Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity File Number | 001-31950 | |
Entity Registrant Name | MONEYGRAM INTERNATIONAL INC | |
Entity Tax Identification Number | 161690064 | |
Entity Address, Address Line One | 2828 N. Harwood St. | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 999-7552 | |
Entity Central Index Key | 0001273931 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,062,481 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 119.1 | $ 145.5 |
Settlement assets | 3,325.7 | 3,373.8 |
Property and equipment, net | 178.6 | 193.9 |
Goodwill | 442.2 | 442.2 |
Other assets | 172.4 | 140.7 |
Total assets | 4,238 | 4,296.1 |
LIABILITIES | ||
Payment service obligations | 3,325.7 | 3,373.8 |
Debt, net | 846.4 | 901 |
Pension and other postretirement benefits | 71.7 | 76.6 |
Accounts payable and other liabilities | 243.2 | 213.5 |
Total liabilities | 4,487 | 4,564.9 |
COMMITMENTS AND CONTINGENCIES (NOTE 12) | ||
STOCKHOLDERS’ DEFICIT | ||
Participating convertible preferred stock - series D, $0.01 par value, 200,000 shares authorized, 71,282 issued at September 30, 2019 and December 31, 2018 | 183.9 | 183.9 |
Common stock, $0.01 par value, 162,500,000 shares authorized, 64,434,490 and 58,823,567 shares issued at September 30, 2019 and December 31, 2018, respectively | 0.6 | 0.6 |
Additional paid-in capital | 1,095.2 | 1,046.8 |
Retained loss | (1,447.7) | (1,403.6) |
Accumulated other comprehensive loss | (62.2) | (67.5) |
Treasury stock: 2,384,065 and 3,207,118 shares at September 30, 2019 and December 31, 2018, respectively | (18.8) | (29) |
Total stockholders’ deficit | (249) | (268.8) |
Total liabilities and stockholders’ deficit | $ 4,238 | $ 4,296.1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 162,500,000 | 162,500,000 |
Common Stock, Shares, Issued | 64,434,490 | 58,823,567 |
Treasury stock (shares) | 2,384,065 | 3,207,118 |
D Stock | ||
Participating convertible preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Participating convertible preferred stock, shares authorized (shares) | 200,000 | 200,000 |
Participating convertible preferred stock, shares issued (shares) | 71,282 | 71,282 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUE | ||||
Fee and other revenue | $ 311.2 | $ 333.7 | $ 921.5 | $ 1,066.3 |
Investment revenue | 13.4 | 13.5 | 42.3 | 35.5 |
Total revenue | 324.6 | 347.2 | 963.8 | 1,101.8 |
EXPENSES | ||||
Fee and other commissions expense | 152.8 | 169 | 457.8 | 524.4 |
Investment commissions expense | 6.3 | 5.1 | 18.8 | 13.1 |
Direct transaction expense | 6.7 | 5.6 | 17.9 | 18.1 |
Total commissions and direct transaction expenses | 165.8 | 179.7 | 494.5 | 555.6 |
Compensation and benefits | 50.5 | 56.7 | 163.4 | 201.1 |
Transaction and operations support | 58.2 | 88.4 | 164.8 | 235.2 |
Occupancy, equipment and supplies | 15.5 | 13.8 | 46.4 | 47.4 |
Depreciation and amortization | 18.2 | 19.5 | 55.4 | 57.7 |
Total operating expenses | 308.2 | 358.1 | 924.5 | 1,097 |
OPERATING INCOME (LOSS) | 16.4 | (10.9) | 39.3 | 4.8 |
Other expenses | ||||
Interest expense | 24.8 | 13.8 | 52.7 | 39.8 |
Other non-operating expense (income) | 1.2 | 1.5 | 38.1 | (25.6) |
Total other expenses | 26 | 15.3 | 90.8 | 14.2 |
Loss before income taxes | (9.6) | (26.2) | (51.5) | (9.4) |
Income tax (benefit) expense | (1.9) | (5.3) | (3.1) | 2.1 |
NET LOSS | $ (7.7) | $ (20.9) | $ (48.4) | $ (11.5) |
LOSS PER COMMON SHARE | ||||
Basic (usd per share) | $ (0.10) | $ (0.32) | $ (0.70) | $ (0.18) |
Diluted (usd per share) | $ (0.10) | $ (0.32) | $ (0.70) | $ (0.18) |
Weighted-average outstanding common shares and equivalents used in computing loss per share | ||||
Basic | 76.4 | 64.5 | 69.2 | 64.2 |
Diluted | 76.4 | 64.5 | 69.2 | 64.2 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET LOSS | $ (7.7) | $ (20.9) | $ (48.4) | $ (11.5) |
OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Net change in unrealized holding gains on available-for-sale securities arising during the period | (0.2) | 0.1 | (0.4) | (0.1) |
Net change in pension liability due to amortization of prior service credit and net actuarial loss, net of tax benefit of $0.0 and $0.2 for the three months ended September 30, 2019 and 2018, respectively, and $0.4 and $0.8 for the nine months ended September 30, 2019 and 2018, respectively | 0.5 | 0.9 | 1.9 | 2.6 |
Pension settlement charge, net of tax benefit of $7.2 for the nine months ended September 30, 2019 | 0 | 0 | 24.1 | 0 |
Valuation adjustment for pension, net of tax expense of $0.1 for the nine months ended September 30, 2019 | 0 | 0 | (0.5) | 0 |
Unrealized foreign currency translation adjustments, net of tax expense of $0.0 and $0.0 for the three months ended September 30, 2019 and 2018, respectively, and $0.1 and $0.0 for the nine months ended September 30, 2019 and 2018, respectively | (6.3) | (2.1) | (4.7) | (8.8) |
Other comprehensive (loss) income | (6) | (1.1) | 20.4 | (6.3) |
COMPREHENSIVE LOSS | $ (13.7) | $ (22) | $ (28) | $ (17.8) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change in pension liability, tax | $ 0 | $ 0.2 | $ 0.4 | $ 0.8 |
Tax benefit, net | 0 | 0 | (0.1) | 0 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Plan Amendments, Tax Effect | 0 | 0 | 7.2 | 0 |
Unrealized foreign currency translation gains (losses), tax | $ 0 | $ 0 | $ (0.1) | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 45.2 | $ 37.4 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | (48.4) | (11.5) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation and amortization | 55.4 | 57.7 |
Signing bonus amortization | 34.6 | 42 |
Amortization of debt discount and debt issuance costs | 4.2 | 2.4 |
Debt extinguishment costs | 2.4 | 0 |
Non-cash compensation and pension expense | 41.6 | 14.4 |
Signing bonus payments | (24.2) | (20.2) |
Change in other assets | 3.7 | 1.3 |
Change in accounts payable and other liabilities | (33.7) | (10.7) |
Other non-cash items, net | 3.4 | 1.5 |
Net cash provided by operating activities | 39 | 76.9 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (42.5) | (44.5) |
Net cash used in investing activities | (42.5) | (44.5) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Transaction costs for issuance and amendment of debt | (21.7) | 0 |
Principal payments on debt | (30) | (7.4) |
Net proceeds from issuing equity instruments | 29.5 | 0 |
Payments to tax authorities for stock-based compensation | (0.7) | (6.2) |
Net cash used in financing activities | (22.9) | (13.6) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (26.4) | 18.8 |
CASH AND CASH EQUIVALENTS—Beginning of period | 145.5 | 190 |
CASH AND CASH EQUIVALENTS—End of period | $ 119.1 | $ 208.8 |
Consdensed Consolidated Stateme
Consdensed Consolidated Statements of Stockholders' Deficit - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Loss | Accumulated Other Comprehensive Loss | Treasury Stock | Second Lien Credit Facility due 2024 [Member]Additional Paid-In Capital |
Beginning Balance at Dec. 31, 2017 | $ (245.3) | $ 183.9 | $ 0.6 | $ 1,034.8 | $ (1,336.1) | $ (63) | $ (65.5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 7.1 | 7.1 | ||||||
Stock-based compensation activity | (2.1) | 4.8 | (43) | 36.1 | ||||
Cumulative effect of adoption of ASU | 4.2 | 4.2 | ||||||
Other comprehensive loss | 3.4 | 3.4 | ||||||
Ending Balance at Mar. 31, 2018 | (232.7) | 183.9 | 0.6 | 1,039.6 | (1,367.8) | (59.6) | (29.4) | |
Beginning Balance at Dec. 31, 2017 | (245.3) | 183.9 | 0.6 | 1,034.8 | (1,336.1) | (63) | (65.5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (11.5) | |||||||
Net proceeds from issuing equity instruments | 0 | |||||||
Ending Balance at Sep. 30, 2018 | (256.2) | 183.9 | 0.6 | 1,044.4 | (1,386.9) | (69.3) | (28.9) | |
Beginning Balance at Mar. 31, 2018 | (232.7) | 183.9 | 0.6 | 1,039.6 | (1,367.8) | (59.6) | (29.4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 2.3 | |||||||
Stock-based compensation activity | 2.4 | 2.3 | (0.4) | 0.5 | ||||
Other comprehensive loss | (8.6) | (8.6) | ||||||
Ending Balance at Jun. 30, 2018 | (236.6) | 183.9 | 0.6 | 1,041.9 | (1,365.9) | (68.2) | (28.9) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (20.9) | (20.9) | ||||||
Stock-based compensation activity | 2.4 | 2.5 | (0.1) | |||||
Other comprehensive loss | (1.1) | (1.1) | ||||||
Ending Balance at Sep. 30, 2018 | (256.2) | 183.9 | 0.6 | 1,044.4 | (1,386.9) | (69.3) | (28.9) | |
Beginning Balance at Dec. 31, 2018 | (268.8) | 183.9 | 0.6 | 1,046.8 | (1,403.6) | (67.5) | (29) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (13.5) | (13.5) | ||||||
Stock-based compensation activity | 2.1 | 2.6 | (9.5) | 9 | ||||
Cumulative effect of adoption of ASU | 0 | 15.1 | (15.1) | |||||
Other comprehensive loss | (2.1) | (2.1) | ||||||
Ending Balance at Mar. 31, 2019 | (282.3) | 183.9 | 0.6 | 1,049.4 | (1,411.5) | (84.7) | (20) | |
Beginning Balance at Dec. 31, 2018 | (268.8) | 183.9 | 0.6 | 1,046.8 | (1,403.6) | (67.5) | (29) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (48.4) | |||||||
Net proceeds from issuing equity instruments | 29.5 | |||||||
Ending Balance at Sep. 30, 2019 | (249) | 183.9 | 0.6 | 1,095.2 | (1,447.7) | (62.2) | (18.8) | |
Beginning Balance at Mar. 31, 2019 | (282.3) | 183.9 | 0.6 | 1,049.4 | (1,411.5) | (84.7) | (20) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (27.2) | (27.2) | ||||||
Stock-based compensation activity | 1.7 | 1.6 | (0.7) | 0.8 | ||||
Net proceeds from issuing equity instruments | 29.5 | 29.5 | $ 13.1 | |||||
Other comprehensive loss | 28.5 | 28.5 | ||||||
Ending Balance at Jun. 30, 2019 | (236.7) | 183.9 | 0.6 | 1,093.6 | (1,439.4) | (56.2) | (19.2) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | (7.7) | (7.7) | ||||||
Stock-based compensation activity | 1.4 | 1.6 | (0.6) | 0.4 | ||||
Other comprehensive loss | (6) | (6) | ||||||
Ending Balance at Sep. 30, 2019 | $ (249) | $ 183.9 | $ 0.6 | $ 1,095.2 | $ (1,447.7) | $ (62.2) | $ (18.8) |
Description of the Business and
Description of the Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Description of the Business and Basis of Presentation [Abstract] | |
Description of the Business and Basis of Presentation | Description of the Business and Basis of Presentation References to “MoneyGram,” the “Company,” “we,” “us” and “our” are to MoneyGram International, Inc. and its subsidiaries. Nature of Operations — MoneyGram offers products and services under its two reporting segments: Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment provides global money transfer services and bill payment services to consumers. We primarily offer services through third-party agents, including retail chains, independent retailers, post offices and other financial institutions. We also offer Digital solutions such as moneygram.com, mobile solutions, account deposit and kiosk-based services. Additionally, we have limited Company-operated retail locations. The Financial Paper Products segment provides official check outsourcing services and money orders through financial institutions and agent locations. Basis of Presentation — The accompanying unaudited condensed consolidated financial statements of MoneyGram are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The Condensed Consolidated Balance Sheets are unclassified due to the timing uncertainty surrounding the payment of settlement obligations. Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are based on historical experience, future expectations and other factors and assumptions the Company believes to be reasonable under the circumstances. These estimates and assumptions are reviewed on an ongoing basis and are revised when necessary. Changes in estimates are recorded in the period of change. Actual amounts may differ from these estimates. Recent Accounting Pronouncements and Related Developmen ts — In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) . ASU 2016-02 requires organizations to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. The FASB retained the distinction between finance leases and operating leases, leaving the effect of leases in the statement of comprehensive income and the statement of cash flows largely unchanged from previous GAAP. To further assist with adoption and implementation of ASU 2016-02, the FASB issued the following ASUs: • ASU 2018-10 (Issued July 2018) — Codification Improvements to Topic 842, Leases • ASU 2018-11 (Issued July 2018) — Leases (Topic 842): Targeted Improvements • ASU 2018-20 (Issued December 2018) — Leases (Topic 842): Narrow-Scope Improvements for Lessors • ASU 2019-01 (Issued March 2019) — Leases (Topic 842): Codification Improvements ASU 2018-11 provided entities with an additional transition method to adopt the new lease standard. Under this new transition method, an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if any. The new lease standard is effective for fiscal years beginning after December 15, 2018. The Company adopted these standards in the first quarter of 2019 utilizing the transition method allowed under ASU 2018-11. See Note 16 — Leases for more information related to the Company's leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new credit impairment standard changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking expected loss model that generally will result in the earlier recognition of allowances for credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. To further assist with adoption and implementation of ASU 2016-13, the FASB issued the following ASUs: • ASU 2018-19 (Issued November 2018) — Codification Improvements to Topic 326, Financial Instruments - Credit Losses • ASU 2019-04 (Issued April 2019) — Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments • ASU 2019-05 (Issued May 2019) — Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief These ASUs are effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. MoneyGram will not be early adopting these standards. We are still evaluating these ASUs, but we do not believe the adoption will have a material impact on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendments in the standard allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the legislation commonly known as the “Tax Cuts and Jobs Act” (“TCJA”). The Company adopted ASU 2018-02 in the first quarter of 2019 and applied the amendments from the accounting update in the period of adoption. The Company reclassified $15.1 million from "Accumulated other comprehensive loss" to "Retained loss" on the Condensed Consolidated Balance Sheets. ASU 2018-02 did not have an impact on the Condensed Consolidated Statements of Operations or the Condensed Consolidated Statements of Cash Flows. See Note 9 — Stockholders' Deficit for more information. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefits Plans. The amendments in this standard require that entities now disclose the weighted-average interest credit ratings for cash balance plans and other plans with promised interest credit ratings and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period, as well as clarify and remove certain other disclosures. This standard is effective for fiscal years ending after December 15, 2020, and, although early adoption is permitted, MoneyGram will not be early adopting this standard. The impact of this ASU is still being evaluated, but management does not expect this standard to have a material impact on our consolidated financial statements. The Company has determined that there have been no other recently adopted or issued accounting standards that had, or will have, a material impact on its condensed consolidated financial statements. |
Restructuring and Reorganizatio
Restructuring and Reorganization Costs | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Reorganization Costs [Abstract] | |
Restructuring and Reorganization Costs | Restructuring and Reorganization Costs In 2018, the Company initiated a restructuring and reorganization program (the "Digital Transformation Program") to modernize the business, reduce operating expenses, focus on improving profitability and better align the organization to deliver new digital touch-points for customers and agents. The Digital Transformation Program was substantially completed in the first quarter of 2019. As of September 30, 2019 , the Company incurred $24.6 million in restructuring and reorganization costs. The actual timing and costs of the plan may differ from the Company’s current expectations and estimates. On the Condensed Consolidated Statements of Operations, the severance and outplacement benefits and reorganization costs are recorded in "Compensation and benefits," the real estate lease termination and other associated costs are recorded in "Occupancy, equipment and supplies" and "Depreciation and amortization" and the legal and other costs are recorded in "Transaction and operations support." The following table is a roll-forward of the restructuring and reorganization costs accrual as of September 30, 2019 : (Amounts in millions) Digital Transformation Program Balance, December 31, 2018 $ 6.3 Expenses 4.2 Cash payments (6.9 ) Non-cash operating expenses (0.1 ) Balance, September 30, 2019 $ 3.5 The following table is a summary of the cumulative restructuring and reorganization costs incurred to date in operating expenses as of September 30, 2019 : (Amounts in millions) Digital Transformation Program Total restructuring costs incurred $ 24.1 Total reorganization costs incurred 0.5 Total restructuring and reorganization costs incurred $ 24.6 The following table summarizes the restructuring costs recorded: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Restructuring costs in operating expenses: Compensation and benefits $ 0.3 $ 0.6 $ 3.5 $ 9.8 Transaction and operations support (0.2 ) 0.3 0.3 1.9 Occupancy, equipment and supplies — 0.3 0.3 1.5 Depreciation — — 0.1 0.3 Total restructuring costs in operating expenses 0.1 1.2 4.2 13.5 Reorganization costs in operating expenses: Compensation and benefits — — — 0.5 Total reorganization costs in operating expenses — — — 0.5 Total restructuring and reorganization costs in operating expenses $ 0.1 $ 1.2 $ 4.2 $ 14.0 The following table is a summary of the total cumulative restructuring and reorganization costs incurred to date in operating expenses by reporting segment: (Amounts in millions) Global Funds Transfer Other Total Restructuring costs: Balance, December 31, 2018 $ 19.9 $ — $ 19.9 First quarter 2019 3.6 — 3.6 Second quarter 2019 0.5 — 0.5 Third quarter 2019 0.1 — 0.1 Total restructuring costs incurred 24.1 — 24.1 Reorganization costs: Balance, December 31, 2018 — 0.5 0.5 Total reorganization costs incurred — 0.5 0.5 Total restructuring and reorganization costs incurred $ 24.1 $ 0.5 $ 24.6 |
Settlement Assets and Payment S
Settlement Assets and Payment Service Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Settlement Assets and Payment Service Obligations | Settlement Assets and Payment Service Obligations The Company records payment service obligations relating to amounts payable under money transfers, money orders and consumer payment service arrangements. These obligations are recognized by the Company at the time the underlying transaction occurs. The Company records corresponding settlement assets, which represent funds received or to be received for unsettled money transfers, money orders and consumer payments. The following table summarizes the amount of settlement assets and payment service obligations: (Amounts in millions) September 30, 2019 December 31, 2018 Settlement assets: Settlement cash and cash equivalents $ 1,469.3 $ 1,435.7 Receivables, net 865.5 777.7 Interest-bearing investments 986.2 1,154.7 Available-for-sale investments 4.7 5.7 $ 3,325.7 $ 3,373.8 Payment service obligations $ (3,325.7 ) $ (3,373.8 ) |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis: (Amounts in millions) Level 2 Level 3 Total September 30, 2019 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 3.9 $ — $ 3.9 Asset-backed and other securities — 0.8 0.8 Forward contracts 2.1 — 2.1 Total financial assets $ 6.0 $ 0.8 $ 6.8 Financial liabilities: Forward contracts $ — $ — $ — December 31, 2018 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 4.5 $ — $ 4.5 Asset-backed and other securities — 1.2 1.2 Forward contracts — — — Total financial assets $ 4.5 $ 1.2 $ 5.7 Financial liabilities: Forward contracts $ 1.2 $ — $ 1.2 The following table provides a roll-forward of the asset-backed and other securities classified as Level 3, which are measured at fair value on a recurring basis: (Amounts in millions) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Beginning balance $ 1.0 $ 1.2 Change in unrealized gains (0.2 ) (0.4 ) Ending balance $ 0.8 $ 0.8 Assets and liabilities that are disclosed at fair value — Debt and interest-bearing investments are carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. The fair value of debt is estimated using an observable market quotation (Level 2). The following table is a summary of the Company's fair value and carrying value of debt: Fair Value Carrying Value (Amounts in millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Senior secured credit facility $ 838.2 $ 737.1 $ 891.7 $ 904.4 The carrying amounts for the Company's cash and cash equivalents, settlement cash and cash equivalents, receivables, interest-bearing investments and payment service obligations approximate fair value as of September 30, 2019 and December 31, 2018 . |
Investment Portfolio
Investment Portfolio | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investment Portfolio | Investment Portfolio The following table shows the components of the investment portfolio: (Amounts in millions) September 30, 2019 December 31, 2018 Cash $ 1,585.9 $ 1,578.7 Money market securities 2.5 2.5 Cash and cash equivalents (1) 1,588.4 1,581.2 Interest-bearing investments 986.2 1,154.7 Available-for-sale investments 4.7 5.7 Total investment portfolio $ 2,579.3 $ 2,741.6 (1) For purposes of the disclosure of the investment portfolio as a whole, the cash and cash equivalents balance includes settlement cash and cash equivalents. The following table is a summary of the amortized cost and fair value of available-for-sale investments: (Amounts in millions) Amortized Cost Gross Unrealized Gains Fair Value September 30, 2019 Residential mortgage-backed securities $ 3.6 $ 0.3 $ 3.9 Asset-backed and other securities 0.2 0.6 0.8 Total $ 3.8 $ 0.9 $ 4.7 December 31, 2018 Residential mortgage-backed securities $ 4.2 $ 0.3 $ 4.5 Asset-backed and other securities 0.2 1.0 1.2 Total $ 4.4 $ 1.3 $ 5.7 As of September 30, 2019 and December 31, 2018 , 83% and 79% , respectively, of the fair value of the available-for-sale portfolio were invested in residential mortgage-backed securities issued by U.S. government agencies. These securities have the implicit backing of the U.S. government and the Company expects to receive full par value upon maturity or pay-down, as well as all interest payments. Gains and Losses — For the three and nine months ended September 30, 2019 and 2018 , the Company had no net realized gains or losses. The Company had nominal unrealized losses in its available-for-sale portfolio as of September 30, 2019 and December 31, 2018 . Contractual Maturities — Actual maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations, sometimes without call or prepayment penalties. Maturities of residential mortgage-backed and asset-backed and other securities depend on the repayment characteristics and experience of the underlying obligations. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instrument Detail [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses forward contracts to manage its foreign currency needs and foreign currency exchange risk arising from its assets and liabilities denominated in foreign currencies. While these contracts may mitigate certain foreign currency risk, they are not designated as hedges for accounting purposes and will result in gains and losses. The Company also reports gains and losses from the spread differential between the rate set for its transactions and the actual cost of currency at the time the Company buys or sells in the open market. The following net (losses) gains related to assets and liabilities denominated in foreign currencies are included in “Transaction and operations support” in the Condensed Consolidated Statements of Operations and in the "Net cash provided by operating activities" line in the Condensed Consolidated Statements of Cash Flows: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Net realized foreign currency loss $ (8.4 ) $ (1.1 ) $ (11.5 ) $ (4.9 ) Net gain from the related forward contracts 8.0 1.7 13.7 6.8 Net (loss) gain from foreign currency transactions and related forward contracts $ (0.4 ) $ 0.6 $ 2.2 $ 1.9 As of September 30, 2019 and December 31, 2018 , the Company had $441.9 million and $300.2 million , respectively, of outstanding notional amounts relating to its foreign currency forward contracts. As of September 30, 2019 and December 31, 2018 , the Company reflects the following fair values of derivative forward contract instruments in its Condensed Consolidated Balance Sheets: Gross Amount of Recognized Assets Gross Amount of Offset Net Amount of Assets Presented in the Consolidated Balance Sheets (Amounts in millions) Balance Sheet Location September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Forward contracts Other assets $ 2.8 $ 0.2 $ (0.7 ) $ (0.2 ) $ 2.1 $ — Gross Amount of Recognized Liabilities Gross Amount of Offset Net Amount of Liabilities Presented in the Consolidated Balance Sheets (Amounts in millions) Balance Sheet Location September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Forward contracts Accounts payable and other liabilities $ 0.7 $ 1.4 $ (0.7 ) $ (0.2 ) $ — $ 1.2 The Company's forward contracts are primarily executed with counterparties governed by International Swaps and Derivatives Association agreements that generally include standard netting arrangements. Asset and liability positions from forward contracts and all other foreign exchange transactions with the same counterparty are net settled upon maturity. The Company is exposed to credit loss in the event of non-performance by counterparties to its derivative contracts. The Company actively monitors its exposure to credit risk through the use of credit approvals and credit limits and by selecting major international banks and financial institutions as counterparties. Collateral generally is not required of the counterparties or of the Company. In the unlikely event the counterparty fails to meet the contractual terms of the derivative contract, the Company’s risk is limited to the fair value of the instrument. The Company has not had any historical instances of non-performance by any counterparties, nor does it anticipate any future instances of non-performance. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of the Company's outstanding debt: September 30, 2019 December 31, 2018 (Amounts in millions, except percentages) 5.59% first lien credit facility due 2020 $ — $ 904.4 8.33% first lien credit facility due 2023 643.4 — 13.00% second lien credit facility due 2024 248.3 — Senior secured credit facilities 891.7 904.4 Unamortized debt issuance costs and debt discounts (45.3 ) (3.4 ) Total debt, net $ 846.4 $ 901.0 On June 26, 2019, MoneyGram, as borrower, entered into (i) a Second Amended and Restated Credit Agreement (the “First Lien Credit Agreement”) with Bank of America, N.A., as administrative agent, the financial institutions parties thereto as lenders and the other agents party thereto and (ii) a Second Lien Credit Agreement (the “Second Lien Credit Agreement”) with Bank of America, N.A., as administrative agent, the financial parties thereto as lenders and the other agents party thereto. The credit obtained under the First Lien Credit Agreement and Second Lien Credit Agreement together with MoneyGram’s cash on hand were used to extend and/or repay in full all outstanding indebtedness under the Company's existing credit facility. In connection with the termination of the existing credit facility, the Company recognized debt extinguishment costs of $2.4 million in the second quarter of 2019. These costs were recorded in "Other non-operating expense (income)" on the Condensed Consolidated Statements of Operations and in "Debt extinguishment costs" on the Condensed Consolidated Statements of Cash Flows. First Lien Credit Agreement and Revolving Credit Facility — The First Lien Credit Agreement provides for (i) a senior secured three-year revolving credit facility that may be used for revolving credit loans, swingline loans and letters of credit up to an aggregate principal amount of $35.0 million , which matures September 30, 2022 (the “First Lien Revolving Credit Facility”) and (ii) a senior secured four-year term loan facility in an aggregate principal amount of $645.0 million (the “First Lien Term Credit Facility” and, together with the First Lien Revolving Credit Facility, the “First Lien Credit Facility”). The Company incurred debt issuance costs of $9.9 million for the First Lien Term Credit Facility, which were recorded as a direct deduction from the carrying amount of the related indebtedness. The Company also incurred debt issuance costs of $0.5 million for its First Lien Revolving Credit Facility, which were recorded in "Other assets" on its Condensed Consolidated Balance Sheets. The amortization of debt issuance costs is recorded in "Interest expense" on the Condensed Consolidated Statements of Operations. The First Lien Revolving Credit Facility and the First Lien Term Credit Facility will each permit both base rate borrowings and LIBOR borrowings, in each case plus a spread above the base rate or LIBOR rate, as applicable. With respect to the First Lien Revolving Credit Facility, the spread for base rate borrowings will be either 5.00% per annum or 4.75% per annum depending upon the Company’s First Lien Leverage Ratio (as defined in the First Lien Credit Agreement), and the spread for LIBOR borrowings will be either 6.00% or 5.75% per annum depending on the Company’s First Lien Leverage Ratio. The interest rate spread applicable to loans under the First Lien Term Credit Facility is 5.00% per annum for base rate loans and 6.00% per annum for LIBOR rate loans. The Company will make quarterly principal payments of $1.6 million on its First Lien Term Credit Facility on the last business day of each quarter starting with the third quarter of 2019, with the remaining outstanding principal balance due on the maturity date. Any borrowings under the First Lien Revolving Credit Facility will be used for general corporate purposes. As of September 30, 2019 , the Company had nominal outstanding letters of credit and no borrowings under the First Lien Revolving Credit Facility. Second Lien Credit Agreement — The Second Lien Credit Agreement provides for a second lien secured five-year term loan facility in an aggregate principal amount of $245.0 million (the “Second Lien Term Credit Facility” and together with the First Lien Credit Facility, the “Credit Facilities”). The Company incurred debt issuance costs of $11.0 million for the Second Lien Term Credit Facility, which were recorded as a direct deduction from the carrying amount of the related indebtedness. All term loans under the Second Lien Term Credit Facility bear interest at a rate of 13.00% per annum. Subject to certain conditions and limitations, the Company may elect to pay interest under the Second Lien Term Credit Facility partially in cash and partially in kind. The outstanding principal balance for the Second Lien Credit Agreement is due on the maturity date. The Credit Facilities are secured by substantially all of the Company’s assets and its material domestic subsidiaries that guarantee the payment and performance of the Company’s obligations under the Credit Facilities. In connection with the entry into the Second Lien Credit Agreement, the Company issued warrants (“Second Lien Warrants”) exercisable for an aggregate of 5,423,470 shares of the Company’s common stock, par value $0.01 (“Common Stock”), to the lenders under the Second Lien Credit Agreement. As of the issuance date, the value of each Second Lien Warrant was estimated at $2.41 per share. Each Second Lien Warrant will expire ten years after issuance and entitles the holder thereof to purchase the number of shares of Common Stock underlying such Second Lien Warrant for $0.01 per share. Each Second Lien Warrant will become exercisable upon the earlier of either (i) immediately prior to a change in control, (ii) the repayment in full of all amounts outstanding under the Second Lien Credit Agreement, (iii) the maturity date under the Second Lien Credit Agreement or (iv) the occurrence and continuance of a default under the Second Lien Credit Agreement (but only during the continuance of a default). Debt Covenants and Other Restrictions — The Credit Facilities contain various limitations that restrict the Company’s ability to: incur additional indebtedness; create or incur additional liens; effect mergers and consolidations; make certain acquisitions or investments; sell assets or subsidiary stock; pay dividends and make other restricted payments; and effect loans, advances and certain other transactions with affiliates. In addition, the First Lien Revolving Credit Facility requires the Company and its consolidated subsidiaries (w) to maintain a minimum interest coverage ratio, (x) to maintain a minimum asset coverage ratio, (y) to not exceed a maximum first lien leverage ratio, and (z) to not exceed a total leverage ratio. The Second Lien Credit Facility requires the Company to not exceed a maximum secured leverage ratio of 5.50:1.00 commencing September 30, 2019. The asset coverage covenant contained in the First Lien Credit Agreement requires the aggregate amount of the Company’s cash and cash equivalents and other settlement assets exceed its aggregate payment service obligations. The Company's assets in excess of payment service obligations used for the asset coverage calculation were $119.1 million and $145.5 million as of September 30, 2019 and December 31, 2018 , respectively. The table below summarizes the interest coverage, first lien and total leverage ratio covenants, which are calculated based on the four-fiscal quarter period ending on each quarter end beginning September 30, 2019 through the maturity of the First Lien Credit Facility: Interest Coverage Minimum Ratio First Lien Leverage Ratio Not to Exceed Total Leverage Ratio Not to Exceed July 1, 2019 through June 30, 2020 2.50:1 3.750:1 5.125:1 July 1, 2020 through December 31, 2020 2.50:1 3.500:1 5.000:1 January 1, 2021 through maturity 2.50:1 3.000:1 4.500:1 As of September 30, 2019 , the Company was in compliance with its financial covenants: our interest coverage ratio was 3.931 to 1.00, our first lien leverage ratio was 2.792 to 1.00 and our total leverage ratio was 3.869 to 1.00. We continuously monitor our compliance with our debt covenants. |
Pension and Other Benefits
Pension and Other Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Benefits | The following table is a summary of the assumptions used in the remeasurement as of June 30, 2019 and December 31, 2018: Pension Plan 2019 2018 Net periodic benefit expense: Discount rate for benefit obligation 4.25 % 3.58 % Discount rate for interest cost 3.83 % 3.13 % Expected return on plan assets 3.83 % 4.59 % Benefit obligation: Discount rate 3.57 % 4.25 % |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | Stockholders' Deficit Common Stock — No dividends were paid during the three and nine months ended September 30, 2019 or September 30, 2018 . Securities Purchase Agreement — On June 17, 2019, the Company entered into a securities purchase agreement (the “SPA”) with Ripple Labs Inc. (“Ripple”), pursuant to which Ripple agreed to purchase and the Company agreed to issue up to $50.0 million of Common Stock and ten-year warrants to purchase Common Stock at $0.01 per underlying share of Common Stock (“Ripple Warrants”). In connection with the execution of the SPA, Ripple purchased, and the Company issued, (i) 5,610,923 shares of Common Stock at a purchase price of $4.10 per share and (ii) a Ripple Warrant to purchase 1,706,151 shares of Common Stock at a per share reference purchase price of $4.10 per share of Common Stock underlying the Ripple Warrant, for an aggregate purchase price of $30.0 million . The Company incurred direct and incremental costs of $0.5 million related to this transaction. The proceeds from the issuance to Ripple net of the direct incremental costs are recorded in "Additional paid-in capital" with the corresponding par value of the Common Stock issued in "Common stock" on the Condensed Consolidated Balance Sheets as of September 30, 2019. Simultaneously with the execution of the SPA, a bank (the “LOC Bank”) issued a stand-by letter of credit (the “Letter of Credit”) on behalf of Ripple for the benefit of the Company in a face amount equal to $20.0 million to be used to fund additional purchases of shares of Common Stock and Ripple Warrants by Ripple. Pursuant to the SPA, the Company may elect to issue and sell additional shares of Common Stock and Ripple Warrants to Ripple by drawing on the Letter of Credit in amounts up to $20.0 million in the aggregate. The following table is a summary of the Company’s authorized, issued and outstanding common stock as of September 30, 2019 : Common Stock Treasury Stock Authorized Issued Outstanding January 1, 2019 162,500,000 58,823,567 (55,616,449 ) 3,207,118 Release for restricted stock units — — (823,053 ) (823,053 ) Shares issued to Ripple as part of SPA — 5,610,923 (5,610,923 ) — September 30, 2019 162,500,000 64,434,490 (62,050,425 ) 2,384,065 Accumulated Other Comprehensive Loss — The following table is a summary of the significant amounts reclassified out of each component of "Accumulated other comprehensive loss": Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Statement of Operations Location Pension and Postretirement Benefits adjustments: Amortization of net actuarial loss $ 0.5 $ 1.1 $ 2.3 $ 3.4 "Other non-operating expense (income)" Settlement charge — — 31.3 — "Other non-operating expense (income)" Total before tax 0.5 1.1 33.6 3.4 Tax benefit, net — (0.2 ) (7.6 ) (0.8 ) Total reclassified for the period, net of tax $ 0.5 $ 0.9 $ 26.0 $ 2.6 The following table is a summary of the changes to Accumulated other comprehensive loss by component: (Amounts in millions) Net Unrealized Gains on Securities Classified as Available-for-sale, Net of Tax Cumulative Foreign Currency Translation Adjustments, Net of Tax Pension and Postretirement Benefits Adjustment, Net of Tax Total January 1, 2019 $ 1.9 $ (24.2 ) $ (45.2 ) $ (67.5 ) Cumulative effect of adoption of ASU 2018-02 — (3.7 ) (11.4 ) (15.1 ) Other comprehensive income (loss) before reclassification 0.2 (3.1 ) — (2.9 ) Amounts reclassified from accumulated other comprehensive loss — — 0.8 0.8 Net current period other comprehensive income (loss) 0.2 (3.1 ) 0.8 (2.1 ) March 31, 2019 2.1 (31.0 ) (55.8 ) (84.7 ) Other comprehensive (loss) income before reclassification (0.4 ) 4.7 (0.5 ) 3.8 Amounts reclassified from accumulated other comprehensive loss — — 24.7 24.7 Net current period other comprehensive (loss) income (0.4 ) 4.7 24.2 28.5 June 30, 2019 1.7 (26.3 ) (31.6 ) (56.2 ) Other comprehensive (loss) income before reclassification (0.2 ) (6.3 ) — (6.5 ) Amounts reclassified from accumulated other comprehensive loss — — 0.5 0.5 Net current period other comprehensive (loss) income (0.2 ) (6.3 ) 0.5 (6.0 ) September 30, 2019 $ 1.5 $ (32.6 ) $ (31.1 ) $ (62.2 ) (Amounts in millions) Net Unrealized Gains on Securities Classified as Available-for-sale, Net of Tax Cumulative Foreign Currency Translation Adjustments, Net of Tax Pension and Postretirement Benefits Adjustment, Net of Tax Total January 1, 2018 $ 2.2 $ (10.4 ) $ (54.8 ) $ (63.0 ) Other comprehensive (loss) income before reclassification (0.2 ) 2.7 — 2.5 Amounts reclassified from accumulated other comprehensive loss — — 0.9 0.9 Net current period other comprehensive (loss) income (0.2 ) 2.7 0.9 3.4 March 31, 2018 2.0 (7.7 ) (53.9 ) (59.6 ) Other comprehensive loss before reclassification — (9.4 ) — (9.4 ) Amounts reclassified from accumulated other comprehensive loss — — 0.8 0.8 Net current period other comprehensive (loss) income — (9.4 ) 0.8 (8.6 ) June 30, 2018 2.0 (17.1 ) (53.1 ) (68.2 ) Other comprehensive income (loss) before reclassification 0.1 (2.1 ) — (2.0 ) Amounts reclassified from accumulated other comprehensive loss — — 0.9 0.9 Net current period other comprehensive income (loss) 0.1 (2.1 ) 0.9 (1.1 ) September 30, 2018 $ 2.1 $ (19.2 ) $ (52.2 ) $ (69.3 ) In the first quarter of 2019, the Company adopted ASU 2018-02 and elected to reclassify the stranded tax effects resulting from the TCJA, which changed the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, among other things. The effect from the rate change resulted in a pension and postretirement benefits adjustment reclassification of $11.4 million from Accumulated other comprehensive loss to Retained loss. Additionally, the Company reclassified $3.7 million from cumulative foreign currency translation adjustment to Retained loss related to the rate reduction associated with the taxation of the Company's foreign subsidiaries. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table is a summary of the Company's stock-based compensation expense: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Stock-based compensation expense $ 1.6 $ 2.5 $ 6.1 $ 10.0 Stock Options — The following table is a summary of the Company’s stock option activity: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($000,000) Options outstanding at December 31, 2018 1,628,829 $ 17.20 1.4 years $ — Forfeited/Expired (1,136,449 ) 16.30 Options outstanding, vested or expected to vest, and exercisable at September 30, 2019 492,380 $ 19.29 2.9 years $ — As of September 30, 2019 , the Company had no unrecognized stock option expense related to outstanding options. Restricted Stock Units — In February 2019, the Company granted time-based restricted stock units. The time-based restricted stock units vest in three equal installments on each anniversary of the grant date. The following table is a summary of the Company’s restricted stock unit activity: Total Shares Weighted-Average Grant-Date Fair Value Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value ($000,000) Restricted stock units outstanding at December 31, 2018 2,272,606 $ 9.73 0.8 years $ 4.5 Granted 2,136,188 2.41 Vested and converted to shares (1,150,549 ) 8.65 Forfeited (281,077 ) 7.45 Restricted stock units outstanding at September 30, 2019 2,977,168 $ 5.11 1.1 years $ 11.8 Restricted stock units vested and deferred at September 30, 2019 54,472 $ 8.26 $ 0.2 The following table is a summary of the Company's restricted stock unit compensation information: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Weighted-average grant-date fair value of restricted stock units vested during the period $ 0.4 $ 0.2 $ 10.0 $ 16.5 Total intrinsic value of vested and converted shares $ 0.1 $ 0.2 $ 2.9 $ 22.2 As of September 30, 2019 , the Company’s outstanding restricted stock units had unrecognized compensation expense of $8.4 million with a remaining weighted-average vesting period of 1.1 years . The Company had $0.3 million of cash-settled restricted stock units for the nine months ended September 30, 2019 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended September 30, 2019 , the Company recognized an income tax benefit of $1.9 million and on a pre-tax loss of $9.6 million . For the three months ended September 30, 2019 , our income tax rate did not differ significantly from our statutory tax rate. For the nine months ended September 30, 2019 , the Company recognized an income tax benefit of $3.1 million on a pre-tax loss of $51.5 million . Our income tax rate was lower than the statutory rate primarily due to the reversal of tax benefits on share-based compensation, U.S. taxation of foreign earnings, non-deductible expenses, partially offset by U.S. tax credits net of valuation allowance. Additionally, as a result of the issuance of the final Section 965 regulations by the U.S. Treasury Department and the Internal Revenue Service (the "IRS") on January 15, 2019, the Company recorded a discrete tax expense of $0.7 million for an increase in its one-time transition tax. For the three months ended September 30, 2018 , the Company recognized an income tax benefit of $5.3 million on a pre-tax loss of $26.2 million . The recorded income tax benefit differs from taxes calculated at the statutory rate primarily due to a decrease of $2.4 million to the Company's provisional tax obligation for the one time transition tax imposed by the TCJA, along with a $1.5 million net tax benefit related to changes in estimate for both the Company’s 2017 tax credits and tax due on the reorganization of our international business activities, offset by non-deductible expenses incurred in 2018, including the accrual related to the deferred prosecution agreement (the "DPA"). For the nine months ended September 30, 2018 , the Company recognized an income tax expense of $2.1 million on a pre-tax loss of $9.4 million . The recorded income tax expense differs from taxes calculated at the statutory rate primarily due to the aforementioned items affecting the three months ended September 30, 2018 , along with a one-time $3.6 million deferred tax benefit from a reorganization of our corporate structure and a $1.9 million reduction of foreign uncertain tax positions, offset by the adverse tax consequences related to the new provisions enacted under the TCJA, which result in multiple taxation of a single item of income. Unrecognized tax benefits are recorded in “Accounts payable and other liabilities” in the Condensed Consolidated Balance Sheets. As of September 30, 2019 and December 31, 2018 , the liability for unrecognized tax benefits was $17.6 million and $17.9 million , respectively, exclusive of interest and penalties. For the nine months ended September 30, 2019 and 2018 , the net amount of unrecognized tax benefits that if recognized could impact the effective tax rate was $17.6 million and $17.4 million , respectively. The Company accrues interest and penalties for unrecognized tax benefits through “Income tax (benefit) expense” in the Condensed Consolidated Statements of Operations. For the nine months ended September 30, 2019 and 2018 , the Company's accrual for interest and penalties increased by $0.7 million and decreased by $1.9 million , respectively. As of September 30, 2019 and December 31, 2018 , the Company had a liability of $8.0 million and $7.3 million , respectively, accrued for interest and penalties within "Accounts payable and other liabilities." As a result of the Company's litigation related to its securities losses discussed in more detail in Note 12 — Commitments and Contingencies , it is possible that there could be a significant decrease to the total amount of unrecognized tax benefits over the next 12 months. However, as of September 30, 2019 , it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax positions over the next 12 months . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings — The matters set forth below are subject to uncertainties and outcomes that are not predictable. The Company accrues for these matters as any resulting losses become probable and can be reasonably estimated. Further, the Company maintains insurance coverage for many claims and litigation matters. In relation to various legal matters, including those described below, the Company had $57.5 million of liability recorded in “Accounts payable and other liabilities” in the Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 . For the three and nine months ended September 30, 2019 , a nominal charge was recorded for legal proceedings in “Transaction and operations support” in the Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2018 , a charge of $30.0 million and $40.0 million , respectively, was recorded for legal proceedings in “Transaction and operations support” in the Condensed Consolidated Statements of Operations. Litigation Commenced Against the Company: Class Action Securities Litigation — On November 14, 2018, a putative securities class action lawsuit was filed in the United States District Court for the Northern District of Illinois against MoneyGram and certain of its executive officers. The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and alleges that MoneyGram made material misrepresentations regarding its compliance with the stipulated order for permanent injunction and final judgment that MoneyGram entered into with the Federal Trade Commission ("FTC") in October 2009 and with the DPA that MoneyGram entered into with the U.S. Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Justice in November 2012. The lawsuit seeks unspecified damages, equitable relief, interest, and costs and attorneys’ fees. The Company is vigorously defending this matter. We are unable to predict the outcome, or the possible loss or range of loss, if any, related to this matter. Shareholder Derivative Litigation — On February 19 and 20, 2019, two virtually identical shareholder derivative lawsuits were filed in the United States District Court for the Northern District of Texas. The suits, which have since been consolidated, purport to assert claims derivatively on behalf of MoneyGram against MoneyGram’s directors and certain of its executive officers for violations of Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934 and for common-law breach of fiduciary duty and unjust enrichment. The complaints assert that the individual defendants caused MoneyGram to make material misstatements regarding MoneyGram’s compliance with the stipulated order and DPA described in the preceding paragraph and breached their fiduciary duties in connection with MoneyGram’s compliance programs. The lawsuit seeks unspecified damages, equitable relief, interest, and costs and attorneys’ fees. The Company is vigorously defending this matter. We are unable to predict the outcome, or the possible loss or range of loss, if any, related to this matter. Books and Records Requests — The Company has received multiple requests from various putative shareholders for inspection of books and records pursuant to Section 220 of the Delaware General Corporation Law relating to the subject matter of the putative class and derivative lawsuits described in the preceding paragraphs. On February 26, 2019, two of these shareholders filed a petition in the Delaware Court of Chancery to compel MoneyGram to produce books and records in accordance with their request but have since dismissed their action. We are unable to predict the outcome, or the possible loss or range of loss, if any, related to these matters. It is possible that additional shareholder lawsuits could be filed relating to the subject matter of the class action, derivative actions and Section 220 requests. Other Matters — The Company is involved in various other claims and litigation that arise from time to time in the ordinary course of the Company's business. Management does not believe that after final disposition any of these matters is likely to have a material adverse impact on the Company's financial condition, results of operations or cash flows. Government Investigations: OFAC — In 2015, we initiated an internal investigation to identify any payments processed by the Company that were violations of the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC") sanctions regulations. We notified OFAC of the internal investigation, which was conducted in conjunction with the Company's outside counsel. On March 28, 2017, we filed a Voluntary Self-Disclosure with OFAC regarding the findings of our internal investigation. OFAC is currently reviewing the results of the Company’s investigation. At this time, it is not possible to determine the outcome of this matter, or the significance, if any, to our business, financial condition, or operations, and we cannot predict when OFAC will conclude its review of our Voluntary Self-Disclosure. Deferred Prosecution Agreement — In November 2012, we announced that a settlement was reached with the U.S. Attorney's Office for the Middle District of Pennsylvania (the "MDPA") and the U.S. Department of Justice, Criminal Division, Money Laundering and Asset Recovery Section (the “U.S. DOJ”) relating to the previously disclosed investigation of transactions involving certain of our U.S. and Canadian agents, as well as fraud complaint data and the consumer anti-fraud program, during the period from 2003 to early 2009. In connection with this settlement, we entered into the DPA with the MDPA and U.S. DOJ (collectively, the "Government") dated November 9, 2012. On November 1, 2017, the Company agreed to a stipulation with the Government that the five-year term of the Company’s DPA be extended for 90 days to February 6, 2018. Between January 31, 2018 and September 14, 2018, the Company agreed to enter into various extensions of the DPA with the Government, with the last extension ending on November 6, 2018. Each extension of the DPA extended all terms of the DPA, including the term of the monitorship for an equivalent period. The purpose of the extensions was to provide the Company and the Government additional time to discuss whether the Company was in compliance with the DPA. On November 8, 2018, the Company announced that it entered into (1) an Amendment to and Extension of Deferred Prosecution Agreement (the “Amended DPA”) with the Government and (2) a Stipulated Order for Compensatory Relief and Modified Order for Permanent Injunction (the “Consent Order”) with the FTC. The motions underlying the Amended DPA and Consent Order focus primarily on the Company’s anti-fraud and anti-money laundering programs, including whether the Company had adequate controls to prevent third parties from using its systems to commit fraud. The Amended DPA amended and extended the original DPA entered into on November 9, 2012 by and between the Company and the Government. The DPA, Amended DPA and Consent Order are collectively referred to herein as the “Agreements.” Under the Agreements, the Company will, among other things, (1) pay an aggregate amount of $125.0 million to the Government, of which $70.0 million was paid in November 2018 and the remaining $55.0 million must be paid by May 8, 2020, eighteen months after the date of the Amended DPA, and is being made available to reimburse consumers who were the victims of third-party fraud conducted through the Company’s money transfer services, and (2) continue to retain an independent compliance monitor until May 10, 2021 to review and assess actions taken by the Company under the Agreements to further enhance its compliance program. No separate payment to the FTC is required under the Agreements. If the Company fails to comply with the Agreements, it could face criminal prosecution, civil litigation, significant fines, damage awards or regulatory consequences which could have a material adverse effect on the Company's business, financial condition, results of operations and cash flows. NYDFS — On June 22, 2018, the Company received a request for production of documents from the New York Department of Financial Services (the “NYDFS”) related to the subject of the DPA and FTC matters described above. This request followed previous inquiries by the NYDFS regarding certain of our New York based agents. Following the June 22, 2018 request for production, the Company received and responded to several inquiries from the NYDFS related to this matter. The NYDFS did not indicate what, if any, action it intended to take in connection with this matter, although it is possible that it could seek additional information, initiate civil litigation and/or seek to impose fines, damages or other regulatory consequences, any or all of which could have an adverse effect on the Company’s business, financial condition, results of operations and cash flows. The Company is unable to predict the outcome, or the possible loss or range of loss, if any, that could be associated with this matter. Other Matters — The Company is involved in various other government inquiries and other matters that arise from time to time. Management does not believe that after final disposition any of these other matters is likely to have a material adverse impact on the Company’s financial condition, results of operations or cash flows. Actions Commenced by the Company: Tax Litigation — The IRS completed its examination of the Company’s consolidated income tax returns through 2013 and issued Notices of Deficiency for 2005-2007 and 2009, and an Examination Report for 2008. The Notices of Deficiency and Examination Report disallow, among other items, approximately $900.0 million of ordinary deductions on securities losses in the 2007, 2008 and 2009 tax returns. In May 2012 and December 2012, the Company filed petitions in the U.S. Tax Court challenging the 2005-2007 and 2009 Notices of Deficiency, respectively. In 2013, the Company reached a partial settlement with the IRS allowing ordinary loss treatment on $186.9 million of deductions in dispute. In January 2015, the U.S. Tax Court granted the IRS's motion for summary judgment upholding the remaining adjustments in the Notices of Deficiency. The Company filed a notice of appeal with the U.S. Tax Court on July 27, 2015 for an appeal to the U.S. Court of Appeals for the Fifth Circuit. Oral arguments were held before the Fifth Circuit on June 7, 2016, and on November 15, 2016, the Fifth Circuit vacated the Tax Court's decision and remanded the case to the Tax Court for further proceedings. The Company filed a motion for summary judgment in the Tax Court on May 31, 2017. On August 23, 2017, the IRS filed a motion for summary judgment and its response to the Company’s motion for summary judgment. The Tax Court directed the parties to agree to a joint stipulation of facts, which the parties have filed with the court. Each party has since filed updated memorandums in support of its motions for summary judgment in the Tax Court. The Tax Court held oral arguments on this matter on September 9, 2019 and has requested additional briefing prior to ruling on the motions. The January 2015 Tax Court decision was a change in facts which warranted reassessment of the Company's uncertain tax position. Although the Company believes that it has substantive tax law arguments in favor of its position and has appealed the ruling, the reassessment resulted in the Company determining that it is no longer more likely than not that its existing position will be sustained. Accordingly, the Company re-characterized certain deductions relating to securities losses to be capital in nature, rather than ordinary. The Company recorded a full valuation allowance against these losses in the quarter ended March 31, 2015. This change increased "Income tax expense" in the Consolidated Statements of Operations in the quarter ended March 31, 2015 by $63.7 million . During 2015, the Company made payments to the IRS of $61.0 million for federal tax payments and associated interest related to the matter. The November 2016 Fifth Circuit decision to remand the case back to the U.S. Tax Court does not change the Company’s current assessment regarding the likelihood that these deductions will be sustained. Accordingly, no change in the valuation allowance was made as of September 30, 2019 . Pending the outcome of the Tax Court proceeding, the Company may be required to file amended state returns and make additional cash payments of up to $20.0 million on amounts that have previously been accrued. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share For all periods in which they are outstanding, the Series D Participating Convertible Preferred Stock (the "D Stock") and the Second Lien Warrants are included in the weighted-average number of common shares outstanding utilized to calculate basic earnings per common share because the D Stock is deemed a common stock equivalent and the Second Lien Warrants are considered outstanding common shares. The following table summarizes the weighted-average share amounts used in calculating loss per share: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Basic and diluted common shares outstanding 76.4 64.5 69.2 64.2 Potential common shares issuable to employees upon exercise or conversion of shares under the Company's stock-based compensation plans and upon exercise of the Ripple Warrant are excluded from the computation of diluted earnings per common share when the effect would be anti-dilutive. All potential common shares are anti-dilutive in periods of net loss available to common stockholders. Stock options are anti-dilutive when the exercise price of these instruments is greater than the average market price of the Company’s Common Stock for the period, regardless of whether the Company is in a period of net loss available to common shareholders. The following table summarizes the weighted-average potential common shares excluded from diluted loss per common share as their effect would be anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Shares related to stock options 0.5 1.8 1.0 1.8 Shares related to restricted stock units 3.0 2.2 2.8 2.4 Shares related to warrants 1.7 — 0.7 — Shares excluded from the computation 5.2 4.0 4.5 4.2 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s reporting segments are primarily organized based on the nature of products and services offered and the type of consumer served. The Company has two reporting segments: Global Funds Transfer and Financial Paper Products. See Note 1 — Description of the Business and Basis of Presentation for further discussion on our segments. Walmart Inc. ("Walmart") is our only agent, for both the Global Funds Transfer segment and the Financial Paper Products segment, that accounts for more than 10% of total revenue. For the three months ended September 30, 2019 and 2018 , Walmart accounted for 15% and 16% , respectively, of total revenue, and for the nine months ended September 30, 2019 and 2018 , Walmart accounted for 16% of total revenue. The following table is a summary of the total revenue by segment: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Global Funds Transfer revenue Money transfer revenue $ 284.9 $ 304.2 $ 840.4 $ 970.5 Bill payment revenue 14.7 17.4 45.6 57.7 Total Global Funds Transfer revenue 299.6 321.6 886.0 1,028.2 Financial Paper Products revenue Money order revenue 13.1 14.0 40.6 41.6 Official check revenue 11.9 11.6 37.2 32.0 Total Financial Paper Products revenue 25.0 25.6 77.8 73.6 Total revenue $ 324.6 $ 347.2 $ 963.8 $ 1,101.8 The following table is a summary of the operating income by segment and detail of the (loss) income before income taxes: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Global Funds Transfer operating income (loss) $ 9.8 $ (19.7 ) $ 16.5 $ (12.6 ) Financial Paper Products operating income 7.6 9.6 25.8 22.3 Total segment operating income (loss) 17.4 (10.1 ) 42.3 9.7 Other operating loss (1.0 ) (0.8 ) (3.0 ) (4.9 ) Total operating income (loss) 16.4 (10.9 ) 39.3 4.8 Interest expense 24.8 13.8 52.7 39.8 Other non-operating expense (income) 1.2 1.5 38.1 (25.6 ) Loss before income taxes $ (9.6 ) $ (26.2 ) $ (51.5 ) $ (9.4 ) The following table sets forth assets by segment: (Amounts in millions) September 30, 2019 December 31, 2018 Global Funds Transfer $ 1,279.0 $ 1,287.1 Financial Paper Products 2,904.1 2,950.7 Other 54.9 58.3 Total assets $ 4,238.0 $ 4,296.1 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following table is a summary of the Company's revenue streams disaggregated by services and products for each segment and timing of revenue recognition for such services and products excluding other revenue: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Global Funds Transfer revenue Money transfer fee revenue $ 274.4 $ 301.3 $ 823.6 $ 955.7 Bill payment services fee revenue 14.7 17.4 45.6 57.7 Other revenue 10.5 2.7 16.8 14.6 Total Global Funds Transfer fee and other revenue 299.6 321.4 886.0 1,028.0 Financial Paper Products revenue Money order fee revenue 2.1 2.7 6.6 8.7 Official check outsourcing services fee revenue 2.2 2.3 6.5 6.9 Other revenue 7.3 7.3 22.4 22.7 Total Financial Paper Products fee and other revenue 11.6 12.3 35.5 38.3 Investment revenue 13.4 13.5 42.3 35.5 Total revenue $ 324.6 $ 347.2 $ 963.8 $ 1,101.8 Timing of revenue recognition: Services and products transferred at a point in time $ 291.2 $ 321.4 $ 875.8 $ 1,022.1 Products transferred over time 2.2 2.3 6.5 6.9 Total revenue from services and products 293.4 323.7 882.3 1,029.0 Investment revenue 13.4 13.5 42.3 35.5 Other revenue 17.8 10.0 39.2 37.3 Total revenue $ 324.6 $ 347.2 $ 963.8 $ 1,101.8 Due to the short-term nature of the Company's services and products, the amount of contract assets and liabilities on the Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018 , is negligible. Assets for unsettled money transfers, money orders and consumer payments are included in "Settlement assets" with a corresponding liability recorded in "Payment service obligations" on the Condensed Consolidated Balance Sheets. For more information on these assets and liabilities see Note 3 — Settlement Assets and Payment Service Obligations . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company's leases consist primarily of operating leases for buildings, equipment and vehicles. Upon adoption of Accounting Standards Codification Topic 842 on January 1, 2019, the Company recognized an operating lease liability of $57.1 million and a Right-of-Use ("ROU") operating asset of $53.9 million . The lease liability is calculated based on the remaining minimum rental payments under current leasing standards for existing operating leases and the ROU asset is calculated the same as the lease liability, but it includes $3.2 million of accrued rent as of December 31, 2018. The ROU asset is presented on the Condensed Consolidated Balance Sheets as part of "Other assets" and the lease liability is included in "Accounts payable and other liabilities." The amortization of the ROU asset and changes in the lease liability are presented as part of "Change in other assets" and "Change in accounts payable and other liabilities," respectively, on the Condensed Consolidated Statements of Cash Flows. As of September 30, 2019 , the Company had an ROU asset of $42.7 million and a lease liability of $45.6 million on the Condensed Consolidated Balance Sheets. We elected the package of practical expedients, which permitted us to not reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use of the hindsight practical expedient or the practical expedient pertaining to land easements, as the latter was not applicable to us. We also elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we did not recognize ROU assets or lease liabilities. The Company elected the practical expedient to not separate lease and non-lease components for our real estate and vehicle leases. The Company's various noncancellable operating leases for buildings, equipment and vehicles terminate through 2028. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As of September 30, 2019 , the leases had a weighted-average remaining lease term of 4.3 years . As most of our leases do not provide an implicit rate, the Company utilized the portfolio approach in determining the discount rate. The portfolios were grouped based on lease type and geographical location. As of September 30, 2019 , the weighted-average discount rate was 4.5% . The Company recognizes rent expense for operating leases under the straight-line method over the term of the lease where differences between the monthly cash payments and the lease expense are offset to the ROU asset on the Condensed Consolidated Balance Sheets. Lease expense for buildings and equipment is included in the “Occupancy, equipment and supplies” line on the Condensed Consolidated Statements of Operations, while lease expense for our vehicles is included in the "Compensation and benefits" line. Some of the Company's building leases include rent expense that is associated with an index or a rate. Subsequent changes from the original index or rate would be treated as variable lease expense. Furthermore, future changes to the non-lease components of our real estate and vehicle leases will be treated as variable lease expenses. Tenant improvements are capitalized as leasehold improvements and depreciated over the shorter of the remaining term of the lease or 10 years . The following table is a summary of the Company’s lease expense for its operating leases: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2019 Buildings, equipment and vehicle leases $ 4.1 $ 12.0 Short-term and variable lease cost 0.3 1.4 Total lease cost $ 4.4 $ 13.4 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, (Amounts in millions) 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 12.8 ROU assets obtained in exchange for lease obligations $ 0.6 Maturities of operating lease liabilities as of September 30, 2019 were as follows: (Amounts in millions) Future Minimum Lease Payments October 1, 2019 to December 31, 2019 $ 3.5 2020 14.2 2021 12.0 2022 9.0 2023 5.8 Thereafter 5.0 Total 49.5 Less: present value discount (3.9 ) Lease liability - operating $ 45.6 Future minimum lease payments for our noncancellable leases as of December 31, 2018 , prior to the adoption of the new lease standard discussed in Note 1 — Description of the Business and Basis of Presentation , were as follows: (Amounts in millions) Future Minimum Lease Payments 2019 $ 17.5 2020 14.7 2021 12.3 2022 9.2 2023 5.8 Thereafter 5.2 Total $ 64.7 |
Description of the Business a_2
Description of the Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Description of the Business and Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation — The accompanying unaudited condensed consolidated financial statements of MoneyGram are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The Condensed Consolidated Balance Sheets are unclassified due to the timing uncertainty surrounding the payment of settlement obligations. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are based on historical experience, future expectations and other factors and assumptions the Company believes to be reasonable under the circumstances. These estimates and assumptions are reviewed on an ongoing basis and are revised when necessary. Changes in estimates are recorded in the period of change. Actual amounts may differ from these estimates. |
Recent Accounting Pronouncements and Related Developments | Recent Accounting Pronouncements and Related Developmen ts — In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) . ASU 2016-02 requires organizations to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. The FASB retained the distinction between finance leases and operating leases, leaving the effect of leases in the statement of comprehensive income and the statement of cash flows largely unchanged from previous GAAP. To further assist with adoption and implementation of ASU 2016-02, the FASB issued the following ASUs: • ASU 2018-10 (Issued July 2018) — Codification Improvements to Topic 842, Leases • ASU 2018-11 (Issued July 2018) — Leases (Topic 842): Targeted Improvements • ASU 2018-20 (Issued December 2018) — Leases (Topic 842): Narrow-Scope Improvements for Lessors • ASU 2019-01 (Issued March 2019) — Leases (Topic 842): Codification Improvements ASU 2018-11 provided entities with an additional transition method to adopt the new lease standard. Under this new transition method, an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if any. The new lease standard is effective for fiscal years beginning after December 15, 2018. The Company adopted these standards in the first quarter of 2019 utilizing the transition method allowed under ASU 2018-11. See Note 16 — Leases for more information related to the Company's leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new credit impairment standard changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking expected loss model that generally will result in the earlier recognition of allowances for credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. To further assist with adoption and implementation of ASU 2016-13, the FASB issued the following ASUs: • ASU 2018-19 (Issued November 2018) — Codification Improvements to Topic 326, Financial Instruments - Credit Losses • ASU 2019-04 (Issued April 2019) — Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments • ASU 2019-05 (Issued May 2019) — Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief These ASUs are effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. MoneyGram will not be early adopting these standards. We are still evaluating these ASUs, but we do not believe the adoption will have a material impact on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendments in the standard allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the legislation commonly known as the “Tax Cuts and Jobs Act” (“TCJA”). The Company adopted ASU 2018-02 in the first quarter of 2019 and applied the amendments from the accounting update in the period of adoption. The Company reclassified $15.1 million from "Accumulated other comprehensive loss" to "Retained loss" on the Condensed Consolidated Balance Sheets. ASU 2018-02 did not have an impact on the Condensed Consolidated Statements of Operations or the Condensed Consolidated Statements of Cash Flows. See Note 9 — Stockholders' Deficit for more information. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefits Plans. The amendments in this standard require that entities now disclose the weighted-average interest credit ratings for cash balance plans and other plans with promised interest credit ratings and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period, as well as clarify and remove certain other disclosures. This standard is effective for fiscal years ending after December 15, 2020, and, although early adoption is permitted, MoneyGram will not be early adopting this standard. The impact of this ASU is still being evaluated, but management does not expect this standard to have a material impact on our consolidated financial statements. The Company has determined that there have been no other recently adopted or issued accounting standards that had, or will have, a material impact on its condensed consolidated financial statements. |
Fair Value of Assets and Liabilities | Assets and liabilities that are disclosed at fair value — Debt and interest-bearing investments are carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. |
Restructuring and Reorganizat_2
Restructuring and Reorganization Costs (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Reorganization Costs [Abstract] | |
Schedule of restructuring and reorganization costs accrual | The following table is a roll-forward of the restructuring and reorganization costs accrual as of September 30, 2019 : (Amounts in millions) Digital Transformation Program Balance, December 31, 2018 $ 6.3 Expenses 4.2 Cash payments (6.9 ) Non-cash operating expenses (0.1 ) Balance, September 30, 2019 $ 3.5 |
Summary of cumulative restructuring and reorganization costs incurred | The following table is a summary of the cumulative restructuring and reorganization costs incurred to date in operating expenses as of September 30, 2019 : (Amounts in millions) Digital Transformation Program Total restructuring costs incurred $ 24.1 Total reorganization costs incurred 0.5 Total restructuring and reorganization costs incurred $ 24.6 |
Summary of restructuring costs recorded | The following table summarizes the restructuring costs recorded: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Restructuring costs in operating expenses: Compensation and benefits $ 0.3 $ 0.6 $ 3.5 $ 9.8 Transaction and operations support (0.2 ) 0.3 0.3 1.9 Occupancy, equipment and supplies — 0.3 0.3 1.5 Depreciation — — 0.1 0.3 Total restructuring costs in operating expenses 0.1 1.2 4.2 13.5 Reorganization costs in operating expenses: Compensation and benefits — — — 0.5 Total reorganization costs in operating expenses — — — 0.5 Total restructuring and reorganization costs in operating expenses $ 0.1 $ 1.2 $ 4.2 $ 14.0 |
Summary of total cumulative restructuring and reorganization costs incurred by reporting segment | The following table is a summary of the total cumulative restructuring and reorganization costs incurred to date in operating expenses by reporting segment: (Amounts in millions) Global Funds Transfer Other Total Restructuring costs: Balance, December 31, 2018 $ 19.9 $ — $ 19.9 First quarter 2019 3.6 — 3.6 Second quarter 2019 0.5 — 0.5 Third quarter 2019 0.1 — 0.1 Total restructuring costs incurred 24.1 — 24.1 Reorganization costs: Balance, December 31, 2018 — 0.5 0.5 Total reorganization costs incurred — 0.5 0.5 Total restructuring and reorganization costs incurred $ 24.1 $ 0.5 $ 24.6 |
Settlement Assets and Payment_2
Settlement Assets and Payment Service Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of settlement assets and payment service obligations | The following table summarizes the amount of settlement assets and payment service obligations: (Amounts in millions) September 30, 2019 December 31, 2018 Settlement assets: Settlement cash and cash equivalents $ 1,469.3 $ 1,435.7 Receivables, net 865.5 777.7 Interest-bearing investments 986.2 1,154.7 Available-for-sale investments 4.7 5.7 $ 3,325.7 $ 3,373.8 Payment service obligations $ (3,325.7 ) $ (3,373.8 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial assets measured at fair value by hierarchy level | The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis: (Amounts in millions) Level 2 Level 3 Total September 30, 2019 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 3.9 $ — $ 3.9 Asset-backed and other securities — 0.8 0.8 Forward contracts 2.1 — 2.1 Total financial assets $ 6.0 $ 0.8 $ 6.8 Financial liabilities: Forward contracts $ — $ — $ — December 31, 2018 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 4.5 $ — $ 4.5 Asset-backed and other securities — 1.2 1.2 Forward contracts — — — Total financial assets $ 4.5 $ 1.2 $ 5.7 Financial liabilities: Forward contracts $ 1.2 $ — $ 1.2 |
Roll-forward of other asset-backed securities | The following table provides a roll-forward of the asset-backed and other securities classified as Level 3, which are measured at fair value on a recurring basis: (Amounts in millions) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Beginning balance $ 1.0 $ 1.2 Change in unrealized gains (0.2 ) (0.4 ) Ending balance $ 0.8 $ 0.8 |
Fair value and carrying value of debt | The following table is a summary of the Company's fair value and carrying value of debt: Fair Value Carrying Value (Amounts in millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Senior secured credit facility $ 838.2 $ 737.1 $ 891.7 $ 904.4 |
Investment Portfolio (Tables)
Investment Portfolio (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Components of investment portfolio | The following table shows the components of the investment portfolio: (Amounts in millions) September 30, 2019 December 31, 2018 Cash $ 1,585.9 $ 1,578.7 Money market securities 2.5 2.5 Cash and cash equivalents (1) 1,588.4 1,581.2 Interest-bearing investments 986.2 1,154.7 Available-for-sale investments 4.7 5.7 Total investment portfolio $ 2,579.3 $ 2,741.6 (1) For purposes of the disclosure of the investment portfolio as a whole, the cash and cash equivalents balance includes settlement cash and cash equivalents. |
Available for sale Investments (substantially restricted) | The following table is a summary of the amortized cost and fair value of available-for-sale investments: (Amounts in millions) Amortized Cost Gross Unrealized Gains Fair Value September 30, 2019 Residential mortgage-backed securities $ 3.6 $ 0.3 $ 3.9 Asset-backed and other securities 0.2 0.6 0.8 Total $ 3.8 $ 0.9 $ 4.7 December 31, 2018 Residential mortgage-backed securities $ 4.2 $ 0.3 $ 4.5 Asset-backed and other securities 0.2 1.0 1.2 Total $ 4.4 $ 1.3 $ 5.7 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instrument Detail [Abstract] | |
Summary of gains (losses) related to assets and liabilities denominated in foreign currencies | The following net (losses) gains related to assets and liabilities denominated in foreign currencies are included in “Transaction and operations support” in the Condensed Consolidated Statements of Operations and in the "Net cash provided by operating activities" line in the Condensed Consolidated Statements of Cash Flows: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Net realized foreign currency loss $ (8.4 ) $ (1.1 ) $ (11.5 ) $ (4.9 ) Net gain from the related forward contracts 8.0 1.7 13.7 6.8 Net (loss) gain from foreign currency transactions and related forward contracts $ (0.4 ) $ 0.6 $ 2.2 $ 1.9 |
Fair values of derivative forward contract instruments | As of September 30, 2019 and December 31, 2018 , the Company reflects the following fair values of derivative forward contract instruments in its Condensed Consolidated Balance Sheets: Gross Amount of Recognized Assets Gross Amount of Offset Net Amount of Assets Presented in the Consolidated Balance Sheets (Amounts in millions) Balance Sheet Location September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Forward contracts Other assets $ 2.8 $ 0.2 $ (0.7 ) $ (0.2 ) $ 2.1 $ — Gross Amount of Recognized Liabilities Gross Amount of Offset Net Amount of Liabilities Presented in the Consolidated Balance Sheets (Amounts in millions) Balance Sheet Location September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Forward contracts Accounts payable and other liabilities $ 0.7 $ 1.4 $ (0.7 ) $ (0.2 ) $ — $ 1.2 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of outstanding debt | The following is a summary of the Company's outstanding debt: September 30, 2019 December 31, 2018 (Amounts in millions, except percentages) 5.59% first lien credit facility due 2020 $ — $ 904.4 8.33% first lien credit facility due 2023 643.4 — 13.00% second lien credit facility due 2024 248.3 — Senior secured credit facilities 891.7 904.4 Unamortized debt issuance costs and debt discounts (45.3 ) (3.4 ) Total debt, net $ 846.4 $ 901.0 |
Credit agreement quarterly financial covenants | The table below summarizes the interest coverage, first lien and total leverage ratio covenants, which are calculated based on the four-fiscal quarter period ending on each quarter end beginning September 30, 2019 through the maturity of the First Lien Credit Facility: Interest Coverage Minimum Ratio First Lien Leverage Ratio Not to Exceed Total Leverage Ratio Not to Exceed July 1, 2019 through June 30, 2020 2.50:1 3.750:1 5.125:1 July 1, 2020 through December 31, 2020 2.50:1 3.500:1 5.000:1 January 1, 2021 through maturity 2.50:1 3.000:1 4.500:1 |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic benefit expense (income) | The following table is a summary of net periodic benefit expense for the Company's defined benefit pension plan ("Pension Plan") and supplemental executive retirement plans ("SERPs"), collectively referred to as "Pension": Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Settlement charge $ — $ — $ 31.3 $ — Interest cost 1.0 1.6 4.4 4.7 Expected return on plan assets (0.3 ) (1.2 ) (2.5 ) (3.7 ) Amortization of net actuarial loss 0.5 1.1 2.2 3.3 Net periodic benefit expense $ 1.2 $ 1.5 $ 35.4 $ 4.3 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | The following table is a summary of the benefit obligation and plan assets, changes to the benefit obligation and plan assets, and the unfunded status of the Pension and other postretirement benefits for the nine months ended September 30, 2019 and year ended December 31, 2018 : Pension and other postretirement benefits (Amounts in millions) 2019 2018 Benefit obligation at period end $ 105.8 $ 191.9 Fair value of plan assets at period end 34.1 115.3 Unfunded status at period end $ 71.7 $ 76.6 |
Pension and Other Benefits | The following table is a summary of the assumptions used in the remeasurement as of June 30, 2019 and December 31, 2018: Pension Plan 2019 2018 Net periodic benefit expense: Discount rate for benefit obligation 4.25 % 3.58 % Discount rate for interest cost 3.83 % 3.13 % Expected return on plan assets 3.83 % 4.59 % Benefit obligation: Discount rate 3.57 % 4.25 % |
Schedule of Assumptions Used [Table Text Block] | The Company remeasured its pension benefit obligation and related expense as of June 30, 2019, and updated its actuarial projections using assumptions for discount rates, long-term return on assets and other factors. The following table is a summary of the assumptions used in the remeasurement as of June 30, 2019 and December 31, 2018: Pension Plan 2019 2018 Net periodic benefit expense: Discount rate for benefit obligation 4.25 % 3.58 % Discount rate for interest cost 3.83 % 3.13 % Expected return on plan assets 3.83 % 4.59 % Benefit obligation: Discount rate 3.57 % 4.25 % |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Activity Of Company's Authorized Issued And Outstanding [Table Text Block] | The following table is a summary of the Company’s authorized, issued and outstanding common stock as of September 30, 2019 : Common Stock Treasury Stock Authorized Issued Outstanding January 1, 2019 162,500,000 58,823,567 (55,616,449 ) 3,207,118 Release for restricted stock units — — (823,053 ) (823,053 ) Shares issued to Ripple as part of SPA — 5,610,923 (5,610,923 ) — September 30, 2019 162,500,000 64,434,490 (62,050,425 ) 2,384,065 |
Summary of significant amounts reclassified | The following table is a summary of the significant amounts reclassified out of each component of "Accumulated other comprehensive loss": Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Statement of Operations Location Pension and Postretirement Benefits adjustments: Amortization of net actuarial loss $ 0.5 $ 1.1 $ 2.3 $ 3.4 "Other non-operating expense (income)" Settlement charge — — 31.3 — "Other non-operating expense (income)" Total before tax 0.5 1.1 33.6 3.4 Tax benefit, net — (0.2 ) (7.6 ) (0.8 ) Total reclassified for the period, net of tax $ 0.5 $ 0.9 $ 26.0 $ 2.6 |
Summary of changes to accumulated other comprehensive loss by compenent | The following table is a summary of the changes to Accumulated other comprehensive loss by component: (Amounts in millions) Net Unrealized Gains on Securities Classified as Available-for-sale, Net of Tax Cumulative Foreign Currency Translation Adjustments, Net of Tax Pension and Postretirement Benefits Adjustment, Net of Tax Total January 1, 2019 $ 1.9 $ (24.2 ) $ (45.2 ) $ (67.5 ) Cumulative effect of adoption of ASU 2018-02 — (3.7 ) (11.4 ) (15.1 ) Other comprehensive income (loss) before reclassification 0.2 (3.1 ) — (2.9 ) Amounts reclassified from accumulated other comprehensive loss — — 0.8 0.8 Net current period other comprehensive income (loss) 0.2 (3.1 ) 0.8 (2.1 ) March 31, 2019 2.1 (31.0 ) (55.8 ) (84.7 ) Other comprehensive (loss) income before reclassification (0.4 ) 4.7 (0.5 ) 3.8 Amounts reclassified from accumulated other comprehensive loss — — 24.7 24.7 Net current period other comprehensive (loss) income (0.4 ) 4.7 24.2 28.5 June 30, 2019 1.7 (26.3 ) (31.6 ) (56.2 ) Other comprehensive (loss) income before reclassification (0.2 ) (6.3 ) — (6.5 ) Amounts reclassified from accumulated other comprehensive loss — — 0.5 0.5 Net current period other comprehensive (loss) income (0.2 ) (6.3 ) 0.5 (6.0 ) September 30, 2019 $ 1.5 $ (32.6 ) $ (31.1 ) $ (62.2 ) (Amounts in millions) Net Unrealized Gains on Securities Classified as Available-for-sale, Net of Tax Cumulative Foreign Currency Translation Adjustments, Net of Tax Pension and Postretirement Benefits Adjustment, Net of Tax Total January 1, 2018 $ 2.2 $ (10.4 ) $ (54.8 ) $ (63.0 ) Other comprehensive (loss) income before reclassification (0.2 ) 2.7 — 2.5 Amounts reclassified from accumulated other comprehensive loss — — 0.9 0.9 Net current period other comprehensive (loss) income (0.2 ) 2.7 0.9 3.4 March 31, 2018 2.0 (7.7 ) (53.9 ) (59.6 ) Other comprehensive loss before reclassification — (9.4 ) — (9.4 ) Amounts reclassified from accumulated other comprehensive loss — — 0.8 0.8 Net current period other comprehensive (loss) income — (9.4 ) 0.8 (8.6 ) June 30, 2018 2.0 (17.1 ) (53.1 ) (68.2 ) Other comprehensive income (loss) before reclassification 0.1 (2.1 ) — (2.0 ) Amounts reclassified from accumulated other comprehensive loss — — 0.9 0.9 Net current period other comprehensive income (loss) 0.1 (2.1 ) 0.9 (1.1 ) September 30, 2018 $ 2.1 $ (19.2 ) $ (52.2 ) $ (69.3 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock-based compensation expense | The following table is a summary of the Company's stock-based compensation expense: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Stock-based compensation expense $ 1.6 $ 2.5 $ 6.1 $ 10.0 |
Summary of stock option activity | The following table is a summary of the Company’s stock option activity: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($000,000) Options outstanding at December 31, 2018 1,628,829 $ 17.20 1.4 years $ — Forfeited/Expired (1,136,449 ) 16.30 Options outstanding, vested or expected to vest, and exercisable at September 30, 2019 492,380 $ 19.29 2.9 years $ — |
Summary of restricted stock unit activity | The following table is a summary of the Company’s restricted stock unit activity: Total Shares Weighted-Average Grant-Date Fair Value Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value ($000,000) Restricted stock units outstanding at December 31, 2018 2,272,606 $ 9.73 0.8 years $ 4.5 Granted 2,136,188 2.41 Vested and converted to shares (1,150,549 ) 8.65 Forfeited (281,077 ) 7.45 Restricted stock units outstanding at September 30, 2019 2,977,168 $ 5.11 1.1 years $ 11.8 Restricted stock units vested and deferred at September 30, 2019 54,472 $ 8.26 $ 0.2 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table is a summary of the Company's restricted stock unit compensation information: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Weighted-average grant-date fair value of restricted stock units vested during the period $ 0.4 $ 0.2 $ 10.0 $ 16.5 Total intrinsic value of vested and converted shares $ 0.1 $ 0.2 $ 2.9 $ 22.2 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the weighted-average share amounts used in calculating loss per share: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Basic and diluted common shares outstanding 76.4 64.5 69.2 64.2 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the weighted-average potential common shares excluded from diluted loss per common share as their effect would be anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Shares related to stock options 0.5 1.8 1.0 1.8 Shares related to restricted stock units 3.0 2.2 2.8 2.4 Shares related to warrants 1.7 — 0.7 — Shares excluded from the computation 5.2 4.0 4.5 4.2 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenue by segment | The following table is a summary of the total revenue by segment: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Global Funds Transfer revenue Money transfer revenue $ 284.9 $ 304.2 $ 840.4 $ 970.5 Bill payment revenue 14.7 17.4 45.6 57.7 Total Global Funds Transfer revenue 299.6 321.6 886.0 1,028.2 Financial Paper Products revenue Money order revenue 13.1 14.0 40.6 41.6 Official check revenue 11.9 11.6 37.2 32.0 Total Financial Paper Products revenue 25.0 25.6 77.8 73.6 Total revenue $ 324.6 $ 347.2 $ 963.8 $ 1,101.8 |
Operating income by segment | The following table is a summary of the operating income by segment and detail of the (loss) income before income taxes: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Global Funds Transfer operating income (loss) $ 9.8 $ (19.7 ) $ 16.5 $ (12.6 ) Financial Paper Products operating income 7.6 9.6 25.8 22.3 Total segment operating income (loss) 17.4 (10.1 ) 42.3 9.7 Other operating loss (1.0 ) (0.8 ) (3.0 ) (4.9 ) Total operating income (loss) 16.4 (10.9 ) 39.3 4.8 Interest expense 24.8 13.8 52.7 39.8 Other non-operating expense (income) 1.2 1.5 38.1 (25.6 ) Loss before income taxes $ (9.6 ) $ (26.2 ) $ (51.5 ) $ (9.4 ) |
Assets by Segment | The following table sets forth assets by segment: (Amounts in millions) September 30, 2019 December 31, 2018 Global Funds Transfer $ 1,279.0 $ 1,287.1 Financial Paper Products 2,904.1 2,950.7 Other 54.9 58.3 Total assets $ 4,238.0 $ 4,296.1 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Streams | The following table is a summary of the Company's revenue streams disaggregated by services and products for each segment and timing of revenue recognition for such services and products excluding other revenue: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2018 2019 2018 Global Funds Transfer revenue Money transfer fee revenue $ 274.4 $ 301.3 $ 823.6 $ 955.7 Bill payment services fee revenue 14.7 17.4 45.6 57.7 Other revenue 10.5 2.7 16.8 14.6 Total Global Funds Transfer fee and other revenue 299.6 321.4 886.0 1,028.0 Financial Paper Products revenue Money order fee revenue 2.1 2.7 6.6 8.7 Official check outsourcing services fee revenue 2.2 2.3 6.5 6.9 Other revenue 7.3 7.3 22.4 22.7 Total Financial Paper Products fee and other revenue 11.6 12.3 35.5 38.3 Investment revenue 13.4 13.5 42.3 35.5 Total revenue $ 324.6 $ 347.2 $ 963.8 $ 1,101.8 Timing of revenue recognition: Services and products transferred at a point in time $ 291.2 $ 321.4 $ 875.8 $ 1,022.1 Products transferred over time 2.2 2.3 6.5 6.9 Total revenue from services and products 293.4 323.7 882.3 1,029.0 Investment revenue 13.4 13.5 42.3 35.5 Other revenue 17.8 10.0 39.2 37.3 Total revenue $ 324.6 $ 347.2 $ 963.8 $ 1,101.8 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of the Lease Expense and Supplemental Cash Flow Information | The following table is a summary of the Company’s lease expense for its operating leases: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2019 2019 Buildings, equipment and vehicle leases $ 4.1 $ 12.0 Short-term and variable lease cost 0.3 1.4 Total lease cost $ 4.4 $ 13.4 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, (Amounts in millions) 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 12.8 ROU assets obtained in exchange for lease obligations $ 0.6 |
Schedule of Operating Lease Maturities | Maturities of operating lease liabilities as of September 30, 2019 were as follows: (Amounts in millions) Future Minimum Lease Payments October 1, 2019 to December 31, 2019 $ 3.5 2020 14.2 2021 12.0 2022 9.0 2023 5.8 Thereafter 5.0 Total 49.5 Less: present value discount (3.9 ) Lease liability - operating $ 45.6 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments for our noncancellable leases as of December 31, 2018 , prior to the adoption of the new lease standard discussed in Note 1 — Description of the Business and Basis of Presentation , were as follows: (Amounts in millions) Future Minimum Lease Payments 2019 $ 17.5 2020 14.7 2021 12.3 2022 9.2 2023 5.8 Thereafter 5.2 Total $ 64.7 |
Description of the Business a_3
Description of the Business and Basis of Presentation (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019segment | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Cumulative effect of adoption of ASU | $ 0 | $ 4.2 | |
Retained Loss | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adoption of ASU | $ 15.1 | $ 4.2 |
Restructuring and Reorganizat_3
Restructuring and Reorganization Costs - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Incurred restructuring and reorganization costs | $ 24.6 |
Restructuring and Reorganizat_4
Restructuring and Reorganization Costs - Schedule of Restructuring and Reorganization Costs Accrual (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 19.9 | |||
Expenses | $ 0.1 | $ 1.2 | 4.2 | $ 14 |
Digital Transformation Program [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 6.3 | |||
Expenses | 4.2 | |||
Cash payments | (6.9) | |||
Non-cash operating expenses | (0.1) | |||
Ending balance | $ 3.5 | $ 3.5 |
Restructuring and Reorganizat_5
Restructuring and Reorganization Costs - Summary of Cumulative Restructuring and Reorganization Costs Incurred (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and reorganization costs incurred | $ 24.6 | $ 0.5 |
Restructuring Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and reorganization costs incurred | 24.1 | |
Other Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and reorganization costs incurred | $ 0.5 |
Restructuring and Reorganizat_6
Restructuring and Reorganization Costs - Summary of Restructuring Costs Recorded (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 0.1 | $ 0.5 | $ 3.6 | $ 1.2 | $ 4.2 | $ 13.5 |
Reorganization Items | 0 | 0 | 0 | 0.5 | ||
Restructuring And Reorganization Costs | 0.1 | 1.2 | 4.2 | 14 | ||
Compensation and benefits | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 0.3 | 0.6 | 3.5 | 9.8 | ||
Transaction and operations support | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | (0.2) | 0.3 | 0.3 | 1.9 | ||
Occupancy, equipment and supplies | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 0 | 0.3 | 0.3 | 1.5 | ||
Depreciation | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 0 | $ 0 | $ 0.1 | $ 0.3 |
Restructuring and Reorganizat_7
Restructuring and Reorganization Costs - Summary of Total Cumulative Restructuring and Reorganization Costs Incurred By Reporting Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Beginning balance | $ 19.9 | ||||||
Restructuring Charges | $ 0.1 | $ 0.5 | $ 3.6 | $ 1.2 | $ 4.2 | $ 13.5 | |
Total cumulative restructuring costs incurred to date in operating expenses | 24.6 | 24.6 | 0.5 | ||||
Global Funds Transfer | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Beginning balance | 19.9 | ||||||
Restructuring Charges | 0.1 | 0.5 | 3.6 | ||||
Total cumulative restructuring costs incurred to date in operating expenses | 24.1 | 24.1 | 0 | ||||
Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Beginning balance | 0 | ||||||
Restructuring Charges | 0 | $ 0 | $ 0 | ||||
Total cumulative restructuring costs incurred to date in operating expenses | 0.5 | 0.5 | $ 0.5 | ||||
Restructuring Charges | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total cumulative restructuring costs incurred to date in operating expenses | 24.1 | 24.1 | |||||
Restructuring Charges | Global Funds Transfer | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total cumulative restructuring costs incurred to date in operating expenses | 24.1 | 24.1 | |||||
Restructuring Charges | Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total cumulative restructuring costs incurred to date in operating expenses | 0 | 0 | |||||
Other Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total cumulative restructuring costs incurred to date in operating expenses | 0.5 | 0.5 | |||||
Other Restructuring | Global Funds Transfer | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total cumulative restructuring costs incurred to date in operating expenses | 0 | 0 | |||||
Other Restructuring | Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Total cumulative restructuring costs incurred to date in operating expenses | $ 0.5 | $ 0.5 |
Settlement Assets and Payment_3
Settlement Assets and Payment Service Obligations - Summary of Settlement Assets and Payment Service Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Settlement cash and cash equivalents | $ 1,469.3 | $ 1,435.7 |
Receivables, net | 865.5 | 777.7 |
Interest-bearing investments | 986.2 | 1,154.7 |
Available-for-sale investments | 4.7 | 5.7 |
Settlement assets | 3,325.7 | 3,373.8 |
Payment service obligations | $ (3,325.7) | $ (3,373.8) |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities Measured at Fair Value by Hierarchy Level (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Available-for-sale investments: | $ 4.7 | $ 5.7 |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Total financial assets | 6.8 | 5.7 |
Residential mortgage-backed securities — agencies | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Available-for-sale investments: | 3.9 | 4.5 |
Asset-backed and other securities | ||
Financial assets: | ||
Available-for-sale investments: | 0.8 | 1.2 |
Asset-backed and other securities | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Available-for-sale investments: | 0.8 | 1.2 |
Forward contracts | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Forward contracts | 2.1 | 0 |
Financial liabilities: | ||
Forward contracts | 0 | 1.2 |
Level 2 | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Total financial assets | 6 | 4.5 |
Level 2 | Residential mortgage-backed securities — agencies | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Available-for-sale investments: | 3.9 | 4.5 |
Level 2 | Asset-backed and other securities | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Available-for-sale investments: | 0 | 0 |
Level 2 | Forward contracts | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Forward contracts | 2.1 | 0 |
Financial liabilities: | ||
Forward contracts | 0 | 1.2 |
Level 3 | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Total financial assets | 0.8 | 1.2 |
Level 3 | Residential mortgage-backed securities — agencies | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Available-for-sale investments: | 0 | 0 |
Level 3 | Asset-backed and other securities | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Available-for-sale investments: | 0.8 | 1.2 |
Level 3 | Forward contracts | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Forward contracts | 0 | 0 |
Financial liabilities: | ||
Forward contracts | $ 0 | $ 0 |
Fair Value Measurement - Roll-f
Fair Value Measurement - Roll-forward of Other Asset-Backed Securities (Detail) - Level 3 - Fair Value, Measurements, Recurring - Asset-backed and other securities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1 | $ 1.2 |
Change in unrealized gains | (0.2) | (0.4) |
Ending balance | $ 0.8 | $ 0.8 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value and Carrying Value of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior secured credit facilities | $ 891.7 | $ 904.4 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 838.2 | $ 737.1 |
Investment Portfolio - Componen
Investment Portfolio - Components of Investment Portfolio (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Cash | $ 1,585.9 | $ 1,578.7 |
Money market securities | 2.5 | 2.5 |
Interest-bearing investments | 986.2 | 1,154.7 |
Available-for-sale investments | 4.7 | 5.7 |
Total investment portfolio | 2,579.3 | 2,741.6 |
Cash and cash equivalents | ||
Investment [Line Items] | ||
Cash and cash equivalents | $ 1,588.4 | $ 1,581.2 |
Investment Portfolio - Availabl
Investment Portfolio - Available for Sale Investments (Substantially Restricted) (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Amortized Cost | $ 3.8 | $ 4.4 |
Gross Unrealized Gains | 0.9 | 1.3 |
Fair Value | 4.7 | 5.7 |
Residential mortgage-backed securities | ||
Investment [Line Items] | ||
Amortized Cost | 3.6 | 4.2 |
Gross Unrealized Gains | 0.3 | 0.3 |
Fair Value | 3.9 | 4.5 |
Asset-backed and other securities | ||
Investment [Line Items] | ||
Amortized Cost | 0.2 | 0.2 |
Gross Unrealized Gains | 0.6 | 1 |
Fair Value | $ 0.8 | $ 1.2 |
Investment Portfolio - Addition
Investment Portfolio - Additional Information (Detail) | Sep. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Percentage of available-for-sale investments collateralized by US government agency debentures | 83.00% | 79.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivatives, Fair Value [Line Items] | ||
Forward contracts outstanding notional amount | $ 441.9 | $ 300.2 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of (Gains) Losses Related to Assets and Liabilities Denominated in Foreign Currencies (Detail) - Transaction and operations support - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net realized foreign currency loss | $ (8.4) | $ (1.1) | $ (11.5) | $ (4.9) |
Net gain from the related forward contracts | 8 | 1.7 | 13.7 | 6.8 |
Net (loss) gain from foreign currency transactions and related forward contracts | $ (0.4) | $ 0.6 | $ 2.2 | $ 1.9 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Values of Derivative Forward Contract Instruments (Detail) - Foreign Exchange Forward - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amount of Recognized Assets | $ 2.8 | $ 0.2 |
Gross Amount of Offset | (0.7) | (0.2) |
Net Amount of Assets Presented in the Consolidated Balance Sheets | 2.1 | 0 |
Accounts payable and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amount of Recognized Liabilities | 0.7 | 1.4 |
Gross Amount of Offset | (0.7) | (0.2) |
Net Amount of Liabilities Presented in the Consolidated Balance Sheets | $ 0 | $ 1.2 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 26, 2019USD ($)$ / sharesshares | Jun. 17, 2019$ / shares | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt extinguishment costs | $ 2,400,000 | $ 2,400,000 | $ 0 | |||
Shares Issued, Price Per Share | $ / shares | $ 4.10 | |||||
Assets In excess of payment service obligations | $ 119,100,000 | $ 145,500,000 | ||||
Interest Coverage Minimum Ratio | 3.931 | |||||
First Lien Leverage Ratio Not to Exceed | 2.792 | |||||
Total Leverage Ratio Not to Exceed | 3.869 | |||||
First Lien Credit Facility due 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 643,400,000 | $ 645,000,000 | 0 | |||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 9,900,000 | |||||
Effective interest rate | 8.33% | 5.00% | ||||
Debt Instrument Principal Amount To Be Paid in Quarterly Increments | $ 1,600,000 | |||||
Term Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 0 | $ 904,400,000 | ||||
Effective interest rate | 5.59% | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | 35,000,000 | |||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | 500,000 | |||||
Borrowings under revolving credit facility | 0 | |||||
Second Lien Credit Facility due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 248,300,000 | 245,000,000 | $ 0 | |||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 11,000,000 | |||||
Effective interest rate | 13.00% | 13.00% | ||||
Class of Warrant or Right, Outstanding | shares | 5,423,470 | |||||
Warrant exercise price (in dollars per share) | $ / shares | $ 2.41 | |||||
Shares Issued, Price Per Share | $ / shares | $ 0.01 | |||||
July 1, 2019 through June 30, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Coverage Minimum Ratio | 2.500 | |||||
First Lien Leverage Ratio Not to Exceed | 3.750 | |||||
Total Leverage Ratio Not to Exceed | 5.125 | |||||
July 1, 2020 through December 31, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Coverage Minimum Ratio | 2.500 | |||||
First Lien Leverage Ratio Not to Exceed | 3.500 | |||||
Total Leverage Ratio Not to Exceed | 5 | |||||
January 1, 2021 through maturity | ||||||
Debt Instrument [Line Items] | ||||||
Interest Coverage Minimum Ratio | 2.500 | |||||
First Lien Leverage Ratio Not to Exceed | 3 | |||||
Total Leverage Ratio Not to Exceed | 4.500 | |||||
Maximum [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 5.00% | |||||
Minimum [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 4.75% | |||||
London Interbank Offered Rate (LIBOR) [Member] | First Lien Credit Facility due 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 6.00% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 6.00% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 5.75% |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) $ in Millions | Sep. 30, 2019USD ($) | Jun. 26, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||
Interest Coverage Minimum Ratio | 3.931 | ||
First Lien Leverage Ratio Not to Exceed | 2.792 | ||
Total Leverage Ratio Not to Exceed | 3.869 | ||
Senior secured credit facilities | $ 891.7 | $ 904.4 | |
Unamortized debt issuance costs and debt discounts | (45.3) | (3.4) | |
Total debt, net | 846.4 | 901 | |
Term Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 0 | $ 904.4 | |
Effective Interest Rate | 5.59% | ||
First Lien Credit Facility due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 643.4 | $ 645 | $ 0 |
Effective Interest Rate | 8.33% | 5.00% | |
Second Lien Credit Facility due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 248.3 | $ 245 | $ 0 |
Effective Interest Rate | 13.00% | 13.00% |
Pension and Other Benefits Addi
Pension and Other Benefits Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1.2 | $ 1.5 | $ 35.4 | $ 4.3 | ||
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | $ 1.2 | |||||
Liability, Defined Benefit Pension Plan | $ 74.3 | $ 74.3 | ||||
Settlement charge | $ 0 | $ (31.3) | 0 | (31.3) | $ 0 | |
Postemployment Retirement Benefits [Member] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 0.1 | $ 0.1 |
Pension and Other Benefits - Ne
Pension and Other Benefits - Net Periodic Benefit Expense Amortized from Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement charge | $ 0 | $ (31.3) | $ 0 | $ (31.3) | $ 0 |
Interest cost | 1 | 1.6 | 4.4 | 4.7 | |
Expected return on plan assets | (0.3) | (1.2) | (2.5) | (3.7) | |
Amortization of net actuarial loss | 0.5 | 1.1 | 2.2 | 3.3 | |
Net periodic benefit expense | $ 1.2 | 1.5 | 35.4 | $ 4.3 | |
Postemployment Retirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit expense | $ 0.1 | $ 0.1 |
Pension and Other Benefits Pens
Pension and Other Benefits Pension unfunded status table (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Benefit Obligation | $ 105.8 | $ 191.9 |
Assets for Plan Benefits, Defined Benefit Plan | 34.1 | 115.3 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 71.7 | $ 76.6 |
Pension and Other Benefits Pe_2
Pension and Other Benefits Pension assumptions (Details) | 6 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.25% | 3.58% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate for Interest Cost | 3.83% | 3.13% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 3.83% | 4.59% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.57% | 4.25% |
Stockholders' Deficit - Additio
Stockholders' Deficit - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 17, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||||||
Dividends paid | $ 0 | $ 0 | |||||
Reclassification to Retained loss | $ 0 | $ (4,200,000) | |||||
Ripple securities purchase agreement | $ 50,000,000 | ||||||
Common Stock, Shares, Issued | 64,434,490 | 58,823,567 | |||||
Shares Issued, Price Per Share | $ 4.10 | ||||||
Proceeds from Other Equity | $ 30,000,000 | ||||||
Direct and incremental costs | 500,000 | ||||||
Equity line of credit | $ 20,000,000 | ||||||
Cumulative Foreign Currency Translation Adjustments, Net of Tax | |||||||
Class of Stock [Line Items] | |||||||
Reclassification to Retained loss | 3,700,000 | ||||||
Pension and Postretirement Benefits Adjustment, Net of Tax | |||||||
Class of Stock [Line Items] | |||||||
Reclassification to Retained loss | $ 11,400,000 | ||||||
Securities Purchase Agreement (Ripple) [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common Stock, Shares, Issued | 5,610,923 | ||||||
Class of Warrant or Right, Outstanding | 1,706,151 |
Stockholders' Deficit Schedule
Stockholders' Deficit Schedule of Activity of Company's Common Stock (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Common Stock, Shares Authorized | 162,500,000 | 162,500,000 |
Common Stock, Shares, Issued | 64,434,490 | 58,823,567 |
Treasury stock (shares) | 2,384,065 | 3,207,118 |
Common Stock | ||
Common Stock, Shares Authorized | 162,500,000 | 162,500,000 |
Common Stock, Shares, Issued | 64,434,490 | 58,823,567 |
Common Stock, Shares, Outstanding | (62,050,425) | (55,616,449) |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | (823,053) | |
Stock Issued During Period, Shares, New Issues | (5,610,923) | |
Treasury Stock | ||
Treasury stock (shares) | 2,384,065 | 3,207,118 |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 823,053 |
Stockholders' Deficit - Summary
Stockholders' Deficit - Summary of Significant Amounts Reclassified (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Settlement charge | $ 0 | $ 0 | $ 31.3 | $ 0 |
Tax benefit, net | 0 | 0 | 0.1 | 0 |
Total reclassified for the period, net of tax | 0 | 0 | (0.5) | 0 |
Pension and Postretirement Benefits Adjustment, Net of Tax | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net actuarial loss | 0.5 | 1.1 | 2.3 | 3.4 |
Total before tax | 0.5 | 1.1 | 33.6 | 3.4 |
Tax benefit, net | 0 | (0.2) | (7.6) | (0.8) |
Total reclassified for the period, net of tax | $ 0.5 | $ 0.9 | $ 26 | $ 2.6 |
Stockholders' Deficit - Summa_2
Stockholders' Deficit - Summary of Changes To Accumulated Other Comprehensive Loss By Compenent (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | $ (67.5) | |||||
Cumulative effect of adoption of ASU | 0 | $ 4.2 | ||||
Net current period other comprehensive income (loss) | $ (6) | $ 28.5 | (2.1) | $ (1.1) | $ (8.6) | 3.4 |
Ending balance | (62.2) | |||||
Net Unrealized Gains on Securities Classified as Available-for-sale, Net of Tax | ||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | 1.7 | 2.1 | 1.9 | 2 | 2 | 2.2 |
Cumulative effect of adoption of ASU | 0 | |||||
Other comprehensive income (loss) before reclassification | (0.2) | (0.4) | 0.2 | 0.1 | 0 | (0.2) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | (0.2) | (0.4) | 0.2 | 0.1 | 0 | (0.2) |
Ending balance | 1.5 | 1.7 | 2.1 | 2.1 | 2 | 2 |
Cumulative Foreign Currency Translation Adjustments, Net of Tax | ||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (26.3) | (31) | (24.2) | (17.1) | (7.7) | (10.4) |
Cumulative effect of adoption of ASU | (3.7) | |||||
Other comprehensive income (loss) before reclassification | (6.3) | 4.7 | (3.1) | (2.1) | (9.4) | 2.7 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | (6.3) | 4.7 | (3.1) | (2.1) | (9.4) | 2.7 |
Ending balance | (32.6) | (26.3) | (31) | (19.2) | (17.1) | (7.7) |
Pension and Postretirement Benefits Adjustment, Net of Tax | ||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (31.6) | (55.8) | (45.2) | (53.1) | (53.9) | (54.8) |
Cumulative effect of adoption of ASU | (11.4) | |||||
Other comprehensive income (loss) before reclassification | 0 | (0.5) | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0.5 | 24.7 | 0.8 | 0.9 | 0.8 | 0.9 |
Net current period other comprehensive income (loss) | 0.5 | 24.2 | 0.8 | 0.9 | 0.8 | 0.9 |
Ending balance | (31.1) | (31.6) | (55.8) | (52.2) | (53.1) | (53.9) |
Accumulated Other Comprehensive Loss | ||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (56.2) | (84.7) | (67.5) | (68.2) | (59.6) | (63) |
Cumulative effect of adoption of ASU | (15.1) | |||||
Other comprehensive income (loss) before reclassification | (6.5) | 3.8 | (2.9) | (2) | (9.4) | 2.5 |
Amounts reclassified from accumulated other comprehensive loss | 0.5 | 24.7 | 0.8 | 0.9 | 0.8 | 0.9 |
Net current period other comprehensive income (loss) | (6) | 28.5 | (2.1) | (1.1) | (8.6) | 3.4 |
Ending balance | $ (62.2) | $ (56.2) | $ (84.7) | $ (69.3) | $ (68.2) | $ (59.6) |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 1.6 | $ 2.5 | $ 6.1 | $ 10 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - Stock Options - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Stock Option Activity | ||
Shares, options outstanding, beginning balance | 1,628,829 | |
Shares, forfeited/expired | (1,136,449) | |
Shares, options outstanding, ending balance | 492,380 | 1,628,829 |
Weighted Average Exercise Price | ||
Weighted average exercise price, options outstanding (usd per share), beginning balance | $ 17.20 | |
Weighted-average exercise price, forfeited/expired (usd per share) | 16.30 | |
Weighted average exercise price, options outstanding (usd per share), ending balance | $ 19.29 | $ 17.20 |
Additional Disclosures | ||
Weighted average remaining contractual term options outstanding (years) | 2 years 10 months 25 days | 1 year 4 months 21 days |
Aggregate intrinsic value, options outstanding | $ 0 | $ 0 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Equity Instruments Other than Options, Nonvested, Number of Shares | ||
Restricted stock units outstanding (shares), beginning balance | 2,272,606 | |
Granted (shares) | 2,136,188 | |
Vested and converted to shares (shares) | (1,150,549) | |
Forfeited (shares) | (281,077) | |
Restricted stock units outstanding (shares), ending balance | 2,977,168 | 2,272,606 |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||
Restricted stock units outstanding (usd per share), beginning balance | $ 9.73 | |
Granted (usd per share) | 2.41 | |
Vested and converted to shares (usd per share) | 8.65 | |
Forfeited (usd per share) | 7.45 | |
Restricted stock units outstanding (usd per share), ending balance | $ 5.11 | $ 9.73 |
Weighted average remaining contractual term options outstanding (years) | 1 year 1 month 12 days | 10 months 5 days |
Restricted stock units outstanding, aggregate intrinsic value | $ 11.8 | $ 4.5 |
Restricted stock units vested and outstanding (shares) | 54,472 | |
Restricted stock units vested and outstanding (usd per share) | $ 8.26 | |
Restricted stock units vested and outstanding, aggregate intrinsic value | $ 0.2 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Restricted Stock Unit Compensation Information (Detail) - Restricted Stock Units (RSUs) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant-date fair value of restricted stock units vested during the period | $ 0.4 | $ 0.2 | $ 10 | $ 16.5 |
Total intrinsic value of vested and converted shares | $ 0.1 | $ 0.2 | $ 2.9 | $ 22.2 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock option expense | $ 0 |
Unrecognized restricted stock unit expense | $ 8,400,000 |
Remaining weighted-average vesting period (years) | 1 year 1 month 12 days |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 300,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 15, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
Income tax (benefit) expense | $ (1.9) | $ (5.3) | $ (3.1) | $ 2.1 | ||
(Loss) income before income taxes | (9.6) | (26.2) | (51.5) | (9.4) | ||
Remeasurement of Other Deferred Income Tax Assets and Liabilities due to Tax Reform | 2.4 | |||||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 1.5 | |||||
Discrete tax expense related to Section 965 regulations | $ 0.7 | |||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 3.6 | |||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Amount | 1.9 | |||||
Liability for unrecognized tax benefits | 17.6 | 17.6 | $ 17.9 | |||
Unrecognized tax benefits that if recognized could impact the effective tax rate | 17.6 | $ 17.4 | 17.6 | 17.4 | ||
Interest and penalties | 0.7 | $ 1.9 | ||||
Income tax penalties and interest accrued | $ 8 | $ 8 | $ 7.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 36 Months Ended | |||||
Nov. 30, 2018 | Sep. 30, 2018 | Mar. 31, 2015 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2018 | Nov. 08, 2018 | |
Commitments and Contingencies [Line Items] | ||||||||||
Loss contingency accrual | $ 57.5 | $ 57.5 | ||||||||
Litigation Settlement, Expense | $ 30 | $ 40 | ||||||||
Internal Revenue Service (IRS) [Member] | ||||||||||
Commitments and Contingencies [Line Items] | ||||||||||
Loss contingency accrual | 20 | |||||||||
Deductions on securities losses | $ 900 | |||||||||
Tax adjustments | $ 63.7 | $ 186.9 | ||||||||
Cash payments for income taxes | $ 61 | |||||||||
Deferred Prosecution Agreement [Member] | ||||||||||
Commitments and Contingencies [Line Items] | ||||||||||
Loss contingency accrual | $ 125 | |||||||||
Payments for legal settlements | $ 70 | |||||||||
Effect on future cash flows | $ 55 |
Earnings per Common Share - Wei
Earnings per Common Share - Weighted-Average Common Shares Basic and Diluted (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Basic | 76.4 | 64.5 | 69.2 | 64.2 |
Diluted | 76.4 | 64.5 | 69.2 | 64.2 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation | 5.2 | 4 | 4.5 | 4.2 |
Shares related to stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation | 0.5 | 1.8 | 1 | 1.8 |
Shares related to restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation | 3 | 2.2 | 2.8 | 2.4 |
Shares related to warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation | 1.7 | 0 | 0.7 | 0 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019Customer | Sep. 30, 2018Customer | Sep. 30, 2019segmentCustomer | Sep. 30, 2018Customer | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Percentage of total revenue | 15.00% | 16.00% | 16.00% | 16.00% |
Global Funds Transfer | ||||
Segment Reporting Information [Line Items] | ||||
Entity wide revenue major customer number | 1 | 1 | 1 | 1 |
Financial Paper Products | ||||
Segment Reporting Information [Line Items] | ||||
Entity wide revenue major customer number | 1 | 1 | 1 | 1 |
Segment Information - Revenue b
Segment Information - Revenue by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 324.6 | $ 347.2 | $ 963.8 | $ 1,101.8 |
Global Funds Transfer | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 299.6 | 321.6 | 886 | 1,028.2 |
Global Funds Transfer | Money transfer revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 284.9 | 304.2 | 840.4 | 970.5 |
Global Funds Transfer | Bill payment revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 14.7 | 17.4 | 45.6 | 57.7 |
Financial Paper Products | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 25 | 25.6 | 77.8 | 73.6 |
Financial Paper Products | Money order revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 13.1 | 14 | 40.6 | 41.6 |
Financial Paper Products | Official check revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 11.9 | $ 11.6 | $ 37.2 | $ 32 |
Segment Information - Operating
Segment Information - Operating Income by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | $ 16.4 | $ (10.9) | $ 39.3 | $ 4.8 |
Interest expense | 24.8 | 13.8 | 52.7 | 39.8 |
Other non-operating expense (income) | 1.2 | 1.5 | 38.1 | (25.6) |
Loss before income taxes | (9.6) | (26.2) | (51.5) | (9.4) |
Global Funds Transfer | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 9.8 | (19.7) | 16.5 | (12.6) |
Financial Paper Products | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 7.6 | 9.6 | 25.8 | 22.3 |
Total segment operating income | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | 17.4 | (10.1) | 42.3 | 9.7 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total operating income (loss) | $ (1) | $ (0.8) | $ (3) | $ (4.9) |
Segment Information - Assets by
Segment Information - Assets by Segment (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Total assets | $ 4,238 | $ 4,296.1 |
Global Funds Transfer | ||
Assets: | ||
Total assets | 1,279 | 1,287.1 |
Financial Paper Products | ||
Assets: | ||
Total assets | 2,904.1 | 2,950.7 |
Other | ||
Assets: | ||
Total assets | $ 54.9 | $ 58.3 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | $ 324.6 | $ 347.2 | $ 963.8 | $ 1,101.8 |
Investment revenue | 13.4 | 13.5 | 42.3 | 35.5 |
Other revenue | ||||
Revenues | 17.8 | 10 | 39.2 | 37.3 |
Total revenue from services and products | ||||
Revenues | 293.4 | 323.7 | 882.3 | 1,029 |
Global Funds Transfer | ||||
Revenues | 299.6 | 321.6 | 886 | 1,028.2 |
Global Funds Transfer | Money transfer fee revenue | ||||
Revenues | 274.4 | 301.3 | 823.6 | 955.7 |
Global Funds Transfer | Bill payment services fee revenue | ||||
Revenues | 14.7 | 17.4 | 45.6 | 57.7 |
Global Funds Transfer | Other revenue | ||||
Revenues | 10.5 | 2.7 | 16.8 | 14.6 |
Global Funds Transfer | Total Global Funds Transfer fee and other revenue | ||||
Revenues | 299.6 | 321.4 | 886 | 1,028 |
Financial Paper Products | ||||
Revenues | 25 | 25.6 | 77.8 | 73.6 |
Financial Paper Products | Other revenue | ||||
Revenues | 7.3 | 7.3 | 22.4 | 22.7 |
Financial Paper Products | Money order fee revenue | ||||
Revenues | 2.1 | 2.7 | 6.6 | 8.7 |
Financial Paper Products | Official check outsourcing services fee revenue | ||||
Revenues | 2.2 | 2.3 | 6.5 | 6.9 |
Financial Paper Products | Total Financial Paper Products fee and other revenue | ||||
Revenues | 11.6 | 12.3 | 35.5 | 38.3 |
Services and products transferred at a point in time | ||||
Revenues | 291.2 | 321.4 | 875.8 | 1,022.1 |
Products transferred over time | ||||
Revenues | $ 2.2 | $ 2.3 | $ 6.5 | $ 6.9 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liability - operating | $ 45.6 | ||
Weighted average remaining lease term (in years) | 4 years 3 months 21 days | ||
Weighted average discount rate (as a percentage) | 4.50% | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liability - operating | $ 45.6 | $ 57.1 | |
Right-of-use asset, operating lease | $ 42.7 | $ 53.9 | |
Accrued rent | $ 3.2 | ||
Leasehold improvements | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Useful life (in years) | 10 years |
Leases - Summary of the Lease E
Leases - Summary of the Lease Expense and Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Buildings, equipment and vehicle leases | $ 4.1 | $ 12 |
Short-term and variable lease cost | 0.3 | 1.4 |
Total lease cost | $ 4.4 | 13.4 |
Cash paid for amounts included in the measurement of operating lease liabilities | 12.8 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 0.6 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Maturities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
October 1, 2019 to December 31, 2019 | $ 3.5 |
2020 | 14.2 |
2021 | 12 |
2022 | 9 |
2023 | 5.8 |
Thereafter | 5 |
Total | 49.5 |
Less: present value discount | (3.9) |
Lease liability - operating | $ 45.6 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 17.5 |
2020 | 14.7 |
2021 | 12.3 |
2022 | 9.2 |
2023 | 5.8 |
Thereafter | 5.2 |
Total | $ 64.7 |