WESTERN UNION CO, 10-Q filed on 4/28/2022
Quarterly Report
v3.22.1
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2022
Apr. 22, 2022
Document and Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2022  
Entity File Number 001-32903  
Entity Registrant Name THE WESTERN UNION COMPANY  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-4531180  
Entity Address, Address Line One 7001 EAST BELLEVIEW AVENUE  
Entity Address, City or Town Denver  
Entity Address, State or Province CO  
Entity Address, Postal Zip Code 80237  
City Area Code 866  
Local Phone Number 405-5012  
Title of 12(b) Security Common Stock, $0.01 Par Value  
Trading Symbol WU  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   386,034,020
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0001365135  
Amendment Flag false  
v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
CONSOLIDATED STATEMENTS OF INCOME    
Revenues $ 1,155.7 $ 1,210.0
Type of Revenue us-gaap:ServiceMember us-gaap:ServiceMember
Expenses:    
Cost of services $ 655.1 $ 706.0
Type of Cost of Service us-gaap:ServiceMember us-gaap:ServiceMember
Selling, general, and administrative $ 263.1 $ 271.2
Total expenses 918.2 977.2
Operating income 237.5 232.8
Other income/(expense):    
Gain on divestitures of businesses (Note 4) 151.4  
Interest income 0.6 0.4
Interest expense (24.8) (28.4)
Other expense, net (2.5) (1.9)
Total other income/(expense), net 124.7 (29.9)
Income before income taxes 362.2 202.9
Provision for income taxes 68.9 21.1
Net income $ 293.3 $ 181.8
Earnings per share:    
Basic (USD per share) $ 0.75 $ 0.44
Diluted (USD per share) $ 0.74 $ 0.44
Weighted-average shares outstanding:    
Basic (shares) 393.1 411.7
Diluted (shares) 394.5 414.3
v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME    
Net income $ 293.3 $ 181.8
Other comprehensive income, net of reclassifications and tax (Note 9):    
Unrealized losses on investment securities (51.6) (13.0)
Unrealized gains on hedging activities 5.3 28.9
Foreign currency translation adjustments (17.8)
Defined benefit pension plan adjustments 2.5
Total other comprehensive income/(loss) (64.1) 18.4
Comprehensive income $ 229.2 $ 200.2
v3.22.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Assets    
Cash and cash equivalents $ 1,295.8 $ 1,208.3
Settlement assets 2,999.5 2,843.5
Property and equipment, net of accumulated depreciation of $645.0 and $650.4, respectively 122.9 129.4
Goodwill 2,034.6 2,034.6
Other intangible assets, net of accumulated amortization of $753.9 and $731.8, respectively 400.1 417.1
Other assets 1,012.7 737.7
Assets held for sale (Note 4) 623.1 1,452.9
Total assets 8,488.7 8,823.5
Liabilities:    
Accounts payable and accrued liabilities 470.7 450.2
Settlement obligations 2,999.5 2,843.5
Income taxes payable 927.3 870.7
Deferred tax liability, net 182.7 203.8
Borrowings [1] 2,534.5 3,008.4
Other liabilities (Note 4) 662.6 269.4
Liabilities associated with assets held for sale (Note 4) 358.6 821.9
Total liabilities 8,135.9 8,467.9
Commitments and contingencies (Note 6)
Stockholders' equity    
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued
Common stock, $0.01 par value; 2,000 shares authorized; 387.1 shares and 393.8 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively 3.9 3.9
Capital surplus 960.5 941.0
Accumulated deficit (495.4) (537.2)
Accumulated other comprehensive loss (116.2) (52.1)
Total stockholders' equity 352.8 355.6
Total liabilities and stockholders' equity $ 8,488.7 $ 8,823.5
[1] As of March 31, 2022, the Company’s weighted-average effective rate on total borrowings was approximately 3.7%.
v3.22.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)
shares in Millions, $ in Millions
Mar. 31, 2022
Dec. 31, 2021
Assets    
Accumulated Depreciation on Property Plant and Equipment $ 645.0 $ 650.4
Accumulated Amortization on Other Intangible Assets $ 753.9 $ 731.8
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 387.1 393.8
Common stock, shares outstanding 387.1 393.8
v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Cash flows from operating activities    
Net income $ 293.3 $ 181.8
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 11.3 12.8
Amortization 35.5 40.6
Gain on divestiture of businesses, excluding transaction costs (Note 4) (155.8)
Other non-cash items, net 22.9 30.3
Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in:    
Other assets (93.2) (46.9)
Accounts payable and accrued liabilities 36.0 (35.8)
Income taxes payable 56.2 5.5
Other liabilities (6.2) (12.5)
Net cash provided by operating activities 200.0 175.8
Cash flows from investing activities    
Payments for capitalized contract costs (6.9) (78.3)
Payments for internal use software (12.6) (9.9)
Purchases of property and equipment (10.3) (8.7)
Proceeds from divestitures , net of cash divested (Note 4) 896.1
Other investing activities (5.9) 0.7
Net cash provided by investing activities 541.0 269.2
Cash flows from financing activities    
Cash dividends and dividend equivalents paid (91.8) (96.7)
Common stock repurchased (Note 9) (154.4) (84.5)
Net repayments of commercial paper (175.0) (80.0)
Net proceeds from issuance of borrowings 892.6
Principal payments on borrowings (300.0) (650.0)
Proceeds from exercise of options 8.9 8.1
Other financing activities 0.1
Net cash used in financing activities (792.7) (307.5)
Net change in cash and cash equivalents, including settlement, and restricted cash (51.7) 137.5
Cash and cash equivalents, including settlement, and restricted cash at beginning of period 2,110.9 2,143.1
Cash and cash equivalents, including settlement, and restricted cash at end of period 2,059.2 2,280.6
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]    
Cash and cash equivalents on balance sheet 1,295.8 1,502.6
Settlement cash and cash equivalents (Note 8) 685.7  
Restricted cash in Other assets 24.6 14.0
Cash and cash equivalents included in Assets held for sale (Note 4) 53.1  
Cash and cash equivalents, including settlement, and restricted cash 2,059.2 2,280.6
Supplemental cash flow information:    
Interest paid 16.6 19.6
Income taxes paid 23.0 15.0
Internal use software capitalized but not yet paid 42.0
Settlement Investments    
Cash flows from investing activities    
Proceeds from the sale of settlement investments 71.6 427.1
Maturities of settlement investments 37.4 100.0
Purchase of investments (178.4) (161.7)
Cash flows from financing activities    
Net change in settlement obligations (80.4) (297.1)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]    
Settlement cash and cash equivalents (Note 8) 685.7 764.0
Non Settlement Investment    
Cash flows from investing activities    
Purchase of investments $ (250.0)
v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Capital Surplus
Accumulated Deficit
Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2020 $ 186.6 $ 4.1 $ 885.1 $ (543.1) $ (159.5)
Beginning balance (shares) at Dec. 31, 2020   411.2      
Increase/(Decrease) in Stockholders' Equity [Roll Forward]          
Net income 181.8     181.8  
Stock-based compensation 10.8   10.8    
Common stock dividends and dividend equivalents declared (97.9)     (97.9)  
Repurchase and retirement of common shares (89.0)     (89.0)  
Repurchase and retirement of common shares (shares)   (3.7)      
Shares issued under stock-based compensation plans 8.1   8.1    
Shares issued under stock-based compensation plans (shares)   2.3      
Other comprehensive income (loss) (Note 9) 18.4       18.4
Ending balance at Mar. 31, 2021 218.8 $ 4.1 904.0 (548.2) (141.1)
Ending balance (shares) at Mar. 31, 2021   409.8      
Beginning balance at Dec. 31, 2021 $ 355.6 $ 3.9 941.0 (537.2) (52.1)
Beginning balance (shares) at Dec. 31, 2021 393.8 393.8      
Increase/(Decrease) in Stockholders' Equity [Roll Forward]          
Net income $ 293.3     293.3  
Stock-based compensation 10.7   10.7    
Common stock dividends and dividend equivalents declared (92.6)     (92.6)  
Repurchase and retirement of common shares (159.0) $ (0.1)   (158.9)  
Repurchase and retirement of common shares (shares)   (8.6)      
Shares issued under stock-based compensation plans 8.9 $ 0.1 8.8    
Shares issued under stock-based compensation plans (shares)   1.9      
Other comprehensive income (loss) (Note 9) (64.1)       (64.1)
Ending balance at Mar. 31, 2022 $ 352.8 $ 3.9 $ 960.5 $ (495.4) $ (116.2)
Ending balance (shares) at Mar. 31, 2022 387.1 387.1      
v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT)    
Common stock dividends (USD per share) $ 0.235 $ 0.235
v3.22.1
Business and Basis of Presentation
 3 Months Ended
Mar. 31, 2022
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 available through a network of agent locations in more than 200 countries and territories and also through money transfer transactions conducted and funded through websites and mobile applications marketed under the Company’s brands (“westernunion.com”) and transactions initiated on websites and mobile applications hosted by the Company’s third-party white label or co-branded digital partners (together with westernunion.com, “Digital Money Transfer”). Each location in the Company’s agent network is capable of providing one or more of the Company’s services.

The Western Union business consists of the following segments:

•
Consumer-to-Consumer - The Consumer-to-Consumer operating segment facilitates money transfers which are sent from retail agent locations worldwide or through websites and mobile devices, including Digital Money Transfer services. The Company’s money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers.
•
Business Solutions - The Business Solutions operating segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises, and other organizations and individuals. The significant majority of the Business Solutions business relates to exchanges of currency at spot rates, which enable customers to make cross-currency payments. In addition, in certain countries, the Company writes foreign currency forward and option contracts for customers to facilitate future payments. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. The sale will be completed in two closings, the first of which occurred on March 1, 2022, with the second expected in the second half of 2022. See Note 4 for further information regarding this transaction.

All businesses and other services that have not been classified in the above segments are reported as Other, which primarily includes the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services. Certain of the Company's corporate costs such as costs related to strategic initiatives, including costs for the review and closing of mergers, acquisitions, and divestitures, are also included in Other. See Note 14 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, 2021, the Company's restricted net assets associated with these asset limitations and minimum capital requirements totaled approximately $460 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 have been eliminated as of March 31, 2022 and December 31, 2021 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, 2022 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, 2021.

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.

Cash Flow Classification Revision

Beginning in the fourth quarter of 2021, the Company revised its presentation to include changes in settlement cash associated with settlement obligations as a financing activity and changes in settlement cash from purchases, sales, and maturities of settlement investments as an investing activity within its Condensed Consolidated Statements of Cash Flows. Previously, the changes in settlement assets and settlement obligations were presented on a net basis within operating activities in the Company’s Condensed Consolidated Statements of Cash Flows.

Prior period amounts have been revised to conform to this presentation. These changes in presentation have been concluded to be immaterial, having no impact on the Company’s previously reported net income, financial position, or cash flows from operating activities, as changes in the Company’s settlement assets exactly offset changes in its settlement obligations. However, the revised presentation shows all changes associated with settlement cash in the Condensed Consolidated Statements of Cash Flows instead of in the Notes to the Condensed Consolidated Financial Statements.

 

The following table presents the effects of the changes in presentation of these cash flows, compared to the previously reported Condensed Consolidated Statements of Cash Flows (in millions):

 

 

Three Months Ended March 31, 2021

 

 

 

As Previously

 

 

 

 

 

 

 

 

 

Reported(a)

 

 

Revisions

 

 

As Revised

 

Net cash provided by/(used in):

 

 

 

 

 

 

 

 

 

Operating activities

 

$

175.8

 

 

$

—

 

 

$

175.8

 

Investing activities(b)

 

 

(96.2

)

 

 

365.4

 

 

 

269.2

 

Financing activities(c)

 

 

(10.4

)

 

 

(297.1

)

 

 

(307.5

)

Net change in cash and cash equivalents, including settlement, and restricted cash

 

$

69.2

 

 

$

68.3

 

 

$

137.5

 

 

(a)
As reported in the Company's Form 10-Q filed with the Securities Exchange Commission on May 4, 2021.
(b)
The financial statement lines included in Investing activities are Purchases of settlement investments, Proceeds from the sale of settlement investments, and Maturities of settlement investments.
(c)
The financial statement line included in Financing activities is Net change in settlement obligations.
v3.22.1
Revenue
 3 Months Ended
Mar. 31, 2022
Revenue  
Revenue

2. Revenue

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

The Company recognized $1,100.7 million and $1,166.3 million in revenues from contracts with customers for the three months ended March 31, 2022 and 2021, respectively. There were no material upfront costs incurred to obtain contracts with customers during these same periods. Under the Company’s loyalty programs, which are primarily offered in its money transfer services, the Company must fulfill loyalty program rewards earned by customers. The loyalty program redemption activity has been and continues to be insignificant to the Company’s results of operations, 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 payment and other services are not included in the Company’s segments and are reported as Other. See Note 14 for further information on the Company’s segments. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost

Group LLC. The sale will be completed in two closings, the first of which occurred on March 1, 2022, with the second expected in the second half of 2022. See Note 4 for further information regarding this transaction.

Consumer Money Transfers

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

Foreign Exchange and Payment Services

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

Consumer Bill Payments and Other

The Company offers bill payment and other services that vary by contractual features, including the types and amounts of fixed charges and with respect to how fees are billed and collected. The identification of the contract with the customer for revenue recognition purposes is consistent with these features for each of the Company’s bill payment and other services. As with consumer money transfers, customers engage the Company to perform one integrated service — collect money from the consumer and process the transaction, thereby providing billers with real-time or near real-time information regarding consumer payments and simplifying the billers’ collection efforts.

Management has determined that the substantial majority of the Company’s revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the three months ended March 31, 2022 and 2021 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated.

 

 

 

Three Months Ended March 31, 2022

 

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

Money

 

 

and Payment

 

 

Consumer

 

 

Other

 

 

 

 

 

 

Transfers

 

 

Services

 

 

Bill Payments

 

 

Services

 

 

Total

 

Regions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

381.2

 

 

$

17.9

 

 

$

17.5

 

 

$

14.2

 

 

$

430.8

 

Europe and Russia/CIS

 

 

283.8

 

 

 

33.7

 

 

 

3.5

 

 

 

0.1

 

 

 

321.1

 

Middle East, Africa, and South Asia

 

 

162.3

 

 

 

0.4

 

 

 

0.1

 

 

 

—

 

 

 

162.8

 

Latin America and the Caribbean

 

 

88.1

 

 

 

0.5

 

 

 

21.2

 

 

 

2.0

 

 

 

111.8

 

East Asia and Oceania

 

 

61.4

 

 

 

12.5

 

 

 

0.3

 

 

 

—

 

 

 

74.2

 

Revenues from contracts with customers

 

$

976.8

 

 

$

65.0

 

 

$

42.6

 

 

$

16.3

 

 

$

1,100.7

 

Other revenues (a)

 

 

22.2

 

 

 

24.1

 

 

 

3.8

 

 

 

4.9

 

 

 

55.0

 

Total revenues

 

$

999.0

 

 

$

89.1

 

 

$

46.4

 

 

$

21.2

 

 

$

1,155.7

 

 

 

 

Three Months Ended March 31, 2021

 

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

Money

 

 

and Payment

 

 

Consumer

 

 

Other

 

 

 

 

 

 

Transfers

 

 

Services

 

 

Bill Payments

 

 

Services

 

 

Total

 

Regions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

386.6

 

 

$

21.2

 

 

$

18.6

 

 

$

14.5

 

 

$

440.9

 

Europe and Russia/CIS

 

 

338.7

 

 

 

34.3

 

 

 

1.1

 

 

 

0.4

 

 

 

374.5

 

Middle East, Africa, and South Asia

 

 

159.7

 

 

 

0.5

 

 

 

0.1

 

 

 

—

 

 

 

160.3

 

Latin America and the Caribbean

 

 

86.7

 

 

 

0.8

 

 

 

17.7

 

 

 

1.8

 

 

 

107.0

 

East Asia and Oceania

 

 

66.7

 

 

 

16.6

 

 

 

0.3

 

 

 

—

 

 

 

83.6

 

Revenues from contracts with customers

 

$

1,038.4

 

 

$

73.4

 

 

$

37.8

 

 

$

16.7

 

 

$

1,166.3

 

Other revenues (a)

 

 

12.5

 

 

 

23.1

 

 

 

3.0

 

 

 

5.1

 

 

 

43.7

 

Total revenues

 

$

1,050.9

 

 

$

96.5

 

 

$

40.8

 

 

$

21.8

 

 

$

1,210.0

 

 

(a)
Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources.
v3.22.1
Earnings Per Share
 3 Months Ended
Mar. 31, 2022
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, 2022 and 2021, there were 7.2 million and 1.4 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 and restricted stock units, as the assumed proceeds of the options and restricted stock per unit were above the Company’s weighted-average share price during the periods and their effect was anti-dilutive.

 

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

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

Basic weighted-average shares outstanding

 

 

393.1

 

 

 

411.7

 

Common stock equivalents

 

 

1.4

 

 

 

2.6

 

Diluted weighted-average shares outstanding

 

 

394.5

 

 

 

414.3

 

 

 
v3.22.1
Assets Held for Sale and Related Divestiture
 3 Months Ended
Mar. 31, 2022
Assets Held for Sale and Related Divestiture [Abstract]  
Assets Held for Sale and Related Divestiture

4. Assets Held for Sale and Related Divestiture

On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC (collectively, the “Buyer”) for cash consideration of $910.0 million, subject to regulatory and working capital adjustments. The sale will be completed in two closings, the first of which occurred on March 1, 2022 with the entirety of the cash consideration collected and allocated to the closings on a relative fair value basis. The first closing excluded the operations in the European Union and the United Kingdom and resulted in a gain of $151.4 million. In connection with the first closing, the Company reclassified $17.8 million of currency translation gains previously included within Accumulated other comprehensive loss (“AOCL”) as a component of Gain on divestiture of business in the Condensed Consolidated Statements of Income. As of March 31, 2022, the Company has classified the proceeds allocated to the European Union and United Kingdom operations of $390.3 million within Other liabilities in the Condensed Consolidated Balance Sheets. The second closing is currently expected in the second half of 2022, pending required regulatory approvals, at which time the remainder of the gain will be recognized. During the period between the closings, the Company will pay to the Buyer a measure of profit of the European Union and United Kingdom operations, adjusted for the provision for income taxes, occupancy charges for employees of the Buyer using Company facilities, and other items, as contractually agreed, which was $2.8 million for the three months ended March 31, 2022 and was included in Other expense, net in the Condensed Consolidated Statements of Income.

The Company has presented the remaining assets of its Business Solutions business as held for sale, along with the associated liabilities, as it believes completion of the second closing is probable. However, in the event that the second closing does not occur by February 4, 2023, the Company may, with appropriate notice to the Buyer, otherwise dispose of the European Union and United Kingdom operations, with any profit realized on disposition remitted to the Buyer, and conversely, any loss indemnified by the Buyer. The Buyer has rebranded the sold operations within a new standalone company (now referred to as "Convera").

Business Solutions revenues were $89.1 million and $96.5 million and direct operating expenses, which exclude corporate allocations, were $62.6 million and $81.8 million for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022, divestiture costs directly associated with this transaction were $3.2 million.

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

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Cash and cash equivalents

 

$

53.1

 

 

$

37.7

 

Settlement assets

 

 

205.9

 

 

 

566.0

 

Property and equipment, net of accumulated depreciation of $2.5 and $19.3

 

 

2.0

 

 

 

6.3

 

Goodwill

 

 

229.5

 

 

 

532.0

 

Other intangible assets, net of accumulated amortization of $78.2 and $360.2

 

 

9.9

 

 

 

50.4

 

Other assets

 

 

122.7

 

 

 

260.5

 

Total assets

 

$

623.1

 

 

$

1,452.9

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

47.5

 

 

$

61.6

 

Settlement obligations

 

 

205.9

 

 

 

566.0

 

Other liabilities

 

 

105.2

 

 

 

194.3

 

Total liabilities

 

$

358.6

 

 

$

821.9

 
v3.22.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2022
Fair Value Measurements  
Fair Value Measurements

5. 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, 2021.

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

 

 

 

Fair Value Measurement Using

 

 

Total

 

March 31, 2022

 

Level 1

 

 

Level 2

 

 

Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

Settlement assets:

 

 

 

 

 

 

 

 

 

Measured at fair value through net income:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

6.7

 

 

$

—

 

 

$

6.7

 

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

 

 

 

 

 

 

 

 

 

State and municipal debt securities

 

 

—

 

 

 

1,232.0

 

 

 

1,232.0

 

State and municipal variable-rate demand notes

 

 

—

 

 

 

79.9

 

 

 

79.9

 

Corporate debt securities

 

 

—

 

 

 

58.9

 

 

 

58.9

 

United States government agency mortgage-backed securities

 

 

—

 

 

 

31.5

 

 

 

31.5

 

Other assets:

 

 

 

 

 

 

 

 

 

Derivatives

 

 

—

 

 

 

139.5

 

 

 

139.5

 

Total assets

 

$

6.7

 

 

$

1,541.8

 

 

$

1,548.5

 

Liabilities:

 

 

 

 

 

 

 

 

 

Other liabilities:

 

 

 

 

 

 

 

 

 

Derivatives

 

$

—

 

 

$

114.0

 

 

$

114.0

 

Total liabilities

 

$

—

 

 

$

114.0

 

 

$

114.0

 

 

 

 

 

Fair Value Measurement Using

 

 

Total

 

December 31, 2021

 

Level 1

 

 

Level 2

 

 

Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

Settlement assets:

 

 

 

 

 

 

 

 

 

Measured at fair value through net income:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

7.9

 

 

$

—

 

 

$

7.9

 

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

 

 

 

 

 

 

 

 

 

State and municipal debt securities

 

 

—

 

 

 

1,219.9

 

 

 

1,219.9

 

State and municipal variable-rate demand notes

 

 

—

 

 

 

84.8

 

 

 

84.8

 

Corporate and other debt securities

 

 

—

 

 

 

57.8

 

 

 

57.8

 

United States government agency mortgage-backed securities

 

 

—

 

 

 

36.4

 

 

 

36.4

 

Other assets:

 

 

 

 

 

 

 

 

 

Derivatives

 

 

—

 

 

 

247.7

 

 

 

247.7

 

Total assets

 

$

7.9

 

 

$

1,646.6

 

 

$

1,654.5

 

Liabilities:

 

 

 

 

 

 

 

 

 

Other liabilities:

 

 

 

 

 

 

 

 

 

Derivatives

 

$

—

 

 

$

183.8

 

 

$

183.8

 

Total liabilities

 

$

—

 

 

$

183.8

 

 

$

183.8

 

 

There were no material, non-recurring fair value adjustments other than $8.7 million of property and equipment, operating lease right-of-use asset, and other intangible asset impairments associated with the Company's suspension of its operations in Russia and Belarus and the first closing of its Business Solutions divestiture in the three months ended March 31, 2022, as discussed further in Note 14. There were no material, non-recurring fair value adjustments in the three months ended March 31, 2021 or transfers between Level 1 and Level 2 measurements during the three months ended March 31, 2022 and 2021.

Other Fair Value Measurements

The carrying amounts for many of the Company’s financial instruments, including certain cash and cash equivalents, settlement cash and cash equivalents, and settlement receivables and obligations approximate fair value due to their short maturities. The Company’s borrowings are classified as Level 2 within the valuation hierarchy, and the aggregate fair value of these borrowings was based on quotes from multiple banks. Fixed-rate notes are carried in the Company’s Condensed Consolidated Balance Sheets at their original issuance values as adjusted over time to accrete that value to par. As of March 31, 2022, the carrying value and fair value of the Company’s borrowings were $2,534.5 million and $2,540.5 million, respectively (see Note 11). As of December 31, 2021, the carrying value and fair value of the Company’s borrowings were $3,008.4 million and $3,217.2 million, respectively.

In March 2022, the Company entered into a reverse repurchase agreement, a form of secured lending, with a broker-dealer affiliate of a large U.S. bank, using a portion of the proceeds from the sale of the Company's Business Solutions business. This agreement requires the counterparty to pledge marketable securities with a value greater than the amount of cash transferred as collateral, which is held and valued by a third-party custodial bank. The investment generates interest income through the date of repurchase, at which point the purchase price together with the interest due will be paid back to the Company. The Company carries this investment at amortized cost, and as of March 31, 2022, the carrying value of this investment, as reported in Other assets in the Company's Condensed Consolidated Balance Sheets, was $250 million, which approximates fair value due to the creditworthiness of the counterparty, the value of the collateral, and the investment's short-term nature and variable interest rate.
v3.22.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2022
Commitments and Contingencies  
Commitments and Contingencies

6. Commitments and Contingencies

Letters of Credit and Bank Guarantees

The Company had approximately $330 million in outstanding letters of credit and bank guarantees as of March 31, 2022, which were primarily held in connection with safeguarding consumer funds, lease arrangements, and certain agent agreements. The Company expects to renew most of its letters of credit and bank guarantees prior to expiration.

Litigation and Related Contingencies

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

For those matters that the Company believes there is at least a reasonable possibility that a loss or additional loss may have been incurred and can reasonably estimate the loss or potential loss, the reasonably possible potential litigation losses in excess of the Company’s recorded liability for probable and estimable losses was approximately $30 million as of March 31, 2022. For the remaining matters, management is unable to provide a meaningful estimate of the possible loss or range of loss because, among other reasons: (i) the proceedings are in preliminary stages; (ii) specific damages have not been sought; (iii) damage claims are unsupported and/or unreasonable; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; or (vi) novel legal issues or unsettled legal theories are being asserted.

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

Legal Matters

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

In April 2019, certain family members of Quinn Schansman filed a complaint seeking damages and other relief against a number of financial institutions, including The Western Union Company and Western Union Financial Services, Inc., in the United States District Court for the Southern District of New York, alleging that the defendants violated the United States Anti-Terrorism Act. The operative complaint alleges that the defendants provided funding to a terrorist organization by processing money transfers to groups or individuals associated with the Donetsk People’s Republic (“DPR”), a pro-Russian separatist group in eastern Ukraine. The complaint alleges that DPR downed Malaysian Airlines Flight 17, on which Mr. Schansman was a passenger. On September 30, 2021, the Court denied the defendants’ motion to dismiss the operative complaint. The Company intends to defend itself vigorously in this matter.

In addition to the principal matters described above, the Company is a party to a variety of other legal matters that arise in the normal course of the Company’s business. While the results of these other legal matters cannot be predicted with certainty, management believes that the final outcome of these matters will not have a material adverse effect either individually or in the aggregate on the Company’s financial condition, results of operations, or cash flows.
v3.22.1
Related Party Transactions
 3 Months Ended
Mar. 31, 2022
Related Party Transactions  
Related Party Transactions

7. Related Party Transactions

The Company has ownership interests in certain of its agents accounted for under the equity method of accounting. The Company pays these agents commissions for money transfer and other services provided on the Company’s behalf. Commission expense recognized for these agents for the three months ended March 31, 2022 and 2021 totaled $11.5 million and $13.2 million, respectively.
v3.22.1
Settlement Assets and Obligations
 3 Months Ended
Mar. 31, 2022
Settlement Assets and Obligations  
Settlement Assets and Obligations

8. Settlement Assets and Obligations

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

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

 

 

 

March 31, 2022

 

Settlement assets:

 

 

 

Cash and cash equivalents

 

$

685.7

 

Receivables from agents, Business Solutions customers, and others

 

 

1,137.4

 

Less: Allowance for credit losses

 

 

(19.9

)

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

 

 

1,117.5

 

Investment securities

 

 

1,402.3

 

Less: Allowance for credit losses

 

 

(0.1

)

Investment securities, net

 

 

1,402.2

 

Total settlement assets (a)

 

$

3,205.4

 

Settlement obligations:

 

 

 

Money transfer, money order, and payment service payables

 

$

2,507.9

 

Payables to agents

 

 

697.5

 

Total settlement obligations (a)

 

$

3,205.4

 

 

 

 

December 31, 2021

 

Settlement assets:

 

 

 

Cash and cash equivalents

 

$

835.5

 

Receivables from agents, Business Solutions customers, and others

 

 

1,198.8

 

Less: Allowance for credit losses

 

 

(23.7

)

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

 

 

1,175.1

 

Investment securities

 

 

1,398.9

 

Total settlement assets

 

$

3,409.5

 

Settlement obligations:

 

 

 

Money transfer, money order, and payment service payables

 

$

2,838.9

 

Payables to agents

 

 

570.6

 

Total settlement obligations

 

$

3,409.5

 

 

(a)
Settlement assets and Settlement obligations include Assets held for sale and Liabilities associated with assets held for sale of $205.9 million and $566.0 million as of March 31, 2022 and December 31, 2021, respectively (see Note 4).

Allowance for Credit Losses

Receivables from agents and others primarily represent funds collected by such agents, but in transit to the Company, and were $1,089.9 million and $1,125.9 million as of March 31, 2022 and December 31, 2021, respectively. Cash received by Western Union agents generally becomes available to the Company within one week after initial receipt by the agent. Western Union has a large and diverse agent base, thereby reducing the credit risk of the Company from any one agent. The Company performs ongoing credit evaluations of its agents’ financial condition and credit worthiness.

Receivables from Business Solutions customers arise from cross-currency payment transactions in the Business Solutions segment. Business Solutions receivables totaled $27.6 million and $49.2 million as of March 31, 2022 and December 31, 2021, respectively. Receivables occur when funds have been paid out to a beneficiary but not yet received from the customer. Collection of these receivables ordinarily occurs within a few days. To mitigate risk associated with potential Business Solutions customer defaults, the Company performs credit reviews on an ongoing basis.

The Company establishes and monitors an allowance for credit losses related to receivables from agents and others, and Business Solutions customers. The Company has estimated the allowance based on its historical collections experience, adjusted for current conditions and forecasts of future economic conditions based on information known as of March 31, 2022.

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

 

 

 

Agents and

 

 

Business Solutions

 

 

 

Others

 

 

Customers

 

Allowance for credit losses as of January 1, 2022

 

$

18.0

 

 

$

5.7

 

Current period provision for expected credit losses (a)

 

 

1.9

 

 

 

0.4

 

Write-offs charged against the allowance

 

 

(3.1

)

 

 

(0.4

)

Recoveries of amounts previously written off

 

 

1.7

 

 

 

—

 

Impacts of foreign currency exchange rates, divestitures, and other

 

 

(0.1

)

 

 

(4.2

)

Allowance for credit losses as of March 31, 2022

 

$

18.4

 

 

$

1.5

 

 

 

 

 

Agents and

 

 

Business Solutions

 

 

 

Others

 

 

Customers

 

Allowance for credit losses as of January 1, 2021

 

$

49.3

 

 

$

3.9

 

Current period provision for expected credit losses (a)

 

 

2.3

 

 

 

1.5

 

Write-offs charged against the allowance

 

 

(3.3

)

 

 

(0.4

)

Recoveries of amounts previously written off

 

 

1.9

 

 

 

—

 

Impacts of foreign currency exchange rates and other

 

 

(0.5

)

 

 

(0.1

)

Allowance for credit losses as of March 31, 2021

 

$

49.7

 

 

$

4.9

 

 

(a)
Provision does not include losses from chargebacks or fraud associated with transactions initiated through the Company’s digital channels, as these losses are not credit related. The Company recognized losses that were not credit-related of $10.0 million and $13.7 million for the three months ended March 31, 2022, and 2021, respectively.

 

In addition, from time to time, the Company makes advances to its agents. The Company generally owes settlement funds payable to these agents that offset these advances. These amounts advanced to agents are included within Other assets in the accompanying Condensed Consolidated Balance Sheets. As of March 31, 2022 and December 31, 2021, amounts advanced to agents were $143.9 million and $146.9 million, respectively, and the related allowances for credit losses were immaterial.

Investment Securities

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

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

Unrealized gains on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes. Available-for-sale securities with a fair value below the amortized cost basis are evaluated on an individual basis to determine whether the impairment is due to credit-related factors or noncredit-related factors. Factors that could indicate a credit loss exists include but are not limited to: (i) negative earnings performance, (ii) credit rating downgrades, or (iii) adverse changes in the regulatory or economic environment of the asset. Any impairment that is not credit-related is excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes, unless the Company intends to sell the impaired security or it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. Credit-related impairments are recognized immediately as an adjustment to earnings, regardless of whether the Company has the ability or intent to hold the security to maturity, and are limited to the difference between fair value and the amortized cost basis. The Company’s provision for credit losses on its available-for-sale securities during the three months ended March 31, 2022 and 2021 and the related allowance for credit losses as of March 31, 2022 and December 31, 2021 were immaterial.

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

 

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Net

 

 

 

Amortized

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Unrealized

 

March 31, 2022

 

Cost

 

 

Value

 

 

Gains

 

 

Losses

 

 

Gains/(Losses)

 

Settlement assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

6.7

 

 

$

6.7

 

 

$

—

 

 

$

—

 

 

$

—

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal debt securities (a)

 

 

1,254.8

 

 

 

1,232.0

 

 

 

5.5

 

 

 

(28.3

)

 

 

(22.8

)

State and municipal variable-rate demand
notes

 

 

79.9

 

 

 

79.9

 

 

 

—

 

 

 

—

 

 

 

—

 

Corporate debt securities

 

 

61.9

 

 

 

58.9

 

 

 

—

 

 

 

(3.0

)

 

 

(3.0

)

United States government agency
mortgage-backed securities

 

 

31.5

 

 

 

31.5

 

 

 

—

 

 

 

—

 

 

 

—

 

Total available-for-sale securities

 

 

1,428.1

 

 

 

1,402.3

 

 

 

5.5

 

 

 

(31.3

)

 

 

(25.8

)

Total investment securities

 

$

1,434.8

 

 

$

1,409.0

 

 

$

5.5

 

 

$

(31.3

)

 

$

(25.8

)

 

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Net

 

 

 

Amortized

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Unrealized

 

December 31, 2021

 

Cost

 

 

Value

 

 

Gains

 

 

Losses

 

 

Gains/(Losses)

 

Settlement assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

7.9

 

 

$

7.9

 

 

$

—

 

 

$

—

 

 

$

—

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal debt securities (a)

 

 

1,182.6

 

 

 

1,219.9

 

 

 

39.8

 

 

 

(2.5

)

 

 

37.3

 

State and municipal variable-rate demand
notes

 

 

84.8

 

 

 

84.8

 

 

 

—

 

 

 

—

 

 

 

—

 

Corporate and other debt securities

 

 

58.1

 

 

 

57.8

 

 

 

0.2

 

 

 

(0.5

)

 

 

(0.3

)

United States government agency mortgage-
backed securities

 

 

35.6

 

 

 

36.4

 

 

 

0.8

 

 

 

—

 

 

 

0.8

 

Total available-for-sale securities

 

 

1,361.1

 

 

 

1,398.9

 

 

 

40.8

 

 

 

(3.0

)

 

 

37.8

 

Total investment securities

 

$

1,369.0

 

 

$

1,406.8

 

 

$

40.8

 

 

$

(3.0

)

 

$

37.8

 

 

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

 

The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of March 31, 2022 (in millions):

 

 

 

Fair Value

 

Due within 1 year

 

$

154.5

 

Due after 1 year through 5 years

 

 

540.0

 

Due after 5 years through 10 years

 

 

554.8

 

Due after 10 years

 

 

153.0

 

Total

 

$

1,402.3

 

 

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 $10.0 million and $69.9 million are included in the "Due after 5 years through 10 years" and "Due after 10 years" categories, respectively, in the table above.
v3.22.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2022
Stockholders' Equity/(Deficit)  
Stockholders' Equity

9. Stockholders’ Equity

Accumulated Other Comprehensive Loss

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

 

 

 

Amounts Reclassified from AOCL to Net Income

 

 

 

 

 

Three Months Ended

 

 

 

Income Statement

 

March 31,

 

Income for the period (in millions)

 

Location

 

2022

 

 

2021

 

Accumulated other comprehensive loss components:

 

 

 

 

 

 

 

 

Gains/(losses) on investment securities:

 

 

 

 

 

 

 

 

Available-for-sale securities

 

Revenues

 

$

(0.1

)

 

$

(0.1

)

Total reclassification adjustments related to investment securities, net of tax

 

 

 

 

(0.1

)

 

 

(0.1

)

Gains/(losses) on cash flow hedges:

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Revenues

 

 

1.0

 

 

 

(6.1

)

Interest rate contracts

 

Interest expense

 

 

(0.1

)

 

 

(0.2

)

Interest rate contracts

 

Other expense, net

 

 

—

 

 

 

0.7

 

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

 

 

 

 

0.9

 

 

 

(5.6

)

Foreign currency translation adjustments:

 

 

 

 

 

 

 

 

Foreign currency translation

 

Gain on divestiture of business

 

 

17.8

 

 

 

—

 

Total reclassification adjustments related to foreign currency translation adjustments, net of tax

 

 

 

 

17.8

 

 

 

—

 

Amortization of components of defined benefit plans:

 

 

 

 

 

 

 

 

Actuarial loss

 

Other expense, net

 

 

—

 

 

 

(3.1

)

Income tax benefit

 

Provision for income taxes

 

 

—

 

 

 

0.6

 

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

 

 

 

 

—

 

 

 

(2.5

)

Total reclassifications, net of tax

 

 

 

$

18.6

 

 

$

(8.2

)

 

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

 

 

 

Investment

 

 

Hedging

 

 

Foreign Currency

 

 

 

 

 

 

Securities

 

 

Activities

 

 

Translation

 

 

Total

 

As of December 31, 2021

 

$

30.4

 

 

$

18.7

 

 

$

(101.2

)

 

$

(52.1

)

Unrealized gains/(losses)

 

 

(63.6

)

 

 

6.2

 

 

 

—

 

 

 

(57.4

)

Tax benefit

 

 

11.9

 

 

 

—

 

 

 

—

 

 

 

11.9

 

Amounts reclassified from AOCL into earnings, net of tax

 

 

0.1

 

 

 

(0.9

)

 

 

(17.8

)

 

 

(18.6

)

As of March 31, 2022

 

$

(21.2

)

 

$

24.0

 

 

$

(119.0

)

 

$

(116.2

)

 

 

 

 

Investment

 

 

Hedging

 

 

Foreign Currency

 

 

Defined Benefit

 

 

 

 

 

 

Securities

 

 

Activities

 

 

Translation

 

 

Pension Plan

 

 

Total

 

As of December 31, 2020

 

$

58.3

 

 

$

(30.5

)

 

$

(101.2

)

 

$

(86.1

)

 

$

(159.5

)

Unrealized gains/(losses)

 

 

(16.0

)

 

 

24.2

 

 

 

—

 

 

 

—

 

 

 

8.2

 

Tax benefit/(expense)

 

 

2.9

 

 

 

(0.9

)

 

 

—

 

 

 

—

 

 

 

2.0

 

Amounts reclassified from AOCL into earnings, net of tax

 

 

0.1

 

 

 

5.6

 

 

 

—

 

 

 

2.5

 

 

 

8.2

 

As of March 31, 2021

 

$

45.3

 

 

$

(1.6

)

 

$

(101.2

)

 

$

(83.6

)

 

$

(141.1

)

 

On July 22, 2021, the Company’s Board of Directors approved a plan to terminate and settle the Company’s frozen defined benefit pension plan. In the fourth quarter of 2021, the Company settled its defined benefit pension plan. Refer to Part II, Item 8, Financial Statements and Supplementary Data, Note 12, Employee Benefit Plans, in our Annual Report on Form 10-K for the year ended December 31, 2021 for details on the termination and settlement of the Company's frozen defined benefit pension plan.

Cash Dividends Paid

During both the three months ended March 31, 2022 and 2021, the Company’s Board of Directors declared quarterly cash dividends of $0.235 per common share, representing $91.7 million and $96.6 million in total dividends, which were paid on March 31, 2022 and 2021, respectively.

Share Repurchases

During the three months ended March 31, 2022 and 2021, 8.1 million and 3.1 million shares were repurchased for $150.0 million and $75.0 million, respectively, excluding commissions, at an average cost of $18.46 and $24.24, respectively, under the share repurchase authorizations approved by the Company's Board of Directors, including one which expired on December 31, 2021. On February 10, 2022, the Company's Board of Directors authorized $1.0 billion of common stock repurchases through December 31, 2024. As of March 31, 2022, $850.0 million remained available under this share repurchase authorization. The amounts included in the Common stock repurchased line in the Company’s Condensed Consolidated Statements of Cash Flows represent both shares authorized by the Board of Directors for repurchase under publicly announced authorizations and shares withheld from employees to cover tax withholding obligations on restricted stock units that have vested.
v3.22.1
Derivatives
 3 Months Ended
Mar. 31, 2022
Derivatives  
Derivatives

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

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

Foreign Currency Derivatives

The Company’s policy is to use longer duration foreign currency forward contracts, with maturities of up to 36 months at inception and a targeted weighted-average maturity of approximately one year, to help mitigate some of the risk that changes in foreign currency exchange rates compared to the United States dollar could have on forecasted revenues denominated in other currencies related to its business. As of March 31, 2022, these foreign currency forward contracts had maturities of a maximum of 24 months with a weighted-average maturity of approximately one year. These contracts are accounted for as cash flow hedges of forecasted revenue with effectiveness assessed based on changes in the spot rate of the affected currencies during the period of designation and thus time value is excluded from the assessment of effectiveness. The initial value of the excluded components is amortized into Revenues within the Company’s Condensed Consolidated Statements of Income.

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

 

The aggregate equivalent United States dollar notional amounts of foreign currency forward contracts as of March 31, 2022 and December 31, 2021 were as follows (in millions):

 

 

 

March 31, 2022

 

Contracts designated as hedges:

 

 

 

Euro

 

$

418.6

 

Canadian dollar

 

 

133.4

 

Australian dollar

 

 

57.2

 

Swiss franc

 

 

45.8

 

British pound

 

 

42.1

 

Swedish krona

 

 

32.0

 

Japanese yen

 

 

28.6

 

Other (a)

 

 

—

 

Contracts not designated as hedges:

 

 

 

Euro

 

$

601.1

 

British pound

 

 

95.9

 

Canadian dollar

 

 

82.4

 

Australian dollar

 

 

66.1

 

Indian rupee

 

 

58.9

 

Mexican peso

 

 

57.2

 

Swiss franc

 

 

41.6

 

Japanese yen

 

 

41.0

 

Swedish krona

 

 

29.2

 

Brazilian real

 

 

25.3

 

Other (a)

 

 

184.1

 

 

 

 

December 31, 2021

 

Contracts designated as hedges:

 

 

 

Euro

 

$

399.9

 

Canadian dollar

 

 

134.0

 

Australian dollar

 

 

58.4

 

Swiss franc

 

 

45.9

 

British pound

 

 

43.8

 

Swedish krona

 

 

30.7

 

Japanese yen

 

 

30.4

 

Other (a)

 

 

0.9

 

Contracts not designated as hedges:

 

 

 

Euro

 

$

755.7

 

British pound

 

 

148.1

 

Canadian dollar

 

 

144.2

 

Australian dollar

 

 

98.1

 

Mexican peso

 

 

96.3

 

Philippine peso

 

 

76.2

 

Indian rupee

 

 

63.4

 

Japanese yen

 

 

46.0

 

Russian ruble

 

 

44.4

 

Chinese yuan

 

 

31.6

 

New Zealand dollar

 

 

26.6

 

Swiss franc

 

 

25.1

 

Swedish krona

 

 

25.1

 

Other (a)

 

 

132.7

 

 

 

 

 

 

 

 

 

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

 

Business Solutions Operations

The Company writes derivatives, primarily foreign currency forward contracts and option contracts, mostly with small and medium size enterprises and derives a currency spread from this activity as part of its Business Solutions operations. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC and completed the first closing on March 1, 2022. See Note 4 for further information regarding this transaction. 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 Convera through the end of the second closing of the Business Solutions divestiture. The derivatives written are part of the broader portfolio of foreign currency positions arising from the Company’s cross-currency payments operations, which primarily include spot exchanges of currency in addition to forwards and options. Foreign exchange revenues from the total portfolio of positions included in Revenues in the Company’s Condensed Consolidated Statements of Income were $78.6 million and $84.5 million for the three months ended March 31, 2022 and 2021, respectively. None of the derivative contracts used in Business Solutions operations are designated as accounting hedges and the majority of these derivative contracts have a duration at inception of less than one year.

The aggregate equivalent United States dollar notional amount of derivative customer contracts held by the Company in its Business Solutions operations was approximately $5.0 billion and $8.0 billion as of March 31, 2022 and December 31, 2021, respectively. The significant majority of customer contracts are written in the following currencies: the United States dollar, euro, and the British pound.

Interest Rate Hedging

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

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

 

Balance Sheet

The following table summarizes the fair value of derivatives reported in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 (in millions):

 

 

 

Derivative Assets

 

 

Derivative Liabilities

 

 

 

 

 

Fair Value

 

 

 

 

Fair Value

 

 

 

Balance Sheet

 

March 31,

 

 

December 31,

 

 

Balance Sheet

 

March 31,

 

 

December 31,

 

 

 

Location

 

2022

 

 

2021

 

 

Location

 

2022

 

 

2021

 

Derivatives designated as hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency cash flow hedges

 

Other assets

 

$

35.4

 

 

$

30.6

 

 

Other liabilities

 

$

2.5

 

 

$

2.6

 

Total derivatives designated as hedges

 

 

 

$

35.4

 

 

$

30.6

 

 

 

 

$

2.5

 

 

$

2.6

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Solutions operations - foreign currency (a)

 

Other assets

 

$

101.7

 

 

$

213.1

 

 

Other liabilities

 

$

101.8

 

 

$

174.1

 

Foreign currency

 

Other assets

 

 

2.4

 

 

 

4.0

 

 

Other liabilities

 

 

9.7

 

 

 

7.1

 

Total derivatives not designated as hedges

 

 

 

$

104.1

 

 

$

217.1

 

 

 

 

$

111.5

 

 

$

181.2

 

Total derivatives

 

 

 

$

139.5

 

 

$

247.7

 

 

 

 

$

114.0

 

 

$

183.8

 

 

(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 entered into with Convera do not allow for similar settlement. To mitigate this, additional foreign currency contracts are entered into with Convera to offset the original economic hedge contracts. This frequently results in changes in the Company’s derivative assets and liabilities that may not directly align with the performance in the underlying derivatives business.

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

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

The following tables summarize the gross and net fair value of derivative assets and liabilities as of March 31, 2022 and December 31, 2021 (in millions):

Offsetting of Derivative Assets

 

 

 

 

 

 

Gross

 

 

Net Amounts

 

 

Derivatives

 

 

 

 

 

 

Gross

 

 

Amounts Offset in

 

 

Presented in

 

 

Not Offset in

 

 

 

 

 

 

Amounts of

 

 

the Condensed

 

 

the Condensed

 

 

the Condensed

 

 

 

 

 

 

Recognized

 

 

Consolidated

 

 

Consolidated

 

 

Consolidated

 

 

Net

 

March 31, 2022

 

Assets

 

 

Balance Sheets

 

 

Balance Sheets

 

 

Balance Sheets

 

 

Amounts

 

Derivatives subject to a master netting arrangement or similar agreement

 

$

84.2

 

 

$

—

 

 

$

84.2

 

 

$

(51.1

)

 

$

33.1

 

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

 

 

55.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

139.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives subject to a master netting arrangement or similar agreement

 

$

163.9

 

 

$

—

 

 

$

163.9

 

 

$

(92.4

)

 

$

71.5

 

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

 

 

83.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

247.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Offsetting of Derivative Liabilities

 

 

 

 

 

 

Gross

 

 

Net Amounts

 

 

Derivatives

 

 

 

 

 

 

Gross

 

 

Amounts Offset in

 

 

Presented in

 

 

Not Offset in

 

 

 

 

 

 

Amounts of

 

 

the Condensed

 

 

the Condensed

 

 

the Condensed

 

 

 

 

 

 

Recognized

 

 

Consolidated

 

 

Consolidated

 

 

Consolidated

 

 

Net

 

March 31, 2022

 

Liabilities

 

 

Balance Sheets

 

 

Balance Sheets

 

 

Balance Sheets

 

 

Amounts

 

Derivatives subject to a master netting arrangement or similar agreement

 

$

83.0

 

 

$

—

 

 

$

83.0

 

 

$

(51.1

)

 

$

31.9

 

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

 

 

31.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

114.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives subject to a master netting arrangement or similar agreement

 

$

109.6

 

 

$

—

 

 

$

109.6

 

 

$

(92.4

)

 

$

17.2

 

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

 

 

74.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

183.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

Cash Flow Hedges

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

The following table presents the pre-tax amount of unrealized gains/(losses) recognized in other comprehensive income from cash flow hedges for the three months ended March 31, 2022 and 2021 (in millions):

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Foreign currency derivatives (a)

 

$

6.2

 

 

$

20.9

 

Interest rate derivatives

 

 

—

 

 

 

3.3

 

 

(a)
Gains/(losses) of $(4.2) million and $(0.7) million for the three months ended March 31, 2022 and 2021, respectively, represent amounts excluded from the assessment of effectiveness and recognized in other comprehensive income, for which an amortization approach is applied.

The following table presents the location and amounts of pre-tax net gains/(losses) from cash flow hedging relationships recognized in the Condensed Consolidated Statements of Income for the three months ended March 31, 2022 and 2021 (in millions):

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

 

 

Revenues

 

 

Interest Expense

 

 

Revenues

 

 

Interest Expense

 

 

Other expense, net

 

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

 

$

1,155.7

 

 

$

(24.8

)

 

$

1,210.0

 

 

$

(28.4

)

 

$

(1.9

)

Gain/(loss) on cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains/(losses) reclassified from AOCL into earnings

 

 

1.0

 

 

 

—

 

 

 

(6.1

)

 

 

—

 

 

 

—

 

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

 

 

1.1

 

 

 

—

 

 

 

1.9

 

 

 

—

 

 

 

—

 

Interest rate derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains/(losses) reclassified from AOCL into earnings

 

 

—

 

 

 

(0.1

)

 

 

—

 

 

 

(0.2

)

 

 

0.7

 

 

 

 

Undesignated Hedges

 

The following table presents the location and amount of pre-tax net gains/(losses) from undesignated hedges in the Condensed Consolidated Statements of Income on derivatives for the three months ended March 31, 2022 and 2021 (in millions):

 

 

 

 

 

Three Months Ended

 

 

 

 

 

March 31,

 

Derivatives (a)

 

Location

 

2022

 

 

2021

 

Foreign currency derivatives (b)

 

Selling, general, and administrative

 

$

11.7

 

 

$

16.0

 

 

(a)
The Company uses foreign currency forward and option contracts as part of its Business Solutions payments operations. These derivative contracts are excluded from this table as they are managed as part of a broader currency portfolio that includes non-derivative currency exposures. The gains and losses on these derivatives are included as part of the broader disclosure of portfolio revenue for this business discussed above.
(b)
The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations as well as certain foreign currency denominated positions. Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivative activity as displayed above and included in Selling, general, and administrative in the Condensed Consolidated Statements of Income, were $(9.9) million and $(21.8) million for the three months ended March 31, 2022 and 2021, respectively.

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

Based on March 31, 2022 foreign exchange rates, an accumulated other comprehensive pre-tax gain of $23.3 million related to the foreign currency forward contracts is expected to be reclassified into Revenues within the next 12 months.
v3.22.1
Borrowings
 3 Months Ended
Mar. 31, 2022
Borrowings  
Borrowings

11. Borrowings

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

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Commercial paper (a)

 

$

100.0

 

 

$

275.0

 

Notes:

 

 

 

 

 

 

4.250% notes due 2023 (b)

 

 

300.0

 

 

 

300.0

 

2.850% notes due 2025 (b)

 

 

500.0

 

 

 

500.0

 

1.350% notes due 2026 (b)

 

 

600.0

 

 

 

600.0

 

2.750% notes due 2031 (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 (c)

 

 

—

 

 

 

300.0

 

Total borrowings at par value

 

 

2,550.0

 

 

 

3,025.0

 

Debt issuance costs and unamortized discount, net

 

 

(15.5

)

 

 

(16.6

)

Total borrowings at carrying value (d)

 

$

2,534.5

 

 

$

3,008.4

 

 

(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, 2022 had a weighted-average annual interest rate of approximately 0.7% 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)
See Term Loan Facility section below for further discussion.
(d)
As of March 31, 2022, the Company’s weighted-average effective rate on total borrowings was approximately 3.7%.

 

Term Loan Facility

On December 18, 2018, the Company entered into an amended and restated term loan facility providing for up to $950.0 million in borrowings and extending the final maturity of the facility to January 2024 (the "Term Loan Facility"). In the first quarter of 2021, proceeds from the 2026 Notes and $300.0 million of aggregate principal amount of 2.750% unsecured notes due March 15, 2031 ("2031 Notes"), and cash, including cash generated from operations, were used to repay $650.0 million of the Term Loan Facility. On January 4, 2022, the Company repaid all remaining borrowings owed under the Term Loan Facility for total consideration of $300.0 million, using proceeds from commercial paper and cash, including cash generated from operations. The Company is no longer able to borrow money under this facility.

The following summarizes the Company’s maturities of its notes at par value as of March 31, 2022 (in millions):

 

Due within 1 year

 

$

—

 

Due after 1 year through 2 years

 

 

300.0

 

Due after 2 years through 3 years

 

 

500.0

 

Due after 3 years through 4 years

 

 

600.0

 

Due after 4 years through 5 years

 

 

—

 

Due after 5 years

 

 

1,050.0

 

Total

 

$

2,450.0

 

 

The Company’s obligations with respect to its outstanding borrowings, as described above, rank equally.
v3.22.1
Income Taxes
 3 Months Ended
Mar. 31, 2022
Income Taxes  
Income Taxes

12. Income Taxes

The Company’s effective tax rates on pre-tax income were 19.0% and 10.4% for the three months ended March 31, 2022 and 2021. The increase in the Company’s effective tax rate compared to the corresponding period in the prior year was primarily due to the sale of the Company's Business Solutions business, discrete benefits in the prior period not recurring in the current period, and the Company's decision to suspend its operations in Russia and Belarus. The sale of the Company's Business Solutions business is included in the Company's estimated annual effective rate, the ongoing effects of which are expected to continue throughout the year.

 

Unrecognized tax benefits are reflected in Income taxes payable in the Condensed Consolidated Balance Sheets. The total amount of unrecognized tax benefits as of March 31, 2022 and December 31, 2021 was $373.1 million and $376.3 million, respectively, including interest and penalties.

 

The Company’s tax filings are subject to examination by U.S. federal, state, and various non-United States jurisdictions. The Internal Revenue Service is currently examining the Company’s United States consolidated income tax returns for 2017 and 2018. The statute of limitations for the U.S. federal returns for 2017 and 2018 has been extended to April 4, 2023.
 
v3.22.1
Stock-Based Compensation Plans
 3 Months Ended
Mar. 31, 2022
Stock-Based Compensation Plans  
Stock-Based Compensation Plans

13. Stock-Based Compensation Plans

For the three months ended March 31, 2022 and 2021, the Company recognized stock-based compensation expense of $10.7 million and $10.8 million, respectively, resulting primarily from stock options, restricted stock units, and performance-based restricted stock units in the Condensed Consolidated Statements of Income.

During the three months ended March 31, 2022, the Company granted 0.6 million options at a weighted-average exercise price of $18.62 and 3.1 million performance-based restricted stock units and restricted stock units at a weighted-average grant date fair value of $20.34. As of March 31, 2022, the Company had 7.0 million outstanding options at a weighted-average exercise price of $19.03, of which 3.6 million options were exercisable at a weighted-average exercise price of $19.10. The Company had 7.7 million outstanding performance-based restricted stock units (based on target performance) and restricted stock units at a weighted-average grant date fair value of $21.75 as of March 31, 2022.

v3.22.1
Segments
 3 Months Ended
Mar. 31, 2022
Segments  
Segments

14. 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 allocating resources and assessing performance.

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

The Business Solutions operating segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises, and other organizations and individuals. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. The sale will be completed in two closings, the first of which occurred on March 1, 2022, with the second expected in the second half of 2022. See Note 4 for further information regarding this transaction.

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

Corporate costs, including stock-based compensation and other overhead, are allocated to the segments primarily based on a percentage of the segments’ revenue compared to total revenue. Effective January 1, 2022, the Company stopped allocating corporate costs to its Business Solutions segment, given its agreement to sell this business, as discussed further in Note 4.

The following table presents the Company’s segment results for the three months ended March 31, 2022 and 2021 (in millions):

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

Consumer-to-Consumer

 

$

999.0

 

 

$

1,050.9

 

Business Solutions (a)

 

 

89.1

 

 

 

96.5

 

Other

 

 

67.6

 

 

 

62.6

 

Total consolidated revenues

 

$

1,155.7

 

 

$

1,210.0

 

Operating income:

 

 

 

 

 

 

Consumer-to-Consumer

 

$

207.2

 

 

$

206.1

 

Business Solutions (a)

 

 

27.5

 

 

 

12.6

 

Other

 

 

21.5

 

 

 

14.1

 

Total segment operating income

 

 

256.2

 

 

 

232.8

 

Russia/Belarus exit costs (b)

 

 

(11.0

)

 

 

—

 

Business Solutions exit costs (b)

 

 

(7.7

)

 

 

—

 

Total consolidated operating income

 

$

237.5

 

 

$

232.8

 

 

 

(a)
On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to the Buyer, which will be completed in two closings. The first closing occurred on March 1, 2022, with the second expected in the second half of 2022. The operations of the Business Solutions business to be sold in the second closing continue to be included in Revenues and Operating income after the first closing. However, between the first and second closing, the Company will pay the Buyer a measure of the profits from these operations, adjusted for income taxes and other charges, as contractually agreed, and this expense is recognized in Other expense, net in the Condensed Consolidated Statements of Income. See Note 4 for further information regarding this transaction.
(b)
Represents the exit costs incurred in connection with the Company's suspension of its operations in Russia and Belarus and the divestiture of the Business Solutions business, primarily related to severance and non-cash impairments of property and equipment, an operating lease right-of-use asset, and other intangible assets. While certain of the expenses are identifiable to the Company's segments, the expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results.
v3.22.1
Business and Basis of Presentation (Policies)
 3 Months Ended
Mar. 31, 2022
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 have been eliminated as of March 31, 2022 and December 31, 2021 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, 2022 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, 2021.

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.
Revenue Recognition

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

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

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

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

Unrealized gains on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes. Available-for-sale securities with a fair value below the amortized cost basis are evaluated on an individual basis to determine whether the impairment is due to credit-related factors or noncredit-related factors. Factors that could indicate a credit loss exists include but are not limited to: (i) negative earnings performance, (ii) credit rating downgrades, or (iii) adverse changes in the regulatory or economic environment of the asset. Any impairment that is not credit-related is excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes, unless the Company intends to sell the impaired security or it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. Credit-related impairments are recognized immediately as an adjustment to earnings, regardless of whether the Company has the ability or intent to hold the security to maturity, and are limited to the difference between fair value and the amortized cost basis. The Company’s provision for credit losses on its available-for-sale securities during the three months ended March 31, 2022 and 2021 and the related allowance for credit losses as of March 31, 2022 and December 31, 2021 were immaterial.
Foreign Currency - Derivatives

Foreign Currency Derivatives

The Company’s policy is to use longer duration foreign currency forward contracts, with maturities of up to 36 months at inception and a targeted weighted-average maturity of approximately one year, to help mitigate some of the risk that changes in foreign currency exchange rates compared to the United States dollar could have on forecasted revenues denominated in other currencies related to its business. As of March 31, 2022, these foreign currency forward contracts had maturities of a maximum of 24 months with a weighted-average maturity of approximately one year. These contracts are accounted for as cash flow hedges of forecasted revenue with effectiveness assessed based on changes in the spot rate of the affected currencies during the period of designation and thus time value is excluded from the assessment of effectiveness. The initial value of the excluded components is amortized into Revenues within the Company’s Condensed Consolidated Statements of Income.

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

Business Solutions Operations

The Company writes derivatives, primarily foreign currency forward contracts and option contracts, mostly with small and medium size enterprises and derives a currency spread from this activity as part of its Business Solutions operations. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC and completed the first closing on March 1, 2022. See Note 4 for further information regarding this transaction. 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 Convera through the end of the second closing of the Business Solutions divestiture. The derivatives written are part of the broader portfolio of foreign currency positions arising from the Company’s cross-currency payments operations, which primarily include spot exchanges of currency in addition to forwards and options. Foreign exchange revenues from the total portfolio of positions included in Revenues in the Company’s Condensed Consolidated Statements of Income were $78.6 million and $84.5 million for the three months ended March 31, 2022 and 2021, respectively. None of the derivative contracts used in Business Solutions operations are designated as accounting hedges and the majority of these derivative contracts have a duration at inception of less than one year.
Interest Rate Hedging

Interest Rate Hedging

Periodically, the Company utilizes interest rate swaps to effectively change the interest rate payments on a portion of its notes from fixed-rate payments to short-term, variable-rate payments in order to manage its overall exposure to interest rate fluctuations. The Company designates these derivatives as fair value hedges. The change in fair value of the interest rate swaps is offset by a change in the carrying value of the debt being hedged within Borrowings in the Condensed Consolidated Balance Sheets. Interest expense in the Condensed Consolidated Statements of Income has been adjusted to include the effects of interest accrued on the swaps.
v3.22.1
Business and Basis of Presentation (Tables)
 3 Months Ended
Mar. 31, 2022
Business and Basis of Presentation  
Summary of Effects of Changes in Presentation Cash Flows

The following table presents the effects of the changes in presentation of these cash flows, compared to the previously reported Condensed Consolidated Statements of Cash Flows (in millions):

 

 

Three Months Ended March 31, 2021

 

 

 

As Previously

 

 

 

 

 

 

 

 

 

Reported(a)

 

 

Revisions

 

 

As Revised

 

Net cash provided by/(used in):

 

 

 

 

 

 

 

 

 

Operating activities

 

$

175.8

 

 

$

—

 

 

$

175.8

 

Investing activities(b)

 

 

(96.2

)

 

 

365.4

 

 

 

269.2

 

Financing activities(c)

 

 

(10.4

)

 

 

(297.1

)

 

 

(307.5

)

Net change in cash and cash equivalents, including settlement, and restricted cash

 

$

69.2

 

 

$

68.3

 

 

$

137.5

 

 

(a)
As reported in the Company's Form 10-Q filed with the Securities Exchange Commission on May 4, 2021.
(b)
The financial statement lines included in Investing activities are Purchases of settlement investments, Proceeds from the sale of settlement investments, and Maturities of settlement investments.
(c)
The financial statement line included in Financing activities is Net change in settlement obligations.
v3.22.1
Revenue (Tables)
 3 Months Ended
Mar. 31, 2022
Revenue  
Disaggregation of Revenue Earned from Contracts with Customers

Management has determined that the substantial majority of the Company’s revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the three months ended March 31, 2022 and 2021 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated.

 

 

 

Three Months Ended March 31, 2022

 

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

Money

 

 

and Payment

 

 

Consumer

 

 

Other

 

 

 

 

 

 

Transfers

 

 

Services

 

 

Bill Payments

 

 

Services

 

 

Total

 

Regions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

381.2

 

 

$

17.9

 

 

$

17.5

 

 

$

14.2

 

 

$

430.8

 

Europe and Russia/CIS

 

 

283.8

 

 

 

33.7

 

 

 

3.5

 

 

 

0.1

 

 

 

321.1

 

Middle East, Africa, and South Asia

 

 

162.3

 

 

 

0.4

 

 

 

0.1

 

 

 

—

 

 

 

162.8

 

Latin America and the Caribbean

 

 

88.1

 

 

 

0.5

 

 

 

21.2

 

 

 

2.0

 

 

 

111.8

 

East Asia and Oceania

 

 

61.4

 

 

 

12.5

 

 

 

0.3

 

 

 

—

 

 

 

74.2

 

Revenues from contracts with customers

 

$

976.8

 

 

$

65.0

 

 

$

42.6

 

 

$

16.3

 

 

$

1,100.7

 

Other revenues (a)

 

 

22.2

 

 

 

24.1

 

 

 

3.8

 

 

 

4.9

 

 

 

55.0

 

Total revenues

 

$

999.0

 

 

$

89.1

 

 

$

46.4

 

 

$

21.2

 

 

$

1,155.7

 

 

 

 

Three Months Ended March 31, 2021

 

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

Exchange

 

 

 

 

 

 

 

 

 

 

 

 

Money

 

 

and Payment

 

 

Consumer

 

 

Other

 

 

 

 

 

 

Transfers

 

 

Services

 

 

Bill Payments

 

 

Services

 

 

Total

 

Regions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

386.6

 

 

$

21.2

 

 

$

18.6

 

 

$

14.5

 

 

$

440.9

 

Europe and Russia/CIS

 

 

338.7

 

 

 

34.3

 

 

 

1.1

 

 

 

0.4

 

 

 

374.5

 

Middle East, Africa, and South Asia

 

 

159.7

 

 

 

0.5

 

 

 

0.1

 

 

 

—

 

 

 

160.3

 

Latin America and the Caribbean

 

 

86.7

 

 

 

0.8

 

 

 

17.7

 

 

 

1.8

 

 

 

107.0

 

East Asia and Oceania

 

 

66.7

 

 

 

16.6

 

 

 

0.3

 

 

 

—

 

 

 

83.6

 

Revenues from contracts with customers

 

$

1,038.4

 

 

$

73.4

 

 

$

37.8

 

 

$

16.7

 

 

$

1,166.3

 

Other revenues (a)

 

 

12.5

 

 

 

23.1

 

 

 

3.0

 

 

 

5.1

 

 

 

43.7

 

Total revenues

 

$

1,050.9

 

 

$

96.5

 

 

$

40.8

 

 

$

21.8

 

 

$

1,210.0

 

 

(a)
Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources.
v3.22.1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2022
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,

 

 

 

2022

 

 

2021

 

Basic weighted-average shares outstanding

 

 

393.1

 

 

 

411.7

 

Common stock equivalents

 

 

1.4

 

 

 

2.6

 

Diluted weighted-average shares outstanding

 

 

394.5

 

 

 

414.3

 

 
v3.22.1
Assets Held for Sale and Related Divestiture (Tables)
 3 Months Ended
Mar. 31, 2022
Assets Held for Sale and Related Divestiture [Abstract]  
Schedule of Assets and Liabilities Held for Sale

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

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Cash and cash equivalents

 

$

53.1

 

 

$

37.7

 

Settlement assets

 

 

205.9

 

 

 

566.0

 

Property and equipment, net of accumulated depreciation of $2.5 and $19.3

 

 

2.0

 

 

 

6.3

 

Goodwill

 

 

229.5

 

 

 

532.0

 

Other intangible assets, net of accumulated amortization of $78.2 and $360.2

 

 

9.9

 

 

 

50.4

 

Other assets

 

 

122.7

 

 

 

260.5

 

Total assets

 

$

623.1

 

 

$

1,452.9

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

47.5

 

 

$

61.6

 

Settlement obligations

 

 

205.9

 

 

 

566.0

 

Other liabilities

 

 

105.2

 

 

 

194.3

 

Total liabilities

 

$

358.6

 

 

$

821.9

 
v3.22.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2022
Fair Value Measurements  
Assets and Liabilities Measured at Fair Value on Recurring Basis

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

 

 

 

Fair Value Measurement Using

 

 

Total

 

March 31, 2022

 

Level 1

 

 

Level 2

 

 

Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

Settlement assets:

 

 

 

 

 

 

 

 

 

Measured at fair value through net income:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

6.7

 

 

$

—

 

 

$

6.7

 

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

 

 

 

 

 

 

 

 

 

State and municipal debt securities

 

 

—

 

 

 

1,232.0

 

 

 

1,232.0

 

State and municipal variable-rate demand notes

 

 

—

 

 

 

79.9

 

 

 

79.9

 

Corporate debt securities

 

 

—

 

 

 

58.9

 

 

 

58.9

 

United States government agency mortgage-backed securities

 

 

—

 

 

 

31.5

 

 

 

31.5

 

Other assets:

 

 

 

 

 

 

 

 

 

Derivatives

 

 

—

 

 

 

139.5

 

 

 

139.5

 

Total assets

 

$

6.7

 

 

$

1,541.8

 

 

$

1,548.5

 

Liabilities:

 

 

 

 

 

 

 

 

 

Other liabilities:

 

 

 

 

 

 

 

 

 

Derivatives

 

$

—

 

 

$

114.0

 

 

$

114.0

 

Total liabilities

 

$

—

 

 

$

114.0

 

 

$

114.0

 

 

 

 

 

Fair Value Measurement Using

 

 

Total

 

December 31, 2021

 

Level 1

 

 

Level 2

 

 

Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

Settlement assets:

 

 

 

 

 

 

 

 

 

Measured at fair value through net income:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

7.9

 

 

$

—

 

 

$

7.9

 

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

 

 

 

 

 

 

 

 

 

State and municipal debt securities

 

 

—

 

 

 

1,219.9

 

 

 

1,219.9

 

State and municipal variable-rate demand notes

 

 

—

 

 

 

84.8

 

 

 

84.8

 

Corporate and other debt securities

 

 

—

 

 

 

57.8

 

 

 

57.8

 

United States government agency mortgage-backed securities

 

 

—

 

 

 

36.4

 

 

 

36.4

 

Other assets:

 

 

 

 

 

 

 

 

 

Derivatives

 

 

—

 

 

 

247.7

 

 

 

247.7

 

Total assets

 

$

7.9

 

 

$

1,646.6

 

 

$

1,654.5

 

Liabilities:

 

 

 

 

 

 

 

 

 

Other liabilities:

 

 

 

 

 

 

 

 

 

Derivatives

 

$

—

 

 

$

183.8

 

 

$

183.8

 

Total liabilities

 

$

—

 

 

$

183.8

 

 

$

183.8

 
v3.22.1
Settlement Assets and Obligations (Tables)
 3 Months Ended
Mar. 31, 2022
Settlement Assets and Obligations  
Schedule of Settlement Assets and Obligations

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

 

 

 

March 31, 2022

 

Settlement assets:

 

 

 

Cash and cash equivalents

 

$

685.7

 

Receivables from agents, Business Solutions customers, and others

 

 

1,137.4

 

Less: Allowance for credit losses

 

 

(19.9

)

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

 

 

1,117.5

 

Investment securities

 

 

1,402.3

 

Less: Allowance for credit losses

 

 

(0.1

)

Investment securities, net

 

 

1,402.2

 

Total settlement assets (a)

 

$

3,205.4

 

Settlement obligations:

 

 

 

Money transfer, money order, and payment service payables

 

$

2,507.9

 

Payables to agents

 

 

697.5

 

Total settlement obligations (a)

 

$

3,205.4

 

 

 

 

December 31, 2021

 

Settlement assets:

 

 

 

Cash and cash equivalents

 

$

835.5

 

Receivables from agents, Business Solutions customers, and others

 

 

1,198.8

 

Less: Allowance for credit losses

 

 

(23.7

)

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

 

 

1,175.1

 

Investment securities

 

 

1,398.9

 

Total settlement assets

 

$

3,409.5

 

Settlement obligations:

 

 

 

Money transfer, money order, and payment service payables

 

$

2,838.9

 

Payables to agents

 

 

570.6

 

Total settlement obligations

 

$

3,409.5

 

 

(a)
Settlement assets and Settlement obligations include Assets held for sale and Liabilities associated with assets held for sale of $205.9 million and $566.0 million as of March 31, 2022 and December 31, 2021, respectively (see Note 4).
Summary of Activity in the Allowance for Credit Losses

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

 

 

 

Agents and

 

 

Business Solutions

 

 

 

Others

 

 

Customers

 

Allowance for credit losses as of January 1, 2022

 

$

18.0

 

 

$

5.7

 

Current period provision for expected credit losses (a)

 

 

1.9

 

 

 

0.4

 

Write-offs charged against the allowance

 

 

(3.1

)

 

 

(0.4

)

Recoveries of amounts previously written off

 

 

1.7

 

 

 

—

 

Impacts of foreign currency exchange rates, divestitures, and other

 

 

(0.1

)

 

 

(4.2

)

Allowance for credit losses as of March 31, 2022

 

$

18.4

 

 

$

1.5

 

 

 

 

 

Agents and

 

 

Business Solutions

 

 

 

Others

 

 

Customers

 

Allowance for credit losses as of January 1, 2021

 

$

49.3

 

 

$

3.9

 

Current period provision for expected credit losses (a)

 

 

2.3

 

 

 

1.5

 

Write-offs charged against the allowance

 

 

(3.3

)

 

 

(0.4

)

Recoveries of amounts previously written off

 

 

1.9

 

 

 

—

 

Impacts of foreign currency exchange rates and other

 

 

(0.5

)

 

 

(0.1

)

Allowance for credit losses as of March 31, 2021

 

$

49.7

 

 

$

4.9

 

 

(a)
Provision does not include losses from chargebacks or fraud associated with transactions initiated through the Company’s digital channels, as these losses are not credit related. The Company recognized losses that were not credit-related of $10.0 million and $13.7 million for the three months ended March 31, 2022, and 2021, respectively.
Components of Investment Securities

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

 

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Net

 

 

 

Amortized

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Unrealized

 

March 31, 2022

 

Cost

 

 

Value

 

 

Gains

 

 

Losses

 

 

Gains/(Losses)

 

Settlement assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

6.7

 

 

$

6.7

 

 

$

—

 

 

$

—

 

 

$

—

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal debt securities (a)

 

 

1,254.8

 

 

 

1,232.0

 

 

 

5.5

 

 

 

(28.3

)

 

 

(22.8

)

State and municipal variable-rate demand
notes

 

 

79.9

 

 

 

79.9

 

 

 

—

 

 

 

—

 

 

 

—

 

Corporate debt securities

 

 

61.9

 

 

 

58.9

 

 

 

—

 

 

 

(3.0

)

 

 

(3.0

)

United States government agency
mortgage-backed securities

 

 

31.5

 

 

 

31.5

 

 

 

—

 

 

 

—

 

 

 

—

 

Total available-for-sale securities

 

 

1,428.1

 

 

 

1,402.3

 

 

 

5.5

 

 

 

(31.3

)

 

 

(25.8

)

Total investment securities

 

$

1,434.8

 

 

$

1,409.0

 

 

$

5.5

 

 

$

(31.3

)

 

$

(25.8

)

 

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Net

 

 

 

Amortized

 

 

Fair

 

 

Unrealized

 

 

Unrealized

 

 

Unrealized

 

December 31, 2021

 

Cost

 

 

Value

 

 

Gains

 

 

Losses

 

 

Gains/(Losses)

 

Settlement assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

7.9

 

 

$

7.9

 

 

$

—

 

 

$

—

 

 

$

—

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal debt securities (a)

 

 

1,182.6

 

 

 

1,219.9

 

 

 

39.8

 

 

 

(2.5

)

 

 

37.3

 

State and municipal variable-rate demand
notes

 

 

84.8

 

 

 

84.8

 

 

 

—

 

 

 

—

 

 

 

—

 

Corporate and other debt securities

 

 

58.1

 

 

 

57.8

 

 

 

0.2

 

 

 

(0.5

)

 

 

(0.3

)

United States government agency mortgage-
backed securities

 

 

35.6

 

 

 

36.4

 

 

 

0.8

 

 

 

—

 

 

 

0.8

 

Total available-for-sale securities

 

 

1,361.1

 

 

 

1,398.9

 

 

 

40.8

 

 

 

(3.0

)

 

 

37.8

 

Total investment securities

 

$

1,369.0

 

 

$

1,406.8

 

 

$

40.8

 

 

$

(3.0

)

 

$

37.8

 

 

The majority of these securities are fixed-rate instruments.
Contractual Maturities of Debt Securities

The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of March 31, 2022 (in millions):

 

 

 

Fair Value

 

Due within 1 year

 

$

154.5

 

Due after 1 year through 5 years

 

 

540.0

 

Due after 5 years through 10 years

 

 

554.8

 

Due after 10 years

 

 

153.0

 

Total

 

$

1,402.3

 
v3.22.1
Stockholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2022
Stockholders' Equity/(Deficit)  
Schedule of Amounts Reclassified from AOCL

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

 

 

 

Amounts Reclassified from AOCL to Net Income

 

 

 

 

 

Three Months Ended

 

 

 

Income Statement

 

March 31,

 

Income for the period (in millions)

 

Location

 

2022

 

 

2021

 

Accumulated other comprehensive loss components:

 

 

 

 

 

 

 

 

Gains/(losses) on investment securities:

 

 

 

 

 

 

 

 

Available-for-sale securities

 

Revenues

 

$

(0.1

)

 

$

(0.1

)

Total reclassification adjustments related to investment securities, net of tax

 

 

 

 

(0.1

)

 

 

(0.1

)

Gains/(losses) on cash flow hedges:

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Revenues

 

 

1.0

 

 

 

(6.1

)

Interest rate contracts

 

Interest expense

 

 

(0.1

)

 

 

(0.2

)

Interest rate contracts

 

Other expense, net

 

 

—

 

 

 

0.7

 

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

 

 

 

 

0.9

 

 

 

(5.6

)

Foreign currency translation adjustments:

 

 

 

 

 

 

 

 

Foreign currency translation

 

Gain on divestiture of business

 

 

17.8

 

 

 

—

 

Total reclassification adjustments related to foreign currency translation adjustments, net of tax

 

 

 

 

17.8

 

 

 

—

 

Amortization of components of defined benefit plans:

 

 

 

 

 

 

 

 

Actuarial loss

 

Other expense, net

 

 

—

 

 

 

(3.1

)

Income tax benefit

 

Provision for income taxes

 

 

—

 

 

 

0.6

 

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

 

 

 

 

—

 

 

 

(2.5

)

Total reclassifications, net of tax

 

 

 

$

18.6

 

 

$

(8.2

)
Schedule of Components of Accumulated Other Comprehensive Income/(Loss)

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

 

 

 

Investment

 

 

Hedging

 

 

Foreign Currency

 

 

 

 

 

 

Securities

 

 

Activities

 

 

Translation

 

 

Total

 

As of December 31, 2021

 

$

30.4

 

 

$

18.7

 

 

$

(101.2

)

 

$

(52.1

)

Unrealized gains/(losses)

 

 

(63.6

)

 

 

6.2

 

 

 

—

 

 

 

(57.4

)

Tax benefit

 

 

11.9

 

 

 

—

 

 

 

—

 

 

 

11.9

 

Amounts reclassified from AOCL into earnings, net of tax

 

 

0.1

 

 

 

(0.9

)

 

 

(17.8

)

 

 

(18.6

)

As of March 31, 2022

 

$

(21.2

)

 

$

24.0

 

 

$

(119.0

)

 

$

(116.2

)

 

 

 

 

Investment

 

 

Hedging

 

 

Foreign Currency

 

 

Defined Benefit

 

 

 

 

 

 

Securities

 

 

Activities

 

 

Translation

 

 

Pension Plan

 

 

Total

 

As of December 31, 2020

 

$

58.3

 

 

$

(30.5

)

 

$

(101.2

)

 

$

(86.1

)

 

$

(159.5

)

Unrealized gains/(losses)

 

 

(16.0

)

 

 

24.2

 

 

 

—

 

 

 

—

 

 

 

8.2

 

Tax benefit/(expense)

 

 

2.9

 

 

 

(0.9

)

 

 

—

 

 

 

—

 

 

 

2.0

 

Amounts reclassified from AOCL into earnings, net of tax

 

 

0.1

 

 

 

5.6

 

 

 

—

 

 

 

2.5

 

 

 

8.2

 

As of March 31, 2021

 

$

45.3

 

 

$

(1.6

)

 

$

(101.2

)

 

$

(83.6

)

 

$

(141.1

)
v3.22.1
Derivatives (Tables)
 3 Months Ended
Mar. 31, 2022
Derivatives  
Notional Amounts of Foreign Currency Forward Contracts

The aggregate equivalent United States dollar notional amounts of foreign currency forward contracts as of March 31, 2022 and December 31, 2021 were as follows (in millions):

 

 

 

March 31, 2022

 

Contracts designated as hedges:

 

 

 

Euro

 

$

418.6

 

Canadian dollar

 

 

133.4

 

Australian dollar

 

 

57.2

 

Swiss franc

 

 

45.8

 

British pound

 

 

42.1

 

Swedish krona

 

 

32.0

 

Japanese yen

 

 

28.6

 

Other (a)

 

 

—

 

Contracts not designated as hedges:

 

 

 

Euro

 

$

601.1

 

British pound

 

 

95.9

 

Canadian dollar

 

 

82.4

 

Australian dollar

 

 

66.1

 

Indian rupee

 

 

58.9

 

Mexican peso

 

 

57.2

 

Swiss franc

 

 

41.6

 

Japanese yen

 

 

41.0

 

Swedish krona

 

 

29.2

 

Brazilian real

 

 

25.3

 

Other (a)

 

 

184.1

 

 

 

 

December 31, 2021

 

Contracts designated as hedges:

 

 

 

Euro

 

$

399.9

 

Canadian dollar

 

 

134.0

 

Australian dollar

 

 

58.4

 

Swiss franc

 

 

45.9

 

British pound

 

 

43.8

 

Swedish krona

 

 

30.7

 

Japanese yen

 

 

30.4

 

Other (a)

 

 

0.9

 

Contracts not designated as hedges:

 

 

 

Euro

 

$

755.7

 

British pound

 

 

148.1

 

Canadian dollar

 

 

144.2

 

Australian dollar

 

 

98.1

 

Mexican peso

 

 

96.3

 

Philippine peso

 

 

76.2

 

Indian rupee

 

 

63.4

 

Japanese yen

 

 

46.0

 

Russian ruble

 

 

44.4

 

Chinese yuan

 

 

31.6

 

New Zealand dollar

 

 

26.6

 

Swiss franc

 

 

25.1

 

Swedish krona

 

 

25.1

 

Other (a)

 

 

132.7

 

 

 

 

 

 

 

 

 

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

The following table summarizes the fair value of derivatives reported in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 (in millions):

 

 

 

Derivative Assets

 

 

Derivative Liabilities

 

 

 

 

 

Fair Value

 

 

 

 

Fair Value

 

 

 

Balance Sheet

 

March 31,

 

 

December 31,

 

 

Balance Sheet

 

March 31,

 

 

December 31,

 

 

 

Location

 

2022

 

 

2021

 

 

Location

 

2022

 

 

2021

 

Derivatives designated as hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency cash flow hedges

 

Other assets

 

$

35.4

 

 

$

30.6

 

 

Other liabilities

 

$

2.5

 

 

$

2.6

 

Total derivatives designated as hedges

 

 

 

$

35.4

 

 

$

30.6

 

 

 

 

$

2.5

 

 

$

2.6

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Solutions operations - foreign currency (a)

 

Other assets

 

$

101.7

 

 

$

213.1

 

 

Other liabilities

 

$

101.8

 

 

$

174.1

 

Foreign currency

 

Other assets

 

 

2.4

 

 

 

4.0

 

 

Other liabilities

 

 

9.7

 

 

 

7.1

 

Total derivatives not designated as hedges

 

 

 

$

104.1

 

 

$

217.1

 

 

 

 

$

111.5

 

 

$

181.2

 

Total derivatives

 

 

 

$

139.5

 

 

$

247.7

 

 

 

 

$

114.0

 

 

$

183.8

 

 

(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 entered into with Convera do not allow for similar settlement. To mitigate this, additional foreign currency contracts are entered into with Convera to offset the original economic hedge contracts. This frequently results in changes in the Company’s derivative assets and liabilities that may not directly align with the performance in the underlying derivatives business.
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, 2022 and December 31, 2021 (in millions):

Offsetting of Derivative Assets

 

 

 

 

 

 

Gross

 

 

Net Amounts

 

 

Derivatives

 

 

 

 

 

 

Gross

 

 

Amounts Offset in

 

 

Presented in

 

 

Not Offset in

 

 

 

 

 

 

Amounts of

 

 

the Condensed

 

 

the Condensed

 

 

the Condensed

 

 

 

 

 

 

Recognized

 

 

Consolidated

 

 

Consolidated

 

 

Consolidated

 

 

Net

 

March 31, 2022

 

Assets

 

 

Balance Sheets

 

 

Balance Sheets

 

 

Balance Sheets

 

 

Amounts

 

Derivatives subject to a master netting arrangement or similar agreement

 

$

84.2

 

 

$

—

 

 

$

84.2

 

 

$

(51.1

)

 

$

33.1

 

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

 

 

55.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

139.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives subject to a master netting arrangement or similar agreement

 

$

163.9

 

 

$

—

 

 

$

163.9

 

 

$

(92.4

)

 

$

71.5

 

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

 

 

83.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

247.7

 

 

 

 

 

 

 

 

 

 

 

 

 
Gross and Net Fair Value of Derivative Liabilities

Offsetting of Derivative Liabilities

 

 

 

 

 

 

Gross

 

 

Net Amounts

 

 

Derivatives

 

 

 

 

 

 

Gross

 

 

Amounts Offset in

 

 

Presented in

 

 

Not Offset in

 

 

 

 

 

 

Amounts of

 

 

the Condensed

 

 

the Condensed

 

 

the Condensed

 

 

 

 

 

 

Recognized

 

 

Consolidated

 

 

Consolidated

 

 

Consolidated

 

 

Net

 

March 31, 2022

 

Liabilities

 

 

Balance Sheets

 

 

Balance Sheets

 

 

Balance Sheets

 

 

Amounts

 

Derivatives subject to a master netting arrangement or similar agreement

 

$

83.0

 

 

$

—

 

 

$

83.0

 

 

$

(51.1

)

 

$

31.9

 

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

 

 

31.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

114.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives subject to a master netting arrangement or similar agreement

 

$

109.6

 

 

$

—

 

 

$

109.6

 

 

$

(92.4

)

 

$

17.2

 

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

 

 

74.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

183.8

 

 

 

 

 

 

 

 

 

 

 

 

 
Schedule of Amount and Location of Gains/(Losses) from Hedging Activities

The following table presents the pre-tax amount of unrealized gains/(losses) recognized in other comprehensive income from cash flow hedges for the three months ended March 31, 2022 and 2021 (in millions):

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Foreign currency derivatives (a)

 

$

6.2

 

 

$

20.9

 

Interest rate derivatives

 

 

—

 

 

 

3.3

 

 

(a)
Gains/(losses) of $(4.2) million and $(0.7) million for the three months ended March 31, 2022 and 2021, respectively, represent amounts excluded from the assessment of effectiveness and recognized in other comprehensive income, for which an amortization approach is applied.

The following table presents the location and amounts of pre-tax net gains/(losses) from cash flow hedging relationships recognized in the Condensed Consolidated Statements of Income for the three months ended March 31, 2022 and 2021 (in millions):

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

 

 

Revenues

 

 

Interest Expense

 

 

Revenues

 

 

Interest Expense

 

 

Other expense, net

 

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

 

$

1,155.7

 

 

$

(24.8

)

 

$

1,210.0

 

 

$

(28.4

)

 

$

(1.9

)

Gain/(loss) on cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains/(losses) reclassified from AOCL into earnings

 

 

1.0

 

 

 

—

 

 

 

(6.1

)

 

 

—

 

 

 

—

 

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

 

 

1.1

 

 

 

—

 

 

 

1.9

 

 

 

—

 

 

 

—

 

Interest rate derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains/(losses) reclassified from AOCL into earnings

 

 

—

 

 

 

(0.1

)

 

 

—

 

 

 

(0.2

)

 

 

0.7

 

 

 

 

Undesignated Hedges

 

The following table presents the location and amount of pre-tax net gains/(losses) from undesignated hedges in the Condensed Consolidated Statements of Income on derivatives for the three months ended March 31, 2022 and 2021 (in millions):

 

 

 

 

 

Three Months Ended

 

 

 

 

 

March 31,

 

Derivatives (a)

 

Location

 

2022

 

 

2021

 

Foreign currency derivatives (b)

 

Selling, general, and administrative

 

$

11.7

 

 

$

16.0

 

 

(a)
The Company uses foreign currency forward and option contracts as part of its Business Solutions payments operations. These derivative contracts are excluded from this table as they are managed as part of a broader currency portfolio that includes non-derivative currency exposures. The gains and losses on these derivatives are included as part of the broader disclosure of portfolio revenue for this business discussed above.
(b)
The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations as well as certain foreign currency denominated positions. Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivative activity as displayed above and included in Selling, general, and administrative in the Condensed Consolidated Statements of Income, were $(9.9) million and $(21.8) million for the three months ended March 31, 2022 and 2021, respectively.
v3.22.1
Borrowings (Tables)
 3 Months Ended
Mar. 31, 2022
Borrowings  
Schedule of Outstanding Borrowings

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

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Commercial paper (a)

 

$

100.0

 

 

$

275.0

 

Notes:

 

 

 

 

 

 

4.250% notes due 2023 (b)

 

 

300.0

 

 

 

300.0

 

2.850% notes due 2025 (b)

 

 

500.0

 

 

 

500.0

 

1.350% notes due 2026 (b)

 

 

600.0

 

 

 

600.0

 

2.750% notes due 2031 (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 (c)

 

 

—

 

 

 

300.0

 

Total borrowings at par value

 

 

2,550.0

 

 

 

3,025.0

 

Debt issuance costs and unamortized discount, net

 

 

(15.5

)

 

 

(16.6

)

Total borrowings at carrying value (d)

 

$

2,534.5

 

 

$

3,008.4

 

 

(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, 2022 had a weighted-average annual interest rate of approximately 0.7% 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)
See Term Loan Facility section below for further discussion.
(d)
As of March 31, 2022, the Company’s weighted-average effective rate on total borrowings was approximately 3.7%.
Schedule of Maturities of Borrowings

The following summarizes the Company’s maturities of its notes at par value as of March 31, 2022 (in millions):

 

Due within 1 year

 

$

—

 

Due after 1 year through 2 years

 

 

300.0

 

Due after 2 years through 3 years

 

 

500.0

 

Due after 3 years through 4 years

 

 

600.0

 

Due after 4 years through 5 years

 

 

—

 

Due after 5 years

 

 

1,050.0

 

Total

 

$

2,450.0

 
v3.22.1
Segments (Tables)
 3 Months Ended
Mar. 31, 2022
Segments  
Segment Results

The following table presents the Company’s segment results for the three months ended March 31, 2022 and 2021 (in millions):

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

Consumer-to-Consumer

 

$

999.0

 

 

$

1,050.9

 

Business Solutions (a)

 

 

89.1

 

 

 

96.5

 

Other

 

 

67.6

 

 

 

62.6

 

Total consolidated revenues

 

$

1,155.7

 

 

$

1,210.0

 

Operating income:

 

 

 

 

 

 

Consumer-to-Consumer

 

$

207.2

 

 

$

206.1

 

Business Solutions (a)

 

 

27.5

 

 

 

12.6

 

Other

 

 

21.5

 

 

 

14.1

 

Total segment operating income

 

 

256.2

 

 

 

232.8

 

Russia/Belarus exit costs (b)

 

 

(11.0

)

 

 

—

 

Business Solutions exit costs (b)

 

 

(7.7

)

 

 

—

 

Total consolidated operating income

 

$

237.5

 

 

$

232.8

 

 

 

(a)
On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to the Buyer, which will be completed in two closings. The first closing occurred on March 1, 2022, with the second expected in the second half of 2022. The operations of the Business Solutions business to be sold in the second closing continue to be included in Revenues and Operating income after the first closing. However, between the first and second closing, the Company will pay the Buyer a measure of the profits from these operations, adjusted for income taxes and other charges, as contractually agreed, and this expense is recognized in Other expense, net in the Condensed Consolidated Statements of Income. See Note 4 for further information regarding this transaction.
(b)
Represents the exit costs incurred in connection with the Company's suspension of its operations in Russia and Belarus and the divestiture of the Business Solutions business, primarily related to severance and non-cash impairments of property and equipment, an operating lease right-of-use asset, and other intangible assets. While certain of the expenses are identifiable to the Company's segments, the expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results.
v3.22.1
Business and Basis of Presentation - Narrative (Details)
$ in Millions
Mar. 31, 2022
Country
Dec. 31, 2021
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 | $   $ 460
v3.22.1
Business and Basis of Presentation - Summary of Effects of Changes in Presentation Cash Flows (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]    
Net cash provided by/(used in) Operating activities $ 200.0 $ 175.8
Net cash provided by/(used in) Investing activities 541.0 269.2
Net cash provided by/(used in) Financing activities (792.7) (307.5)
Net change in cash and cash equivalents, including settlement, and restricted cash $ (51.7) 137.5
As Revised    
Error Corrections and Prior Period Adjustments Restatement [Line Items]    
Net cash provided by/(used in) Operating activities   175.8
Net cash provided by/(used in) Investing activities   (96.2)
Net cash provided by/(used in) Financing activities   (10.4)
Net change in cash and cash equivalents, including settlement, and restricted cash   69.2
Revisions    
Error Corrections and Prior Period Adjustments Restatement [Line Items]    
Net cash provided by/(used in) Investing activities   365.4
Net cash provided by/(used in) Financing activities   (297.1)
Net change in cash and cash equivalents, including settlement, and restricted cash   $ 68.3
v3.22.1
Revenue - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Item
Mar. 31, 2021
USD ($)
Revenue    
Revenues from contracts with customers | $ $ 1,100.7 $ 1,166.3
Consumer money transfers    
Revenue    
Revenues from contracts with customers | $ $ 976.8 1,038.4
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 | $ $ 42.6 $ 37.8
Number of integrated services involved in a transaction | Item 1  
v3.22.1
Revenue - Disaggregation of Revenue Earned from Contracts with Customers (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Revenue    
Revenues from contracts with customers $ 1,100.7 $ 1,166.3
Other revenues 55.0 43.7
Revenues 1,155.7 1,210.0
Consumer money transfers    
Revenue    
Revenues from contracts with customers 976.8 1,038.4
Other revenues 22.2 12.5
Revenues 999.0 1,050.9
Foreign exchange and payment services    
Revenue    
Revenues from contracts with customers 65.0 73.4
Other revenues 24.1 23.1
Revenues 89.1 96.5
Consumer bill payments    
Revenue    
Revenues from contracts with customers 42.6 37.8
Other revenues 3.8 3.0
Revenues 46.4 40.8
Other services    
Revenue    
Revenues from contracts with customers 16.3 16.7
Other revenues 4.9 5.1
Revenues 21.2 21.8
North America    
Revenue    
Revenues from contracts with customers 430.8 440.9
North America | Consumer money transfers    
Revenue    
Revenues from contracts with customers 381.2 386.6
North America | Foreign exchange and payment services    
Revenue    
Revenues from contracts with customers 17.9 21.2
North America | Consumer bill payments    
Revenue    
Revenues from contracts with customers 17.5 18.6
North America | Other services    
Revenue    
Revenues from contracts with customers 14.2 14.5
Europe and Russia/CIS    
Revenue    
Revenues from contracts with customers 321.1 374.5
Europe and Russia/CIS | Consumer money transfers    
Revenue    
Revenues from contracts with customers 283.8 338.7
Europe and Russia/CIS | Foreign exchange and payment services    
Revenue    
Revenues from contracts with customers 33.7 34.3
Europe and Russia/CIS | Consumer bill payments    
Revenue    
Revenues from contracts with customers 3.5 1.1
Europe and Russia/CIS | Other services    
Revenue    
Revenues from contracts with customers 0.1 0.4
Middle East, Africa, and South Asia    
Revenue    
Revenues from contracts with customers 162.8 160.3
Middle East, Africa, and South Asia | Consumer money transfers    
Revenue    
Revenues from contracts with customers 162.3 159.7
Middle East, Africa, and South Asia | Foreign exchange and payment services    
Revenue    
Revenues from contracts with customers 0.4 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 111.8 107.0
Latin America and the Caribbean | Consumer money transfers    
Revenue    
Revenues from contracts with customers 88.1 86.7
Latin America and the Caribbean | Foreign exchange and payment services    
Revenue    
Revenues from contracts with customers 0.5 0.8
Latin America and the Caribbean | Consumer bill payments    
Revenue    
Revenues from contracts with customers 21.2 17.7
Latin America and the Caribbean | Other services    
Revenue    
Revenues from contracts with customers 2.0 1.8
East Asia and Oceania    
Revenue    
Revenues from contracts with customers 74.2 83.6
East Asia and Oceania | Consumer money transfers    
Revenue    
Revenues from contracts with customers 61.4 66.7
East Asia and Oceania | Foreign exchange and payment services    
Revenue    
Revenues from contracts with customers 12.5 16.6
East Asia and Oceania | Consumer bill payments    
Revenue    
Revenues from contracts with customers $ 0.3 $ 0.3
v3.22.1
Earnings Per Share - Narrative (Details) - shares
shares in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Earnings Per Share    
Outstanding restricted stock and options to purchase shares of stock excluded from the diluted earnings per share calculation 7.2 1.4
v3.22.1
Earnings Per Share - Schedule of Diluted Weighted-Average Shares Outstanding (Details) - shares
shares in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Earnings Per Share, Diluted, Other Disclosures [Abstract]    
Basic weighted-average shares outstanding 393.1 411.7
Common stock equivalents 1.4 2.6
Diluted weighted-average shares outstanding 394.5 414.3
v3.22.1
Assets Held for Sale and Related Divestiture - Narrative (Details)
$ in Millions
 3 Months Ended
Aug. 04, 2021
USD ($)
Item
Mar. 31, 2022
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Liability   $ 358.6   $ 821.9
Gain on sale   151.4    
Business Solutions | Asset Held for Sale, Not Discontinued Operations        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Consideration from sale of business $ 910.0      
Number of closings | Item 2      
Revenues   89.1 $ 96.5  
Operating expenses   62.6 $ 81.8  
Divestiture costs directly associated with transaction   3.2    
Unrealized currency translation gains   17.8    
Liability   358.6   $ 821.9
Gain on sale   151.4    
Other expense   2.8    
Business Solutions | Asset Held for Sale, Not Discontinued Operations | Other liabilities | European Union and United Kingdom        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Liability   $ 390.3    
v3.22.1
Assets Held for Sale and Related Divestiture - Schedule of Assets and Liabilities Held for Sale (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Cash and cash equivalents $ 53.1  
Total assets 623.1 $ 1,452.9
Total liabilities 358.6 821.9
Business Solutions | Asset Held for Sale, Not Discontinued Operations    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Cash and cash equivalents 53.1 37.7
Settlement assets 205.9 566.0
Property and equipment, net of accumulated depreciation of 2.5 and $19.3 2.0 6.3
Goodwill 229.5 532.0
Other intangible assets, net of accumulated amortization of 78.2 and $360.2 9.9 50.4
Other assets 122.7 260.5
Total assets 623.1 1,452.9
Accounts payable and accrued liabilities 47.5 61.6
Settlement obligations 205.9 566.0
Other liabilities 105.2 194.3
Total liabilities $ 358.6 $ 821.9
v3.22.1
Assets Held for Sale and Related Divestiture - Schedule of Assets and Liabilities Held for Sale (Parenthetical) (Details) - Business Solutions - Asset Held for Sale, Not Discontinued Operations - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Accumulated depreciation on property and equipment $ 2.5 $ 19.3
Accumulated amortization on other intangible assets $ 78.2 $ 360.2
v3.22.1
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Assets:    
Settlement assets $ 2,999.5 $ 2,843.5
Derivatives 139.5 247.7
Liabilities:    
Derivatives 114.0 183.8
Recurring    
Assets:    
Derivatives 139.5 247.7
Total assets 1,548.5 1,654.5
Liabilities:    
Derivatives 114.0 183.8
Total liabilities 114.0 183.8
Recurring | Money market funds    
Assets:    
Settlement assets 6.7 7.9
Recurring | State and municipal debt securities    
Assets:    
Settlement assets 1,232.0 1,219.9
Recurring | State and municipal variable rate demand notes    
Assets:    
Settlement assets 79.9 84.8
Recurring | Corporate debt securities    
Assets:    
Settlement assets 58.9  
Recurring | Corporate and other debt securities    
Assets:    
Settlement assets   57.8
Recurring | United States government agency mortgage-backed securities    
Assets:    
Settlement assets 31.5 36.4
Recurring | Level 1    
Assets:    
Total assets 6.7 7.9
Recurring | Level 1 | Money market funds    
Assets:    
Settlement assets 6.7 7.9
Recurring | Level 2    
Assets:    
Derivatives 139.5 247.7
Total assets 1,541.8 1,646.6
Liabilities:    
Derivatives 114.0 183.8
Total liabilities 114.0 183.8
Recurring | Level 2 | State and municipal debt securities    
Assets:    
Settlement assets 1,232.0 1,219.9
Recurring | Level 2 | State and municipal variable rate demand notes    
Assets:    
Settlement assets 79.9 84.8
Recurring | Level 2 | Corporate debt securities    
Assets:    
Settlement assets 58.9  
Recurring | Level 2 | Corporate and other debt securities    
Assets:    
Settlement assets   57.8
Recurring | Level 2 | United States government agency mortgage-backed securities    
Assets:    
Settlement assets $ 31.5 $ 36.4
v3.22.1
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Other Assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Carrying amount of investments $ 250.0  
Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Borrowings 2,534.5 $ 3,008.4
Level 2 | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Borrowings 2,540.5 $ 3,217.2
Non-recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Non-recurring asset fair value adjustments $ 8.7  
v3.22.1
Commitments and Contingencies - Narrative (Details)
$ in Millions
Mar. 31, 2022
USD ($)
Commitments and Contingencies  
Letters of credit outstanding and bank guarantees $ 330
Pending Litigation  
Commitments and Contingencies  
Range of possible loss, portion not accrued $ 30
v3.22.1
Related Party Transactions - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Equity Method Investee    
Related Party Transactions    
Commission expense $ 11.5 $ 13.2
v3.22.1
Settlement Assets and Obligations - Schedule of Settlement Assets and Obligations (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Settlement assets:    
Cash and cash equivalents $ 685.7 $ 835.5
Receivables from agents, Business Solutions customers, and others 1,137.4 1,198.8
Less: Allowance for credit losses (19.9) (23.7)
Receivables from agents, Business Solutions customers, and others, net 1,117.5 1,175.1
Investment securities 1,402.3 1,398.9
Less: Allowance for credit losses (0.1)  
Investment securities, net 1,402.2  
Total settlement assets 3,205.4 3,409.5
Total settlement assets 2,999.5 2,843.5
Settlement obligations:    
Money transfer, money order, and payment service payables 2,507.9 2,838.9
Payables to agents 697.5 570.6
Total settlement obligations 3,205.4 3,409.5
Total settlement obligations $ 2,999.5 $ 2,843.5
v3.22.1
Settlement Assets and Obligations - Schedule of Settlement Assets and Obligations (Parenthetical) (Details) - Business Solutions [Member] - Asset Held for Sale, Not Discontinued Operations - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Settlement assets:    
Settlement assets held for sale $ 205.9 $ 566.0
Settlement obligations:    
Settlement obligations associated with assets held for sale $ 205.9 $ 566.0
v3.22.1
Settlement Assets and Obligations - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Receivables from agents, business solutions customers, and others, net $ 1,117.5 $ 1,175.1
Advances to agents $ 143.9 146.9
Variable rate demand notes, maximum maturity year 2050  
Due after 5 years through 10 years $ 554.8  
Due after 10 years 153.0  
Receivables from agents and others    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Receivables from agents, business solutions customers, and others, net 1,089.9 1,125.9
Receivables from Business Solutions customers    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Receivables from agents, business solutions customers, and others, net 27.6 $ 49.2
State and municipal variable rate demand notes    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Due after 5 years through 10 years 10.0  
Due after 10 years $ 69.9  
v3.22.1
Settlement Assets and Obligations - Summary of Activity in the Allowance for Credit Losses (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Summary of activity in allowance for credit losses    
Allowance for credit losses, Beginning Balance $ 23.7  
Allowance for credit losses, Ending Balance 19.9  
Receivables from agents and others    
Summary of activity in allowance for credit losses    
Allowance for credit losses, Beginning Balance 18.0 $ 49.3
Current period provision for expected credit losses 1.9 2.3
Write-offs charged against the allowance (3.1) (3.3)
Recoveries of amounts previously written off 1.7 1.9
Impacts of foreign currency exchange rates, divestitures and other (0.1) (0.5)
Allowance for credit losses, Ending Balance 18.4 49.7
Receivables from Business Solutions customers    
Summary of activity in allowance for credit losses    
Allowance for credit losses, Beginning Balance 5.7 3.9
Current period provision for expected credit losses 0.4 1.5
Write-offs charged against the allowance (0.4) (0.4)
Impacts of foreign currency exchange rates, divestitures and other (4.2) (0.1)
Allowance for credit losses, Ending Balance $ 1.5 $ 4.9
v3.22.1
Settlement Assets and Obligations - Summary of Activity in the Allowance for Credit Losses (Parenthetical) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Settlement Assets and Obligations    
Losses from chargebacks or fraud that are not credit-related $ 10.0 $ 13.7
v3.22.1
Settlement Assets and Obligations - Components of Investment Securities (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Cash and cash equivalents      
Amortized Cost $ 1,295.8 $ 1,208.3 $ 1,502.6
Available-for-sale securities:      
Amortized Cost 1,428.1 1,361.1  
Fair Value 1,402.3 1,398.9  
Gross Unrealized Gains 5.5 40.8  
Gross Unrealized Losses (31.3) (3.0)  
Net Unrealized Gains/ (Losses) (25.8) 37.8  
Amortized Cost 1,434.8 1,369.0  
Fair Value 1,409.0 1,406.8  
Gross Unrealized Gains 5.5 40.8  
Gross Unrealized Losses 31.3 (3.0)  
Net Unrealized Gains/ (Losses) (25.8) 37.8  
Money market funds | Settlement Assets      
Cash and cash equivalents      
Amortized Cost 6.7 7.9  
Fair Value 6.7 7.9  
State and municipal debt securities      
Available-for-sale securities:      
Amortized Cost 1,254.8 1,182.6  
Fair Value 1,232.0 1,219.9  
Gross Unrealized Gains 5.5 39.8  
Gross Unrealized Losses (28.3) (2.5)  
Net Unrealized Gains/ (Losses) (22.8) 37.3  
State and municipal variable rate demand notes      
Available-for-sale securities:      
Amortized Cost 79.9 84.8  
Fair Value 79.9 84.8  
Corporate debt securities      
Available-for-sale securities:      
Amortized Cost 61.9    
Fair Value 58.9    
Gross Unrealized Losses (3.0)    
Net Unrealized Gains/ (Losses) (3.0)    
Corporate and other debt securities      
Available-for-sale securities:      
Amortized Cost   58.1  
Fair Value   57.8  
Gross Unrealized Gains   0.2  
Gross Unrealized Losses   (0.5)  
Net Unrealized Gains/ (Losses)   (0.3)  
United States government agency mortgage-backed securities      
Available-for-sale securities:      
Amortized Cost 31.5 35.6  
Fair Value $ 31.5 36.4  
Gross Unrealized Gains   0.8  
Net Unrealized Gains/ (Losses)   $ 0.8  
v3.22.1
Settlement Assets and Obligations - Contractual Maturities of Debt Securities (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Fair Value    
Due within 1 year $ 154.5  
Due after 1 year through 5 years 540.0  
Due after 5 years through 10 years 554.8  
Due after 10 years 153.0  
Total $ 1,402.3 $ 1,398.9
v3.22.1
Stockholders' Equity - Narrative (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Feb. 10, 2022
Equity, Class of Treasury Stock [Line Items]      
Cash dividends paid $ 91.7 $ 96.6  
Common stock dividends (USD per share) $ 0.235 $ 0.235  
Stock repurchased and retired, publicly announced authorizations (shares) 8.1 3.1  
Stock repurchased and retired, publicly announced authorizations, value excluding commissions $ 150.0 $ 75.0  
Stock repurchased and retired, publicly announced authorizations, average cost per share excluding commissions (USD per share) $ 18.46 $ 24.24  
Stock repurchase program expiration date Dec. 31, 2021    
Authorized through December 31, 2024      
Equity, Class of Treasury Stock [Line Items]      
Stock repurchases authorized amount     $ 1,000.0
Remaining amount available under share repurchase authorization $ 850.0    
v3.22.1
Stockholders' Equity - Schedule of Amounts Reclassified from AOCL (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, net of tax $ 18.6 $ (8.2)
Investment Securities    
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, net of tax (0.1) (0.1)
Investment Securities | Revenues    
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, before tax (0.1) (0.1)
Hedging Activities    
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, net of tax 0.9 (5.6)
Hedging Activities | Foreign currency contracts | Revenues    
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, before tax 1.0 (6.1)
Hedging Activities | Interest rate contracts | Interest Expense    
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, before tax (0.1) (0.2)
Hedging Activities | Interest rate contracts | Other expense, net    
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, before tax   0.7
Defined benefit plans    
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, Provision for income taxes   0.6
Reclassification from AOCL, net of tax   (2.5)
Defined benefit plans | Other expense, net    
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, before tax   $ (3.1)
Foreign Currency Translation    
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, net of tax 17.8  
Foreign Currency Translation | Gain on Divestiture of Business Member    
Accumulated other comprehensive income (loss)    
Reclassification from AOCL, before tax $ 17.8  
v3.22.1
Stockholders' Equity - Schedule of Components of Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]    
Beginning balance $ 355.6 $ 186.6
Amounts reclassified from AOCL into earnings, net of tax (18.6) 8.2
Ending balance 352.8 218.8
Investment Securities    
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]    
Beginning balance 30.4 58.3
Unrealized gains/(losses) (63.6) (16.0)
Tax benefit/(expense) (11.9) 2.9
Amounts reclassified from AOCL into earnings, net of tax 0.1 0.1
Ending balance 21.2 45.3
Hedging Activities    
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]    
Beginning balance 18.7 (30.5)
Unrealized gains/(losses) 6.2 24.2
Tax benefit/(expense)   (0.9)
Amounts reclassified from AOCL into earnings, net of tax (0.9) 5.6
Ending balance 24.0 (1.6)
Foreign Currency Translation    
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]    
Beginning balance (101.2) (101.2)
Amounts reclassified from AOCL into earnings, net of tax (17.8)  
Ending balance (119.0) (101.2)
Defined benefit plans    
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]    
Beginning balance   (86.1)
Amounts reclassified from AOCL into earnings, net of tax   2.5
Ending balance   (83.6)
Total AOCL    
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]    
Beginning balance (52.1) (159.5)
Unrealized gains/(losses) 57.4 8.2
Tax benefit/(expense) 11.9 2.0
Amounts reclassified from AOCL into earnings, net of tax 18.6 8.2
Ending balance $ (116.2) $ (141.1)
v3.22.1
Derivatives - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Mar. 31, 2021
USD ($)
Derivative
Dec. 31, 2021
USD ($)
Derivatives      
Total borrowings at par value $ 2,550.0   $ 3,025.0
Accumulated other comprehensive pre-tax gain (loss) to be reclassified into revenue within the next 12 months 23.3    
1.350% Notes Due 2026      
Derivatives      
Total borrowings at par value $ 600.0 [1] $ 600.0 $ 600.0 [1]
Stated interest rate (as a percent) 1.35% 1.35% 1.35%
Business Solutions      
Derivatives      
Foreign exchange revenues $ 78.6 $ 84.5  
Cash Flow Hedges | Interest rate contracts | 3.600% Notes Due 2022      
Derivatives      
Number of derivative instruments terminated | Derivative   2  
Deferred gain on termination of treasury locks   $ 2.6  
Cash payment received for terminated swap agreement   3.3  
Gain on derivative recognized in Other expense, net   $ 0.7  
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 $ 5,000.0   $ 8,000.0
Minimum | Not designated as hedges | Uncollected Settlement Assets and Obligations      
Derivatives      
Foreign currency forward contracts maturity range 2 days    
Maximum | Not designated as hedges | Uncollected Settlement Assets and Obligations      
Derivatives      
Foreign currency forward contracts maturity range 1 month    
Maximum | Not designated as hedges | Foreign currency contracts | Business Solutions      
Derivatives      
Foreign currency forward contracts maturity range 1 year    
Maximum | Not designated as hedges | Foreign Currency Denominated Cash and Other Asset and Other Liability Positions      
Derivatives      
Foreign currency forward contracts maturity range 1 year    
[1] The difference between the stated interest rate and the effective interest rate is not significant.
v3.22.1
Derivatives - Notional Amounts of Foreign Currency Forward Contracts (Details) - Foreign currency contracts - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Designated as hedges | Euro    
Notional amounts of foreign currency forward contracts    
Notional amounts $ 418.6 $ 399.9
Designated as hedges | Canadian dollar    
Notional amounts of foreign currency forward contracts    
Notional amounts 133.4 134.0
Designated as hedges | Australian dollar    
Notional amounts of foreign currency forward contracts    
Notional amounts 57.2 58.4
Designated as hedges | Swiss franc    
Notional amounts of foreign currency forward contracts    
Notional amounts 45.8 45.9
Designated as hedges | British pound    
Notional amounts of foreign currency forward contracts    
Notional amounts 42.1 43.8
Designated as hedges | Swedish krona    
Notional amounts of foreign currency forward contracts    
Notional amounts 32.0 30.7
Designated as hedges | Japanese yen    
Notional amounts of foreign currency forward contracts    
Notional amounts 28.6 30.4
Designated as hedges | Other Currencies    
Notional amounts of foreign currency forward contracts    
Notional amounts   0.9
Not designated as hedges | Euro    
Notional amounts of foreign currency forward contracts    
Notional amounts 601.1 755.7
Not designated as hedges | Canadian dollar    
Notional amounts of foreign currency forward contracts    
Notional amounts 82.4 144.2
Not designated as hedges | Australian dollar    
Notional amounts of foreign currency forward contracts    
Notional amounts 66.1 98.1
Not designated as hedges | Swiss franc    
Notional amounts of foreign currency forward contracts    
Notional amounts 41.6 25.1
Not designated as hedges | British pound    
Notional amounts of foreign currency forward contracts    
Notional amounts 95.9 148.1
Not designated as hedges | Swedish krona    
Notional amounts of foreign currency forward contracts    
Notional amounts 29.2 25.1
Not designated as hedges | Japanese yen    
Notional amounts of foreign currency forward contracts    
Notional amounts 41.0 46.0
Not designated as hedges | Other Currencies    
Notional amounts of foreign currency forward contracts    
Notional amounts 184.1 132.7
Not designated as hedges | Mexican peso    
Notional amounts of foreign currency forward contracts    
Notional amounts 57.2 96.3
Not designated as hedges | Indian rupee    
Notional amounts of foreign currency forward contracts    
Notional amounts 58.9 63.4
Not designated as hedges | Philippine peso    
Notional amounts of foreign currency forward contracts    
Notional amounts   76.2
Not designated as hedges | Russian ruble    
Notional amounts of foreign currency forward contracts    
Notional amounts   44.4
Not designated as hedges | Chinese yuan    
Notional amounts of foreign currency forward contracts    
Notional amounts   31.6
Not designated as hedges | New Zealand dollar    
Notional amounts of foreign currency forward contracts    
Notional amounts   $ 26.6
Not designated as hedges | Brazilian real    
Notional amounts of foreign currency forward contracts    
Notional amounts $ 25.3  
v3.22.1
Derivatives - Notional Amounts of Foreign Currency Forward Contracts (Parenthetical) (Details) - Other Currencies - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Designated as hedges    
Derivative [Line Items]    
Maximum individual currency exposure within various other currencies $ 25 $ 25
Not designated as hedges    
Derivative [Line Items]    
Maximum individual currency exposure within various other currencies $ 25 $ 25
v3.22.1
Derivatives - Fair Value of Derivatives (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Fair Value of Derivatives    
Derivative Assets $ 139.5 $ 247.7
Derivative Liabilities 114.0 183.8
Designated as hedges    
Fair Value of Derivatives    
Derivative Assets 35.4 30.6
Derivative Liabilities 2.5 2.6
Designated as hedges | Other assets | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Assets 35.4 30.6
Designated as hedges | Other liabilities | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Liabilities 2.5 2.6
Not designated as hedges    
Fair Value of Derivatives    
Derivative Assets 104.1 217.1
Derivative Liabilities 111.5 181.2
Not designated as hedges | Other assets | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Assets 2.4 4.0
Not designated as hedges | Other liabilities | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Liabilities 9.7 7.1
Not designated as hedges | Business Solutions | Other assets | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Assets 101.7 213.1
Not designated as hedges | Business Solutions | Other liabilities | Foreign currency contracts    
Fair Value of Derivatives    
Derivative Liabilities $ 101.8 $ 174.1
v3.22.1
Derivatives - Gross and Net Fair Value of Derivative Assets and Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Offsetting of Derivative Assets    
Gross Amounts of Recognized Assets $ 84.2 $ 163.9
Net Amounts Presented in the Consolidated Balance Sheets 84.2 163.9
Derivatives Not Offset in the Consolidated Balance Sheets (51.1) (92.4)
Net Amounts 33.1 71.5
Derivatives that are not or may not be subject to master netting arrangement or similar agreement 55.3 83.8
Total 139.5 247.7
Offsetting of Derivative Liabilities    
Gross Amounts of Recognized Liabilities 83.0 109.6
Net Amounts Presented in the Consolidated Balance Sheets 83.0 109.6
Derivatives Not Offset in the Consolidated Balance Sheets (51.1) (92.4)
Net Amounts 31.9 17.2
Derivatives that are not or may not be subject to master netting arrangement or similar agreement 31.0 74.2
Total $ 114.0 $ 183.8
v3.22.1
Derivatives - Unrealized Gains/(Losses) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Foreign currency contracts    
Derivatives    
Gain/(Loss) recognized in OCI $ 6.2 $ 20.9
Interest rate contracts    
Derivatives    
Gain/(Loss) recognized in OCI   $ 3.3
v3.22.1
Derivatives - Unrealized Gains/(Losses) (Parenthetical) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Foreign Exchange Contract [Member]    
Derivative [Line Items]    
Gains/(losses) excluded from effectiveness testing recognized in other comprehensive income $ (4.2) $ (0.7)
v3.22.1
Derivatives - Gains/(Losses) from Hedging Activities (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Gains/(Losses) from Derivatives    
Revenues $ 1,155.7 $ 1,210.0
Interest expense (24.8) (28.4)
Other expense, net (2.5) (1.9)
Cash Flow Hedges | Foreign currency contracts | Revenues    
Cash Flow and Fair Value Hedges    
Gains/(losses) reclassified from AOCL into earnings 1.0 (6.1)
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach 1.1 1.9
Cash Flow Hedges | Interest rate contracts | Interest Expense    
Cash Flow and Fair Value Hedges    
Gains/(losses) reclassified from AOCL into earnings $ (0.1) (0.2)
Cash Flow Hedges | Interest rate contracts | Other expense, net    
Cash Flow and Fair Value Hedges    
Gains/(losses) reclassified from AOCL into earnings   $ 0.7
v3.22.1
Derivatives - Undesignated Hedges (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Not designated as hedges | Selling, General and Administrative    
Cash Flow and Fair Value Hedges    
Gain recognized in Income on Foreign currency derivatives $ 11.7 $ 16.0
v3.22.1
Derivatives - Undesignated Hedges (Parenthetical) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Cash Flow and Fair Value Hedges    
Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities $ (9.9) $ (21.8)
v3.22.1
Borrowings - Schedule of Outstanding Borrowings (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Outstanding Borrowings      
Total borrowings at par value $ 2,550.0 $ 3,025.0  
Debt issuance costs and unamortized discount, net (15.5) (16.6)  
Total borrowings at carrying value [1] 2,534.5 3,008.4  
Commercial Paper      
Outstanding Borrowings      
Total borrowings at par value [2] 100.0 275.0  
4.250% Notes Due 2023      
Outstanding Borrowings      
Total borrowings at par value [3] 300.0 300.0  
2.850% Notes Due 2025      
Outstanding Borrowings      
Total borrowings at par value [3] 500.0 500.0  
1.350% Notes Due 2026      
Outstanding Borrowings      
Total borrowings at par value 600.0 [3] 600.0 [3] $ 600.0
2.750% Notes Due 2031      
Outstanding Borrowings      
Total borrowings at par value 300.0 [3] 300.0 [3] $ 300.0
6.200% Notes Due 2036      
Outstanding Borrowings      
Total borrowings at par value [3] 500.0 500.0  
6.200% Notes Due 2040      
Outstanding Borrowings      
Total borrowings at par value [3] $ 250.0 250.0  
Term Loan Facility Borrowing      
Outstanding Borrowings      
Total borrowings at par value [4]   $ 300.0  
[1] As of March 31, 2022, the Company’s weighted-average effective rate on total borrowings was approximately 3.7%.
[2] Pursuant to the Company’s commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $1.5 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Company’s revolving credit facility. The commercial paper notes may have maturities of up to 397 days from date of issuance. The Company’s commercial paper borrowings as of March 31, 2022 had a weighted-average annual interest rate of approximately 0.7% and a weighted-average term of approximately 1 day.
[3] The difference between the stated interest rate and the effective interest rate is not significant.
[4] See Term Loan Facility section below for further discussion.
v3.22.1
Borrowings - Schedule of Outstanding Borrowings (Parenthetical) (Details) - USD ($)
$ in Billions
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Outstanding Borrowings      
Weighted-average effective interest rate (as a percent) 3.70%    
Commercial Paper      
Outstanding Borrowings      
Maximum borrowing capacity $ 1.5    
Maximum days to maturity 397 days    
Weighted-average effective interest rate (as a percent) 0.70%    
Weighted-average term 1 day    
4.250% Notes Due 2023      
Outstanding Borrowings      
Stated interest rate (as a percent) 4.25% 4.25%  
2.850% Notes Due 2025      
Outstanding Borrowings      
Stated interest rate (as a percent) 2.85% 2.85%  
1.350% Notes Due 2026      
Outstanding Borrowings      
Stated interest rate (as a percent) 1.35% 1.35% 1.35%
2.750% Notes Due 2031      
Outstanding Borrowings      
Stated interest rate (as a percent) 2.75% 2.75% 2.75%
6.200% Notes Due 2036      
Outstanding Borrowings      
Stated interest rate (as a percent) 6.20% 6.20%  
6.200% Notes Due 2040      
Outstanding Borrowings      
Stated interest rate (as a percent) 6.20% 6.20%  
v3.22.1
Borrowings - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Jan. 04, 2022
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Dec. 18, 2018
Long-term and Short-term Debt Instruments          
Total borrowings at par value   $ 2,550.0   $ 3,025.0  
Repayment of long-term debt   300.0 $ 650.0    
Term Loan Facility Borrowing          
Long-term and Short-term Debt Instruments          
Total borrowings at par value [1]       300.0  
Maximum borrowing capacity         $ 950.0
Repayment of long-term debt $ 300.0   650.0    
2.750% Notes Due 2031          
Long-term and Short-term Debt Instruments          
Total borrowings at par value   $ 300.0 [2] $ 300.0 $ 300.0 [2]  
Stated interest rate (as a percent)   2.75% 2.75% 2.75%  
[1] See Term Loan Facility section below for further discussion.
[2] The difference between the stated interest rate and the effective interest rate is not significant.
v3.22.1
Borrowings - Schedule of Maturities of Borrowings (Details)
$ in Millions
Mar. 31, 2022
USD ($)
Borrowings maturities at par value  
Due after 1 year through 2 years $ 300.0
Due after 2 years through 3 years 500.0
Due after 3 years through 4 years 600.0
Due after 5 years 1,050.0
Total $ 2,450.0
v3.22.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Income Taxes      
Effective tax rate 19.00% 10.40%  
Unrecognized tax benefits, including interest and penalties $ 373.1   $ 376.3
v3.22.1
Stock-Based Compensation Plans - Narrative (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Long-Term Incentive Plan    
Stock-based compensation expense $ 10.7 $ 10.8
Options granted (shares) 0.6  
Options granted exercise price (in dollars per share) $ 18.62  
Performance-based restricted stock units and Restricted stock units granted (in shares) 3.1  
Performance-based restricted stock units and Restricted stock units weighted average grant date fair value (in dollars per share) $ 20.34  
Number of options outstanding (in shares) 7.0  
Exercise price of options outstanding (in dollars per share) $ 19.03  
Number of options exercisable (in shares) 3.6  
Exercise price of options exercisable (in dollars per share) $ 19.10  
Number of non-vested Performance-based restricted stock units and Restricted stock units (in shares) 7.7  
Grant date fair value of Performance-based restricted stock units and Restricted stock units (in dollars per share) $ 21.75  
v3.22.1
Segments - Narrative (Details) - Operating Segments
 3 Months Ended
Mar. 31, 2022
Customer
Segment
Region
Segments  
Number of operating segments | Segment 2
Consumer-to-Consumer  
Segments  
Number of consumers in money transfer | Customer 2
Number of geographic regions in segment | Region 5
v3.22.1
Segments - Segments Results (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Revenues:    
Total consolidated revenues $ 1,155.7 $ 1,210.0
Operating income:    
Total operating income 237.5 232.8
Operating Segments    
Operating income:    
Total operating income 256.2 232.8
Operating Segments | Consumer-to-Consumer    
Revenues:    
Total consolidated revenues 999.0 1,050.9
Operating income:    
Total operating income 207.2 206.1
Operating Segments | Business Solutions    
Revenues:    
Total consolidated revenues [1] 89.1 96.5
Operating income:    
Total operating income [1] 27.5 12.6
Operating Segments | Other    
Revenues:    
Total consolidated revenues 67.6 62.6
Operating income:    
Total operating income 21.5 $ 14.1
Not Allocated To Segments | Russia/Belarus    
Operating income:    
Exit costs [2] (11.0)  
Not Allocated To Segments | Business Solutions    
Operating income:    
Exit costs [2] $ (7.7)  
[1] On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to the Buyer, which will be completed in two closings. The first closing occurred on March 1, 2022, with the second expected in the second half of 2022. The operations of the Business Solutions business to be sold in the second closing continue to be included in Revenues and Operating income after the first closing. However, between the first and second closing, the Company will pay the Buyer a measure of the profits from these operations, adjusted for income taxes and other charges, as contractually agreed, and this expense is recognized in Other expense, net in the Condensed Consolidated Statements of Income. See Note 4 for further information regarding this transaction.
[2] Represents the exit costs incurred in connection with the Company's suspension of its operations in Russia and Belarus and the divestiture of the Business Solutions business, primarily related to severance and non-cash impairments of property and equipment, an operating lease right-of-use asset, and other intangible assets. While certain of the expenses are identifiable to the Company's segments, the expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results.
v3.22.1
Segments - Segments Results (Parenthetical) (Details)
Aug. 04, 2021
Item
Business Solutions | Asset Held for Sale, Not Discontinued Operations  
Segment Reporting Information [Line Items]  
Number of closings 2