Bread Financial (BFH) 10-Q4 Aug 202020 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 23, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
Entity File Number	001-15749
Entity Registrant Name	ALLIANCE DATA SYSTEMS CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-1429215
Entity Address, Address Line One	3075 Loyalty Circle
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43219
City Area Code	614
Local Phone Number	729-4000
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	ADS
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		47,715,021
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001101215
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 4,960	$ 3,874.4
Accounts receivable, net, less allowance for doubtful accounts ($3.8 and $3.4 at June 30, 2020 and December 31, 2019, respectively)	428.5	451.1
Credit card and loan receivables:
Credit card receivables - restricted for securitization investors	10,714.7	13,504.2
Other credit card and loan receivables	5,094.3	5,958.9
Total credit card and loan receivables	15,809	19,463.1
Allowance for loan loss	(2,096.3)	(1,171.1)
Credit card and loan receivables, net	13,712.7	18,292
Credit card receivables held for sale	83.1	408
Inventories, net	194	218
Other current assets	648.4	268.4
Redemption settlement assets, restricted	617.5	600.8
Total current assets	20,644.2	24,112.7
Property and equipment, net	255.5	282.3
Right of use assets - operating	249.4	264.3
Deferred tax asset, net	46.1	45.2
Intangible assets, net	109.6	153.3
Goodwill	944.3	954.9
Other non-current assets	618.3	682.1
Total assets	22,867.4	26,494.8
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	263.5	300.8
Accrued expenses	239.5	327.8
Current operating lease liabilities	21.2	22.6
Current portion of deposits	7,107.3	6,942.4
Current portion of non-recourse borrowings of consolidated securitization entities	2,613	3,030.8
Current portion of long-term and other debt	101.3	101.4
Other current liabilities	238.9	338.3
Deferred revenue	793.3	807.9
Total current liabilities	11,378	11,872
Deferred revenue	101	114.1
Deferred tax liability, net	51.9	80
Long-term operating lease liabilities	278.3	291.7
Deposits	4,114.2	5,209.3
Non-recourse borrowings of consolidated securitization entities	2,394.6	4,253.2
Long-term and other debt	3,101.8	2,748.5
Other liabilities	293	337.7
Total liabilities	21,712.8	24,906.5
Commitments and contingencies (Note 15)
Stockholders' equity:
Common stock, $0.01 par value; authorized, 200.0 shares; issued, 115.1 and 115.0 shares at June 30, 2020 and December 31, 2019, respectively	1.2	1.1
Additional paid-in capital	3,267.7	3,257.7
Treasury stock, at cost, 67.4 shares at each of June 30, 2020 and December 31, 2019, respectively	(6,733.9)	(6,733.9)
Retained earnings	4,707.1	5,163.3
Accumulated other comprehensive loss	(87.5)	(99.9)
Total stockholders' equity	1,154.6	1,588.3
Total liabilities and stockholders' equity	$ 22,867.4	$ 26,494.8

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Jun. 30, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, net, allowance for doubtful accounts (in dollars)	$ 3.8	$ 3.4
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	200	200
Common stock, issued shares	115.1	115
Treasury stock, shares	67.4	67.4

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues
Services	$ 37.9	$ 66.4	$ 84.5	$ 139.7
Redemption, net	84.7	153.7	205.6	265.5
Finance charges, net	856.7	1,128.4	2,071	2,277.5
Total revenue	979.3	1,348.5	2,361.1	2,682.7
Operating expenses
Cost of operations (exclusive of depreciation and amortization disclosed separately below)	492.8	654.8	992.1	1,295.3
Provision for loan loss	250.1	257.3	906	509.5
General and administrative	20.4	57.3	44.3	95.5
Depreciation and other amortization	20.3	19.3	37.7	39.9
Amortization of purchased intangibles	21	22.5	42.4	48.3
Total operating expenses	804.6	1,011.2	2,022.5	1,988.5
Operating income	174.7	337.3	338.6	694.2
Interest expense
Securitization funding costs	42.7	51.6	92.6	108.8
Interest expense on deposits	58.9	53.2	119.2	102
Interest expense on long-term and other debt, net	26.1	38.7	54.4	76.6
Total interest expense, net	127.7	143.5	266.2	287.4
Income from continuing operations before income taxes	47	193.8	72.4	406.8
Provision for income taxes	8.6	51.4	4	86.1
Income from continuing operations	38.4	142.4	68.4	320.7
Loss from discontinued operations, net of tax		(3.4)		(32.6)
Net income	$ 38.4	$ 139	$ 68.4	$ 288.1
Basic income (loss) per share (Note 3):
Income from continuing operations (in dollars per share)	$ 0.81	$ 2.72	$ 1.44	$ 6.08
Loss from discontinued operations (in dollars per share)		(0.07)		(0.62)
Net income per share (in dollars per share)	0.81	2.65	1.44	5.46
Diluted income (loss) per share (Note 3):
Income from continuing operations (in dollars per share)	0.81	2.71	1.43	6.07
Loss from discontinued operations (in dollars per share)		(0.07)		(0.62)
Net income per share (in dollars per share)	$ 0.81	$ 2.64	$ 1.43	$ 5.45
Weighted average shares (Note 3):
Basic (in shares)	47.6	51.3	47.6	52.1
Diluted (in shares)	47.7	52.6	47.7	52.9

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 38.4	$ 139	$ 68.4	$ 288.1
Other comprehensive income:
Unrealized gain on securities available-for-sale	13.5	6.2	16.1	16.2
Tax expense	(0.1)	(0.8)	(1.1)	(1.8)
Unrealized gain on securities available-for-sale, net of tax	13.4	5.4	15	14.4
Unrealized loss on cash flow hedges	(1.1)	(0.1)	(0.7)	(0.2)
Tax benefit	0.3		0.2
Unrealized loss on cash flow hedges, net of tax	(0.8)	(0.1)	(0.5)	(0.2)
Unrealized gain (loss) on net investment hedge		(9.6)		6.5
Tax benefit (expense)		2.3		(1.6)
Unrealized gain (loss) on net investment hedge, net of tax		(7.3)		4.9
Foreign currency translation adjustments (inclusive of deconsolidation of $3.8 million related to sale of a business for the six months ended June 30, 2020)	18	8.2	(2.1)	(2.7)
Other comprehensive income, net of tax	30.6	6.2	12.4	16.4
Total comprehensive income, net of tax	$ 69	$ 145.2	$ 80.8	$ 304.5

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Millions	6 Months Ended
	Jun. 30, 2020USD ($)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Deconsolidation related to sale of business	$ 3.8

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions	Common Stock	Preferred Stock	Additional Paid-In Capital	Treasury Stock	Retained EarningsPeriod of Adoption AdjustmentAdjustment	Retained Earnings	Accumulated Other Comprehensive Loss	Period of Adoption AdjustmentAdjustment	Total
Balance at Dec. 31, 2018	$ 1.1		$ 3,172.4	$ (5,715.7)		$ 5,012.4	$ (138.1)		$ 2,332.1
Balance (in shares) at Dec. 31, 2018	113
Increase (Decrease) in Stockholders' Equity
Net income						288.1			288.1
Other comprehensive income							16.4		16.4
Stock-based compensation			51.3						51.3
Issuance of preferred stock			42.1	(42.1)
Issuance of preferred stock (in shares)		0.2
Repurchases of common stock				(222.8)					(222.8)
Dividends and dividend equivalent rights declared						(67.2)			(67.2)
Other			(6.2)						(6.2)
Other (in shares)	0.3
Balance at Jun. 30, 2019	$ 1.1		3,259.6	(5,980.6)		5,233.3	(121.7)		2,391.7
Balance (in shares) at Jun. 30, 2019	113.3	0.2
Balance at Mar. 31, 2019	$ 1.1		3,177	(5,938.5)		5,127.8	(127.9)		2,239.5
Balance (in shares) at Mar. 31, 2019	113.2
Increase (Decrease) in Stockholders' Equity
Net income						139			139
Other comprehensive income							6.2		6.2
Stock-based compensation			31.2						31.2
Issuance of preferred stock			42.1	(42.1)
Issuance of preferred stock (in shares)		0.2
Dividends and dividend equivalent rights declared						(33.5)			(33.5)
Other			9.3						9.3
Other (in shares)	0.1
Balance at Jun. 30, 2019	$ 1.1		3,259.6	(5,980.6)		5,233.3	(121.7)		2,391.7
Balance (in shares) at Jun. 30, 2019	113.3	0.2
Increase (Decrease) in Stockholders' Equity
Cumulative effect adjustment to retained earnings in accordance with ASU 2016-13									5,163.3
Balance at Dec. 31, 2019	$ 1.1		3,257.7	(6,733.9)		5,163.3	(99.9)		1,588.3
Balance (in shares) at Dec. 31, 2019	115
Increase (Decrease) in Stockholders' Equity
Net income						68.4			68.4
Other comprehensive income							12.4		12.4
Stock-based compensation			11						11
Dividends and dividend equivalent rights declared						(39.6)			(39.6)
Other	$ 0.1		(1)						(0.9)
Other (in shares)	0.1
Balance at Jun. 30, 2020	$ 1.2		3,267.7	(6,733.9)		4,707.1	(87.5)		1,154.6
Balance (in shares) at Jun. 30, 2020	115.1
Balance at Mar. 31, 2020	$ 1.2		3,259.7	(6,733.9)		4,678.8	(118.1)		1,087.7
Balance (in shares) at Mar. 31, 2020	115
Increase (Decrease) in Stockholders' Equity
Net income						38.4			38.4
Other comprehensive income							30.6		30.6
Stock-based compensation			6.2						6.2
Dividends and dividend equivalent rights declared						(10.1)			(10.1)
Other			1.8						1.8
Other (in shares)	0.1
Balance at Jun. 30, 2020	$ 1.2		$ 3,267.7	$ (6,733.9)		$ 4,707.1	$ (87.5)		1,154.6
Balance (in shares) at Jun. 30, 2020	115.1
Increase (Decrease) in Stockholders' Equity
Cumulative effect adjustment to retained earnings in accordance with ASU 2016-13					$ (485)			$ (485)	$ 4,707.1

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	Apr. 23, 2020	Jan. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Common Stock dividends and dividend equivalent rights declared (in dollars per share)	$ 0.21	$ 0.63	$ 0.21	$ 0.63	$ 0.63	$ 0.63

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 68.4	$ 288.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	80.1	161.5
Deferred income taxes	131.4	(47.6)
Provision for loan loss	906	509.5
Non-cash stock compensation	11	51.3
Amortization of deferred financing costs	18.3	22.1
Asset impairment charges	34.2	15.6
Change in operating assets and liabilities, net of sale of business	(179.8)	(38.3)
Other	(2.1)	127.5
Net cash provided by operating activities	1,067.5	1,089.7
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in redemption settlement assets	(18.7)	(2)
Change in credit card and loan receivables	3,053.4	(20.9)
Proceeds from sale of business	25.4
Proceeds from sale of credit card portfolios	289.5	539.3
Purchase of credit card portfolios		(936.5)
Payments for acquired businesses, net of cash		(6.7)
Capital expenditures	(26.1)	(92.2)
Purchases of other investments	(14.8)	(13)
Maturities/sales of other investments	31.2	11.2
Other	0.1	6.5
Net cash provided by (used in) investing activities	3,340	(514.3)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under debt agreements	650	2,077.3
Repayments of borrowings	(300.7)	(1,974.8)
Non-recourse borrowings of consolidated securitization entities	350	2,193.3
Repayments/maturities of non-recourse borrowings of consolidated securitization entities	(2,630)	(3,117.2)
Net (decrease) increase in deposits	(936.4)	742.8
Payment of deferred financing costs	(3)	(18.8)
Dividends paid	(40.4)	(67)
Purchase of treasury shares		(222.8)
Other	(1.1)	(9.4)
Net cash used in financing activities	(2,911.6)	(396.6)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2.9)	8.2
Change in cash, cash equivalents and restricted cash	1,493	187
Cash, cash equivalents and restricted cash at beginning of period	3,958.1	3,967.7
Cash, cash equivalents and restricted cash at end of period	5,451.1	4,154.7
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	276.6	323.6
Income taxes paid, net	$ 49.9	$ 139.7

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by Alliance Data Systems Corporation (“ADSC” or, including its consolidated subsidiaries and variable interest entities (“VIEs”), the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 28, 2020. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Effective March 31, 2019, the Company’s divested Epsilon segment met the criteria set forth in Accounting Standards Codification (“ASC”) 205-20, “Presentation of Financial Statements — Discontinued Operations,” and was subsequently sold on July 1, 2019. The Company’s products and services are reported under two segments—LoyaltyOne ® Recently Issued Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminates certain exceptions within ASC 740, “Income Taxes,” and clarifies certain aspects of ASC 740 to promote consistency among reporting entities. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. This ASU is elective and is effective upon issuance for all entities. The Company is evaluating the impact that adoption of ASU 2020-04 will have on its consolidated financial statements. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” or ASC 326. This standard, referred to as Current Expected Credit Loss (“CECL”), required entities to utilize a financial instrument impairment model to establish an allowance based on expected losses over the life of the exposure rather than a model based on an incurred loss approach. Estimates of expected credit losses under the CECL model are based on relevant information about past events, current conditions, and reasonable and supportable forward-looking forecasts regarding the collectability of the loan portfolio. The Company adopted CECL on January 1, 2020 and recorded an increase in its allowance for loan loss at adoption of $644.0 million, which was recorded through a cumulative-effect adjustment to retained earnings, net of taxes. CECL also expanded the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating its allowance for loan loss. See Note 6, “Credit Card and Loan Receivables,” for the Company’s CECL disclosures. In addition, CECL modified the impairment model for available-for-sale debt securities and provided for a simplified accounting model for purchased financial assets with credit deterioration since their origination. CECL impacts the Company’s valuation of its accounts receivable and available-for-sale debt securities, with respect to which the Company’s adoption did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements from Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement.” ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company’s adoption of this standard on January 1, 2020 did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018-15 requires customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40, “Intangibles—Goodwill and Other—Internal-Use Software,” to determine which implementation costs may be capitalized. ASU 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The amendments in ASU 2018-15 can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted ASU 2018-15 on January 1, 2020 on a prospective basis and the adoption did not have a material impact on its consolidated financial statements.

REVENUE

REVENUE	6 Months Ended
REVENUE	Jun. 30, 2020
REVENUE
REVENUE	2. REVENUE The Company’s products and services are reported under two segments—LoyaltyOne and Card Services, as shown below. The following tables present revenue disaggregated by major source: Corporate/ Three Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Major Source: Coalition loyalty program $ 61.6 $ — $ — $ 61.6 Short-term loyalty programs 84.8 — — 84.8 Servicing fees, net — (28.5) — (28.5) Other 1.6 — — 1.6 Revenue from contracts with customers $ 148.0 $ (28.5) $ — $ 119.5 Finance charges, net — 856.7 — 856.7 Investment income 3.1 — — 3.1 Total $ 151.1 $ 828.2 $ — $ 979.3 Corporate/ Three Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Major Source: Coalition loyalty program $ 71.4 $ — $ — $ 71.4 Short-term loyalty programs 153.1 — — 153.1 Servicing fees, net — (31.5) — (31.5) Other 23.9 — 0.1 24.0 Revenue from contracts with customers $ 248.4 $ (31.5) $ 0.1 $ 217.0 Finance charges, net — 1,128.4 — 1,128.4 Investment income 3.1 — — 3.1 Total $ 251.5 $ 1,096.9 $ 0.1 $ 1,348.5 Corporate/ Six Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Major Source: Coalition loyalty program $ 132.9 $ — $ — $ 132.9 Short-term loyalty programs 205.1 — — 205.1 Servicing fees, net — (59.1) — (59.1) Other 4.9 — — 4.9 Revenue from contracts with customers $ 342.9 $ (59.1) $ — $ 283.8 Finance charges, net — 2,071.0 — 2,071.0 Investment income 6.3 — — 6.3 Total $ 349.2 $ 2,011.9 $ — $ 2,361.1 Corporate/ Six Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Major Source: Coalition loyalty program $ 142.8 $ — $ — $ 142.8 Short-term loyalty programs 262.7 — — 262.7 Servicing fees, net — (50.2) — (50.2) Other 43.7 — 0.1 43.8 Revenue from contracts with customers $ 449.2 $ (50.2) $ 0.1 $ 399.1 Finance charges, net — 2,277.5 — 2,277.5 Investment income 6.1 — — 6.1 Total $ 455.3 $ 2,227.3 $ 0.1 $ 2,682.7 The following tables present revenue disaggregated by geographic region based on the location of the subsidiary that generally correlates with the location of the customer: Corporate/ Three Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Geographic Region: United States $ 4.2 $ 828.2 $ — $ 832.4 Canada 64.7 — — 64.7 Europe, Middle East and Africa 50.7 — — 50.7 Asia Pacific 13.4 — — 13.4 Other 18.1 — — 18.1 Total $ 151.1 $ 828.2 $ — $ 979.3 Corporate/ Three Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Geographic Region: United States $ 9.5 $ 1,096.9 $ 0.1 $ 1,106.5 Canada 85.4 — — 85.4 Europe, Middle East and Africa 117.6 — — 117.6 Asia Pacific 24.2 — — 24.2 Other 14.8 — — 14.8 Total $ 251.5 $ 1,096.9 $ 0.1 $ 1,348.5 Corporate/ Six Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Geographic Region: United States $ 6.3 $ 2,011.9 $ — $ 2,018.2 Canada 143.8 — — 143.8 Europe, Middle East and Africa 119.3 — — 119.3 Asia Pacific 50.4 — — 50.4 Other 29.4 — — 29.4 Total $ 349.2 $ 2,011.9 $ — $ 2,361.1 Corporate/ Six Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Geographic Region: United States $ 15.9 $ 2,227.3 $ 0.1 $ 2,243.3 Canada 174.4 — — 174.4 Europe, Middle East and Africa 199.0 — — 199.0 Asia Pacific 41.7 — — 41.7 Other 24.3 — — 24.3 Total $ 455.3 $ 2,227.3 $ 0.1 $ 2,682.7 Contract Liabilities The Company records a contract liability when cash payments are received in advance of its performance, which applies to the service and redemption of an AIR MILES ® A reconciliation of contract liabilities for the AIR MILES Reward Program is as follows: Deferred Revenue Service Redemption Total (in millions) Balance at January 1, 2020 $ 258.6 $ 663.4 $ 922.0 Cash proceeds 80.1 135.1 215.2 Revenue recognized (1) (94.5) (108.5) (203.0) Other — 0.4 0.4 Effects of foreign currency translation (11.4) (28.9) (40.3) Balance at June 30, 2020 $ 232.8 $ 661.5 $ 894.3 Amounts recognized in the consolidated balance sheets: Deferred revenue (current) $ 131.8 $ 661.5 $ 793.3 Deferred revenue (non-current) $ 101.0 $ — $ 101.0 (1) Reported on a gross basis herein. The deferred redemption obligation associated with the AIR MILES Reward Program is effectively due on demand from the collector base, thus the timing of revenue recognition is based on the redemption by the collector. Service revenue is amortized over the expected life of a mile, with the deferred revenue balance expected to be recognized into revenue in the amount of $78.6 million in 2020 2021 2022 2023 Additionally, contract liabilities for the Company’s short-term loyalty programs are recognized in other current liabilities in the Company’s unaudited condensed consolidated balance sheets. The beginning balance as of January 1, 2020 was $122.8 million and the closing balance as of June 30, 2020 was $73.9 million, with the change due to revenue recognized of approximately $151.9 million during the six months ended June 30, 2020, offset in part by cash payments received in advance of program performance. Contract Costs The Company recognizes an asset for the incremental costs of obtaining or fulfilling a contract with the retailer for a credit card program agreement to the extent it expects to recover those costs, in accordance with ASC 340-40, “Other Assets and Deferred Costs.” Contract costs are deferred and amortized on a straight-line basis over the respective term of the agreement, which represents the period of service. Depending on the nature of the contract costs, the amortization is recorded as a reduction to revenue, or costs of operations, in the Company’s unaudited condensed consolidated statements of income. As of December 31, 2019, the remaining unamortized contract costs were $406.8 million and are included in other current assets and other non-current assets in the Company’s unaudited condensed consolidated balance sheets. The Company performs an impairment assessment when events or changes in circumstances indicate that the carrying amount of contract costs may not be recoverable. Due to deteriorated economic conditions from COVID-19 resulting in retail store closures and a significant decline in credit sales, the Company’s impairment assessment for certain of its deferred contract costs as of June 30, 2020 resulted in an asset impairment charge within its Card Services segment of $31.1 million that is included in cost of operations in its unaudited condensed consolidated statements of income. As of June 30, 2020, the remaining unamortized contract costs were $349.9 million and are included in other current assets and other non-current assets in the Company’s unaudited condensed consolidated balance sheets.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
EARNINGS PER SHARE	Jun. 30, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	3. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted net income per share of common stock: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions, except per share amounts) Basic income per share: Numerator: Income from continuing operations $ 38.4 $ 142.4 $ 68.4 $ 320.7 Less: Dividends declared on preferred stock — 0.9 — 0.9 Less: Allocation of undistributed earnings — 2.4 — 2.7 Income from continuing operations - basic 38.4 139.1 68.4 317.1 Loss from discontinued operations, net of tax — (3.4) — (32.6) Net income - basic $ 38.4 $ 135.7 $ 68.4 $ 284.5 Denominator: Weighted average shares, basic 47.6 51.3 47.6 52.1 Basic income (loss) attributable to common stockholders per share: Income from continuing operations $ 0.81 $ 2.72 $ 1.44 $ 6.08 Loss from discontinued operations $ — $ (0.07) $ — $ (0.62) Net income per share $ 0.81 $ 2.65 $ 1.44 $ 5.46 Diluted income per share (1) : Numerator: Income from continuing operations $ 38.4 $ 142.4 $ 68.4 $ 320.7 Loss from discontinued operations, net of tax — (3.4) — (32.6) Net income $ 38.4 $ 139.0 $ 68.4 $ 288.1 Denominator: Weighted average shares, basic 47.6 51.3 47.6 52.1 Weighted average effect of dilutive securities: Shares from assumed conversion of preferred stock — 1.1 — 0.6 Net effect of dilutive stock options and unvested restricted stock (2) 0.1 0.2 0.1 0.2 Denominator for diluted calculation 47.7 52.6 47.7 52.9 Diluted income (loss) attributable to common stockholders per share: Income from continuing operations $ 0.81 $ 2.71 $ 1.43 $ 6.07 Loss from discontinued operations $ — $ (0.07) $ — $ (0.62) Net income per share $ 0.81 $ 2.64 $ 1.43 $ 5.45 (1) Computed using the if-converted method, as the result was more dilutive. (2) For both the three and six months ended June 30, 2020 , 0.3 million restricted stock units were excluded from each calculation of weighted average dilutive common shares as the effect would have been anti-dilutive. For the three and six months ended June 30, 2019, 0.2 million and 0.3 million of restricted stock units, respectively, were excluded from the calculation of weighted average dilutive common shares as the effect would have been anti-dilutive. On April 25, 2019, the Company entered into an exchange agreement with ValueAct Holdings, L.P. pursuant to which ValueAct exchanged an aggregate of 1,500,000 shares of the Company’s common stock for an aggregate of 150,000 shares of Series A Non-Voting Convertible Preferred Stock (“preferred stock”). In October 2019, ValueAct exchanged all 150,000 shares of preferred stock back to common stock. For the three and six months ended June 30, 2019, the Company’s calculation of basic and diluted EPS was computed using the two-class method for those periods in which participating securities were outstanding. The two-class method is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings.

DISPOSITION

DISPOSITION	6 Months Ended
DISPOSITION	Jun. 30, 2020
DISPOSITION
DISPOSITION	4. DISPOSITION On January 10, 2020, the Company sold Precima ® January 10, 2020 (in millions) Total consideration (1) $ 43.8 Net carrying value of assets and liabilities (including other comprehensive income) 26.8 Allocation of goodwill 3.2 Strategic transaction costs 5.8 Pre-tax gain on sale of business, net of strategic transaction costs $ 8.0 (1) Consideration as defined included cash associated with the sold Precima entities, which was $10.8 million.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	6 Months Ended
DISCONTINUED OPERATIONS	Jun. 30, 2020
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS	5. DISCONTINUED OPERATIONS Effective March 31, 2019, the Company’s divested Epsilon segment met the criteria set forth in ASC 205-20, “Presentation of Financial Statements — Discontinued Operations,” and was subsequently sold on July 1, 2019. The following table summarizes the results of discontinued operations for the three and six months ended June 30, 2019: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in millions) (in millions) Revenue $ 491.8 $ 999.6 Cost of operations (exclusive of depreciation and amortization disclosed separately below) 465.5 908.9 Depreciation and other amortization 0.7 29.7 Amortization of purchased intangibles — 43.5 Interest expense (1) 32.0 64.1 Loss before benefit from income taxes (6.4) (46.6) Benefit from income taxes (1) (3.0) (14.0) Loss from discontinued operations, net of taxes (2) $ (3.4) $ (32.6) (1) On April 30, 2019, the Company amended its credit agreement, which among other items, provided that upon consummation of the sale of Epsilon, a mandatory payment of $500.0 million of the revolving credit facility was required and all of the Company’s outstanding senior notes was required to be redeemed. As such, for the three and six months ended June 30, 2019, interest expense has been allocated to discontinued operations on the basis of the Company’s $500.0 million mandatory repayment of its revolving line of credit and $1.9 billion in senior notes outstanding. (2) Reflects the results of operations of the Company’s former Epsilon segment, direct costs identifiable to the Epsilon segment and the allocation of interest expense on corporate debt. Depreciation and amortization and capital expenditures from discontinued operations for the three and six months ended June 30, 2019 are as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in millions) (in millions) Depreciation and amortization $ 0.7 $ 73.2 Capital expenditures $ 49.0 $ 55.8

CREDIT CARD AND LOAN RECEIVABLE

CREDIT CARD AND LOAN RECEIVABLES	6 Months Ended
CREDIT CARD AND LOAN RECEIVABLES	Jun. 30, 2020
CREDIT CARD AND LOAN RECEIVABLES
CREDIT CARD AND LOAN RECEIVABLES	6. CREDIT CARD AND LOAN RECEIVABLES The Company’s credit card and loan receivables are the only portfolio segment or class of financing receivables. Quantitative information about the components of credit card and loan receivables is presented in the table below: June 30, December 31, 2020 2019 (in millions) Principal receivables $ 14,975.4 $ 18,413.1 Billed and accrued finance charges 759.8 977.3 Other 73.8 72.7 Total credit card and loan receivables 15,809.0 19,463.1 Less: Credit card receivables – restricted for securitization investors 10,714.7 13,504.2 Other credit card and loan receivables $ 5,094.3 $ 5,958.9 Allowance for Loan Loss Effective January 1, 2020, the Company adopted ASC 326 on a modified retrospective approach and applied a CECL model to determine its allowance for loan loss. The allowance for loan loss is an estimate of expected credit losses, measured over the estimated life of its credit card and loan receivables that considers forecasts of future economic conditions in addition to information about past events and current conditions. The estimate under the CECL model is significantly influenced by the composition, characteristics and quality of the Company’s portfolio of credit card and loan receivables, as well as the prevailing economic conditions and forecasts utilized. The estimate of the allowance for loan loss includes an estimate for uncollectible principal as well as unpaid interest and fees. Charge-offs of principal amounts, net of recoveries are deducted from the allowance. The allowance is maintained through an adjustment to the provision for loan loss and is evaluated for appropriateness. Prior to January 1, 2020, the Company’s allowance for loan loss was determined utilizing an incurred loss model under ASC 450, “Contingencies.” ASC 326 requires entities to use a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. As part of its CECL implementation, the Company evaluated multiple risk characteristics of its credit card and loan receivables portfolio, and determined delinquency status and credit quality to be the most significant characteristics for estimating expected credit losses. To estimate its allowance for loan loss, the Company segregates its credit card and loan receivables into four groups with similar risk characteristics, on the basis of delinquency status and credit quality risk score. These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. The Company’s credit card and loan receivables do not have stated maturities and therefore prepayments are not factored into the determination of the estimated life of the credit card and loan receivables. In determining the estimated life of a credit card and loan receivable, payments were applied to the measurement date balance with no payments allocated to future purchase activity. The Company uses a combination of First In First Out (“FIFO”) and the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (“CARD Act”) methodology to model balance paydown. The Company’s groups of pooled financial assets with similar risk characteristics and their estimated life is as follows: Estimated Life (in months) Group A (Current, risk score - high) 14 Group B (Current, risk score - low) 19 Group C (Delinquent, risk score - high) 17 Group D (Delinquent, risk score - low) 26 In estimating its allowance for loan loss, for each identified group, management utilizes various models and estimation techniques based on historical loss experience, current conditions, reasonable and supportable forecasts and other relevant factors. These models utilize historical data and applicable macroeconomic variables with statistical analysis and behavioral relationships with credit performance. The Company’s quantitative estimate of expected credit losses under CECL is impacted by certain forecasted economic factors. Management utilizes a third party service to analyze a number of scenarios, but uses one scenario to determine the macroeconomic variables over the forecast period. The Company considers the forecast used to be reasonable and supportable over the estimated life of the credit card and loan receivables, with no reversion period. In addition to the quantitative estimate of expected credit losses, the Company also incorporates qualitative adjustments for certain factors such as Company-specific risks, changes in current economic conditions that may not be captured in the quantitatively derived results, or other relevant factors to ensure the allowance for loan loss reflects the Company’s best estimate of current expected credit losses. As permitted by ASC 326, the Company excludes unbilled finance charges from its amortized cost basis of credit card and loan receivables. At June 30, 2020, unbilled finance charges were $226.4 million and included in other credit card and loan receivables in the Company’s unaudited condensed consolidated balance sheet. The following table presents the Company’s allowance for loan loss for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Balance at beginning of period $ 2,150.8 $ 1,021.1 $ 1,171.1 $ 1,038.3 Adoption of ASC 326 (1) — — 644.0 — Provision for loan loss 250.1 257.3 906.0 509.5 Change in estimate for uncollectible unpaid interest and fees — (10.0) — (10.0) Recoveries 56.9 56.7 124.8 116.5 Principal charge-offs (361.5) (314.2) (749.6) (643.4) Balance at end of period $ 2,096.3 $ 1,010.9 $ 2,096.3 $ 1,010.9 (1) Recorded January 1, 2020 through a cumulative-effect adjustment to retained earnings, net of taxes. During the three months ended June 30, 2020, the decrease in the allowance for loan loss was due to a decline in credit card and loan receivables and improved delinquencies, offset in part by worsening macroeconomic variables. During the six months ended June 30, 2020, the increase in the allowance for loan loss was due to a $644.0 million cumulative-effect adjustment for the adoption of ASC 326 as well as deterioration of the macroeconomic outlook due to COVID-19. Additionally, the worsening macroeconomic environment also increased the principal charge-offs for the three and six months ended June 30, 2020 as compared to the same respective periods in the prior year. Net Charge-offs Net charge-offs include the principal amount of losses from credit cardholders unwilling or unable to pay their account balances, as well as bankrupt and deceased credit cardholders, less recoveries and exclude charged-off interest, fees and fraud losses. Charged-off interest and fees reduce finance charges, net while fraud losses are recorded as a cost of operations expense. Credit card and loan receivables, including unpaid interest and fees, are charged-off in the month during which an account becomes 180 days contractually past due, except in the case of customer bankruptcies or death. Credit card and loan receivables, including unpaid interest and fees, associated with customer bankruptcies or death are charged-off in each month subsequent to 60 days after the receipt of notification of the bankruptcy or death, but in any case, not later than the 180-day contractual time frame. Charge-offs for unpaid interest and fees were $197.7 million and $193.8 million for the three months ended June 30, 2020 and 2019, respectively, and $429.6 million and $412.6 million for the six months ended June 30, 2020 and 2019, respectively. Delinquencies A credit card account is contractually delinquent if the Company does not receive the minimum payment by the specified due date on the cardholder’s statement. It is the Company’s policy to continue to accrue interest and fee income on all credit card accounts, except in limited circumstances, until the credit card account balance and all related interest and other fees are paid or charged-off, typically at 180 days delinquent. When an account becomes delinquent, a message is printed on the credit cardholder’s billing statement requesting payment. After an account becomes 30 days past due, a proprietary collection scoring algorithm automatically scores the risk of the account becoming further delinquent. The collection system then recommends a collection strategy for the past due account based on the collection score and account balance and dictates the contact schedule and collections priority for the account. If the Company is unable to make a collection after exhausting all in-house collection efforts, the Company may engage collection agencies and outside attorneys to continue those efforts. The following table presents the amortized cost basis of the aging analysis of the Company’s credit card and loan receivables portfolio: Aging Analysis of Delinquent Amortized Cost 31 to 60 days 61 to 90 days 91 or more days delinquent Total Current Total (in millions) As of June 30, 2020 $ 228.7 $ 148.8 $ 471.4 $ 848.9 $ 14,637.7 $ 15,486.6 As of December 31, 2019 $ 399.1 $ 293.9 $ 698.4 $ 1,391.4 $ 17,656.4 $ 19,047.8 Modified Credit Card Receivables Forbearance Programs In response to the COVID-19 pandemic, the Company offered forbearance programs to affected cardholders, which provide for short-term modifications in the form of payment deferrals and late fee waivers to borrowers who were current as of their most recent billing cycle prior to April 2020. Specifically, the Company provided for late fee waivers and payment deferrals for up to two months for approximately $1.8 billion of credit card and loan receivables, based on the balance in the month of enrollment, through June 30, 2020 and the extension of certain promotional plans of approximately $89.0 million for up to three months. As of June 30, 2020, the credit card and loan receivables in these deferred forbearance programs was approximately $534.8 million. Additionally, the Company instituted two short-term programs with durations of three As these short-term modifications were made in response to COVID-19 to borrowers who were current prior to any relief, these are not considered troubled debt restructurings under the Interagency Statement guidance on certain loan modifications and an interpretation of ASC 310-40, “Receivables—Troubled Debt Restructurings by Creditors.” Troubled Debt Restructurings The Company holds certain credit card receivables for which the terms have been modified. The Company’s modified credit card receivables include credit card receivables for which temporary hardship concessions have been granted and credit card receivables in permanent workout programs. These modified credit card receivables include concessions consisting primarily of a reduced minimum payment and an interest rate reduction. The temporary programs’ concessions remain in place for a period no longer than twelve months, while the permanent programs remain in place through the payoff of the credit card receivables if the credit cardholder complies with the terms of the program. Additionally, the Company instituted two temporary hardship programs with durations of three Troubled debt restructuring concessions do not include the forgiveness of unpaid principal, but may involve the reversal of certain unpaid interest or fee assessments. In the case of the temporary hardship programs, at the end of the concession period, credit card receivable terms revert to standard rates. These arrangements are automatically terminated if the customer fails to make payments in accordance with the terms of the program, at which time their account reverts back to its original terms. Credit card receivables for which temporary hardship and permanent concessions were granted are each considered troubled debt restructurings and are collectively evaluated for impairment. The Company had $430.7 million and $308.7 million, respectively, as a recorded investment in impaired credit card receivables as of June 30, 2020 and December 31, 2019, respectively, which represented less than 3% of the Company’s total credit card receivables. The average recorded investment in impaired credit card receivables was $387.5 million and $290.5 million for the three months ended June 30, 2020 and 2019, respectively, and $351.1 million and $294.1 million for the six months ended June 30, 2020 and 2019, respectively. Interest income on these modified credit card receivables is accounted for in the same manner as other accruing credit card receivables. Cash collections on these modified credit card receivables are allocated according to the same payment hierarchy methodology applied to credit card receivables that are not in such programs. The Company recognized $7.1 million and $6.0 million for the three months ended June 30, 2020 and 2019, respectively, and $12.6 million and $11.7 million for the six months ended June 30, 2020 and 2019, respectively, in interest income associated with modified credit card receivables during the period that such credit card receivables were impaired. The following table provides information on credit card receivables that are considered troubled debt restructurings as described above, which entered into a modification program during the specified periods: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Pre-modification Post-modification Pre-modification Post-modification Number of Outstanding Outstanding Number of Outstanding Outstanding Restructurings Balance Balance Restructurings Balance Balance (Dollars in millions) Troubled debt restructurings – credit card receivables 95,454 $ 156.1 $ 155.8 170,519 $ 268.9 $ 268.5 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Pre-modification Post-modification Pre-modification Post-modification Number of Outstanding Outstanding Number of Outstanding Outstanding Restructurings Balance Balance Restructurings Balance Balance (Dollars in millions) Troubled debt restructurings – credit card receivables 58,210 $ 86.7 $ 86.6 128,504 $ 191.0 $ 190.7 The table below summarizes troubled debt restructurings that have defaulted in the specified periods where the default occurred within 12 months of their modification date: Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Number of Outstanding Number of Outstanding Restructurings Balance Restructurings Balance (Dollars in millions) Troubled debt restructurings that subsequently defaulted – credit card receivables 21,606 $ 31.2 53,276 $ 75.3 Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Number of Outstanding Number of Outstanding Restructurings Balance Restructurings Balance (Dollars in millions) Troubled debt restructurings that subsequently defaulted – credit card receivables 29,439 $ 39.9 79,895 $ 105.3 Credit Quality The Company uses proprietary scoring models developed specifically for the purpose of monitoring the Company’s obligor credit quality. The proprietary scoring models are used as a tool in the underwriting process and for making credit decisions. Information regarding customer performance is factored into these proprietary scoring models to determine the probability of an account becoming 91 or more days past due at any time within the next 12 months. The following table reflects the composition of the Company’s credit card and loan receivables on an amortized cost basis by obligor credit quality as of June 30, 2020 and December 31, 2019: Amortized Cost Revolving Credit Card and Loan Receivables June 30, 2020 December 31, 2019 Percentage of Percentage of Amortized Amortized Probability of an Account Becoming 91 or More Days Past Amortized Cost Basis Amortized Cost Basis Due or Becoming Charged-off (within the next 12 months) Cost Basis Outstanding Cost Basis Outstanding (in millions, except percentages) No Score $ 168.0 1.1 % $ 298.4 1.6 % 27.1% and higher 1,444.8 9.3 1,648.8 8.7 17.1% - 27.0% 961.2 6.2 1,108.5 5.8 12.6% - 17.0% 950.9 6.1 1,171.7 6.2 3.7% - 12.5% 6,582.1 42.5 8,292.1 43.5 1.9% - 3.6% 2,698.6 17.4 3,375.3 17.7 Lower than 1.9% 2,681.0 17.4 3,153.0 16.5 Total $ 15,486.6 100.0 % $ 19,047.8 100.0 % Note: The Company’s credit card and loan receivables are revolving receivables as they do not have stated maturities and are exempted from certain vintage disclosures required under ASC 326. The proprietary scoring models are based on historical data and require various assumptions about future performance, which the Company updates periodically. Obligor credit quality is monitored at least monthly during the life of an account. Portfolios Held for Sale The Company has certain credit card portfolios held for sale, which are carried at the lower of cost or fair value, of $83.1 million and $408.0 million as of June 30, 2020 and December 31, 2019, respectively. During the six months ended June 30, 2020, the Company sold a During the six months ended June 30, 2019, the Company sold four credit card portfolios for cash consideration of approximately $539.3 million and recognized approximately $1.8 million in net gains on the transactions, which were recorded in cost of operations in the Company’s unaudited condensed consolidated statements of income. Additionally, during the six months ended June 30, 2019, the Company transferred one credit card portfolio totaling approximately $510.3 million into credit card receivables held for sale. The Company recorded portfolio valuation adjustments, which are reflected in cost of operations in the Company’s unaudited condensed consolidated statements of income, of $2.1 million and $40.1 million for the three months ended June 30, 2020 and 2019, respectively, and $6.3 million and $100.0 million for the six months ended June 30, 2020 and 2019, respectively. Portfolio Acquisitions During the six months ended June 30, 2019, the Company acquired four credit card portfolios for purchase prices totaling approximately $936.5 million. No portfolio acquisitions were made during the six months ended June 30, 2020. Securitized Credit Card Receivables The Company regularly securitizes its credit card receivables through its credit card securitization trusts, consisting of World Financial Network Credit Card Master Trust, World Financial Network Credit Card Master Note Trust (“Master Trust I”) and World Financial Network Credit Card Master Trust III (“Master Trust III”) (collectively, the “WFN Trusts”), and World Financial Capital Credit Card Master Note Trust (the “WFC Trust”). The Company continues to own and service the accounts that generate credit card receivables held by the WFN Trusts and the WFC Trust. In its capacity as a servicer, each of the respective banks earns a fee from the WFN Trusts and the WFC Trust to service and administer the credit card receivables, collect payments and charge-off uncollectible receivables. These fees are eliminated and therefore not reflected in the Company’s unaudited condensed consolidated statements of income for the three and six months ended June 30, 2020 and 2019. The WFN Trusts and the WFC Trust are VIEs and the assets of these consolidated VIEs include certain credit card receivables that are restricted to settle the obligations of those entities and are not expected to be available to the Company or its creditors. The liabilities of the consolidated VIEs include non-recourse secured borrowings and other liabilities for which creditors or beneficial interest holders do not have recourse to the general credit of the Company. The tables below present quantitative information about the components of total securitized credit card receivables, delinquencies and net charge-offs: June 30, December 31, 2020 2019 (in millions) Total credit card receivables – restricted for securitization investors $ 10,714.7 $ 13,504.2 Principal amount of credit card receivables – restricted for securitization investors, 91 days or more past due $ 213.0 $ 321.8 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Net charge-offs of securitized principal $ 215.1 $ 224.6 $ 454.6 $ 464.1

INVENTORIES, NET

INVENTORIES, NET	6 Months Ended
INVENTORIES, NET	Jun. 30, 2020
INVENTORIES, NET
INVENTORIES, NET	7. INVENTORIES, NET Inventories, net of $194.0 million and $218.0 million at June 30, 2020 and December 31, 2019, respectively, primarily consist of finished goods to be utilized as rewards in the Company’s loyalty programs. Inventories, net are stated at the lower of cost and net realizable value and valued primarily on a first-in-first-out basis. The Company records valuation adjustments to its inventories if the cost of inventory exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future market conditions and an analysis of historical experience.

OTHER INVESTMENTS

OTHER INVESTMENTS	6 Months Ended
OTHER INVESTMENTS	Jun. 30, 2020
OTHER INVESTMENTS
OTHER INVESTMENTS	8. OTHER INVESTMENTS Other investments consist of marketable securities and U.S. Treasury bonds and are included in other current assets and other non-current assets in the Company’s unaudited condensed consolidated balance sheets. Marketable securities include available-for-sale debt securities, mutual funds and domestic certificate of deposit investments. The principal components of other investments, which are carried at fair value, are as follows: June 30, 2020 December 31, 2019 Amortized Unrealized Unrealized Amortized Unrealized Unrealized Cost Gains Losses Fair Value Cost Gains Losses Fair Value (in millions) Marketable securities $ 240.5 $ 7.2 $ — $ 247.7 $ 257.2 $ 3.0 $ (0.4) $ 259.8 Total $ 240.5 $ 7.2 $ — $ 247.7 $ 257.2 $ 3.0 $ (0.4) $ 259.8 There were no unrealized losses at June 30, 2020, and the following table shows the unrealized losses and fair value for those investments that were in an unrealized loss position as of December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: December 31, 2019 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (in millions) Marketable securities $ 18.8 $ (0.2) $ 13.1 $ (0.2) $ 31.9 $ (0.4) Total $ 18.8 $ (0.2) $ 13.1 $ (0.2) $ 31.9 $ (0.4) The amortized cost and estimated fair value of the marketable securities and U.S. Treasury bonds at June 30, 2020 by contractual maturity are as follows: Amortized Estimated Cost Fair Value (in millions) Due in one year or less $ 41.0 $ 41.0 Due after one year through five years 1.4 1.4 Due after five years through ten years — — Due after ten years 198.1 205.3 Total $ 240.5 $ 247.7 Market values were determined for each individual security in the investment portfolio. Effective January 1, 2020, the Company adopted ASC 326, which replaced the other-than-temporary impairment model for available-for-sale debt securities. For available-for-sale debt securities in which fair value is less than cost, ASC 326 requires that credit-related impairment, if any, be recognized through an allowance for credit losses and adjusted each period for changes in credit risk. The Company typically invests in highly-rated securities with low probabilities of default and has the intent and ability to hold the investments until maturity, and the Company performs an assessment each period for credit-related impairment. As of June 30, 2020, the Company does not consider its investments to be impaired. There were no realized gains or losses from the sale of investment securities for the three or six months ended June 30, 2020 and 2019.

REDEMPTION SETTLEMENT ASSETS

REDEMPTION SETTLEMENT ASSETS	6 Months Ended
REDEMPTION SETTLEMENT ASSETS	Jun. 30, 2020
REDEMPTION SETTLEMENT ASSETS
REDEMPTION SETTLEMENT ASSETS	9. REDEMPTION SETTLEMENT ASSETS Redemption settlement assets consist of restricted cash and securities available-for-sale and are designated for settling redemptions by collectors of the AIR MILES Reward Program in Canada under certain contractual relationships with sponsors of the AIR MILES Reward Program. The principal components of redemption settlement assets, which are carried at fair value, are as follows: June 30, 2020 December 31, 2019 Amortized Unrealized Unrealized Amortized Unrealized Unrealized Cost Gains Losses Fair Value Cost Gains Losses Fair Value (in millions) Restricted cash $ 49.9 $ — $ — $ 49.9 $ 39.3 $ — $ — $ 39.3 Mutual funds 24.7 — — 24.7 25.1 — — 25.1 Corporate bonds 531.0 12.1 (0.2) 542.9 536.0 2.4 (2.0) 536.4 Total $ 605.6 $ 12.1 $ (0.2) $ 617.5 $ 600.4 $ 2.4 $ (2.0) $ 600.8 The following tables show the unrealized losses and fair value for those investments that were in an unrealized loss position as of June 30, 2020 and December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position: June 30, 2020 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (in millions) Corporate bonds $ 25.0 $ (0.2) $ 3.7 $ — $ 28.7 $ (0.2) Total $ 25.0 $ (0.2) $ 3.7 $ — $ 28.7 $ (0.2) December 31, 2019 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (in millions) Corporate bonds $ 166.6 $ (1.3) $ 155.1 $ (0.7) $ 321.7 $ (2.0) Total $ 166.6 $ (1.3) $ 155.1 $ (0.7) $ 321.7 $ (2.0) The amortized cost and estimated fair value of the securities at June 30, 2020 by contractual maturity are as follows: Amortized Estimated Cost Fair Value (in millions) Due in one year or less $ 107.0 $ 107.4 Due after one year through five years 420.0 431.0 Due after five year through ten years 28.7 29.2 Total $ 555.7 $ 567.6 Market values were determined for each individual security in the investment portfolio. Effective January 1, 2020, the Company adopted ASC 326, which replaced the other-than-temporary impairment model for available-for-sale debt securities. For available-for-sale debt securities in which fair value is less than cost, ASC 326 requires that credit-related impairment, if any, be recognized through an allowance for credit losses and adjusted each period for changes in credit risk. The Company typically invests in highly-rated securities with low probabilities of default and has the intent and ability to hold the investments until maturity, and the Company performs an assessment each period for credit-related impairment. As of June 30, 2020, the Company does not consider its investments to be impaired. There were no realized gains or losses from the sale of investment securities for the three and six months ended June 30, 2020. Realized losses from the sale of investment securities for the three and six months ended June 30, 2019 were de minimis.

LEASES

LEASES	6 Months Ended
LEASES	Jun. 30, 2020
LEASES
LEASES	10. LEASES The Company has operating leases for general office properties, warehouses, data centers, call centers, automobiles and certain equipment. As of June 30, 2020, the Company’s leases have remaining lease terms of less than 1 year to 18 years, some of which may include renewal options. For leases in which the implicit rate is not readily determinable, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and nonlease components as a single lease component for its identified asset classes. The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Operating lease cost $ 9.9 $ 10.4 $ 20.2 $ 20.7 Short-term lease cost 0.2 0.6 0.5 1.2 Variable lease cost 2.9 1.7 3.1 3.6 Total $ 13.0 $ 12.7 $ 23.8 $ 25.5 Other information related to leases was as follows: June 30, June 30, 2020 2019 Weighted-average remaining lease term (in years): Operating leases 11.2 11.6 Weighted-average discount rate: Operating leases 5.2% 5.2% Supplemental cash flow information related to leases was as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11.3 $ 10.3 $ 25.7 $ 25.6 Right of use assets obtained in exchange for lease obligations: Operating leases $ 0.2 $ 1.2 $ 2.8 $ 9.8 Maturities of the lease liabilities as of June 30, 2020 were as follows: Operating Year Leases (in millions) 2020 (excluding the six months ended June 30, 2020) $ 16.3 2021 39.6 2022 38.6 2023 37.0 2024 34.9 Thereafter 237.0 Total undiscounted lease liabilities 403.4 Less: Amount representing interest (103.9) Total present value of minimum lease payments $ 299.5 Amounts recognized in the June 30, 2020 consolidated balance sheet: Current operating lease liabilities $ 21.2 Long-term operating lease liabilities 278.3 Total $ 299.5 The Company evaluates its right of use assets for impairment in accordance with ASC 360, “Property, Plant and Equipment,” when events or changes in circumstances indicate that a right of use asset’s carrying amount may not be recoverable. For the three months ended June 30, 2020, the Company performed an impairment assessment for the right of use asset associated with one of its locations that it ceased use with the intent to sublease. As a result of this impairment assessment, the Company recorded an asset impairment charge within its Card Services segment of $3.1 million, which is included in cost of operations in its unaudited condensed consolidated statements of income. As a result of COVID-19, the Company is evaluating potential office consolidations or closures.

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	6 Months Ended
INTANGIBLE ASSETS AND GOODWILL	Jun. 30, 2020
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL	11. INTANGIBLE ASSETS AND GOODWILL Intangible Assets Intangible assets consist of the following: June 30, 2020 Gross Accumulated Assets Amortization Net Amortization Life and Method (in millions) Finite Lived Assets Customer contracts and lists $ 325.7 $ (302.5) $ 23.2 7 years—straight line Premium on purchased credit card portfolios 176.4 (96.7) 79.7 1-13 years—straight line Collector database 51.5 (50.8) 0.7 5 years—straight line Tradenames 31.9 (27.1) 4.8 8-15 years—straight line $ 585.5 $ (477.1) $ 108.4 Indefinite Lived Assets Tradename 1.2 — 1.2 Indefinite life Total intangible assets $ 586.7 $ (477.1) $ 109.6 December 31, 2019 Gross Accumulated Assets Amortization Net Amortization Life and Method (in millions) Finite Lived Assets Customer contracts and lists $ 325.1 $ (278.7) $ 46.4 7 years—straight line Premium on purchased credit card portfolios 192.6 (93.2) 99.4 1-13 years—straight line Collector database 53.9 (52.9) 1.0 5 years—straight line Tradenames 31.8 (26.5) 5.3 8-15 years—straight line $ 603.4 $ (451.3) $ 152.1 Indefinite Lived Assets Tradename 1.2 — 1.2 Indefinite life Total intangible assets $ 604.6 $ (451.3) $ 153.3 The estimated amortization expense related to intangible assets for the next five years and thereafter is as follows: For the Years Ending December 31, (in millions) 2020 (excluding the six months ended June 30, 2020) $ 39.3 2021 22.2 2022 17.5 2023 12.8 2024 10.7 Thereafter 5.9 Goodwill The changes in the carrying amount of goodwill are as follows: LoyaltyOne Card Services Total (in millions) Balance at January 1, 2020 $ 690.9 $ 264.0 $ 954.9 Goodwill related to sale of Precima (3.2) — (3.2) Effects of foreign currency translation (7.4) — (7.4) Balance at June 30, 2020 $ 680.3 $ 264.0 $ 944.3 Approximately $3.2 million of LoyaltyOne goodwill was allocated to Precima upon sale in January 2020, based on a relative fair value allocation of the businesses. The Company tests goodwill for impairment annually, as of July 31, or when events and circumstances change that would indicate the carrying value may not be recoverable. As of June 30, 2020, the Company does not believe it is more likely than not that the fair value of its reporting units is less than its carrying amount. However, in light of the COVID-19 pandemic and current uncertainty in the macroeconomic environment, future deterioration in the economy could adversely impact the Company’s reporting units and result in a goodwill impairment.

RESTRUCTURING AND OTHER CHARGES

RESTRUCTURING AND OTHER CHARGES	6 Months Ended
RESTRUCTURING AND OTHER CHARGES	Jun. 30, 2020
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES	12. RESTRUCTURING AND OTHER CHARGES In 2019, the Company, under the direction of the Board of Directors, evaluated the cost structure and executed on certain cost saving initiatives at each segment. These charges included restructuring and other exit activities related to reductions in force, terminations of certain product lines, reduction or closure of certain leased office space, asset impairments, changes in management structure and fundamental reorganizations that affect the nature and focus of operations. Restructuring and other charges incurred at the Corporate segment were recorded to general and administrative expense in the Company’s unaudited condensed consolidated statements of income, and restructuring and other charges incurred in the LoyaltyOne and Card Services segments were recorded to cost of operations in the Company’s unaudited condensed consolidated statements of income. These charges related to actions taken in 2019 are not expected to continue in 2020. For the three and six months ended June 30, 2020, the restructuring and other charges incurred relate to changes in the Company’s original estimate and consisted of adjustments to the Company’s liability. The following tables summarize the restructuring and other charges incurred by reportable segment for all restructuring activities for the periods presented. Termination Asset Lease Other Three Months Ended June 30, 2020 Benefits Impairments Termination Costs Exit Costs Total (in millions) Corporate/Other $ — $ — $ — $ — $ — LoyaltyOne 0.1 — — — 0.1 Card Services (1.3) — — — (1.3) Total $ (1.2) $ — $ — $ — $ (1.2) Termination Asset Lease Other Three Months Ended June 30, 2019 Benefits Impairments Termination Costs Exit Costs Total (in millions) Corporate/Other $ 11.3 $ 11.1 $ — $ — $ 22.4 LoyaltyOne — — — — — Card Services — — — — — Total $ 11.3 $ 11.1 $ — $ — $ 22.4 Termination Asset Lease Other Six Months Ended June 30, 2020 Benefits Impairments Termination Costs Exit Costs Total (in millions) Corporate/Other $ — $ — $ — $ — $ — LoyaltyOne 0.1 — — — 0.1 Card Services (7.8) — — — (7.8) Total $ (7.7) $ — $ — $ — $ (7.7) Termination Asset Lease Other Six Months Ended June 30, 2019 Benefits Impairments Termination Costs Exit Costs Total (in millions) Corporate/Other $ 11.3 $ 11.1 $ — $ — $ 22.4 LoyaltyOne 1.3 4.5 — 2.1 7.9 Card Services — — — — — Total $ 12.6 $ 15.6 $ — $ 2.1 $ 30.3 The Company’s liability for restructuring and other charges is recognized in accrued expenses and other liabilities in its unaudited condensed consolidated balance sheets. The following table summarizes the activities related to the restructuring and other charges, as discussed above, for the three and six months ended June 30, 2020: Termination Asset Lease Other Three Months Ended June 30, 2020 Benefits Impairments Termination Costs Exit Costs Total (in millions) Liability as of March 31, 2020 $ 15.0 $ — $ — $ — $ 15.0 Adjustments for non-cash charges (1.2) — — — (1.2) Cash payments (4.5) — — — (4.5) Liability as of June 30, 2020 $ 9.3 $ — $ — $ — $ 9.3 Termination Asset Lease Other Six Months Ended June 30, 2020 Benefits Impairments Termination Costs Exit Costs Total (in millions) Liability as of January 1, 2020 $ 34.7 $ — $ — $ 0.1 $ 34.8 Adjustments for non-cash charges (7.7) — — — (7.7) Cash payments (17.7) — — (0.1) (17.8) Liability as of June 30, 2020 $ 9.3 $ — $ — $ — $ 9.3 The Company’s outstanding liability related to restructuring and other charges is expected to be settled by the end of 2021, with the majority settled in 2020.

DEBT

DEBT	6 Months Ended
DEBT	Jun. 30, 2020
DEBT
DEBT	13. DEBT Debt consists of the following: June 30, December 31, Description 2020 2019 Maturity Interest Rate (Dollars in millions) Long-term and other debt: 2017 revolving line of credit $ 400.0 $ — December 2022 (1) 2017 term loans 1,978.1 2,028.8 December 2022 (2) BrandLoyalty credit agreement — — April 2023 (3) Senior notes due 2024 850.0 850.0 December 2024 4.750% Total long-term and other debt 3,228.1 2,878.8 Less: Unamortized debt issuance costs 25.0 28.9 Less: Current portion 101.3 101.4 Long-term portion $ 3,101.8 $ 2,748.5 Deposits: Certificates of deposit $ 7,239.9 $ 8,585.2 Various – Jul 2020 to Jun 2025 1.00% to 4.00% Money market deposits 3,998.7 3,589.8 Non-maturity (4) Total deposits 11,238.6 12,175.0 Less: Unamortized debt issuance costs 17.1 23.3 Less: Current portion 7,107.3 6,942.4 Long-term portion $ 4,114.2 $ 5,209.3 Non-recourse borrowings of consolidated securitization entities: Fixed rate asset-backed term note securities $ 4,491.0 $ 4,891.0 Various – Aug 2020 to Sep 2022 2.03% to 3.95% Conduit asset-backed securities 525.0 2,405.0 Various – Apr 2021 to Jul 2021 (5) Total non-recourse borrowings of consolidated securitization entities 5,016.0 7,296.0 Less: Unamortized debt issuance costs 8.4 12.0 Less: Current portion 2,613.0 3,030.8 Long-term portion $ 2,394.6 $ 4,253.2 (1) The interest rate is based upon LIBOR plus an applicable margin. At June 30, 2020, the weighted average interest rate for the revolving line of credit was 1.93% . (2) The interest rate is based upon LIBOR plus an applicable margin. The weighted average interest rate for the term loans was 1.93% and 3.30% at June 30, 2020 and December 31, 2019, respectively. (3) The interest rate is based upon the Euro Interbank Offered Rate plus an applicable margin. (4) The interest rates are based on the Federal Funds rate plus an applicable margin. At June 30, 2020, the interest rates ranged from 0.34% to 3.50% . At December 31, 2019, the interest rates ranged from 1.84% to 3.50% . (5) The interest rate is based upon LIBOR or the asset-backed commercial paper costs of each individual conduit provider plus an applicable margin. At June 30, 2020, the interest rates ranged from 1.35% to 2.36% . At December 31, 2019, the interest rates ranged from 2.79% to 2.96% . At June 30, 2020, the Company was in compliance with its financial covenants. Long-term and Other Debt The Company’s credit agreement, as amended, provided for $2,028.8 million in term loans subject to certain principal repayments and a $750.0 million revolving line of credit. As of June 30, 2020, the Company had $1,978.1 million in term loans outstanding with $350.0 million total availability under the revolving line of credit. BrandLoyalty Credit Agreement In April 2020, BrandLoyalty and certain of its subsidiaries, as borrowers and guarantors, terminated its existing facility and entered into a new credit agreement (the “2020 BrandLoyalty Credit Agreement”) that provides for a committed revolving line of credit of €30.0 million ($33.7 million as of June 30, 2020), an uncommitted revolving line of credit of €30.0 million ($33.7 million as of June 30, 2020), and an accordion feature permitting BrandLoyalty to request an increase in either the committed or uncommitted line of credit up to €80.0 million ($89.9 million as of June 30, 2020) in aggregate. Each of the committed and uncommitted revolving line of credit are schedule to mature on April 3, 2023, subject to BrandLoyalty’s request to extend for two additional one-year terms at the absolute discretion of the lenders at the time of such requests. All advances under the 2020 BrandLoyalty Credit Agreement are denominated in Euros. The interest rate fluctuates and is equal to EURIBOR, as defined in the 2020 BrandLoyalty Credit Agreement, plus an applicable margin based on BrandLoyalty’s senior net leverage ratio. The 2020 BrandLoyalty Credit Agreement contains financial covenants, including a senior net leverage ratio, as well as usual and customary negative covenants, representations, general and information undertakings and events of default. As of June 30, 2020, there were no amounts outstanding under the 2020 BrandLoyalty Credit Agreement. Non-Recourse Borrowings of Consolidated Securitization Entities Asset-Backed Term Notes In May 2020, $450.7 million of Series 2017-A asset-backed term notes, $50.7 million of which were retained by the Company and eliminated from the Company’s unaudited condensed consolidated balance sheets, matured and were repaid. As of June 30, 2020, the Company collected $415.1 million of principal payments made by its credit cardholders during the accumulation period for the repayment of the Series 2015-B notes, which mature in August 2020. The cash is restricted to the securitization investors and is reflected in other current assets in the Company’s unaudited condensed consolidated balance sheet as of June 30, 2020. Conduit Facilities The Company has access to committed undrawn capacity through three conduit facilities to support the funding of its credit card receivables through Master Trust I, Master Trust III and the WFC Trust. In April 2020, Master Trust I amended its 2009-VFN conduit facility, decreasing the capacity from $1.18 billion to $1.0 billion and extending the maturity to July 2021. In April 2020, Master Trust III amended its 2009-VFC conduit facility, decreasing the capacity from $1.3 billion to $1.0 billion and extending the maturity to July 2021. As of June 30, 2020, total capacity under the conduit facilities was $4.2 billion, of which $525.0 million had been drawn and was included in non-recourse borrowings of consolidated securitization entities in the unaudited condensed consolidated balance sheets.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
DERIVATIVE INSTRUMENTS	Jun. 30, 2020
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS	14. DERIVATIVE INSTRUMENTS The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in interest rates and foreign currency exchange rates. The Company limits its exposure on derivatives by entering into contracts with institutions that are established dealers who maintain certain minimum credit criteria established by the Company. At June 30, 2020, the Company does not maintain any derivative instruments subject to master agreements that would require the Company to post collateral or that contain any credit-risk related contingent features. The Company enters into foreign currency derivatives to reduce the volatility of the Company’s cash flows resulting from changes in foreign currency exchange rates associated with certain inventory transactions, some of which are designated as cash flow hedges. The Company generally hedges foreign currency exchange rate risks for periods of 12 months or less. As of June 30, 2020, the maximum term over which the Company is hedging its exposure to the variability of future cash flows associated with certain inventory transactions is eight months. Certain foreign currency exchange forward contracts are not designated as hedges as they do not meet the specific hedge accounting requirements of ASC 815, “Derivatives and Hedging.” Changes in the fair value of the derivative instruments not designated as hedging instruments are recorded in the unaudited condensed consolidated statements of income as they occur. Gains and losses on derivatives not designated as hedging instruments are included in other operating activities in the unaudited condensed consolidated statements of cash flows for all periods presented. The following tables present the fair values of the derivative instruments included within the Company’s unaudited condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019: June 30, 2020 Notional Amount Fair Value Balance Sheet Location Maturity (in millions) Designated as hedging instruments: Foreign currency exchange hedges $ 9.5 $ 0.3 Other current assets July 2020 to January 2021 Foreign currency exchange hedges $ 37.4 $ 0.9 Other current liabilities July 2020 to February 2021 December 31, 2019 Notional Amount Fair Value Balance Sheet Location Maturity (in millions) Designated as hedging instruments: Foreign currency exchange hedges $ 5.5 $ 0.2 Other current assets January 2020 to February 2020 Foreign currency exchange hedges $ 7.8 $ 0.3 Other current liabilities February 2020 to July 2020 Derivatives Designated as Hedging Instruments Losses of $0.8 million and $0.5 million, net of tax, were recognized in other comprehensive income for the three and six months ended June 30, 2020, respectively, and losses of $0.1 million and $0.2 million, net of tax, were recognized in other comprehensive income for the three and six months ended June 30, 2019, respectively, related to foreign currency exchange hedges designated as effective. Changes in the fair value of these hedges are recorded in other comprehensive income until the hedged transactions affect net income. Reclassifications from accumulated other comprehensive loss into net income (cost of operations) for each of the periods presented were not material. At June 30, 2020, $0.6 million is expected to be reclassified from accumulated other comprehensive income into net income in the coming 12 months. Derivatives Not Designated as Hedging Instruments As of June 30, 2020, the Company did not hold any derivatives not designated as hedging instruments, and there were no gains or losses related to derivatives not designated as hedging instruments for the three and six months ended June 30, 2020. For the three and six months ended June 30, 2019, losses of $1.2 million and $2.4 million, respectively, related to foreign currency exchange forward contracts not designated as hedging instruments were recognized in general and administrative expense in the Company’s unaudited condensed consolidated statements of income.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2020
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	15. COMMITMENTS AND CONTINGENCIES Regulatory Matters On September 10, 2019, Comenity Capital Bank submitted a bank merger application to the Federal Deposit Insurance Corporation (“FDIC”) seeking the FDIC’s approval to merge Comenity Bank with and into Comenity Capital Bank as the surviving bank entity. On the same date, Comenity Capital Bank and Comenity Bank each submitted counterpart bank merger applications to the Utah Department of Financial Institutions and the Delaware Office of the State Bank Commissioner, respectively, in connection with the proposed merger. The merger application remains subject to regulatory review and approval and no guarantee can be provided as to the outcome or timing of such review. Indemnification On July 1, 2019, the Company completed the sale of its Epsilon segment to Publicis Groupe S.A. (“Publicis”). Under the terms of the agreement governing that transaction, the Company agreed to indemnify Publicis and its affiliates from and against any losses arising out of or related to a Department of Justice (“DOJ”) investigation. The DOJ investigation relates to third-party marketers who sent, or allegedly sent, deceptive mailings and the provision of data and services to those marketers by Epsilon’s data practice. Epsilon has actively cooperated with the DOJ in connection with its ongoing investigation. The Company records a loss contingency when a loss is probable and an amount can be reasonably estimated. For the year ended December 31, 2019, the Company recorded a loss contingency of $32.9 million, net of tax, which was included in loss from discontinued operations. As these estimates are initially developed substantially earlier than when the ultimate loss is known, no assurance can be given that the investigation will be resolved on these, or other, terms. Therefore, this loss contingency may be refined each period as additional information becomes available. As of June 30, 2020, there was no change to the Company’s estimate of loss contingency.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
STOCKHOLDERS' EQUITY	Jun. 30, 2020
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	16. STOCKHOLDERS’ EQUITY Stock Repurchase Program In July 2019, the Company’s Board of Directors authorized a new stock repurchase program to acquire up to $1.1 billion of its outstanding common stock from July 5, 2019 through June 30, 2020. As of December 31, 2019, the Company had $347.8 million remaining under its authorized stock repurchase program. On April 23, 2020, the Company announced that it has suspended its stock repurchase program. For the three and six months ended June 30, 2020, the Company did not repurchase any shares of its outstanding common stock under its authorized stock repurchase program. At June 30, 2020, $347.8 million of this program expired unused. Stock Compensation Expense During the six months ended June 30, 2020, the Company awarded 149,078 service-based restricted stock units with a weighted average grant date fair value per share of $91.16 as determined on the date of grant. Service-based restricted stock units typically vest ratably over three years provided that the participant is employed by the Company on each such vesting date. During the six months ended June 30, 2020, the Company awarded 219,186 performance-based restricted stock units with a weighted average grant date fair value per share of $100.50 as determined on the date of grant with pre-defined vesting criteria that typically permit a range from 0% to 150% to be earned. If the performance targets are met, the restrictions will lapse with respect to 33% of the award on February 18, 2021, an additional 33% of the award on February 18, 2022 and the final 34% of the award on February 18, 2023, provided that the participant is employed by the Company on each such vesting date. During the six months ended June 30, 2020, the Company also awarded 20,770 restricted stock units with a market-based condition subject to pre-defined vesting criteria that permit a range from 0% to 175% to be earned. The fair market value of these awards is $78.92 and was estimated utilizing Monte Carlo simulations of the Company’s stock price correlation, expected volatility and risk-free rate over two-year time horizons matching the performance period. Upon determination of the market condition, the restrictions will lapse with respect to the entire award on February 18, 2022, provided that the participant is employed by the Company on such vesting date. Stock-based compensation expense recognized in the Company’s unaudited condensed consolidated statements of income for the three and six months ended June 30, 2020 and 2019 is as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Cost of operations $ 3.3 $ 6.5 $ 6.1 $ 13.2 General and administrative 2.9 3.7 4.9 8.4 Total $ 6.2 $ 10.2 $ 11.0 $ 21.6 For the three and six months ended June 30, 2019, an additional $19.9 million and $29.7 million of stock-based compensation expense related to associates from the Company’s divested Epsilon segment was recorded to discontinued operations. Dividends On January 30, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.63 per share on the Company’s common stock to stockholders of record at the close of business on February 14, 2020, resulting in a dividend payment of $30.0 million on March 19, 2020. On April 23, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share on the Company’s common stock to stockholders of record at the close of business on May 14, 2020, resulting in a dividend payment of $10.0 million on June 18, 2020. Additionally, the Company paid $0.4 million in cash related to dividend equivalent rights for the six months ended June 30, 2020. On July 23, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share on the Company’s common stock to stockholders of record at the close of business on August 14, 2020 and payable on September 18, 2020.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	6 Months Ended
ACCUMULATED OTHER COMPREHENSIVE LOSS	Jun. 30, 2020
ACCUMULATED OTHER COMPREHENSIVE LOSS.
ACCUMULATED OTHER COMPREHENSIVE LOSS	17. ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in each component of accumulated other comprehensive loss, net of tax effects, are as follows: Net Net Unrealized Net Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Three Months Ended June 30, 2020 on Securities Flow Hedges Investment Hedge Adjustments (1) Loss (in millions) Balance at March 31, 2020 $ 4.1 $ 0.2 $ (7.5) $ (114.9) $ (118.1) Changes in other comprehensive income (loss) 13.4 (0.8) — 18.0 30.6 Balance at June 30, 2020 $ 17.5 $ (0.6) $ (7.5) $ (96.9) $ (87.5) Net Net Unrealized Net Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Three Months Ended June 30, 2019 on Securities Flow Hedges Investment Hedge Adjustments (1) Loss (in millions) Balance at March 31, 2019 $ (1.7) $ (0.3) $ (0.2) $ (125.7) $ (127.9) Changes in other comprehensive income (loss) 5.4 (0.1) (7.3) 8.2 6.2 Balance at June 30, 2019 $ 3.7 $ (0.4) $ (7.5) $ (117.5) $ (121.7) Net Net Unrealized Net Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Six Months Ended June 30, 2020 on Securities Flow Hedges Investment Hedge Adjustments (1) Loss (in millions) Balance at December 31, 2019 $ 2.5 $ (0.1) $ (7.5) $ (94.8) $ (99.9) Changes in other comprehensive income (loss) 15.0 (0.5) — (5.9) 8.6 Recognition resulting from the sale of Precima's foreign subsidiaries — — — 3.8 3.8 Balance at June 30, 2020 $ 17.5 $ (0.6) $ (7.5) $ (96.9) $ (87.5) Net Net Unrealized Net Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Six Months Ended June 30, 2019 on Securities Flow Hedges Investment Hedge Adjustments (1) Loss (in millions) Balance at December 31, 2018 $ (10.7) $ (0.2) $ (12.4) $ (114.8) $ (138.1) Changes in other comprehensive income (loss) 14.4 (0.2) 4.9 (2.7) 16.4 Balance at June 30, 2019 $ 3.7 $ (0.4) $ (7.5) $ (117.5) $ (121.7) (1) Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates. In accordance with ASC 830, “Foreign Currency Matters,” upon the sale of Precima on January 10, 2020, $3.8 million of accumulated foreign currency translation adjustments attributable to Precima’s foreign subsidiaries sold were reclassified from accumulated other comprehensive loss and included in the calculation of the gain on sale of Precima. Other reclassifications from accumulated other comprehensive loss into net income for each of the periods presented were not material.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
FAIR VALUE MEASUREMENTS	Jun. 30, 2020
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	18. FAIR VALUE MEASUREMENTS In accordance with ASC 825, “Financial Instruments,” the Company is required to disclose the fair value of financial instruments for which it is practical to estimate fair value. To obtain fair values, observable market prices are used if available. In some instances, observable market prices are not readily available and fair value is determined using present value or other techniques appropriate for a particular financial instrument. These techniques involve judgment and as a result are not necessarily indicative of the amounts the Company would realize in a current market exchange. The use of different assumptions or estimation techniques may have a material effect on the estimated fair value amounts. Fair Value of Financial Instruments — June 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value (in millions) Financial assets Credit card and loan receivables, net $ 13,712.7 $ 14,651.7 $ 18,292.0 $ 19,126.0 Credit card receivables held for sale 83.1 86.5 408.0 436.2 Redemption settlement assets, restricted 617.5 617.5 600.8 600.8 Other investments 247.7 247.7 259.8 259.8 Derivative instruments 0.3 0.3 0.2 0.2 Financial liabilities Derivative instruments 0.9 0.9 0.3 0.3 Deposits 11,221.5 11,510.6 12,151.7 12,303.6 Non-recourse borrowings of consolidated securitization entities 5,007.6 5,085.2 7,284.0 7,333.6 Long-term and other debt 3,203.1 3,143.3 2,849.9 2,878.8 The following techniques and assumptions were used by the Company in estimating fair values of financial instruments as disclosed herein: Credit card and loan receivables, net — . Credit card receivables held for sale — Redemption settlement assets, restricted — Other investments Deposits Non-recourse borrowings of consolidated securitization entities Long-term and other debt Derivative instruments Financial Assets and Financial Liabilities Fair Value Hierarchy ASC 820, “Fair Value Measurements and Disclosures,” establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: ● Level 1, defined as observable inputs such as quoted prices in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and ● Level 3, defined as unobservable inputs where little or no market data exists, therefore requiring an entity to develop its own assumptions. Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. The use of different techniques to determine fair value of these financial instruments could result in different estimates of fair value at the reporting date. The following tables provide information for the assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2020 and December 31, 2019: Fair Value Measurements at June 30, 2020 Using Balance at June 30, 2020 Level 1 Level 2 Level 3 (in millions) Mutual funds (1) $ 24.7 $ 24.7 $ — $ — Corporate bonds (1) 542.9 — 542.9 — Marketable securities (2) 247.7 34.7 213.0 — Derivative instruments (3) 0.3 — 0.3 — Total assets measured at fair value $ 815.6 $ 59.4 $ 756.2 $ — Derivative instruments (3) $ 0.9 $ — $ 0.9 $ — Total liabilities measured at fair value $ 0.9 $ — $ 0.9 $ — Fair Value Measurements at December 31, 2019 Using Balance at December 31, 2019 Level 1 Level 2 Level 3 (in millions) Mutual funds (1) $ 25.1 $ 25.1 $ — $ — Corporate bonds (1) 536.4 — 536.4 — Marketable securities (2) 259.8 26.2 233.6 — Derivative instruments (3) 0.2 — 0.2 — Total assets measured at fair value $ 821.5 $ 51.3 $ 770.2 $ — Derivative instruments (3) $ 0.3 $ — $ 0.3 $ — Total liabilities measured at fair value $ 0.3 $ — $ 0.3 $ — (1) Amounts are included in redemption settlement assets in the unaudited condensed consolidated balance sheets. (2) Amounts are included in other current assets and other non-current assets in the unaudited condensed consolidated balance sheets. (3) Amounts are included in other current assets and other current liabilities in the unaudited condensed consolidated balance sheets. Financial Instruments Disclosed but Not Carried at Fair Value The following tables provide assets and liabilities disclosed but not carried at fair value as of June 30, 2020 and December 31, 2019: Fair Value Measurements at June 30, 2020 Total Level 1 Level 2 Level 3 (in millions) Financial assets: Credit card and loan receivables, net $ 14,651.7 $ — $ — $ 14,651.7 Credit card receivables held for sale 86.5 — — 86.5 Total $ 14,738.2 $ — $ — $ 14,738.2 Financial liabilities: Deposits $ 11,510.6 $ — $ 11,510.6 $ — Non-recourse borrowings of consolidated securitization entities 5,085.2 — 5,085.2 — Long-term and other debt 3,143.3 — 3,143.3 — Total $ 19,739.1 $ — $ 19,739.1 $ — Fair Value Measurements at December 31, 2019 Total Level 1 Level 2 Level 3 (in millions) Financial assets: Credit card and loan receivables, net $ 19,126.0 $ — $ — $ 19,126.0 Credit card receivables held for sale 436.2 — — 436.2 Total $ 19,562.2 $ — $ — $ 19,562.2 Financial liabilities: Deposits $ 12,303.6 $ — $ 12,303.6 $ — Non-recourse borrowings of consolidated securitization entities 7,333.6 — 7,333.6 — Long-term and other debt 2,878.8 — 2,878.8 — Total $ 22,516.0 $ — $ 22,516.0 $ — Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are recognized or disclosed at fair value on a nonrecurring basis, including property and equipment, right of use assets, deferred contract assets, goodwill, and intangible assets. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, including when there is evidence of impairment. For both the three and six months ended June 30, 2020, the Company recorded asset impairment charges of $34.2 million related to deferred contract costs and certain right of use assets. The fair value was determined utilizing discounted cash flow models over the estimated life of each asset. The principal assumptions used in the Company’s impairment analysis were forecasted future cash flows and the discount rate, which are considered Level 3 inputs. See Note 2, “Revenue,” and Note 10, “Leases,” for more information regarding asset impairments. For the three and six months ended June 30, 2019, as part of restructuring and other charges, the Company recorded asset impairments of $11.1 million and $15.6 million, respectively. See Note 12, “Restructuring and Other Charges,” for more information.

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2020
INCOME TAXES
INCOME TAXES	19. INCOME TAXES For the three months ended June 30, 2020 and 2019, the Company utilized an effective tax rate of 18.3% and 26.6%, respectively, to calculate its provision for income taxes. For the six months ended June 30, 2020 and 2019, the Company utilized an effective tax rate of 5.5% and 21.2%, respectively, to calculate its provision for income taxes. The decrease in the effective tax rate for the three months ended June 30, 2020 as compared to the three months ended June 30, 2019 resulted primarily from a discrete tax benefit recorded in the current quarter from a reduction in tax reserves following the expiration of a statute of limitations. The decrease in the effective tax rate for the six months ended June 30, 2020 as compared to the six months ended June 30, 2019 resulted primarily from discrete tax benefits from a reduction of tax reserves related to the aforementioned statute of limitations expiration as well as a favorable settlement with a state tax authority in the first quarter of 2020.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
SEGMENT INFORMATION	Jun. 30, 2020
SEGMENT INFORMATION
SEGMENT INFORMATION	20. SEGMENT INFORMATION Operating segments are defined by ASC 280, “Segment Reporting,” as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The operating segments are reviewed separately because each operating segment represents a strategic business unit that generally offers different products and services. The Company operates in the LoyaltyOne and Card Services reportable segments, which consist of the following: ● LoyaltyOne provides coalition and short-term loyalty programs through the Company’s Canadian AIR MILES Reward Program and BrandLoyalty; and ● Card Services provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company’s private label and co-brand credit card programs. Corporate and other immaterial businesses are reported collectively as an “all other” category labeled “Corporate/Other.” Income taxes are not allocated to the segments in the computation of segment operating profit for internal evaluation purposes and have also been included in “Corporate/Other.” Corporate/ Three Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Revenues $ 151.1 $ 828.2 $ — $ 979.3 Income (loss) before income taxes $ 24.0 $ 70.3 $ (47.3) $ 47.0 Interest expense, net (0.2) 101.6 26.3 127.7 Operating income (loss) 23.8 171.9 (21.0) 174.7 Depreciation and amortization 18.4 22.1 0.8 41.3 Stock compensation expense 1.5 1.8 2.9 6.2 Gain on sale of business, net of strategic transaction costs — — — — Strategic transaction costs 0.1 — 2.5 2.6 Asset impairments — 34.2 — 34.2 Restructuring and other charges 0.1 (1.3) — (1.2) Adjusted EBITDA (1) 43.9 228.7 (14.8) 257.8 Less: Securitization funding costs — 42.7 — 42.7 Less: Interest expense on deposits — 58.9 — 58.9 Adjusted EBITDA, net (1) $ 43.9 $ 127.1 $ (14.8) $ 156.2 Corporate/ Three Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Revenues $ 251.5 $ 1,096.9 $ 0.1 $ 1,348.5 Income (loss) before income taxes $ 27.5 $ 262.8 $ (96.5) $ 193.8 Interest expense, net 0.8 104.8 37.9 143.5 Operating income (loss) 28.3 367.6 (58.6) 337.3 Depreciation and amortization 19.6 20.8 1.4 41.8 Stock compensation expense 2.9 3.6 3.7 10.2 Strategic transaction costs 0.2 — 2.5 2.7 Restructuring and other charges — — 22.4 22.4 Adjusted EBITDA (1) 51.0 392.0 (28.6) 414.4 Less: Securitization funding costs — 51.6 — 51.6 Less: Interest expense on deposits — 53.2 — 53.2 Adjusted EBITDA, net (1) $ 51.0 $ 287.2 $ (28.6) $ 309.6 Corporate/ Six Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Revenues $ 349.2 $ 2,011.9 $ — $ 2,361.1 Income (loss) before income taxes $ 70.6 $ 102.4 $ (100.6) $ 72.4 Interest expense, net (0.3) 211.8 54.7 266.2 Operating income (loss) 70.3 314.2 (45.9) 338.6 Depreciation and amortization 36.6 41.8 1.7 80.1 Stock compensation expense 2.5 3.6 4.9 11.0 Gain on sale of business, net of strategic transaction costs (8.0) — — (8.0) Strategic transaction costs 0.2 — 3.1 3.3 Asset impairments — 34.2 — 34.2 Restructuring and other charges 0.1 (7.8) — (7.7) Adjusted EBITDA (1) 101.7 386.0 (36.2) 451.5 Less: Securitization funding costs — 92.6 — 92.6 Less: Interest expense on deposits — 119.2 — 119.2 Adjusted EBITDA, net (1) $ 101.7 $ 174.2 $ (36.2) $ 239.7 Corporate/ Six Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Revenues $ 455.3 $ 2,227.3 $ 0.1 $ 2,682.7 Income (loss) before income taxes $ 50.5 $ 529.7 $ (173.4) $ 406.8 Interest expense, net 1.9 210.8 74.7 287.4 Operating income (loss) 52.4 740.5 (98.7) 694.2 Depreciation and amortization 39.8 45.0 3.4 88.2 Stock compensation expense 5.8 7.4 8.4 21.6 Strategic transaction costs 0.2 — 2.5 2.7 Restructuring and other charges 7.9 — 22.4 30.3 Adjusted EBITDA (1) 106.1 792.9 (62.0) 837.0 Less: Securitization funding costs — 108.8 — 108.8 Less: Interest expense on deposits — 102.0 — 102.0 Adjusted EBITDA, net (1) $ 106.1 $ 582.1 $ (62.0) $ 626.2 (1) Adjusted EBITDA is a non-GAAP financial measure equal to income from continuing operations, the most directly comparable financial measure based on GAAP plus stock compensation expense, provision for income taxes, interest expense, net, depreciation and other amortization and amortization of purchased intangibles. Adjusted EBITDA also excludes the gain on the sale of Precima, strategic transaction costs, which represent costs for professional services associated with strategic initiatives, asset impairments and restructuring and other charges. Adjusted EBITDA, net is also a non-GAAP financial measure equal to adjusted EBITDA less securitization funding costs and interest expense on deposits. Adjusted EBITDA and adjusted EBITDA, net are presented in accordance with ASC 280 as they are the primary performance metrics utilized to assess performance of the segments.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	6 Months Ended
SUPPLEMENTAL CASH FLOW INFORMATION	Jun. 30, 2020
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION	21. SUPPLEMENTAL CASH FLOW INFORMATION The unaudited condensed consolidated statements of cash flows are presented with the combined cash flows from discontinued operations with cash flows from continuing operations within each cash flow statement category. The following table provides a reconciliation of cash and cash equivalents to the total of the amounts reported in the unaudited condensed consolidated statements of cash flows: June 30, June 30, 2020 2019 (in millions) Cash and cash equivalents $ 4,960.0 $ 4,069.0 Restricted cash included within other current assets (1) 441.2 39.8 Restricted cash included within redemption settlement assets, restricted (2) 49.9 45.9 Total cash, cash equivalents and restricted cash $ 5,451.1 $ 4,154.7 (1) Includes cash restricted for principal and interest repayments of non-recourse borrowings of consolidated securitized debt and other restricted cash within other current assets. At June 30, 2020, restricted cash included $415.1 million in principal accumulation for the repayment of non-recourse borrowings of consolidated securitized debt that matures in August 2020. (2) See Note 9, “Redemption Settlement Assets,” for additional information regarding the nature of restrictions on redemption settlement assets.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by Alliance Data Systems Corporation (“ADSC” or, including its consolidated subsidiaries and variable interest entities (“VIEs”), the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 28, 2020. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Effective March 31, 2019, the Company’s divested Epsilon segment met the criteria set forth in Accounting Standards Codification (“ASC”) 205-20, “Presentation of Financial Statements — Discontinued Operations,” and was subsequently sold on July 1, 2019. The Company’s products and services are reported under two segments—LoyaltyOne ®
Recently Issued and Adopted Accounting Standards	Recently Issued Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminates certain exceptions within ASC 740, “Income Taxes,” and clarifies certain aspects of ASC 740 to promote consistency among reporting entities. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. This ASU is elective and is effective upon issuance for all entities. The Company is evaluating the impact that adoption of ASU 2020-04 will have on its consolidated financial statements. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” or ASC 326. This standard, referred to as Current Expected Credit Loss (“CECL”), required entities to utilize a financial instrument impairment model to establish an allowance based on expected losses over the life of the exposure rather than a model based on an incurred loss approach. Estimates of expected credit losses under the CECL model are based on relevant information about past events, current conditions, and reasonable and supportable forward-looking forecasts regarding the collectability of the loan portfolio. The Company adopted CECL on January 1, 2020 and recorded an increase in its allowance for loan loss at adoption of $644.0 million, which was recorded through a cumulative-effect adjustment to retained earnings, net of taxes. CECL also expanded the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating its allowance for loan loss. See Note 6, “Credit Card and Loan Receivables,” for the Company’s CECL disclosures. In addition, CECL modified the impairment model for available-for-sale debt securities and provided for a simplified accounting model for purchased financial assets with credit deterioration since their origination. CECL impacts the Company’s valuation of its accounts receivable and available-for-sale debt securities, with respect to which the Company’s adoption did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements from Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement.” ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company’s adoption of this standard on January 1, 2020 did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018-15 requires customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40, “Intangibles—Goodwill and Other—Internal-Use Software,” to determine which implementation costs may be capitalized. ASU 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The amendments in ASU 2018-15 can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted ASU 2018-15 on January 1, 2020 on a prospective basis and the adoption did not have a material impact on its consolidated financial statements.

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
REVENUE (Tables)	Jun. 30, 2020
REVENUE
Schedule of disaggregation of revenue by major source and geographic region	Corporate/ Three Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Major Source: Coalition loyalty program $ 61.6 $ — $ — $ 61.6 Short-term loyalty programs 84.8 — — 84.8 Servicing fees, net — (28.5) — (28.5) Other 1.6 — — 1.6 Revenue from contracts with customers $ 148.0 $ (28.5) $ — $ 119.5 Finance charges, net — 856.7 — 856.7 Investment income 3.1 — — 3.1 Total $ 151.1 $ 828.2 $ — $ 979.3 Corporate/ Three Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Major Source: Coalition loyalty program $ 71.4 $ — $ — $ 71.4 Short-term loyalty programs 153.1 — — 153.1 Servicing fees, net — (31.5) — (31.5) Other 23.9 — 0.1 24.0 Revenue from contracts with customers $ 248.4 $ (31.5) $ 0.1 $ 217.0 Finance charges, net — 1,128.4 — 1,128.4 Investment income 3.1 — — 3.1 Total $ 251.5 $ 1,096.9 $ 0.1 $ 1,348.5 Corporate/ Six Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Major Source: Coalition loyalty program $ 132.9 $ — $ — $ 132.9 Short-term loyalty programs 205.1 — — 205.1 Servicing fees, net — (59.1) — (59.1) Other 4.9 — — 4.9 Revenue from contracts with customers $ 342.9 $ (59.1) $ — $ 283.8 Finance charges, net — 2,071.0 — 2,071.0 Investment income 6.3 — — 6.3 Total $ 349.2 $ 2,011.9 $ — $ 2,361.1 Corporate/ Six Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Major Source: Coalition loyalty program $ 142.8 $ — $ — $ 142.8 Short-term loyalty programs 262.7 — — 262.7 Servicing fees, net — (50.2) — (50.2) Other 43.7 — 0.1 43.8 Revenue from contracts with customers $ 449.2 $ (50.2) $ 0.1 $ 399.1 Finance charges, net — 2,277.5 — 2,277.5 Investment income 6.1 — — 6.1 Total $ 455.3 $ 2,227.3 $ 0.1 $ 2,682.7 Corporate/ Three Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Geographic Region: United States $ 4.2 $ 828.2 $ — $ 832.4 Canada 64.7 — — 64.7 Europe, Middle East and Africa 50.7 — — 50.7 Asia Pacific 13.4 — — 13.4 Other 18.1 — — 18.1 Total $ 151.1 $ 828.2 $ — $ 979.3 Corporate/ Three Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Geographic Region: United States $ 9.5 $ 1,096.9 $ 0.1 $ 1,106.5 Canada 85.4 — — 85.4 Europe, Middle East and Africa 117.6 — — 117.6 Asia Pacific 24.2 — — 24.2 Other 14.8 — — 14.8 Total $ 251.5 $ 1,096.9 $ 0.1 $ 1,348.5 Corporate/ Six Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Geographic Region: United States $ 6.3 $ 2,011.9 $ — $ 2,018.2 Canada 143.8 — — 143.8 Europe, Middle East and Africa 119.3 — — 119.3 Asia Pacific 50.4 — — 50.4 Other 29.4 — — 29.4 Total $ 349.2 $ 2,011.9 $ — $ 2,361.1 Corporate/ Six Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Disaggregation of Revenue by Geographic Region: United States $ 15.9 $ 2,227.3 $ 0.1 $ 2,243.3 Canada 174.4 — — 174.4 Europe, Middle East and Africa 199.0 — — 199.0 Asia Pacific 41.7 — — 41.7 Other 24.3 — — 24.3 Total $ 455.3 $ 2,227.3 $ 0.1 $ 2,682.7
Schedule of reconciliation of contract liabilities for the AIR MILES Reward Program	Deferred Revenue Service Redemption Total (in millions) Balance at January 1, 2020 $ 258.6 $ 663.4 $ 922.0 Cash proceeds 80.1 135.1 215.2 Revenue recognized (1) (94.5) (108.5) (203.0) Other — 0.4 0.4 Effects of foreign currency translation (11.4) (28.9) (40.3) Balance at June 30, 2020 $ 232.8 $ 661.5 $ 894.3 Amounts recognized in the consolidated balance sheets: Deferred revenue (current) $ 131.8 $ 661.5 $ 793.3 Deferred revenue (non-current) $ 101.0 $ — $ 101.0 (1) Reported on a gross basis herein.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
EARNINGS PER SHARE (Tables)	Jun. 30, 2020
EARNINGS PER SHARE
Schedule of computation of basic and diluted net income per share	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions, except per share amounts) Basic income per share: Numerator: Income from continuing operations $ 38.4 $ 142.4 $ 68.4 $ 320.7 Less: Dividends declared on preferred stock — 0.9 — 0.9 Less: Allocation of undistributed earnings — 2.4 — 2.7 Income from continuing operations - basic 38.4 139.1 68.4 317.1 Loss from discontinued operations, net of tax — (3.4) — (32.6) Net income - basic $ 38.4 $ 135.7 $ 68.4 $ 284.5 Denominator: Weighted average shares, basic 47.6 51.3 47.6 52.1 Basic income (loss) attributable to common stockholders per share: Income from continuing operations $ 0.81 $ 2.72 $ 1.44 $ 6.08 Loss from discontinued operations $ — $ (0.07) $ — $ (0.62) Net income per share $ 0.81 $ 2.65 $ 1.44 $ 5.46 Diluted income per share (1) : Numerator: Income from continuing operations $ 38.4 $ 142.4 $ 68.4 $ 320.7 Loss from discontinued operations, net of tax — (3.4) — (32.6) Net income $ 38.4 $ 139.0 $ 68.4 $ 288.1 Denominator: Weighted average shares, basic 47.6 51.3 47.6 52.1 Weighted average effect of dilutive securities: Shares from assumed conversion of preferred stock — 1.1 — 0.6 Net effect of dilutive stock options and unvested restricted stock (2) 0.1 0.2 0.1 0.2 Denominator for diluted calculation 47.7 52.6 47.7 52.9 Diluted income (loss) attributable to common stockholders per share: Income from continuing operations $ 0.81 $ 2.71 $ 1.43 $ 6.07 Loss from discontinued operations $ — $ (0.07) $ — $ (0.62) Net income per share $ 0.81 $ 2.64 $ 1.43 $ 5.45 (1) Computed using the if-converted method, as the result was more dilutive. (2) For both the three and six months ended June 30, 2020 , 0.3 million restricted stock units were excluded from each calculation of weighted average dilutive common shares as the effect would have been anti-dilutive. For the three and six months ended June 30, 2019, 0.2 million and 0.3 million of restricted stock units, respectively, were excluded from the calculation of weighted average dilutive common shares as the effect would have been anti-dilutive.

DISPOSITION (Tables)

DISPOSITION (Tables)	6 Months Ended
DISPOSITION (Tables)	Jun. 30, 2020
DISPOSITION
Schedule of information related to disposition of business	January 10, 2020 (in millions) Total consideration (1) $ 43.8 Net carrying value of assets and liabilities (including other comprehensive income) 26.8 Allocation of goodwill 3.2 Strategic transaction costs 5.8 Pre-tax gain on sale of business, net of strategic transaction costs $ 8.0 (1) Consideration as defined included cash associated with the sold Precima entities, which was $10.8 million.

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	6 Months Ended
DISCONTINUED OPERATIONS (Tables)	Jun. 30, 2020
DISCONTINUED OPERATIONS
Schedule of financial statement information for discontinued operations	Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in millions) (in millions) Revenue $ 491.8 $ 999.6 Cost of operations (exclusive of depreciation and amortization disclosed separately below) 465.5 908.9 Depreciation and other amortization 0.7 29.7 Amortization of purchased intangibles — 43.5 Interest expense (1) 32.0 64.1 Loss before benefit from income taxes (6.4) (46.6) Benefit from income taxes (1) (3.0) (14.0) Loss from discontinued operations, net of taxes (2) $ (3.4) $ (32.6) (1) On April 30, 2019, the Company amended its credit agreement, which among other items, provided that upon consummation of the sale of Epsilon, a mandatory payment of $500.0 million of the revolving credit facility was required and all of the Company’s outstanding senior notes was required to be redeemed. As such, for the three and six months ended June 30, 2019, interest expense has been allocated to discontinued operations on the basis of the Company’s $500.0 million mandatory repayment of its revolving line of credit and $1.9 billion in senior notes outstanding. (2) Reflects the results of operations of the Company’s former Epsilon segment, direct costs identifiable to the Epsilon segment and the allocation of interest expense on corporate debt. Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in millions) (in millions) Depreciation and amortization $ 0.7 $ 73.2 Capital expenditures $ 49.0 $ 55.8

CREDIT CARD AND LOAN RECEIVAB_2

CREDIT CARD AND LOAN RECEIVABLES (Tables)	6 Months Ended
CREDIT CARD AND LOAN RECEIVABLES (Tables)	Jun. 30, 2020
CREDIT CARD AND LOAN RECEIVABLES
Schedule of components of total credit card and loan receivables	June 30, December 31, 2020 2019 (in millions) Principal receivables $ 14,975.4 $ 18,413.1 Billed and accrued finance charges 759.8 977.3 Other 73.8 72.7 Total credit card and loan receivables 15,809.0 19,463.1 Less: Credit card receivables – restricted for securitization investors 10,714.7 13,504.2 Other credit card and loan receivables $ 5,094.3 $ 5,958.9
Schedule of Company's group similar risk characteristics and estimated life	Estimated Life (in months) Group A (Current, risk score - high) 14 Group B (Current, risk score - low) 19 Group C (Delinquent, risk score - high) 17 Group D (Delinquent, risk score - low) 26
Schedule of Company's allowance for loan loss	Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Balance at beginning of period $ 2,150.8 $ 1,021.1 $ 1,171.1 $ 1,038.3 Adoption of ASC 326 (1) — — 644.0 — Provision for loan loss 250.1 257.3 906.0 509.5 Change in estimate for uncollectible unpaid interest and fees — (10.0) — (10.0) Recoveries 56.9 56.7 124.8 116.5 Principal charge-offs (361.5) (314.2) (749.6) (643.4) Balance at end of period $ 2,096.3 $ 1,010.9 $ 2,096.3 $ 1,010.9 (1) Recorded January 1, 2020 through a cumulative-effect adjustment to retained earnings, net of taxes.
Schedule of aging analysis of total credit card and loan receivables at amortized cost basis	Aging Analysis of Delinquent Amortized Cost 31 to 60 days 61 to 90 days 91 or more days delinquent Total Current Total (in millions) As of June 30, 2020 $ 228.7 $ 148.8 $ 471.4 $ 848.9 $ 14,637.7 $ 15,486.6 As of December 31, 2019 $ 399.1 $ 293.9 $ 698.4 $ 1,391.4 $ 17,656.4 $ 19,047.8
Schedule of information on credit card and loan receivables that are considered troubled debt restructurings, which entered into a modification program	Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Pre-modification Post-modification Pre-modification Post-modification Number of Outstanding Outstanding Number of Outstanding Outstanding Restructurings Balance Balance Restructurings Balance Balance (Dollars in millions) Troubled debt restructurings – credit card receivables 95,454 $ 156.1 $ 155.8 170,519 $ 268.9 $ 268.5 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Pre-modification Post-modification Pre-modification Post-modification Number of Outstanding Outstanding Number of Outstanding Outstanding Restructurings Balance Balance Restructurings Balance Balance (Dollars in millions) Troubled debt restructurings – credit card receivables 58,210 $ 86.7 $ 86.6 128,504 $ 191.0 $ 190.7 The table below summarizes troubled debt restructurings that have defaulted in the specified periods where the default occurred within 12 months of their modification date: Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Number of Outstanding Number of Outstanding Restructurings Balance Restructurings Balance (Dollars in millions) Troubled debt restructurings that subsequently defaulted – credit card receivables 21,606 $ 31.2 53,276 $ 75.3 Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Number of Outstanding Number of Outstanding Restructurings Balance Restructurings Balance (Dollars in millions) Troubled debt restructurings that subsequently defaulted – credit card receivables 29,439 $ 39.9 79,895 $ 105.3
Schedule of composition of obligor credit quality	Amortized Cost Revolving Credit Card and Loan Receivables June 30, 2020 December 31, 2019 Percentage of Percentage of Amortized Amortized Probability of an Account Becoming 91 or More Days Past Amortized Cost Basis Amortized Cost Basis Due or Becoming Charged-off (within the next 12 months) Cost Basis Outstanding Cost Basis Outstanding (in millions, except percentages) No Score $ 168.0 1.1 % $ 298.4 1.6 % 27.1% and higher 1,444.8 9.3 1,648.8 8.7 17.1% - 27.0% 961.2 6.2 1,108.5 5.8 12.6% - 17.0% 950.9 6.1 1,171.7 6.2 3.7% - 12.5% 6,582.1 42.5 8,292.1 43.5 1.9% - 3.6% 2,698.6 17.4 3,375.3 17.7 Lower than 1.9% 2,681.0 17.4 3,153.0 16.5 Total $ 15,486.6 100.0 % $ 19,047.8 100.0 %
Schedule of securitized credit card receivables, delinquencies and net charge-offs	June 30, December 31, 2020 2019 (in millions) Total credit card receivables – restricted for securitization investors $ 10,714.7 $ 13,504.2 Principal amount of credit card receivables – restricted for securitization investors, 91 days or more past due $ 213.0 $ 321.8 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Net charge-offs of securitized principal $ 215.1 $ 224.6 $ 454.6 $ 464.1

OTHER INVESTMENTS (Tables)

OTHER INVESTMENTS (Tables)	6 Months Ended
OTHER INVESTMENTS (Tables)	Jun. 30, 2020
OTHER INVESTMENTS
Schedule of principal components of other investments, which are carried at fair value	June 30, 2020 December 31, 2019 Amortized Unrealized Unrealized Amortized Unrealized Unrealized Cost Gains Losses Fair Value Cost Gains Losses Fair Value (in millions) Marketable securities $ 240.5 $ 7.2 $ — $ 247.7 $ 257.2 $ 3.0 $ (0.4) $ 259.8 Total $ 240.5 $ 7.2 $ — $ 247.7 $ 257.2 $ 3.0 $ (0.4) $ 259.8
Schedule of unrealized losses and fair value for investments that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position	December 31, 2019 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (in millions) Marketable securities $ 18.8 $ (0.2) $ 13.1 $ (0.2) $ 31.9 $ (0.4) Total $ 18.8 $ (0.2) $ 13.1 $ (0.2) $ 31.9 $ (0.4)
Schedule of securities by contractual maturity date	Amortized Estimated Cost Fair Value (in millions) Due in one year or less $ 41.0 $ 41.0 Due after one year through five years 1.4 1.4 Due after five years through ten years — — Due after ten years 198.1 205.3 Total $ 240.5 $ 247.7

REDEMPTION SETTLEMENT ASSETS (T

REDEMPTION SETTLEMENT ASSETS (Tables)	6 Months Ended
REDEMPTION SETTLEMENT ASSETS (Tables)	Jun. 30, 2020
REDEMPTION SETTLEMENT ASSETS
Schedule of redemption settlement assets	June 30, 2020 December 31, 2019 Amortized Unrealized Unrealized Amortized Unrealized Unrealized Cost Gains Losses Fair Value Cost Gains Losses Fair Value (in millions) Restricted cash $ 49.9 $ — $ — $ 49.9 $ 39.3 $ — $ — $ 39.3 Mutual funds 24.7 — — 24.7 25.1 — — 25.1 Corporate bonds 531.0 12.1 (0.2) 542.9 536.0 2.4 (2.0) 536.4 Total $ 605.6 $ 12.1 $ (0.2) $ 617.5 $ 600.4 $ 2.4 $ (2.0) $ 600.8
Schedule of unrealized losses and fair value for investments that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position	June 30, 2020 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (in millions) Corporate bonds $ 25.0 $ (0.2) $ 3.7 $ — $ 28.7 $ (0.2) Total $ 25.0 $ (0.2) $ 3.7 $ — $ 28.7 $ (0.2) December 31, 2019 Less than 12 months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (in millions) Corporate bonds $ 166.6 $ (1.3) $ 155.1 $ (0.7) $ 321.7 $ (2.0) Total $ 166.6 $ (1.3) $ 155.1 $ (0.7) $ 321.7 $ (2.0)
Schedule of redemption settlement assets by contractual maturity date	Amortized Estimated Cost Fair Value (in millions) Due in one year or less $ 107.0 $ 107.4 Due after one year through five years 420.0 431.0 Due after five year through ten years 28.7 29.2 Total $ 555.7 $ 567.6

LEASES (Tables)

LEASES (Tables)	6 Months Ended
LEASES (Tables)	Jun. 30, 2020
LEASES
Schedule of lease cost	Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Operating lease cost $ 9.9 $ 10.4 $ 20.2 $ 20.7 Short-term lease cost 0.2 0.6 0.5 1.2 Variable lease cost 2.9 1.7 3.1 3.6 Total $ 13.0 $ 12.7 $ 23.8 $ 25.5 Other information related to leases was as follows: June 30, June 30, 2020 2019 Weighted-average remaining lease term (in years): Operating leases 11.2 11.6 Weighted-average discount rate: Operating leases 5.2% 5.2% Supplemental cash flow information related to leases was as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11.3 $ 10.3 $ 25.7 $ 25.6 Right of use assets obtained in exchange for lease obligations: Operating leases $ 0.2 $ 1.2 $ 2.8 $ 9.8
Schedule of maturities of lease liabilities	Operating Year Leases (in millions) 2020 (excluding the six months ended June 30, 2020) $ 16.3 2021 39.6 2022 38.6 2023 37.0 2024 34.9 Thereafter 237.0 Total undiscounted lease liabilities 403.4 Less: Amount representing interest (103.9) Total present value of minimum lease payments $ 299.5 Amounts recognized in the June 30, 2020 consolidated balance sheet: Current operating lease liabilities $ 21.2 Long-term operating lease liabilities 278.3 Total $ 299.5

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	6 Months Ended
INTANGIBLE ASSETS AND GOODWILL (Tables)	Jun. 30, 2020
INTANGIBLE ASSETS AND GOODWILL
Schedule of intangible assets	June 30, 2020 Gross Accumulated Assets Amortization Net Amortization Life and Method (in millions) Finite Lived Assets Customer contracts and lists $ 325.7 $ (302.5) $ 23.2 7 years—straight line Premium on purchased credit card portfolios 176.4 (96.7) 79.7 1-13 years—straight line Collector database 51.5 (50.8) 0.7 5 years—straight line Tradenames 31.9 (27.1) 4.8 8-15 years—straight line $ 585.5 $ (477.1) $ 108.4 Indefinite Lived Assets Tradename 1.2 — 1.2 Indefinite life Total intangible assets $ 586.7 $ (477.1) $ 109.6 December 31, 2019 Gross Accumulated Assets Amortization Net Amortization Life and Method (in millions) Finite Lived Assets Customer contracts and lists $ 325.1 $ (278.7) $ 46.4 7 years—straight line Premium on purchased credit card portfolios 192.6 (93.2) 99.4 1-13 years—straight line Collector database 53.9 (52.9) 1.0 5 years—straight line Tradenames 31.8 (26.5) 5.3 8-15 years—straight line $ 603.4 $ (451.3) $ 152.1 Indefinite Lived Assets Tradename 1.2 — 1.2 Indefinite life Total intangible assets $ 604.6 $ (451.3) $ 153.3
Schedule of estimated amortization expense related to intangible assets	For the Years Ending December 31, (in millions) 2020 (excluding the six months ended June 30, 2020) $ 39.3 2021 22.2 2022 17.5 2023 12.8 2024 10.7 Thereafter 5.9
Schedule of changes in carrying amount of goodwill	LoyaltyOne Card Services Total (in millions) Balance at January 1, 2020 $ 690.9 $ 264.0 $ 954.9 Goodwill related to sale of Precima (3.2) — (3.2) Effects of foreign currency translation (7.4) — (7.4) Balance at June 30, 2020 $ 680.3 $ 264.0 $ 944.3

RESTRUCTURING AND OTHER CHARG_2

RESTRUCTURING AND OTHER CHARGES (Tables)	6 Months Ended
RESTRUCTURING AND OTHER CHARGES (Tables)	Jun. 30, 2020
RESTRUCTURING AND OTHER CHARGES
Schedule of restructuring and other charges incurred by reportable segment	Termination Asset Lease Other Three Months Ended June 30, 2020 Benefits Impairments Termination Costs Exit Costs Total (in millions) Corporate/Other $ — $ — $ — $ — $ — LoyaltyOne 0.1 — — — 0.1 Card Services (1.3) — — — (1.3) Total $ (1.2) $ — $ — $ — $ (1.2) Termination Asset Lease Other Three Months Ended June 30, 2019 Benefits Impairments Termination Costs Exit Costs Total (in millions) Corporate/Other $ 11.3 $ 11.1 $ — $ — $ 22.4 LoyaltyOne — — — — — Card Services — — — — — Total $ 11.3 $ 11.1 $ — $ — $ 22.4 Termination Asset Lease Other Six Months Ended June 30, 2020 Benefits Impairments Termination Costs Exit Costs Total (in millions) Corporate/Other $ — $ — $ — $ — $ — LoyaltyOne 0.1 — — — 0.1 Card Services (7.8) — — — (7.8) Total $ (7.7) $ — $ — $ — $ (7.7) Termination Asset Lease Other Six Months Ended June 30, 2019 Benefits Impairments Termination Costs Exit Costs Total (in millions) Corporate/Other $ 11.3 $ 11.1 $ — $ — $ 22.4 LoyaltyOne 1.3 4.5 — 2.1 7.9 Card Services — — — — — Total $ 12.6 $ 15.6 $ — $ 2.1 $ 30.3
Schedule of liability and activities related to restructuring and other charges	Termination Asset Lease Other Three Months Ended June 30, 2020 Benefits Impairments Termination Costs Exit Costs Total (in millions) Liability as of March 31, 2020 $ 15.0 $ — $ — $ — $ 15.0 Adjustments for non-cash charges (1.2) — — — (1.2) Cash payments (4.5) — — — (4.5) Liability as of June 30, 2020 $ 9.3 $ — $ — $ — $ 9.3 Termination Asset Lease Other Six Months Ended June 30, 2020 Benefits Impairments Termination Costs Exit Costs Total (in millions) Liability as of January 1, 2020 $ 34.7 $ — $ — $ 0.1 $ 34.8 Adjustments for non-cash charges (7.7) — — — (7.7) Cash payments (17.7) — — (0.1) (17.8) Liability as of June 30, 2020 $ 9.3 $ — $ — $ — $ 9.3

DEBT (Tables)

DEBT (Tables)	6 Months Ended
DEBT (Tables)	Jun. 30, 2020
DEBT
Schedule of debt	June 30, December 31, Description 2020 2019 Maturity Interest Rate (Dollars in millions) Long-term and other debt: 2017 revolving line of credit $ 400.0 $ — December 2022 (1) 2017 term loans 1,978.1 2,028.8 December 2022 (2) BrandLoyalty credit agreement — — April 2023 (3) Senior notes due 2024 850.0 850.0 December 2024 4.750% Total long-term and other debt 3,228.1 2,878.8 Less: Unamortized debt issuance costs 25.0 28.9 Less: Current portion 101.3 101.4 Long-term portion $ 3,101.8 $ 2,748.5 Deposits: Certificates of deposit $ 7,239.9 $ 8,585.2 Various – Jul 2020 to Jun 2025 1.00% to 4.00% Money market deposits 3,998.7 3,589.8 Non-maturity (4) Total deposits 11,238.6 12,175.0 Less: Unamortized debt issuance costs 17.1 23.3 Less: Current portion 7,107.3 6,942.4 Long-term portion $ 4,114.2 $ 5,209.3 Non-recourse borrowings of consolidated securitization entities: Fixed rate asset-backed term note securities $ 4,491.0 $ 4,891.0 Various – Aug 2020 to Sep 2022 2.03% to 3.95% Conduit asset-backed securities 525.0 2,405.0 Various – Apr 2021 to Jul 2021 (5) Total non-recourse borrowings of consolidated securitization entities 5,016.0 7,296.0 Less: Unamortized debt issuance costs 8.4 12.0 Less: Current portion 2,613.0 3,030.8 Long-term portion $ 2,394.6 $ 4,253.2 (1) The interest rate is based upon LIBOR plus an applicable margin. At June 30, 2020, the weighted average interest rate for the revolving line of credit was 1.93% . (2) The interest rate is based upon LIBOR plus an applicable margin. The weighted average interest rate for the term loans was 1.93% and 3.30% at June 30, 2020 and December 31, 2019, respectively. (3) The interest rate is based upon the Euro Interbank Offered Rate plus an applicable margin. (4) The interest rates are based on the Federal Funds rate plus an applicable margin. At June 30, 2020, the interest rates ranged from 0.34% to 3.50% . At December 31, 2019, the interest rates ranged from 1.84% to 3.50% . (5) The interest rate is based upon LIBOR or the asset-backed commercial paper costs of each individual conduit provider plus an applicable margin. At June 30, 2020, the interest rates ranged from 1.35% to 2.36% . At December 31, 2019, the interest rates ranged from 2.79% to 2.96% .

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
DERIVATIVE INSTRUMENTS (Tables)	Jun. 30, 2020
DERIVATIVE INSTRUMENTS
Schedule of fair value of derivative instruments	June 30, 2020 Notional Amount Fair Value Balance Sheet Location Maturity (in millions) Designated as hedging instruments: Foreign currency exchange hedges $ 9.5 $ 0.3 Other current assets July 2020 to January 2021 Foreign currency exchange hedges $ 37.4 $ 0.9 Other current liabilities July 2020 to February 2021 December 31, 2019 Notional Amount Fair Value Balance Sheet Location Maturity (in millions) Designated as hedging instruments: Foreign currency exchange hedges $ 5.5 $ 0.2 Other current assets January 2020 to February 2020 Foreign currency exchange hedges $ 7.8 $ 0.3 Other current liabilities February 2020 to July 2020

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
STOCKHOLDERS' EQUITY (Tables)	Jun. 30, 2020
STOCKHOLDERS' EQUITY
Schedule of stock-based compensation expense	Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Cost of operations $ 3.3 $ 6.5 $ 6.1 $ 13.2 General and administrative 2.9 3.7 4.9 8.4 Total $ 6.2 $ 10.2 $ 11.0 $ 21.6

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	6 Months Ended
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	Jun. 30, 2020
ACCUMULATED OTHER COMPREHENSIVE LOSS.
Schedule of changes in each component of accumulated comprehensive income (loss), net of tax effects	Net Net Unrealized Net Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Three Months Ended June 30, 2020 on Securities Flow Hedges Investment Hedge Adjustments (1) Loss (in millions) Balance at March 31, 2020 $ 4.1 $ 0.2 $ (7.5) $ (114.9) $ (118.1) Changes in other comprehensive income (loss) 13.4 (0.8) — 18.0 30.6 Balance at June 30, 2020 $ 17.5 $ (0.6) $ (7.5) $ (96.9) $ (87.5) Net Net Unrealized Net Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Three Months Ended June 30, 2019 on Securities Flow Hedges Investment Hedge Adjustments (1) Loss (in millions) Balance at March 31, 2019 $ (1.7) $ (0.3) $ (0.2) $ (125.7) $ (127.9) Changes in other comprehensive income (loss) 5.4 (0.1) (7.3) 8.2 6.2 Balance at June 30, 2019 $ 3.7 $ (0.4) $ (7.5) $ (117.5) $ (121.7) Net Net Unrealized Net Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Six Months Ended June 30, 2020 on Securities Flow Hedges Investment Hedge Adjustments (1) Loss (in millions) Balance at December 31, 2019 $ 2.5 $ (0.1) $ (7.5) $ (94.8) $ (99.9) Changes in other comprehensive income (loss) 15.0 (0.5) — (5.9) 8.6 Recognition resulting from the sale of Precima's foreign subsidiaries — — — 3.8 3.8 Balance at June 30, 2020 $ 17.5 $ (0.6) $ (7.5) $ (96.9) $ (87.5) Net Net Unrealized Net Unrealized Foreign Accumulated Unrealized Gains (Losses) Gains (Losses) Currency Other Gains (Losses) on Cash on Net Translation Comprehensive Six Months Ended June 30, 2019 on Securities Flow Hedges Investment Hedge Adjustments (1) Loss (in millions) Balance at December 31, 2018 $ (10.7) $ (0.2) $ (12.4) $ (114.8) $ (138.1) Changes in other comprehensive income (loss) 14.4 (0.2) 4.9 (2.7) 16.4 Balance at June 30, 2019 $ 3.7 $ (0.4) $ (7.5) $ (117.5) $ (121.7) (1) Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Jun. 30, 2020
FAIR VALUE MEASUREMENTS
Schedule of estimated fair value of Company's financial instruments	June 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value (in millions) Financial assets Credit card and loan receivables, net $ 13,712.7 $ 14,651.7 $ 18,292.0 $ 19,126.0 Credit card receivables held for sale 83.1 86.5 408.0 436.2 Redemption settlement assets, restricted 617.5 617.5 600.8 600.8 Other investments 247.7 247.7 259.8 259.8 Derivative instruments 0.3 0.3 0.2 0.2 Financial liabilities Derivative instruments 0.9 0.9 0.3 0.3 Deposits 11,221.5 11,510.6 12,151.7 12,303.6 Non-recourse borrowings of consolidated securitization entities 5,007.6 5,085.2 7,284.0 7,333.6 Long-term and other debt 3,203.1 3,143.3 2,849.9 2,878.8
Schedule of assets and liabilities carried at fair value measured on recurring basis	Fair Value Measurements at June 30, 2020 Using Balance at June 30, 2020 Level 1 Level 2 Level 3 (in millions) Mutual funds (1) $ 24.7 $ 24.7 $ — $ — Corporate bonds (1) 542.9 — 542.9 — Marketable securities (2) 247.7 34.7 213.0 — Derivative instruments (3) 0.3 — 0.3 — Total assets measured at fair value $ 815.6 $ 59.4 $ 756.2 $ — Derivative instruments (3) $ 0.9 $ — $ 0.9 $ — Total liabilities measured at fair value $ 0.9 $ — $ 0.9 $ — Fair Value Measurements at December 31, 2019 Using Balance at December 31, 2019 Level 1 Level 2 Level 3 (in millions) Mutual funds (1) $ 25.1 $ 25.1 $ — $ — Corporate bonds (1) 536.4 — 536.4 — Marketable securities (2) 259.8 26.2 233.6 — Derivative instruments (3) 0.2 — 0.2 — Total assets measured at fair value $ 821.5 $ 51.3 $ 770.2 $ — Derivative instruments (3) $ 0.3 $ — $ 0.3 $ — Total liabilities measured at fair value $ 0.3 $ — $ 0.3 $ — (1) Amounts are included in redemption settlement assets in the unaudited condensed consolidated balance sheets. (2) Amounts are included in other current assets and other non-current assets in the unaudited condensed consolidated balance sheets. (3) Amounts are included in other current assets and other current liabilities in the unaudited condensed consolidated balance sheets.
Schedule of assets and liabilities disclosed but not carried at fair value	Fair Value Measurements at June 30, 2020 Total Level 1 Level 2 Level 3 (in millions) Financial assets: Credit card and loan receivables, net $ 14,651.7 $ — $ — $ 14,651.7 Credit card receivables held for sale 86.5 — — 86.5 Total $ 14,738.2 $ — $ — $ 14,738.2 Financial liabilities: Deposits $ 11,510.6 $ — $ 11,510.6 $ — Non-recourse borrowings of consolidated securitization entities 5,085.2 — 5,085.2 — Long-term and other debt 3,143.3 — 3,143.3 — Total $ 19,739.1 $ — $ 19,739.1 $ — Fair Value Measurements at December 31, 2019 Total Level 1 Level 2 Level 3 (in millions) Financial assets: Credit card and loan receivables, net $ 19,126.0 $ — $ — $ 19,126.0 Credit card receivables held for sale 436.2 — — 436.2 Total $ 19,562.2 $ — $ — $ 19,562.2 Financial liabilities: Deposits $ 12,303.6 $ — $ 12,303.6 $ — Non-recourse borrowings of consolidated securitization entities 7,333.6 — 7,333.6 — Long-term and other debt 2,878.8 — 2,878.8 — Total $ 22,516.0 $ — $ 22,516.0 $ —

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
SEGMENT INFORMATION (Tables)	Jun. 30, 2020
SEGMENT INFORMATION
Schedule of segment information	Corporate/ Three Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Revenues $ 151.1 $ 828.2 $ — $ 979.3 Income (loss) before income taxes $ 24.0 $ 70.3 $ (47.3) $ 47.0 Interest expense, net (0.2) 101.6 26.3 127.7 Operating income (loss) 23.8 171.9 (21.0) 174.7 Depreciation and amortization 18.4 22.1 0.8 41.3 Stock compensation expense 1.5 1.8 2.9 6.2 Gain on sale of business, net of strategic transaction costs — — — — Strategic transaction costs 0.1 — 2.5 2.6 Asset impairments — 34.2 — 34.2 Restructuring and other charges 0.1 (1.3) — (1.2) Adjusted EBITDA (1) 43.9 228.7 (14.8) 257.8 Less: Securitization funding costs — 42.7 — 42.7 Less: Interest expense on deposits — 58.9 — 58.9 Adjusted EBITDA, net (1) $ 43.9 $ 127.1 $ (14.8) $ 156.2 Corporate/ Three Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Revenues $ 251.5 $ 1,096.9 $ 0.1 $ 1,348.5 Income (loss) before income taxes $ 27.5 $ 262.8 $ (96.5) $ 193.8 Interest expense, net 0.8 104.8 37.9 143.5 Operating income (loss) 28.3 367.6 (58.6) 337.3 Depreciation and amortization 19.6 20.8 1.4 41.8 Stock compensation expense 2.9 3.6 3.7 10.2 Strategic transaction costs 0.2 — 2.5 2.7 Restructuring and other charges — — 22.4 22.4 Adjusted EBITDA (1) 51.0 392.0 (28.6) 414.4 Less: Securitization funding costs — 51.6 — 51.6 Less: Interest expense on deposits — 53.2 — 53.2 Adjusted EBITDA, net (1) $ 51.0 $ 287.2 $ (28.6) $ 309.6 Corporate/ Six Months Ended June 30, 2020 LoyaltyOne Card Services Other Total (in millions) Revenues $ 349.2 $ 2,011.9 $ — $ 2,361.1 Income (loss) before income taxes $ 70.6 $ 102.4 $ (100.6) $ 72.4 Interest expense, net (0.3) 211.8 54.7 266.2 Operating income (loss) 70.3 314.2 (45.9) 338.6 Depreciation and amortization 36.6 41.8 1.7 80.1 Stock compensation expense 2.5 3.6 4.9 11.0 Gain on sale of business, net of strategic transaction costs (8.0) — — (8.0) Strategic transaction costs 0.2 — 3.1 3.3 Asset impairments — 34.2 — 34.2 Restructuring and other charges 0.1 (7.8) — (7.7) Adjusted EBITDA (1) 101.7 386.0 (36.2) 451.5 Less: Securitization funding costs — 92.6 — 92.6 Less: Interest expense on deposits — 119.2 — 119.2 Adjusted EBITDA, net (1) $ 101.7 $ 174.2 $ (36.2) $ 239.7 Corporate/ Six Months Ended June 30, 2019 LoyaltyOne Card Services Other Total (in millions) Revenues $ 455.3 $ 2,227.3 $ 0.1 $ 2,682.7 Income (loss) before income taxes $ 50.5 $ 529.7 $ (173.4) $ 406.8 Interest expense, net 1.9 210.8 74.7 287.4 Operating income (loss) 52.4 740.5 (98.7) 694.2 Depreciation and amortization 39.8 45.0 3.4 88.2 Stock compensation expense 5.8 7.4 8.4 21.6 Strategic transaction costs 0.2 — 2.5 2.7 Restructuring and other charges 7.9 — 22.4 30.3 Adjusted EBITDA (1) 106.1 792.9 (62.0) 837.0 Less: Securitization funding costs — 108.8 — 108.8 Less: Interest expense on deposits — 102.0 — 102.0 Adjusted EBITDA, net (1) $ 106.1 $ 582.1 $ (62.0) $ 626.2 (1) Adjusted EBITDA is a non-GAAP financial measure equal to income from continuing operations, the most directly comparable financial measure based on GAAP plus stock compensation expense, provision for income taxes, interest expense, net, depreciation and other amortization and amortization of purchased intangibles. Adjusted EBITDA also excludes the gain on the sale of Precima, strategic transaction costs, which represent costs for professional services associated with strategic initiatives, asset impairments and restructuring and other charges. Adjusted EBITDA, net is also a non-GAAP financial measure equal to adjusted EBITDA less securitization funding costs and interest expense on deposits. Adjusted EBITDA and adjusted EBITDA, net are presented in accordance with ASC 280 as they are the primary performance metrics utilized to assess performance of the segments.

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	6 Months Ended
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	Jun. 30, 2020
SUPPLEMENTAL CASH FLOW INFORMATION
Schedule of reconciliation of cash and cash equivalents	June 30, June 30, 2020 2019 (in millions) Cash and cash equivalents $ 4,960.0 $ 4,069.0 Restricted cash included within other current assets (1) 441.2 39.8 Restricted cash included within redemption settlement assets, restricted (2) 49.9 45.9 Total cash, cash equivalents and restricted cash $ 5,451.1 $ 4,154.7 (1) Includes cash restricted for principal and interest repayments of non-recourse borrowings of consolidated securitized debt and other restricted cash within other current assets. At June 30, 2020, restricted cash included $415.1 million in principal accumulation for the repayment of non-recourse borrowings of consolidated securitized debt that matures in August 2020. (2) See Note 9, “Redemption Settlement Assets,” for additional information regarding the nature of restrictions on redemption settlement assets.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - 6 months ended Jun. 30, 2020	segment	item
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of Reportable Segments	2	2

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan loss	$ 2,096.3	$ 2,150.8	$ 1,171.1	$ 1,010.9	$ 1,021.1	$ 1,038.3
Cumulative effect adjustment to retained earnings in accordance with ASU 2016-13	4,707.1		5,163.3
ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan loss			644
ASU 2016-13 \| Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan loss			$ 644
Period of Adoption Adjustment \| Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustment to retained earnings in accordance with ASU 2016-13	$ (485)

REVENUE (Details)

REVENUE (Details) $ in Millions	3 Months Ended		6 Months Ended
REVENUE (Details) $ in Millions	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2020segment	Jun. 30, 2020item	Jun. 30, 2019USD ($)
Disaggregation of revenue
Number of segments				2	2
Revenue from contracts with customers	$ 119.5	$ 217	$ 283.8			$ 399.1
Finance charges, net	856.7	1,128.4	2,071			2,277.5
Investment income	3.1	3.1	6.3			6.1
Total revenue	979.3	1,348.5	2,361.1			2,682.7
Coalition loyalty program
Disaggregation of revenue
Revenue from contracts with customers	61.6	71.4	132.9			142.8
Short-term loyalty programs
Disaggregation of revenue
Revenue from contracts with customers	84.8	153.1	205.1			262.7
Servicing fees, net
Disaggregation of revenue
Revenue from contracts with customers	(28.5)	(31.5)	(59.1)			(50.2)
Other
Disaggregation of revenue
Revenue from contracts with customers	1.6	24	4.9			43.8
United States
Disaggregation of revenue
Total revenue	832.4	1,106.5	2,018.2			2,243.3
Canada
Disaggregation of revenue
Total revenue	64.7	85.4	143.8			174.4
Europe, Middle East and Africa
Disaggregation of revenue
Total revenue	50.7	117.6	119.3			199
Asia Pacific
Disaggregation of revenue
Total revenue	13.4	24.2	50.4			41.7
Other
Disaggregation of revenue
Total revenue	18.1	14.8	29.4			24.3
Operating segment \| LoyaltyOne
Disaggregation of revenue
Revenue from contracts with customers	148	248.4	342.9			449.2
Investment income	3.1	3.1	6.3			6.1
Total revenue	151.1	251.5	349.2			455.3
Operating segment \| LoyaltyOne \| Coalition loyalty program
Disaggregation of revenue
Revenue from contracts with customers	61.6	71.4	132.9			142.8
Operating segment \| LoyaltyOne \| Short-term loyalty programs
Disaggregation of revenue
Revenue from contracts with customers	84.8	153.1	205.1			262.7
Operating segment \| LoyaltyOne \| Other
Disaggregation of revenue
Revenue from contracts with customers	1.6	23.9	4.9			43.7
Operating segment \| LoyaltyOne \| United States
Disaggregation of revenue
Total revenue	4.2	9.5	6.3			15.9
Operating segment \| LoyaltyOne \| Canada
Disaggregation of revenue
Total revenue	64.7	85.4	143.8			174.4
Operating segment \| LoyaltyOne \| Europe, Middle East and Africa
Disaggregation of revenue
Total revenue	50.7	117.6	119.3			199
Operating segment \| LoyaltyOne \| Asia Pacific
Disaggregation of revenue
Total revenue	13.4	24.2	50.4			41.7
Operating segment \| LoyaltyOne \| Other
Disaggregation of revenue
Total revenue	18.1	14.8	29.4			24.3
Operating segment \| Card Services
Disaggregation of revenue
Revenue from contracts with customers	(28.5)	(31.5)	(59.1)			(50.2)
Finance charges, net	856.7	1,128.4	2,071			2,277.5
Total revenue	828.2	1,096.9	2,011.9			2,227.3
Operating segment \| Card Services \| Servicing fees, net
Disaggregation of revenue
Revenue from contracts with customers	(28.5)	(31.5)	(59.1)			(50.2)
Operating segment \| Card Services \| United States
Disaggregation of revenue
Total revenue	$ 828.2	1,096.9	$ 2,011.9			2,227.3
Corporate/Other
Disaggregation of revenue
Revenue from contracts with customers		0.1				0.1
Total revenue		0.1				0.1
Corporate/Other \| Other
Disaggregation of revenue
Revenue from contracts with customers		0.1				0.1
Corporate/Other \| United States
Disaggregation of revenue
Total revenue		$ 0.1				$ 0.1

REVENUE - Contract Assets and L

REVENUE - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jan. 01, 2020	Dec. 31, 2019
Change in Contract with Customer, Liability
Deferred revenue	$ 894.3		$ 922
Cash proceeds	215.2
Revenue recognized	(203)
Other	0.4
Effects of foreign currency translation	(40.3)
Amounts recognized in the consolidated balance sheets:
Deferred revenue (current)	793.3		807.9
Deferred revenue (non-current)	$ 101		114.1
Period for which interest and fee income accrue until balance, interest and fees paid or charged off	180 days
LoyaltyOne \| Other current liabilities
Change in Contract with Customer, Liability
Deferred revenue	$ 73.9	$ 122.8
Revenue recognized	(151.9)
Service
Change in Contract with Customer, Liability
Deferred revenue	232.8		258.6
Cash proceeds	80.1
Revenue recognized	(94.5)
Effects of foreign currency translation	(11.4)
Amounts recognized in the consolidated balance sheets:
Deferred revenue (current)	131.8
Deferred revenue (non-current)	101
Redemption
Change in Contract with Customer, Liability
Deferred revenue	661.5		663.4
Cash proceeds	135.1
Revenue recognized	(108.5)
Other	0.4
Effects of foreign currency translation	(28.9)
Amounts recognized in the consolidated balance sheets:
Deferred revenue (current)	661.5
Card Services
Amounts recognized in the consolidated balance sheets:
Unamortized contract costs	349.9		$ 406.8
Impairment of contract costs	$ 31.1

REVENUE - Performance Obligatio

REVENUE - Performance Obligation (Details) - LoyaltyOne $ in Millions	Jun. 30, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
REVENUE
Revenue, remaining performance obligation	$ 78.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, expected timing of satisfaction of remaining performance	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
REVENUE
Revenue, remaining performance obligation	$ 94.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, expected timing of satisfaction of remaining performance	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
REVENUE
Revenue, remaining performance obligation	$ 50.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, expected timing of satisfaction of remaining performance	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
REVENUE
Revenue, remaining performance obligation	$ 9.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, expected timing of satisfaction of remaining performance	12 months

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 25, 2019	Oct. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Income from continuing operations			$ 38.4	$ 142.4	$ 68.4	$ 320.7
Less: Dividends declared on preferred stock				0.9		0.9
Less: Allocation of undistributed earnings				2.4		2.7
Income from continuing operations - basic			38.4	139.1	68.4	317.1
Loss from discontinued operations, net of tax				(3.4)		(32.6)
Net income			$ 38.4	$ 135.7	$ 68.4	$ 284.5
Weighted average shares, basic			47,600,000	51,300,000	47,600,000	52,100,000
Basic income per share:
Income from continuing operations (in dollars per share)			$ 0.81	$ 2.72	$ 1.44	$ 6.08
Loss from discontinued operations (in dollars per share)				(0.07)		(0.62)
Net income per share (in dollars per share)			$ 0.81	$ 2.65	$ 1.44	$ 5.46
Diluted income per share:
Income from continuing operations			$ 38.4	$ 142.4	$ 68.4	$ 320.7
Loss from discontinued operations, net of tax				(3.4)		(32.6)
Net income			$ 38.4	$ 139	$ 68.4	$ 288.1
Weighted average effect of dilutive securities:
Shares from assumed conversion of preferred stock (in shares)				1,100,000		600,000
Net effect of dilutive stock options and unvested restricted stock (in shares)			100,000	200,000	100,000	200,000
Denominator for diluted calculations (in shares)			47,700,000	52,600,000	47,700,000	52,900,000
Diluted income per share:
Income from continuing operations (in dollars per share)			$ 0.81	$ 2.71	$ 1.43	$ 6.07
Loss from discontinued operations (in dollars per share)				(0.07)		(0.62)
Net income per share (in dollars per share)			$ 0.81	$ 2.64	$ 1.43	$ 5.45
Restricted stock units
Weighted average effect of dilutive securities:
Anti-dilutive shares excluded from the calculation of net income per share (in shares)			300,000	200,000	300,000	300,000
Value Act Holdings, L.P. \| Series A Non-Voting Convertible Preferred Stock
Diluted income per share:
Conversion of stock, shares converted		150,000
Conversion of stock, shares issued	150,000
Value Act Holdings, L.P. \| Common Stock
Diluted income per share:
Conversion of stock, shares converted	1,500,000

DISPOSITION (Details)

DISPOSITION (Details) $ in Millions	Jan. 10, 2020USD ($)item	Jun. 30, 2020USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pre-tax gain on sale of business, net of strategic transaction costs		$ 8
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Precima
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total consideration	$ 43.8
Contingent consideration	$ 10
Number of earnout determination dates \| item	2
Fair value of contingent purchase price	$ 6.5	$ 6.5
Net carrying value of assets and liabilities (including other comprehensive income)	26.8
Allocation of goodwill	3.2
Strategic transaction costs	5.8
Pre-tax gain on sale of business, net of strategic transaction costs	8
Cash associated with Precima, included in total consideration	$ 10.8

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2019	Apr. 30, 2019
Disposal Group, Including Discontinued Operation, Additional Disclosures
Mandatory payment per credit agreement			$ 500
Senior Notes
Disposal Group, Including Discontinued Operation, Additional Disclosures
Long-term Debt			$ 1,900
Discontinued Operations, Held-for-sale
Disposal Group, Including Discontinued Operation, Income Statement Disclosures
Revenue	$ 491.8	$ 999.6
Cost of operations (exclusive of depreciation and amortization)	465.5	908.9
Depreciation and other amortization	0.7	29.7
Amortization of purchased intangibles		43.5
Interest expense	32	64.1
Income (loss) before benefit from income taxes	(6.4)	(46.6)
Benefit from income taxes	(3)	(14)
Loss from discontinued operations, net of taxes	(3.4)	(32.6)
Disposal Group, Including Discontinued Operation, Additional Disclosures
Depreciation and amortization	0.7	73.2
Capital expenditures	$ 49	$ 55.8

CREDIT CARD AND LOAN RECEIVAB_3

CREDIT CARD AND LOAN RECEIVABLES - Allowance for Loan Loss and Delinquencies (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)item	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)item	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Billed and accrued finance charges	$ 759.8		$ 759.8		$ 977.3
Total credit card and loan receivables	15,809		15,809		19,463.1
Less: Credit card receivables - restricted for securitization investors	10,714.7		10,714.7		13,504.2
Other credit card and loan receivables	5,094.3		5,094.3		5,958.9
Unbilled finance charges	$ 226.4		$ 226.4
Allowance for Loan Loss
Number of credit card and loan receivable groups \| item	4		4
Payments allocated to future purchase activity	$ 0		$ 0
Balance at beginning of period	2,150.8	$ 1,021.1	1,171.1	$ 1,038.3
Provision for loan loss	250.1	257.3	906	509.5
Change in estimate for uncollectible unpaid interest and fees		(10)		(10)
Recoveries	56.9	56.7	124.8	116.5
Principal charge-offs	(361.5)	(314.2)	(749.6)	(643.4)
Balance at end of period	2,096.3	1,010.9	$ 2,096.3	1,010.9
Number of days a loan is contractually past due before resulting in charge-off			180 days
Number of days after notification of creditor's bankruptcy or death when an account is charged-off			60 days
Actual charge-offs for unpaid interest and fees	197.7	193.8	$ 429.6	412.6
Period for which interest and fee income accrue until balance, interest and fees paid or charged off			180 days
Period an account becomes past due before a proprietary collection scoring algorithm automatically scores the risk of an account becoming further delinquent			30 days
Amortized cost of receivables balances contractually delinquent:
Total delinquent	848.9		$ 848.9		1,391.4
Modified Credit Card Receivables
Impaired credit card and loan receivables	$ 430.7		$ 430.7		$ 308.7
Maximum percentage of credit card receivables to total portfolio	3.00%		3.00%		3.00%
Average recorded investment in impaired credit card receivables	$ 387.5	290.5	$ 351.1	294.1
Interest income on modified credit card receivables	7.1	$ 6	$ 12.6	$ 11.7
Maximum
Allowance for Loan Loss
Number of days after notification of creditor's bankruptcy or death when an account is charged-off			180 days
ASU 2016-13
Allowance for Loan Loss
Balance at beginning of period			$ 644
Adjustment \| ASU 2016-13
Allowance for Loan Loss
Balance at beginning of period			$ 644
Group A (Current, risk score - high)
Allowance for Loan Loss
Estimated Life (in months)			14 months
Group B (Current, risk score - low)
Allowance for Loan Loss
Estimated Life (in months)			19 months
Group C (Delinquent, risk score - high)
Allowance for Loan Loss
Estimated Life (in months)			17 months
Group D (Delinquent, risk score - low)
Allowance for Loan Loss
Estimated Life (in months)			26 months
Credit Card and Loan Receivables
Principal receivables	$ 14,975.4		$ 14,975.4		$ 18,413.1
Modified Credit Card Receivables
Period for which late fee waivers and payment deferrals were made for credit card receivables	2 months
Late fee waivers and payment deferrals	$ 1,800		$ 1,800
Extension of certain promotional plans	89
Number of short term forbearance programs \| item			2
Short-term forbearance programs	58.6		$ 58.6
Deferred forbearance programs	$ 534.8		$ 534.8
Period for which certain promotional plans were extended for credit card receivables	3 months
Duration of short term program one			3 months
Duration of short term program two			6 months
Outstanding Balance	$ 28.6		$ 28.6
Maximum period of time temporary programs' concessions remain in place			12 months
Other
Principal receivables	$ 73.8		$ 73.8		$ 72.7

CREDIT CARD AND LOAN RECEIVAB_4

CREDIT CARD AND LOAN RECEIVABLES - Amortized Cost Basis Credit Card and Loan Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Total delinquent	$ 848.9	$ 1,391.4
Current	14,637.7	17,656.4
Amortized cost of credit card and loan receivables	15,486.6	19,047.8
31 to 60 days delinquent
Financing Receivable, Past Due [Line Items]
Total delinquent	228.7	399.1
61 to 90 days delinquent
Financing Receivable, Past Due [Line Items]
Total delinquent	148.8	293.9
91 or more days delinquent
Financing Receivable, Past Due [Line Items]
Total delinquent	$ 471.4	$ 698.4

CREDIT CARD AND LOAN RECEIVAB_5

CREDIT CARD AND LOAN RECEIVABLES - Troubled Debt Restructurings (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)item	Jun. 30, 2019USD ($)item	Jun. 30, 2020USD ($)item	Jun. 30, 2019USD ($)item
Credit Card Receivables
Modifications related to troubled debt restructurings within credit card and loan receivables
Number of Restructurings \| item	95,454	58,210	170,519	128,504
Pre-modification Outstanding Balance	$ 156.1	$ 86.7	$ 268.9	$ 191
Post-modification Outstanding Balance	$ 155.8	$ 86.6	$ 268.5	$ 190.7
Troubled debt restructurings that subsequently defaulted - credit card receivables
Modifications related to troubled debt restructurings within credit card and loan receivables
Number of Restructurings \| item	21,606	29,439	53,276	79,895
Post-modification Outstanding Balance	$ 31.2	$ 39.9	$ 75.3	$ 105.3

CREDIT CARD AND LOAN RECEIVAB_6

CREDIT CARD AND LOAN RECEIVABLES - Credit Quality on Amortized Cost Basis (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Amortized Cost Basis of Receivables Outstanding	$ 15,486.6	$ 19,047.8
Percentage of Amortized Cost Basis of Receivables Outstanding	100.00%	100.00%
No Score
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Amortized Cost Basis of Receivables Outstanding	$ 168	$ 298.4
Percentage of Amortized Cost Basis of Receivables Outstanding	1.10%	1.60%
27.1% and higher
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Amortized Cost Basis of Receivables Outstanding	$ 1,444.8	$ 1,648.8
Percentage of Amortized Cost Basis of Receivables Outstanding	9.30%	8.70%
17.1% - 27.0%
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Amortized Cost Basis of Receivables Outstanding	$ 961.2	$ 1,108.5
Percentage of Amortized Cost Basis of Receivables Outstanding	6.20%	5.80%
12.6% - 17.0%
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Amortized Cost Basis of Receivables Outstanding	$ 950.9	$ 1,171.7
Percentage of Amortized Cost Basis of Receivables Outstanding	6.10%	6.20%
3.7% - 12.5%
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Amortized Cost Basis of Receivables Outstanding	$ 6,582.1	$ 8,292.1
Percentage of Amortized Cost Basis of Receivables Outstanding	42.50%	43.50%
1.9% - 3.6%
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Amortized Cost Basis of Receivables Outstanding	$ 2,698.6	$ 3,375.3
Percentage of Amortized Cost Basis of Receivables Outstanding	17.40%	17.70%
Lower than 1.9%
Probability of an Account Becoming 91 or More Days Past Due or Becoming Charged-off (within the next 12 months)
Amortized Cost Basis of Receivables Outstanding	$ 2,681	$ 3,153
Percentage of Amortized Cost Basis of Receivables Outstanding	17.40%	16.50%

CREDIT CARD AND LOAN RECEIVAB_7

CREDIT CARD AND LOAN RECEIVABLES - Securitized Credit Card Receivables (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)Asset	Jun. 30, 2019USD ($)Asset	Dec. 31, 2019USD ($)
Portfolio Held For Sale
Carrying value of the credit card portfolios held for sale	$ 83.1		$ 83.1		$ 408
Number of loan portfolios transferred to held for sale \| Asset			1
Carrying value of the loan and credit card portfolios transferred to held for sale			$ 510.3
Valuation adjustment on credit card and loan portfolios held for sale	2.1	$ 40.1	$ 6.3	$ 100
Number of credit card portfolios sold \| Asset			1	4
Proceeds from sale of credit card portfolios			$ 289.5	$ 539.3
Gain (loss) on sales of credit card portfolio			$ 20.4	$ 1.8
Portfolio Acquisitions
Number of credit card portfolios acquired \| Asset			0	4
Purchase price of credit card portfolio				$ 936.5
Securitized Credit Card Receivables
Total credit card receivables - restricted for securitization investors	10,714.7		$ 10,714.7		13,504.2
Principal amount of credit card receivables - restricted for securitization investors, 91 days or more past due	213		213		$ 321.8
Net charge-offs of securitized principal	$ 215.1	$ 224.6	$ 454.6	$ 464.1

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
INVENTORIES, NET
Inventories, net	$ 194	$ 218

OTHER INVESTMENTS (Details)

OTHER INVESTMENTS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
OTHER INVESTMENTS (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Marketable securities
Amortized Cost	$ 240.5		$ 240.5		$ 257.2
Unrealized Gains	7.2		7.2		3
Unrealized Losses					(0.4)
Fair Value	247.7		247.7		259.8
Other Investments, Total
Amortized Cost	240.5		240.5		257.2
Unrealized Gains	7.2		7.2		3
Unrealized Losses	0		0		(0.4)
Fair Value	247.7		247.7		259.8
Fair Value, Marketable securities
Less than 12 months					18.8
12 Months or Greater					13.1
Total					31.9
Unrealized Losses, Marketable securities
Less than 12 months					(0.2)
12 Months or Greater					(0.2)
Total					(0.4)
Fair Value, Total
Less than 12 months					18.8
12 Months or Greater					13.1
Total					31.9
Unrealized Losses, Total
Less than 12 months					(0.2)
12 Months or Greater					(0.2)
Total					$ (0.4)
Amortized Cost
Due in one year or less	41		41
Due after one year through five years	1.4		1.4
Due after ten years	198.1		198.1
Total	240.5		240.5
Fair Value
Due in one year or less	41		41
Due after one year through five years	1.4		1.4
Due after ten years	205.3		205.3
Fair Value	247.7		247.7
Realized gains or losses
Realized gains or losses from the sale of investment securities	$ 0	$ 0	$ 0	$ 0

REDEMPTION SETTLEMENT ASSETS (D

REDEMPTION SETTLEMENT ASSETS (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	$ 605.6	$ 600.4
Unrealized Gains	12.1	2.4
Unrealized Losses	(0.2)	(2)
Fair Value	617.5	600.8
Fair Value
Less than 12 months	25	166.6
12 Months or Greater	3.7	155.1
Total	28.7	321.7
Unrealized Losses
Less than 12 months	(0.2)	(1.3)
12 Months or Greater		(0.7)
Total	(0.2)	(2)
Amortized cost of the redemption settlement assets by contractual maturity
Due in one year or less	107
Due after one year through five years	420
Due after five year through ten years	28.7
Total	555.7
Estimated fair value of the redemption settlement assets by contractual maturity
Due in one year or less	107.4
Due after one year through five years	431
Due after five year through ten years	29.2
Total	567.6
Realized gains or losses from the sale of investment securities	0
Restricted cash
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	49.9	39.3
Fair Value	49.9	39.3
Mutual funds
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	24.7	25.1
Fair Value	24.7	25.1
Corporate bonds
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	531	536
Unrealized Gains	12.1	2.4
Unrealized Losses	(0.2)	(2)
Fair Value	542.9	536.4
Fair Value
Less than 12 months	25	166.6
12 Months or Greater	3.7	155.1
Total	28.7	321.7
Unrealized Losses
Less than 12 months	(0.2)	(1.3)
12 Months or Greater		(0.7)
Total	$ (0.2)	$ (2)

LEASES (Details)

LEASES (Details)	6 Months Ended
LEASES (Details)	Jun. 30, 2020
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	18 years

LEASES - Lease expense (Details

LEASES - Lease expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
LEASES - Lease expense (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Lease expense
Operating lease cost	$ 9.9	$ 10.4	$ 20.2	$ 20.7
Short-term lease cost	0.2	0.6	0.5	1.2
Variable lease cost	2.9	1.7	3.1	3.6
Total	$ 13	$ 12.7	$ 23.8	$ 25.5
Remaining lease term - operating leases	11 years 2 months 12 days	11 years 7 months 6 days	11 years 2 months 12 days	11 years 7 months 6 days
Discount rate - operating leases	5.20%	5.20%	5.20%	5.20%
Supplemental cash flow information related to leases was as follows:
Operating cash flows from operating leases	$ 11.3	$ 10.3	$ 25.7	$ 25.6
Operating leases - Right-of-use assets obtained in exchange for lease obligations	$ 0.2	$ 1.2	$ 2.8	$ 9.8

LEASES - Maturities of lease li

LEASES - Maturities of lease liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Lease liabilities
2020 (excluding the six months ended June 30, 2020)	$ 16.3
2021	39.6
2022	38.6
2023	37
2024	34.9
Thereafter	237
Total undiscounted lease liabilities	403.4
Less: Amount representing interest	(103.9)
Total present value of minimum lease payments	299.5
Amounts recognized in the June 30, 2020 consolidated balance sheet:
Current operating lease liabilities	21.2	$ 22.6
Long-term operating lease liabilities	278.3	$ 291.7
Total present value of minimum lease payments	299.5
Asset impairment charge	$ 3.1

INTANGIBLE ASSETS AND GOODWIL_2

INTANGIBLE ASSETS AND GOODWILL - Finite Lived Assets and Indefinite Lived Assets (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 585.5	$ 603.4
Accumulated Amortization	(477.1)	(451.3)
Finite lived assets, net	108.4	152.1
Total Intangible Assets
Gross Assets	586.7	604.6
Accumulated Amortization	(477.1)	(451.3)
Net	109.6	153.3
Tradenames
Indefinite Lived Assets
Indefinite lived assets	1.2	1.2
Customer contracts and lists
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	325.7	325.1
Accumulated Amortization	(302.5)	(278.7)
Finite lived assets, net	$ 23.2	$ 46.4
Amortization Life and Method
Useful life	7 years	7 years
Total Intangible Assets
Accumulated Amortization	$ (302.5)	$ (278.7)
Premium on purchased credit card portfolios
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	176.4	192.6
Accumulated Amortization	(96.7)	(93.2)
Finite lived assets, net	79.7	99.4
Total Intangible Assets
Accumulated Amortization	$ (96.7)	$ (93.2)
Premium on purchased credit card portfolios \| Minimum
Amortization Life and Method
Useful life	1 year	1 year
Premium on purchased credit card portfolios \| Maximum
Amortization Life and Method
Useful life	13 years	13 years
Collector database
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 51.5	$ 53.9
Accumulated Amortization	(50.8)	(52.9)
Finite lived assets, net	$ 0.7	$ 1
Amortization Life and Method
Useful life	5 years	5 years
Total Intangible Assets
Accumulated Amortization	$ (50.8)	$ (52.9)
Tradenames
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	31.9	31.8
Accumulated Amortization	(27.1)	(26.5)
Finite lived assets, net	4.8	5.3
Total Intangible Assets
Accumulated Amortization	$ (27.1)	$ (26.5)
Tradenames \| Minimum
Amortization Life and Method
Useful life	8 years	8 years
Tradenames \| Maximum
Amortization Life and Method
Useful life	15 years	15 years

INTANGIBLE ASSETS AND GOODWIL_3

INTANGIBLE ASSETS AND GOODWILL - Maturity Schedule (Details) $ in Millions	Jun. 30, 2020USD ($)
Estimated amortization expense related to intangible assets for the next five years and thereafter
2020 (excluding the six months ended June 30, 2020)	$ 39.3
2021	22.2
2022	17.5
2023	12.8
2024	10.7
Thereafter	$ 5.9

INTANGIBLE ASSETS AND GOODWIL_4

INTANGIBLE ASSETS AND GOODWILL - Goodwill Information (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Jan. 31, 2020	Jun. 30, 2020
Goodwill
Beginning Balance	$ 954.9	$ 954.9
Goodwill related to sale of Precima		(3.2)
Effects of foreign currency translation		(7.4)
Ending Balance		944.3
Operating segment \| LoyaltyOne
Goodwill
Beginning Balance	690.9	690.9
Goodwill related to sale of Precima	(3.2)	(3.2)
Effects of foreign currency translation		(7.4)
Ending Balance		680.3
Operating segment \| Card Services
Goodwill
Beginning Balance	$ 264	264
Ending Balance		$ 264

RESTRUCTURING AND OTHER CHARG_3

RESTRUCTURING AND OTHER CHARGES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Restructuring costs and reserve
Restructuring charges		$ 22.4		$ 30.3
Restructuring, adjustment	$ (1.2)		$ (7.7)
Asset impairment charges	34.2	11.1	34.2	15.6
Termination Benefits
Restructuring costs and reserve
Restructuring charges		11.3		12.6
Restructuring, adjustment	(1.2)		(7.7)
Asset Impairments
Restructuring costs and reserve
Restructuring charges		11.1		15.6
Other Exit Costs
Restructuring costs and reserve
Restructuring charges				2.1
Corporate/Other
Restructuring costs and reserve
Restructuring charges		22.4		22.4
Corporate/Other \| Termination Benefits
Restructuring costs and reserve
Restructuring charges		11.3		11.3
Corporate/Other \| Asset Impairments
Restructuring costs and reserve
Restructuring charges		$ 11.1		11.1
LoyaltyOne
Restructuring costs and reserve
Restructuring charges				7.9
Restructuring, adjustment	0.1		0.1
LoyaltyOne \| Termination Benefits
Restructuring costs and reserve
Restructuring charges				1.3
Restructuring, adjustment	0.1		0.1
LoyaltyOne \| Asset Impairments
Restructuring costs and reserve
Restructuring charges				4.5
LoyaltyOne \| Other Exit Costs
Restructuring costs and reserve
Restructuring charges				$ 2.1
Card Services
Restructuring costs and reserve
Restructuring, adjustment	(1.3)		(7.8)
Card Services \| Termination Benefits
Restructuring costs and reserve
Restructuring, adjustment	$ (1.3)		$ (7.8)

RESTRUCTURING AND OTHER CHARG_4

RESTRUCTURING AND OTHER CHARGES - Liability (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Restructuring Reserve
Restructuring Reserve, Beginning Balance	$ 15	$ 34.8
Adjustments for non-cash charges	(1.2)	(7.7)
Cash payments	(4.5)	(17.8)
Restructuring Reserve, Ending Balance	9.3	9.3
LoyaltyOne
Restructuring Reserve
Adjustments for non-cash charges	0.1	0.1
Card Services
Restructuring Reserve
Adjustments for non-cash charges	(1.3)	(7.8)
Termination Benefits
Restructuring Reserve
Restructuring Reserve, Beginning Balance	15	34.7
Adjustments for non-cash charges	(1.2)	(7.7)
Cash payments	(4.5)	(17.7)
Restructuring Reserve, Ending Balance	9.3	9.3
Termination Benefits \| LoyaltyOne
Restructuring Reserve
Adjustments for non-cash charges	0.1	0.1
Termination Benefits \| Card Services
Restructuring Reserve
Adjustments for non-cash charges	$ (1.3)	(7.8)
Other Exit Costs
Restructuring Reserve
Restructuring Reserve, Beginning Balance		0.1
Cash payments		$ (0.1)

DEBT (Details)

DEBT (Details) € in Millions, $ in Millions	Apr. 03, 2020EUR (€)item	May 31, 2020USD ($)	Jun. 30, 2020USD ($)item	Apr. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Apr. 30, 2019USD ($)
Debt
Less: Current portion			$ 7,107.3			$ 6,942.4
Long-term portion			4,114.2			5,209.3
Less: Current portion			2,613			3,030.8
Long-term portion			$ 2,394.6			4,253.2
Mandatory payment per credit agreement							$ 500
Number of conduit facilities \| item			3
Series 2017-A asset backed term notes
Debt
Debt repaid by the company		$ 450.7
Retained amount of subordinated class of notes		$ 50.7
Principal payments collected during accumulation period			$ 415.1
Total deposits
Debt
Deposits			11,238.6			12,175
Less: Unamortized debt issuance costs			17.1			23.3
Less: Current portion			7,107.3			6,942.4
Long-term portion			4,114.2			5,209.3
Certificates of deposit
Debt
Deposits			7,239.9			8,585.2
Money market deposits
Debt
Money market deposits			3,998.7			3,589.8
Non-recourse borrowings of consolidated securitization entities
Debt
Less: Unamortized debt issuance costs			8.4			12
Total non-recourse borrowings of consolidated securitization entities			5,016			7,296
Less: Current portion			2,613			3,030.8
Long-term portion			2,394.6			4,253.2
Fixed rate asset-backed term note securities
Debt
Total non-recourse borrowings of consolidated securitization entities			4,491			4,891
Conduit asset-backed securities
Debt
Maximum borrowing capacity			4,200
Total non-recourse borrowings of consolidated securitization entities			525			2,405
Line of credit amount outstanding			525
Conduit facility under Master Trust I
Debt
Maximum borrowing capacity				$ 1,000	$ 1,180
Conduit facility under Master Trust III
Debt
Maximum borrowing capacity				$ 1,000	$ 1,300
Long-term and other debt
Debt
Total long-term and other debt			3,228.1			2,878.8
Less: Unamortized discount and debt issuance costs			25			28.9
Less: Current portion			101.3			101.4
Long-term and other debt			3,101.8			2,748.5
Senior Notes
Maturities of long-term and other debt
Long-Term and Other Debt							$ 1,900
Senior Notes Due 2024
Debt
Total long-term and other debt			$ 850			$ 850
Interest Rate (as a percent)			4.75%			4.75%
2017 Credit Agreement
Debt
Total availability under Credit Facility			$ 350
2017 revolving line of credit
Debt
Maximum borrowing capacity			750
Total long-term and other debt			$ 400
Weighted average interest rate (as a percent)			1.93%
2017 Term Loans
Debt
Principal amount of debt			$ 2,028.8
Total long-term and other debt			$ 1,978.1			$ 2,028.8
Weighted average interest rate (as a percent)			1.93%			3.30%
BrandLoyalty credit agreement
Debt
Total long-term and other debt			$ 0
Number of requests for one-year extensions \| item	2
Term of individual extensions	1 year
BrandLoyalty revolving line of credit
Debt
Maximum borrowing capacity	€ 30		33.7
BrandLoyalty uncommitted line of credit
Debt
Maximum borrowing capacity	30		33.7
BrandLoyalty uncommitted line of credit \| Credit Facility, Accordion Feature
Debt
Maximum borrowing capacity	€ 80		$ 89.9
Minimum \| Certificates of deposit
Debt
Interest Rate (as a percent)			1.00%
Minimum \| Money market deposits
Debt
Interest Rate (as a percent)			0.34%			1.84%
Minimum \| Fixed rate asset-backed term note securities
Debt
Interest Rate (as a percent)			2.03%
Minimum \| Conduit asset-backed securities
Debt
Interest Rate (as a percent)			1.35%			2.79%
Maximum \| Certificates of deposit
Debt
Interest Rate (as a percent)			4.00%
Maximum \| Money market deposits
Debt
Interest Rate (as a percent)			3.50%			3.50%
Maximum \| Fixed rate asset-backed term note securities
Debt
Interest Rate (as a percent)			3.95%
Maximum \| Conduit asset-backed securities
Debt
Interest Rate (as a percent)			2.36%			2.96%

DERIVATIVE INSTRUMENTS - Design

DERIVATIVE INSTRUMENTS - Designated and Not Designated Instruments (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Notional amount, fair value and classification of the company's outstanding derivative contracts
Maximum length of time, foreign currency cash flow hedge	12 months
Maximum length of time hedged in cash flow hedge	8 months
Designated as hedging instrument \| Foreign currency exchange hedges \| Other current assets
Notional amount, fair value and classification of the company's outstanding derivative contracts
Notional Amount	$ 9.5	$ 5.5
Fair Value	0.3	0.2
Designated as hedging instrument \| Foreign currency exchange hedges \| Other current liabilities
Notional amount, fair value and classification of the company's outstanding derivative contracts
Notional Amount	37.4	7.8
Fair Value	$ 0.9	$ 0.3

DERIVATIVE INSTRUMENTS - Activi

DERIVATIVE INSTRUMENTS - Activity and Location of Outstanding Derivatives (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Activity related to company's outstanding derivative contracts and location
Unrealized loss on cash flow hedges, net of tax	$ (0.8)	$ (0.1)	$ (0.5)	$ (0.2)
Gains on net investment hedge		(7.3)		4.9
Amount expected to be reclassified in the coming 12 months			0.6
Not designated as hedging instrument.
Activity related to company's outstanding derivative contracts and location
Gains (losses) on derivative instruments	0		0
Foreign currency exchange forward contracts \| Not designated as hedging instrument. \| General and administrative
Activity related to company's outstanding derivative contracts and location
Gains (losses) on derivative instruments		(1.2)		(2.4)
Foreign currency exchange hedges \| Designated as hedging instrument
Activity related to company's outstanding derivative contracts and location
Unrealized loss on cash flow hedges, net of tax	$ (0.8)	$ (0.1)	$ (0.5)	$ (0.2)

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Litigation and Regulatory Matters (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Epsilon \| Discontinued Operations, Disposed of by Sale \| Indemnification Agreement
Contingencies
Loss contingency	$ 32.9

STOCKHOLDERS' EQUITY - Stock Re

STOCKHOLDERS' EQUITY - Stock Repurchase Programs (Details) - 2019 Stock Repurchase Program - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jul. 31, 2019
Stock Repurchase Programs
Amount of company's outstanding common stock authorized to be repurchased			$ 1,100
Available balance under stock repurchase program		$ 347.8
Amount remaining of a stock repurchase plan that expired	$ 347.8

STOCKHOLDERS' EQUITY - Restrict

STOCKHOLDERS' EQUITY - Restricted Stock Unit Awards and Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 23, 2020	Jun. 18, 2020	Apr. 23, 2020	Mar. 19, 2020	Jan. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock Compensation Plans
Common Stock dividends and dividend equivalent rights declared (in dollars per share)			$ 0.21		$ 0.63	$ 0.21	$ 0.63	$ 0.63		$ 0.63
Dividends paid		$ 10		$ 30					$ 40.4	$ 67
Payments related to dividend equivalent rights									$ 0.4
Subsequent event
Stock Compensation Plans
Common Stock dividends and dividend equivalent rights declared (in dollars per share)	$ 0.21
Performance-based restricted stock unit awards
Stock Compensation Plans
Shares granted (in shares)									219,186
Weighted average grant-date fair value (in dollars per share)						100.50			$ 100.50
Percentage of stock units on which restrictions will lapse in February 2021									33.00%
Percentage of stock units on which restrictions will lapse in February 2022									33.00%
Percentage of stock units on which restrictions will lapse in February 2023									34.00%
Performance-based restricted stock unit awards \| Minimum
Stock Compensation Plans
Percentage of stock units to vest									0.00%
Performance-based restricted stock unit awards \| Maximum
Stock Compensation Plans
Percentage of stock units to vest									150.00%
Service-based restricted stock unit awards
Stock Compensation Plans
Shares granted (in shares)									149,078
Weighted average grant-date fair value (in dollars per share)						91.16			$ 91.16
Award vesting period									3 years
Market-based restricted stock unit awards
Stock Compensation Plans
Shares granted (in shares)									20,770
Weighted average grant-date fair value (in dollars per share)						$ 78.92			$ 78.92
Percentage of stock units on which restrictions will lapse in February 2022									100.00%
Award vesting period									2 years
Market-based restricted stock unit awards \| Minimum
Stock Compensation Plans
Percentage of stock units to vest									0.00%
Market-based restricted stock unit awards \| Maximum
Stock Compensation Plans
Percentage of stock units to vest									175.00%

STOCKHOLDERS' EQUITY Stock - Co

STOCKHOLDERS' EQUITY Stock - Compensation Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense	$ 6.2	$ 10.2	$ 11	$ 21.6
Cost of operations.
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense	3.3	6.5	6.1	13.2
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense	$ 2.9	3.7	$ 4.9	8.4
Discontinued Operations, Held-for-sale \| Epsilon
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense		$ 19.9		$ 29.7

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Accumulated Other Comprehensive Income
Balance	$ 1,087.7	$ 2,239.5	$ 1,588.3	$ 2,332.1
Changes in other comprehensive income (loss)	30.6	6.2	12.4	16.4
Recognition resulting from the sale of Precima's foreign subsidiaries			3.8
Balance	1,154.6	2,391.7	1,154.6	2,391.7
Net Unrealized Gains (Losses) on Securities
Accumulated Other Comprehensive Income
Balance	4.1	(1.7)	2.5	(10.7)
Changes in other comprehensive income (loss)			15
Changes in other comprehensive income (loss)	13.4	5.4		14.4
Balance	17.5	3.7	17.5	3.7
Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income
Balance	0.2	(0.3)	(0.1)	(0.2)
Changes in other comprehensive income (loss)			(0.5)
Changes in other comprehensive income (loss)	(0.8)	(0.1)		(0.2)
Balance	(0.6)	(0.4)	(0.6)	(0.4)
Unrealized Gains (Losses) on Net Investment Hedge.
Accumulated Other Comprehensive Income
Balance	(7.5)	(0.2)	(7.5)	(12.4)
Changes in other comprehensive income (loss)		(7.3)		4.9
Balance	(7.5)	(7.5)	(7.5)	(7.5)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income
Balance	(114.9)	(125.7)	(94.8)	(114.8)
Changes in other comprehensive income (loss)			(5.9)
Changes in other comprehensive income (loss)	18	8.2		(2.7)
Recognition resulting from the sale of Precima's foreign subsidiaries			3.8
Balance	(96.9)	(117.5)	(96.9)	(117.5)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income
Balance	(118.1)	(127.9)	(99.9)	(138.1)
Changes in other comprehensive income (loss)			8.6
Changes in other comprehensive income (loss)	30.6	6.2		16.4
Recognition resulting from the sale of Precima's foreign subsidiaries			3.8
Balance	(87.5)	(121.7)	(87.5)	(121.7)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income
Balance	(118.1)	(127.9)	(99.9)	(138.1)
Changes in other comprehensive income (loss)	30.6	6.2	12.4	16.4
Balance	$ (87.5)	$ (121.7)	$ (87.5)	$ (121.7)

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value of Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Financial assets
Credit card and loan receivables, net	$ 13,712.7	$ 18,292
Credit card receivables held for sale	83.1	408
Redemption settlement assets, restricted	617.5	600.8
Other investments	247.7	259.8
Financial liabilities
Deposits	11,510.6	12,303.6
Non-recourse borrowings of consolidated securitization entities	5,085.2	7,333.6
Long-term and other debt	3,143.3	2,878.8
Carrying Amount
Financial assets
Credit card and loan receivables, net	13,712.7	18,292
Credit card receivables held for sale	83.1	408
Redemption settlement assets, restricted	617.5	600.8
Other investments	247.7	259.8
Derivative instruments	0.3	0.2
Financial liabilities
Derivative instruments	0.9	0.3
Deposits	11,221.5	12,151.7
Non-recourse borrowings of consolidated securitization entities	5,007.6	7,284
Long-term and other debt	3,203.1	2,849.9
Fair Value.
Financial assets
Credit card and loan receivables, net	14,651.7	19,126
Credit card receivables held for sale	86.5	436.2
Redemption settlement assets, restricted	617.5	600.8
Other investments	247.7	259.8
Derivative instruments	0.3	0.2
Financial liabilities
Derivative instruments	0.9	0.3
Deposits	11,510.6	12,303.6
Non-recourse borrowings of consolidated securitization entities	5,085.2	7,333.6
Long-term and other debt	$ 3,143.3	$ 2,878.8

FAIR VALUE MEASUREMENTS - Fai_2

FAIR VALUE MEASUREMENTS - Fair Value Level Disclosure (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Assets disclosed at fair value
Marketable securities	$ 247.7	$ 259.8
Total assets measured at fair value	14,738.2	19,562.2
Liabilities disclosed at fair value
Total liabilities measured at fair value	19,739.1	22,516
Level 2
Liabilities disclosed at fair value
Total liabilities measured at fair value	19,739.1	22,516
Level 3
Assets disclosed at fair value
Total assets measured at fair value	14,738.2	19,562.2
Recurring
Assets disclosed at fair value
Mutual funds	24.7	25.1
Corporate bonds	542.9	536.4
Marketable securities	247.7	259.8
Derivative instruments	0.3	0.2
Total assets measured at fair value	815.6	821.5
Liabilities disclosed at fair value
Derivative instruments	0.9	0.3
Total liabilities measured at fair value	0.9	0.3
Recurring \| Level 1
Assets disclosed at fair value
Mutual funds	24.7	25.1
Marketable securities	34.7	26.2
Total assets measured at fair value	59.4	51.3
Recurring \| Level 2
Assets disclosed at fair value
Corporate bonds	542.9	536.4
Marketable securities	213	233.6
Derivative instruments	0.3	0.2
Total assets measured at fair value	756.2	770.2
Liabilities disclosed at fair value
Derivative instruments	0.9	0.3
Total liabilities measured at fair value	$ 0.9	$ 0.3

FAIR VALUE MEASUREMENTS - Asset

FAIR VALUE MEASUREMENTS - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Financial assets
Credit card and loan receivables, net	$ 14,651.7	$ 19,126
Credit card receivables held for sale	86.5	436.2
Total assets measured at fair value	14,738.2	19,562.2
Financial liabilities
Deposits	11,510.6	12,303.6
Non-recourse borrowings of consolidated securitization entities	5,085.2	7,333.6
Long-term and other debt	3,143.3	2,878.8
Total liabilities measured at fair value	19,739.1	22,516
Level 2
Financial liabilities
Deposits	11,510.6	12,303.6
Non-recourse borrowings of consolidated securitization entities	5,085.2	7,333.6
Long-term and other debt	3,143.3	2,878.8
Total liabilities measured at fair value	19,739.1	22,516
Level 3
Financial assets
Credit card and loan receivables, net	14,651.7	19,126
Credit card receivables held for sale	86.5	436.2
Total assets measured at fair value	$ 14,738.2	$ 19,562.2

FAIR VALUE MEASUREMENTS - Ass_2

FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
FAIR VALUE MEASUREMENTS
Asset Impairment Charges	$ 34.2	$ 11.1	$ 34.2	$ 15.6

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
INCOME TAXES (Details)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
INCOME TAXES
Effective tax rate utilized (as a percent)	18.30%	26.60%	5.50%	21.20%

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment information
Revenues	$ 979.3	$ 1,348.5	$ 2,361.1	$ 2,682.7
Income (loss) before income taxes	47	193.8	72.4	406.8
Interest expense, net	127.7	143.5	266.2	287.4
Operating income (loss)	174.7	337.3	338.6	694.2
Depreciation and amortization	41.3		80.1	161.5
Stock compensation expense	6.2		11	51.3
Gain on sale of business, net of strategic transaction costs			(8)
Strategic transaction costs	2.6		3.3
Asset impairments	34.2	11.1	34.2	15.6
Restructuring and other charges	(1.2)		(7.7)
Adjusted EBITDA	257.8		451.5
Less: Securitization funding costs	42.7	51.6	92.6	108.8
Less: Interest expense on deposits	58.9	53.2	119.2	102
Adjusted EBITDA, net	156.2		239.7
Continuing Operations
Segment information
Revenues		1,348.5		2,682.7
Income (loss) before income taxes		193.8		406.8
Interest expense, net		143.5		287.4
Operating income (loss)		337.3		694.2
Depreciation and amortization		41.8		88.2
Stock compensation expense		10.2		21.6
Strategic transaction costs		2.7		2.7
Restructuring and other charges		22.4		30.3
Adjusted EBITDA		414.4		837
Less: Securitization funding costs		51.6		108.8
Less: Interest expense on deposits		53.2		102
Adjusted EBITDA, net		309.6		626.2
Operating segment \| LoyaltyOne
Segment information
Revenues	151.1	251.5	349.2	455.3
Income (loss) before income taxes	24	27.5	70.6	50.5
Interest expense, net	(0.2)	0.8	(0.3)	1.9
Operating income (loss)	23.8	28.3	70.3	52.4
Depreciation and amortization	18.4		36.6
Stock compensation expense	1.5		2.5
Gain on sale of business, net of strategic transaction costs			(8)
Strategic transaction costs	0.1	0.2	0.2	0.2
Restructuring and other charges	0.1		0.1	7.9
Adjusted EBITDA	43.9	51	101.7	106.1
Adjusted EBITDA, net	43.9	51	101.7	106.1
Operating segment \| LoyaltyOne \| Continuing Operations
Segment information
Depreciation and amortization		19.6		39.8
Stock compensation expense		2.9		5.8
Operating segment \| Card Services
Segment information
Revenues	828.2	1,096.9	2,011.9	2,227.3
Income (loss) before income taxes	70.3	262.8	102.4	529.7
Interest expense, net	101.6	104.8	211.8	210.8
Operating income (loss)	171.9	367.6	314.2	740.5
Depreciation and amortization	22.1		41.8
Stock compensation expense	1.8		3.6
Asset impairments	34.2		34.2
Restructuring and other charges	(1.3)		(7.8)
Adjusted EBITDA	228.7	392	386	792.9
Less: Securitization funding costs	42.7	51.6	92.6	108.8
Less: Interest expense on deposits	58.9	53.2	119.2	102
Adjusted EBITDA, net	127.1	287.2	174.2	582.1
Operating segment \| Card Services \| Continuing Operations
Segment information
Depreciation and amortization		20.8		45
Stock compensation expense		3.6		7.4
Corporate/Other
Segment information
Revenues		0.1		0.1
Income (loss) before income taxes	(47.3)	(96.5)	(100.6)	(173.4)
Interest expense, net	26.3	37.9	54.7	74.7
Operating income (loss)	(21)	(58.6)	(45.9)	(98.7)
Depreciation and amortization	0.8		1.7
Stock compensation expense	2.9		4.9
Strategic transaction costs	2.5	2.5	3.1	2.5
Restructuring and other charges		22.4		22.4
Adjusted EBITDA	(14.8)	(28.6)	(36.2)	(62)
Adjusted EBITDA, net	$ (14.8)	(28.6)	$ (36.2)	(62)
Corporate/Other \| Continuing Operations
Segment information
Depreciation and amortization		1.4		3.4
Stock compensation expense		$ 3.7		$ 8.4

SUPPLEMENTAL CASH FLOW INFORM_3

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
SUPPLEMENTAL CASH FLOW INFORMATION
Cash and cash equivalents	$ 4,960		$ 4,069
Restricted cash included within other current assets (1)	441.2		39.8
Restricted cash included within redemption settlement assets, restricted	49.9		45.9
Total cash, cash equivalents and restricted cash	5,451.1	$ 3,958.1	$ 4,154.7	$ 3,967.7
Restricted cash in principal accumulation for repayment	$ 415.1