| Corporate and other debt securities
Assets:
Settlement assets	75.9	69.5
Recurring \| United States Treasury securities
Assets:
Settlement assets	9.8	9.7
Recurring \| Money market funds
Assets:
Cash		27.0
Settlement assets	14.8	23.9
Recurring \| Level 1
Assets:
Total assets	24.6	60.6
Recurring \| Level 1 \| United States Treasury securities
Assets:
Settlement assets	9.8	9.7
Recurring \| Level 1 \| Money market funds
Assets:
Cash		27.0
Settlement assets	14.8	23.9
Recurring \| Level 2
Assets:
Derivatives	200.9	245.5
Total assets	1,557.2	1,446.4
Liabilities:
Derivatives	129.5	176.2
Total liabilities	129.5	176.2
Recurring \| Level 2 \| State and municipal debt securities
Assets:
Settlement assets	984.8	962.7
Recurring \| Level 2 \| State and municipal variable rate demand notes
Assets:
Settlement assets	295.6	168.7
Recurring \| Level 2 \| Corporate and other debt securities
Assets:
Settlement assets	$ 75.9	$ 69.5

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Carrying Value
Other Fair Value Measurements
Notes and other borrowings	$ 3,370.3		$ 3,433.7
Level 2 \| Fair Value
Other Fair Value Measurements
Notes and other borrowings	3,415.9		3,394.6
Foreign corporate debt securities \| Carrying Value
Other Fair Value Measurements
Carrying value of foreign corporate debt securities	27.0		32.9
Foreign corporate debt securities \| Level 2 \| Fair Value
Other Fair Value Measurements
Fair value of foreign corporate debt securities	27.1		$ 32.9
Non-recurring
Fair Value Adjustments
Non-recurring asset fair value adjustments	$ 0.0	$ 0.0

Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions											3 Months Ended		108 Months Ended
	Apr. 03, 2018	Jan. 04, 2018 USD ($)	Nov. 06, 2017 defendant	May 03, 2017 lawsuit	Feb. 22, 2017 lawsuit	Jan. 31, 2017 USD ($) state item	May 02, 2016 defendant	Mar. 31, 2016	Feb. 04, 2015 defendant	Jan. 13, 2014 defendant	Mar. 31, 2019 USD ($) item lawsuit	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Jan. 04, 2018 EUR (€)	Apr. 12, 2017 state	Mar. 31, 2017 item	Feb. 13, 2017 item	Jan. 11, 2016 item	May 01, 2015 item	Jul. 31, 2013 item
Commitments and Contingencies
Letters of credit outstanding and bank guarantees											$ 285.0
Maximum maturity year for letters of credit											2024
Letters of credit renewal option											1 year
Stock repurchased											$ 175.0
Pending Litigation
Commitments and Contingencies
Range of possible loss, portion not accrued											$ 50.0
Pending Litigation \| Defendants under the shareholder complaint filed in District Court, Douglas Country \| Executive Officer
Commitments and Contingencies
Number of defendants \| defendant										1
Pending Litigation \| Defendants under the shareholder complaint filed in District Court, Douglas Country \| Former Director
Commitments and Contingencies
Number of defendants \| defendant										1
Pending Litigation \| Defendants under the shareholder derivative complaints filed in US District Court for the District of Colorado
Commitments and Contingencies
Stock repurchased													$ 1,565.0
Period plaintiffs may file an amended complaint								30 days
Pending Litigation \| Defendants under the shareholder derivative complaints filed in US District Court for the District of Colorado \| Executive Officer
Commitments and Contingencies
Number of defendants \| defendant									9
Pending Litigation \| Defendants under the shareholder derivative complaints filed in US District Court for the District of Colorado \| Director
Commitments and Contingencies
Number of defendants \| defendant							6
Pending Litigation \| Defendants under the shareholder derivative complaints filed in US District Court for the District of Colorado \| Former Director
Commitments and Contingencies
Number of defendants \| defendant							3
Pending Litigation \| Lawrence Henry Smallen and Laura Anne Smallen Revocable Living Trust
Commitments and Contingencies
Number of purported class action lawsuits \| lawsuit					2
Number of claims consolidated \| lawsuit				2
Pending Litigation \| Lawrence Henry Smallen and Laura Anne Smallen Revocable Living Trust \| Executive Officer
Commitments and Contingencies
Number of defendants \| defendant			2
Number of defendants voluntarily dismissed \| defendant			1
Pending Litigation \| National Court of Spain
Commitments and Contingencies
Guaranty liabilities \| €														€ 23
Pending Litigation \| National Court of Spain \| Former Agent
Commitments and Contingencies
Number of agents \| item																	98
Settled Litigation \| Joint Settlement Agreements
Commitments and Contingencies
Number of state attorneys general \| state						49									1
Count- criminal information \| item						2
Compensation payment						$ 586.0
State attorneys general payment						$ 5.0
Period to retain an independent compliance auditor						3 years
Civil penalty assessed by the FinCEN Agreement						$ 184.0
Settled Litigation \| District of Colorado
Commitments and Contingencies
Number of defendants \| lawsuit											1
Number of purported class action lawsuits \| lawsuit											2
Number of class members who filed appeals \| item																		2	2	2
Period to execute release	1 year
Remaining jurisdictions to execute release \| item											1
Settled Litigation \| Northern District of Illinois
Commitments and Contingencies
Litigation settlement awarded to other party												$ 8.5
Settled Litigation \| NYDFS Consent Order
Commitments and Contingencies
Damages awarded		$ 60.0
Period to provide remediation plan		90 days
Settled Litigation \| NYDFS Consent Order \| Current Agent
Commitments and Contingencies
Number of agents \| item																1
Settled Litigation \| NYDFS Consent Order \| Former Agent
Commitments and Contingencies
Number of agents \| item																2

Related Party Transactions - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Equity Method Investee
Related Party Transactions
Commission expense	$ 13.0	$ 13.8

Settlement Assets and Obligations and Non-Settlement Related Investments - Settlement Assets and Obligations (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Settlement assets:
Cash and cash equivalents	$ 1,394.9	$ 1,247.8
Receivables from selling agents and Business Solutions customers	1,442.2	1,355.4
Investment securities	1,366.1	1,210.6
Total settlement assets	3,497.5	3,813.8
Total settlement assets, including held for sale	4,203.2
Settlement obligations:
Money transfer, money order and payment service payables	2,790.2	2,793.6
Payables to agents	1,413.0	1,020.2
Total settlement obligations	3,497.5	$ 3,813.8
Total settlement obligations, including held for sale	4,203.2
Speedpay \| Disposed of by Sale, Not Discontinued Operations
Settlement assets:
Total settlement assets	705.7
Settlement obligations:
Total settlement obligations	$ 705.7

Settlement Assets and Obligations and Non-Settlement Related Investments - Components of Investment Securities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Investment Securities
Variable rate demand notes, maximum maturity year	2049
Proceeds from sale and maturity of available-for-sale securities	$ 1,500.0	$ 2,700.0
Cash:
Amortized Cost	833.1		$ 973.4
Settlement assets:
Amortized Cost	1,350.7		1,212.0
Fair Value	1,366.1		1,210.6
Gross Unrealized Gains	16.8		6.1
Gross Unrealized Losses	(1.4)		(7.5)
Net Unrealized Gains/ (Losses)	15.4		(1.4)
Other assets:
Amortized Cost	1,392.5		1,295.8
Fair Value	1,408.0		1,294.4
Gross Unrealized Gains	16.9		6.1
Gross Unrealized Losses	(1.4)		(7.5)
Net Unrealized Gains/ (Losses)	15.5		(1.4)
Money market funds \| Cash
Cash:
Amortized Cost			27.0
Fair Value			27.0
Money market funds \| Settlement Assets
Cash:
Amortized Cost	14.8		23.9
Fair Value	14.8		23.9
State and municipal debt securities
Settlement assets:
Amortized Cost	969.3		963.4
Fair Value	984.8		962.7
Gross Unrealized Gains	16.5		6.1
Gross Unrealized Losses	(1.0)		(6.8)
Net Unrealized Gains/ (Losses)	15.5		(0.7)
State and municipal variable rate demand notes
Settlement assets:
Amortized Cost	295.6		168.7
Fair Value	295.6		168.7
Corporate and other debt securities
Settlement assets:
Amortized Cost	75.9		70.0
Fair Value	75.9		69.5
Gross Unrealized Gains	0.3
Gross Unrealized Losses	(0.3)		(0.5)
Net Unrealized Gains/ (Losses)			(0.5)
United States Treasury securities
Settlement assets:
Amortized Cost	9.9		9.9
Fair Value	9.8		9.7
Gross Unrealized Losses	(0.1)		(0.2)
Net Unrealized Gains/ (Losses)	(0.1)		(0.2)
Foreign corporate debt securities
Other assets:
Amortized Cost	27.0		32.9
Fair Value	27.1		$ 32.9
Gross Unrealized Gains	0.1
Net Unrealized Gains/ (Losses)	$ 0.1

Settlement Assets and Obligations and Non-Settlement Related Investments - Contractual Maturities of Debt Securities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Fair Value
Due within 1 year	$ 148.8
Due after 1 year through 5 years	489.3
Due after 5 years through 10 years	266.4
Due after 10 years	461.6
Total investment securities	1,366.1	$ 1,210.6
State and municipal variable rate demand notes
Fair Value
Due after 10 years	295.6
Total investment securities	$ 295.6	$ 168.7
Foreign corporate debt securities \| Maximum
Fair Value
Maturity of the held-to-maturity debt securities portfolio	1 year

Stockholders' Deficit - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Unrealized gains on investment securities:
Unrealized gains/(losses) on investment securities, beginning of period	$ (1.1)	$ 2.7
Unrealized gains/(losses)	16.8	(11.7)
Tax (expense)/benefit	(3.8)	2.6
Tax expense/(benefit) related to reclassifications		(0.1)
Net unrealized gains/(losses) on investment securities	13.0	(8.7)
Reclassification of Tax Act effects into "Accumulated deficit"		0.5
Unrealized gains/(losses) on investment securities, end of period	11.9	(5.5)
Unrealized gains/(losses) on hedging activities:
Unrealized gain/(losses) on hedging activities, beginning of period	7.4	(40.6)
Unrealized gains/(losses)	4.4	(12.3)
Tax (expense)/benefit	0.9	(0.5)
Tax expense/(benefit) related to reclassifications		(0.5)
Net unrealized gains/(losses) on hedging activities	3.9	(3.1)
Reclassification of Tax Act effects into "Accumulated deficit"		(2.3)
Unrealized gains/(losses) on hedging activities, end of period	11.3	(46.0)
Foreign currency translation adjustments:
Foreign currency translation adjustments, beginning of period	(101.2)	(76.9)
Foreign currency translation adjustments		(7.0)
Net foreign currency translation adjustments		(7.0)
Reclassification of Tax Act effects into "Accumulated deficit"		(4.8)
Foreign currency translation adjustments, end of period	(101.2)	(88.7)
Defined benefit pension plan adjustments:
Defined benefit pension plan adjustments, beginning of period	(136.1)	(113.1)
Tax benefit related to reclassifications	(0.2)	(0.8)
Net defined benefit pension plan adjustments	2.5	2.1
Reclassification of Tax Act effects into "Accumulated deficit"		(24.8)
Defined benefit pension plan adjustments, end of period	(133.6)	(135.8)
Accumulated other comprehensive loss, end of period	(211.6)	(276.0)	$ (231.0)
Reclassification out of Accumulated Other Comprehensive Income (Loss) \| Revenue
Unrealized gains on investment securities:
Reclassification of (gains)/losses into "Revenues"		0.5
Unrealized gains/(losses) on hedging activities:
Reclassification of gains/(losses) into Revenues/Interest expense	(1.4)	9.4
Reclassification out of Accumulated Other Comprehensive Income (Loss) \| Interest Expense
Unrealized gains/(losses) on hedging activities:
Reclassification of gains/(losses) into Revenues/Interest expense		0.8
Reclassification out of Accumulated Other Comprehensive Income (Loss) \| Other income, net
Defined benefit pension plan adjustments:
Reclassification of losses into "Other income, net"	$ 2.7	$ 2.9

Stockholders' Deficit - Cash Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Dividends Paid
Common stock dividends (USD per share)	$ 0.20	$ 0.19
Cash dividends paid	$ 87.4	$ 87.5

Stockholders' Deficit - Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share Repurchases
Stock repurchased and retired, publicly announced authorizations (shares)	9.7	0.0
Stock repurchased and retired, publicly announced authorizations, value excluding commissions	$ 175.0
Stock repurchased and retired, publicly announced authorizations, average cost per share excluding commissions (USD per share)	$ 18.06
Authorized through December 31, 2019
Share Repurchases
Remaining amount available under share repurchase authorization through December 31, 2019	$ 369.2
Authorized through December 31, 2021
Share Repurchases
Remaining amount available under share repurchase authorization through December 31, 2019	$ 1,000.0

Derivatives - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Derivatives - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2019	Mar. 31, 2018
Derivatives
Gain (Loss) excluded from effectiveness testing recognized in other comprehensive income	$ 0.5	$ (0.2)
Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities	(10.8)	2.3
Accumulated other comprehensive pre-tax gain (loss) to be reclassified into revenue within the next 12 months	14.6
Business Solutions
Derivatives
Foreign exchange revenues	84.7	$ 85.8
Interest rate contracts \| 5.253% notes due 2020
Derivatives
Notional amounts	$ 175.0
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	$ 6,000.0
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

Derivatives - Foreign Currency Forward Contracts (Details) - Foreign currency contracts $ in Millions	Mar. 31, 2019 USD ($) item
Designated as hedges \| Euro
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	$ 364.8
Designated as hedges \| British pound
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	68.6
Designated as hedges \| Canadian dollar
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	97.7
Designated as hedges \| Australian dollar
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	41.5
Designated as hedges \| Japanese Yen
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	25.9
Designated as hedges \| Other
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	48.3
Not designated as hedges \| Euro
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	241.0
Not designated as hedges \| British pound
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	59.3
Not designated as hedges \| Canadian dollar
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	41.9
Not designated as hedges \| Indian rupee
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	40.8
Not designated as hedges \| Australian dollar
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	38.8
Not designated as hedges \| Brazilian real
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	38.3
Not designated as hedges \| Mexican peso
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	35.5
Not designated as hedges \| Japanese Yen
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	27.6
Not designated as hedges \| Other
Notional Amounts of Foreign Currency Forward Contracts
Notional amounts	$ 126.9
Number of currency exposures within 'Other' \| item	21
Maximum individual currency exposure within 'Other'	$ 20.0

Derivatives - Fair Value of Derivatives (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Fair Value of Derivatives
Derivative Assets	$ 200.9	$ 245.5
Derivative Liabilities	129.5	176.2
Designated as hedges
Fair Value of Derivatives
Derivative Assets	33.4	28.7
Derivative Liabilities	0.8	2.8
Designated as hedges \| Other assets \| Interest rate contracts
Fair Value of Derivatives
Derivative Assets	2.9	0.1
Designated as hedges \| Other assets \| Foreign currency contracts
Fair Value of Derivatives
Derivative Assets	30.5	28.6
Designated as hedges \| Other liabilities \| Foreign currency contracts
Fair Value of Derivatives
Derivative Liabilities	0.8	2.8
Not designated as hedges
Fair Value of Derivatives
Derivative Assets	167.5	216.8
Derivative Liabilities	128.7	173.4
Not designated as hedges \| Other assets \| Foreign currency contracts
Fair Value of Derivatives
Derivative Assets	3.8	2.6
Not designated as hedges \| Other liabilities \| Foreign currency contracts
Fair Value of Derivatives
Derivative Liabilities	1.8	2.5
Not designated as hedges \| Business Solutions \| Other assets \| Foreign currency contracts
Fair Value of Derivatives
Derivative Assets	163.7	214.2
Not designated as hedges \| Business Solutions \| Other liabilities \| Foreign currency contracts
Fair Value of Derivatives
Derivative Liabilities	$ 126.9	$ 170.9

Derivatives - Gross and Net Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Offsetting of Derivative Assets
Gross Amounts of Recognized Assets	$ 136.1	$ 162.6
Net Amounts Presented in the Consolidated Balance Sheets	136.1	162.6
Derivatives Not Offset in the Consolidated Balance Sheets	(76.8)	(95.7)
Net Amounts	59.3	66.9
Derivatives that are not or may not be subject to master netting arrangement or similar agreement	64.8	82.9
Total	200.9	245.5
Offsetting of Derivative Liabilities
Gross Amounts of Recognized Liabilities	85.0	104.1
Net Amounts Presented in the Consolidated Balance Sheets	85.0	104.1
Derivatives Not Offset in the Consolidated Balance Sheets	(76.8)	(95.7)
Net Amounts	8.2	8.4
Derivatives that are not or may not be subject to master netting arrangement or similar agreement	44.5	72.1
Total	$ 129.5	$ 176.2

Derivatives - Net Gains/(Losses) from Hedging Activities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Gains/(Losses) from Derivatives
Revenues	$ 1,337.0	$ 1,389.4
Interest expense	(39.7)	(35.5)
Other income, net	2.5	4.4
Cash Flow and Fair Value Hedges
Gain/(Loss) Recognized in OCI on Derivatives	4.4	(12.3)
Not designated as hedges
Cash Flow and Fair Value Hedges
Gain/(Loss) Recognized in Income on Derivatives	6.8	(2.6)
Not designated as hedges \| Selling, general and administrative
Cash Flow and Fair Value Hedges
Gain/(Loss) Recognized in Income on Derivatives	6.6	(0.1)
Not designated as hedges \| Revenue
Cash Flow and Fair Value Hedges
Gain/(Loss) Recognized in Income on Derivatives	0.2	(0.5)
Not designated as hedges \| Other Income
Cash Flow and Fair Value Hedges
Gain/(Loss) Recognized in Income on Derivatives		(2.0)
Fair Value Hedges \| Interest rate contracts \| Interest Expense
Cash Flow and Fair Value Hedges
Hedged items	(0.3)	1.4
Derivatives designated as hedging instruments	0.4	(1.5)
Cash Flow Hedges \| Foreign currency contracts \| Revenue
Cash Flow and Fair Value Hedges
Amount of gain/(loss) reclassified from accumulated other comprehensive loss into income	1.4	(9.4)
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach	2.3	0.2
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value	$ 1.3	$ 1.4

Borrowings - Outstanding Borrowings (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Outstanding Borrowings
Total borrowings at par value	$ 3,384.9	$ 3,449.9
Fair value hedge accounting adjustments, net	0.2	(0.1)
Debt issuance costs and unamortized discount, net	(14.8)	(16.1)
Total borrowings at carrying value	3,370.3	3,433.7
Commercial paper
Outstanding Borrowings
Total borrowings at par value	60.0	125.0
3.350% notes due 2019
Outstanding Borrowings
Total borrowings at par value	$ 250.0	$ 250.0
Stated interest rate (as a percent)	3.35%	3.35%
Floating rate notes due 2019
Outstanding Borrowings
Total borrowings at par value	$ 250.0	$ 250.0
Effective interest rate	3.70%
5.253% notes due 2020
Outstanding Borrowings
Total borrowings at par value	$ 324.9	$ 324.9
Stated interest rate (as a percent)	5.253%	5.253%
Effective interest rate	5.80%
3.600% notes due 2022
Outstanding Borrowings
Total borrowings at par value	$ 500.0	$ 500.0
Stated interest rate (as a percent)	3.60%	3.60%
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%
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
Outstanding Borrowings
Total borrowings at par value	$ 950.0	$ 950.0
Effective interest rate	3.80%

Borrowings - Narrative (Details) $ in Billions	3 Months Ended
Borrowings - Narrative (Details) $ in Billions	Mar. 31, 2019 USD ($)
Long-term and Short-term Debt Instruments
Weighted-average effective interest rate	4.60%
Commercial paper
Long-term and Short-term Debt Instruments
Maximum borrowing capacity	$ 1.5
Maximum days to maturity	397 days
Weighted-average effective interest rate	2.70%
Weighted-average term	1 day

Borrowings - Maturity Schedule of Borrowings (Details) $ in Millions	Mar. 31, 2019 USD ($)
Borrowings maturities at par value
Due within 1 year	$ 500.0
Due after 1 year through 2 years	336.8
Due after 2 years through 3 years	547.5
Due after 3 years through 4 years	59.4
Due after 4 years through 5 years	1,131.2
Due after 5 years	$ 750.0

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Unrecognized Tax Benefits
Effective tax rate	19.90%	8.90%
Reduction to the effective tax rate related to provisional accounting for the Tax Act		(2.60%)
Unrecognized tax benefits, excluding interest and penalties	$ 295.3			$ 295.0
Unrecognized tax benefits that, if recognized, would affect the effective tax rate	284.4			284.2
Interest and penalties, accrued	$ 24.8			$ 23.9
Forecast \| Geographic Concentration Risk
Unrecognized Tax Benefits
Percent of pre-tax income derived from foreign sources			69.00%

Stock Compensation Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Stock Compensation Plans
Stock-based compensation expense	$ 13.7	$ 13.8
Options granted (shares)	0.6
Options granted exercise price (in dollars per share)	$ 17.63
Restricted stock units and Performance stock units granted (in shares)	3.3
Restricted stock units and Performance stock units weighted average grant date fair value (in dollars per share)	$ 15.75
Number of options outstanding (in shares)	6.6
Exercise price of options outstanding (in dollars per share)	$ 17.70
Number of options exercisable (in shares)	5.5
Exercise price of options exercisable (in dollars per share)	$ 17.48
Number of non-vested restricted and performance stock units (in shares)	8.2
Grant date fair value of restricted and performancen stock units (in dollars per share)	$ 17.00

Segments - Narrative (Details) - Operating Segments	3 Months Ended
Segments - Narrative (Details) - Operating Segments	Mar. 31, 2019 region customer 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

Segments - Reportable Segments Results (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues:
Total consolidated revenues	$ 1,337.0	$ 1,389.4
Operating income:
Total operating income	251.2	264.9
Operating Segments \| Consumer-to-Consumer
Revenues:
Total consolidated revenues	1,056.9	1,091.0
Operating income:
Total operating income	233.3	241.7
Operating Segments \| Business Solutions
Revenues:
Total consolidated revenues	95.6	96.7
Operating income:
Total operating income	8.6	2.8
Operating Segments \| Other
Revenues:
Total consolidated revenues	184.5	201.7
Operating income:
Total operating income	9.3	20.4
Operating Segments \| Other \| Speedpay \| Disposed of by Sale, Not Discontinued Operations
Revenues:
Revenues	88.2	95.0
Operating income:
Operating expenses	$ 67.6	$ 66.1