Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 17, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-31950 | ||
Entity Registrant Name | MONEYGRAM INTERNATIONAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 16-1690064 | ||
Entity Address, Address Line One | 2828 N. Harwood St., 15th Floor | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 197,800 | ||
Entity Common Stock, Shares Outstanding | 72,541,506 | ||
Entity Information [Line Items] | |||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Certain information required by Part III of this report is incorporated by reference from the registrant's definitive proxy statement for the 2021 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission. | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001273931 | ||
Current Fiscal Year End Date | --12-31 | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common stock, $0.01 par value | ||
Trading Symbol | MGI | ||
Security Exchange Name | NASDAQ | ||
Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights | ||
Trading Symbol | ☑ | ||
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 196.1 | $ 146.8 |
Settlement assets | 3,702.9 | 3,237 |
Property and equipment, net | 148.1 | 176.1 |
Goodwill | 442.2 | 442.2 |
Right-of-use asset, operating lease | 55.1 | 50 |
Other assets | 129.7 | 132.9 |
Total assets | 4,674.1 | 4,185 |
LIABILITIES | ||
Payment service obligations | 3,702.9 | 3,237 |
Debt, net | 857.8 | 850.3 |
Pension and other postretirement benefits | 74.5 | 77.5 |
Lease liability - operating | 59.1 | 54.2 |
Accounts payable and other liabilities | 216.8 | 206.4 |
Total liabilities | 4,911.1 | 4,425.4 |
Commitments and Contingencies | ||
STOCKHOLDERS' DEFICIT | ||
Preferred Stock, Shares Outstanding | 0 | 71,282 |
Preferred Stock, Value, Issued | $ 0 | $ 183.9 |
Common Stock, Value, Issued | 0.7 | 0.7 |
Additional Paid in Capital | 1,296 | 1,116.9 |
Retained Earnings (Accumulated Deficit) | (1,475.3) | (1,460.1) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (58.4) | (63.5) |
Treasury Stock, Value | 0 | (18.3) |
Total stockholders' deficit | (237) | (240.4) |
Total liabilities and stockholders' deficit | $ 4,674.1 | $ 4,185 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 7,000,000 | |
Common Stock, Shares, Outstanding | 72,517,539 | 62,731,184 |
Common stock, shares authorized | 162,500,000 | 162,500,000 |
Common Stock, Shares, Issued | 72,530,770 | 65,061,090 |
Treasury stock (shares) | 13,231 | 2,329,906 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred Stock, Shares Authorized | 7,000,000 | |
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 | 72,530,770 | 65,061,090 |
Treasury stock (shares) | 13,231 | 2,329,906 |
D Stock | ||
Participating convertible preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 200,000 | 200,000 |
Participating convertible preferred stock, shares issued (shares) | 0 | 71,282 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE | |||
Fee and other revenue | $ 1,197.2 | $ 1,230.4 | $ 1,398.1 |
Investment revenue | 20 | 54.7 | 49.5 |
Total revenue | 1,217.2 | 1,285.1 | 1,447.6 |
EXPENSES | |||
Fee and other commissions expense | 603.6 | 613.4 | 688.6 |
Investment commissions expense | 3.6 | 23.3 | 19.3 |
Direct transaction expense | 45.8 | 25.5 | 24.3 |
Total commissions and direct transaction expenses | 653 | 662.2 | 732.2 |
Compensation and benefits | 223.8 | 228.4 | 259.8 |
Transaction and operations support (1) | 111.6 | 207.8 | 298.8 |
Occupancy, equipment and supplies | 61.4 | 60.9 | 62 |
Depreciation and amortization | 64.4 | 73.8 | 76.3 |
Total operating expenses | 1,114.2 | 1,233.1 | 1,429.1 |
OPERATING INCOME | 103 | 52 | 18.5 |
Other expenses | |||
Interest expense | 92.4 | 77 | 53.6 |
Other non-operating expense (income) | 4.5 | 39.3 | (24.2) |
Total other expenses | 96.9 | 116.3 | 29.4 |
Income (loss) before income taxes | 6.1 | (64.3) | (10.9) |
Income tax expense (benefit) | 14 | (4) | 13.1 |
NET LOSS | $ (7.9) | $ (60.3) | $ (24) |
LOSS PER COMMON SHARE | |||
Basic (usd per share) | $ (0.10) | $ (0.85) | $ (0.37) |
Diluted (usd per share) | $ (0.10) | $ (0.85) | $ (0.37) |
Weighted-average outstanding common shares and equivalents used in computing loss per share | |||
Basic | 77.8 | 71.1 | 64.3 |
Diluted | 77.8 | 71.1 | 64.3 |
Costs and Expenses | $ 1,114.2 | $ 1,233.1 | $ 1,429.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
NET LOSS | $ (7.9) | $ (60.3) | $ (24) |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Net change in unrealized holding loss on available-for-sale securities arising during the period, net of tax benefit of $0.1, $0.0 and $0.0 for the years ended December 31, 2020, 2019 and 2018, respectively | (0.4) | (0.3) | (0.3) |
Net change in pension liability due to amortization of prior service credit and net actuarial loss, net of tax benefit of $0.5, $0.7 and $1.0 for the years ended December 31, 2020, 2019 and 2018, respectively | 1.7 | 2.1 | 3.5 |
Pension settlement charge, net of tax benefit of $7.2 for the year ended December 31, 2019 | 0 | 24.1 | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | (3.4) | (6.6) | 6.1 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 7.2 | (0.2) | (13.8) |
Other comprehensive income (loss) | 5.1 | 19.1 | (4.5) |
COMPREHENSIVE LOSS | $ (2.8) | $ (41.2) | $ (28.5) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax | $ 0.1 | $ 0 | $ 0 |
Net change in pension liability, tax | 0.5 | 0.7 | 1 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Plan Amendments, Tax Effect | 7.2 | ||
Unrealized foreign currency translation gains (losses), tax | 0.2 | (0.3) | 0 |
Tax benefit, net | $ (1) | $ (2) | $ 1.8 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (7,900,000) | $ (60,300,000) | $ (24,000,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 64,400,000 | 73,800,000 | 76,300,000 |
Signing bonus amortization | 54,500,000 | 46,400,000 | 53,900,000 |
Deferred income tax expense (benefit) | 9,100,000 | (13,500,000) | 9,500,000 |
Amortization of debt discount and debt issuance costs | 11,700,000 | 7,300,000 | 3,100,000 |
Debt extinguishment costs | 0 | 2,400,000 | 0 |
Non-cash compensation and pension expense | 11,100,000 | 44,700,000 | 18,200,000 |
Signing bonus payments | (58,700,000) | (29,100,000) | (31,600,000) |
Change in other assets | (10,900,000) | (20,600,000) | (3,900,000) |
Change in lease liabilities | (15,300,000) | (15,800,000) | 0 |
Change in accounts payable and other liabilities | 29,300,000 | 8,300,000 | (73,700,000) |
Other non-cash items, net | 100,000 | 3,900,000 | 1,500,000 |
Net cash provided by operating activities | 97,300,000 | 63,000,000 | 29,300,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Payments for capital expenditures | (40,800,000) | (54,500,000) | (57,800,000) |
Net cash used in investing activities | (40,800,000) | (54,500,000) | (57,800,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Transaction costs for issuance and amendment of debt | 0 | (24,300,000) | 0 |
Principal payments on debt | (6,500,000) | (31,600,000) | (9,800,000) |
Proceeds from revolving credit facility | 23,000,000 | 0 | 0 |
Payments on revolving credit facility | (23,000,000) | 0 | 0 |
Net proceeds from issuing equity instruments | 0 | 49,500,000 | 0 |
Payments to tax authorities for stock-based compensation | (700,000) | (800,000) | (6,200,000) |
Net cash used in financing activities | (7,200,000) | (7,200,000) | (16,000,000) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 49,300,000 | 1,300,000 | (44,500,000) |
CASH AND CASH EQUIVALENTS—Beginning of year | 146,800,000 | 145,500,000 | 190,000,000 |
CASH AND CASH EQUIVALENTS—End of year | 196,100,000 | 146,800,000 | 145,500,000 |
Supplemental Cash Flow Information [Abstract] | |||
Cash payments for interest | 77,500,000 | 63,300,000 | 50,700,000 |
Cash payments for taxes, net of refunds | (1,800,000) | 4,400,000 | 4,800,000 |
Proceeds from Lease Payment, Operating Activity | 9,900,000 | 15,500,000 | 0 |
Depreciation and amortization | 64,400,000 | 73,800,000 | 76,300,000 |
Net Cash Provided by (Used in) Operating Activities | $ 97,300,000 | $ 63,000,000 | $ 29,300,000 |
Consdensed Consolidated Stateme
Consdensed Consolidated Statements of Stockholders' Deficit - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock | Preferred StockCumulative Effect, Period of Adoption, Adjustment | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjustment | Retained Loss | Retained LossCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjustment | Treasury Stock |
Beginning Balance at Dec. 31, 2017 | $ (245.3) | $ (0.1) | $ 183.9 | $ 0 | $ 0.6 | $ 0 | $ 1,034.8 | $ 0 | $ (1,336.1) | $ (0.1) | $ (63) | $ 0 | $ (65.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (24) | 0 | 0 | 0 | (24) | 0 | 0 | ||||||
Stock-based compensation activity | 5.1 | 0 | 0 | 12 | (43.4) | 0 | 36.5 | ||||||
Net proceeds from issuing equity instruments | 0 | ||||||||||||
Other comprehensive loss | (4.5) | 0 | 0 | 0 | 0 | (4.5) | 0 | ||||||
Ending 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 | (60.3) | 0 | 0 | 0 | (60.3) | 0 | 0 | ||||||
Stock-based compensation activity | 7 | 0 | 0 | 7.6 | (11.3) | 0 | 10.7 | ||||||
Cumulative effect of adoption of ASU 2018-02 | 0 | 0 | 0 | 0 | 15.1 | (15.1) | 0 | ||||||
Net proceeds from issuing equity instruments | 49.5 | 0 | 0.1 | 49.4 | 0 | 0 | 0 | ||||||
Equity instruments issued in connection with Second Lien Term Credit Facility | 13.1 | 0 | 0 | 13.1 | 0 | 0 | 0 | ||||||
Other comprehensive loss | 19.1 | 0 | 0 | 0 | 0 | 19.1 | 0 | ||||||
Ending Balance at Dec. 31, 2019 | (240.4) | 183.9 | 0.7 | 1,116.9 | (1,460.1) | (63.5) | (18.3) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss | (7.9) | 0 | 0 | 0 | (7.9) | 0 | 0 | ||||||
Stock-based compensation activity | 6.2 | 0 | 0 | 6.6 | (7.3) | 0 | 6.9 | ||||||
Net proceeds from issuing equity instruments | 0 | ||||||||||||
Preferred stock - series D conversion | 0 | (183.9) | 0 | 172.5 | 0 | 0 | 11.4 | ||||||
Other comprehensive loss | 5.1 | 0 | 0 | 0 | 0 | 5.1 | 0 | ||||||
Ending Balance at Dec. 31, 2020 | $ (237) | $ 0 | $ 0.7 | $ 1,296 | $ (1,475.3) | $ (58.4) | $ 0 |
Description of the Business and
Description of the Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Description of the Business and Basis of Presentation [Abstract] | |
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 through two primary distribution channels: retail and digital. Through our Retail Channel, we offer services through third-party agents, including retail chains, independent retailers, post offices and other financial institutions. Additionally, we have limited Company-operated retail locations. We offer services such as moneygram.com, mobile solutions, account deposit and kiosk-based services as part of our Digital Channel. The Financial Paper Products segment provides official check outsourcing services and money orders through financial institutions and agent locations. Basis of Presentation — The accompanying consolidated financial statements of MoneyGram are prepared in conformity with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The 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 U.S. 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. Impact of Novel Coronavirus ("COVID-19" ) Pandemic On Our Financial Statements — The global spread of COVID-19 and the unprecedented impact of the COVID-19 pandemic is complex and ever-evolving. In March 2020, the World Health Organization declared COVID-19 a global pandemic and recommended extensive containment and mitigation measures worldwide. The outbreak reached all of the regions in which we do business, and governmental authorities around the world implemented numerous measures attempting to contain and mitigate the effects of the virus, including travel bans and restrictions, border closings, quarantines, shelter-in-place orders, shutdowns, limitations or closures of non-essential businesses, school closures and social distancing requirements. The global spread of COVID-19 and resulting government actions taken in response to the virus have caused, and may continue to cause significant economic and business disruption, volatility and financial uncertainty, and a continued significant global economic downturn. This has had, and may continue to have, negative impact on our workforce, agents, customers, financial markets, consumer spending and credit markets. Earlier in the first half of 2020, we assessed various accounting estimates and other matters, including those that require consideration of forecasted financial information, in context of the unknown future impacts of COVID-19 using information that was reasonably available to us at the time. The accounting estimates and other matters we assessed included, but were not limited to, our goodwill and other long-lived assets, allowance for credit losses, Pension and other Postretirement Benefits and valuation allowances for tax assets. Based on our assessment of these estimates, the Company recorded an increase in its deferred tax asset valuation allowance of $10.1 million related to balances which existed at the beginning of the year. See Note 14 — Income Taxes for more information related to our deferred tax asset valuation allowance adjustments made during 2020. Later in the first half of 2020, governmental authorities began lifting some restrictions such as quarantines, shutdowns and some shelter-in-place orders. As the restrictions started to ease, the ability to transact on a more normal basis began to return. Notwithstanding such positive trends, the impact of the COVID-19 pandemic worsened in certain jurisdictions resulting in increased or resumed shelter-in-place and shutdown orders. During the second half of 2020, the effects of the pandemic persisted in most of the world, with varying degrees of government responses. Quarantines, shutdowns, shelter-in-place orders and travel restrictions still existed in most countries. Economic recessionary pressure, such as high unemployment and business failures resulting from the COVID-19 pandemic continued to be seen throughout the U.S. and international landscape. Remittance was classified as an essential service in virtually all countries, which kept a significant number of physical locations open, but also accelerated a trend of consumers moving to digital product offerings when practical and available. There were no other material impact to our Consolidated Financial Statements as of and for the year ended December 31, 2020, based on the Company's assessment of its estimates. As additional information becomes available to us, our future assessment of these estimates, including our expectations at the time regarding the duration, scope and severity of the pandemic, as well as other factors, could materially and adversely impact our Consolidated Financial Statements in future reporting periods. Principles of Consolidation — The consolidated financial statements include the accounts of MoneyGram International, Inc. and its subsidiaries. Intercompany profits, transactions and account balances have been eliminated in consolidation. Reclassification — Certain prior amounts have been reclassified in order to conform to the current year presentation. In 2020, the Company changed the presentation of its right-of-use assets and associated lease liabilities in the accompanying Consolidated Balance Sheets and Consolidated Statements of Cash Flows. Increases to our right-of-asset and liabilities that result from new operating leases, extension of existing operating leases or modifications of existing operating leases are excluded from the Consolidated Statements of Cash Flows as these are non-cash items in period they occur. For the years ended December 31, 2020 and 2019, the non-cash increase in our right-of-use assets and corresponding lease liabilities associated with new, extended or modified operating leases totaled $15.0 million and $11.6 million, respectively. The Company participates in various trust arrangements (special purpose entities or "SPEs") related to official check processing agreements with financial institutions and structured investments within the investment portfolio. As the Company is the primary beneficiary and bears the primary burden of any losses, the SPEs are consolidated in the consolidated financial statements. The assets and obligations of the SPEs are recorded in the Consolidated Balance Sheets in a manner consistent with the assets and obligations of the Company. As of December 31, 2020 and 2019, the Company had only one remaining SPE. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Cash and cash equivalents — The Company defines cash and cash equivalents and settlement cash and cash equivalents as cash on hand and all highly liquid debt instruments with original maturities of three months or less at the purchase date. 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. Settlement assets consist of settlement cash and cash equivalents, receivables and investments. Payment service obligations primarily consist of outstanding payment instruments; amounts owed to financial institutions for funds paid to the Company to cover clearings of official check payment instruments, remittances and clearing adjustments; amounts owed to agents for funds paid to consumers on behalf of the Company; commissions owed to financial institution customers and agents for instruments sold; amounts owed to investment brokers for purchased securities and unclaimed instruments owed to various states. Receivables, net (included in settlement assets) — The Company has receivables due from financial institutions and agents for payment instruments sold and amounts advanced by the Company to certain agents for operational and local regulatory purposes. These receivables are outstanding from the day of the sale of the payment instrument until the financial institution or agent remits the funds to the Company. The Company provides an allowance for the portion of the receivable estimated to become uncollectible based on its history of collection experience, known collection issues, such as agent suspensions and bankruptcies, consumer credit card chargebacks and insufficient funds and other matters the Company identifies in its routine collection monitoring. Receivables are generally considered past due one day after the contractual remittance schedule, which is typically one day to three days after the sale of the underlying payment instrument. Receivables are generally written off against the allowance one year after becoming past due. The following summary details the activity within the allowance for credit losses for the years ended December 31: (Amounts in millions) 2020 2019 2018 Beginning balance $ 4.6 $ 7.3 $ 6.6 Provision 14.3 6.5 11.2 Write-offs, net of recoveries (9.4) (9.2) (10.5) Ending balance $ 9.5 $ 4.6 $ 7.3 Investments (included in settlement assets) — The Company classifies securities as available-for-sale. The Company has no securities classified as trading or held-to-maturity. Time deposits and certificates of deposits with original maturities of up to 24 months are classified as interest-bearing investments and recorded at amortized cost. Securities held for indefinite periods of time, including any securities that may be sold to assist in the clearing of payment service obligations or in the management of the investment portfolio, are classified as available-for-sale securities. These securities are recorded at fair value, with the net after-tax unrealized gain or loss recorded within "Accumulated other comprehensive loss" in the stockholders' deficit section of the Consolidated Balance Sheets. Realized gains and losses and other-than-temporary impairments are recorded in the Consolidated Statements of Operations under "Total other expenses." Interest income on residential mortgage-backed securities for which risk of credit loss is deemed remote is recorded utilizing the level yield method. Changes in estimated cash flows, both positive and negative, are accounted for with retrospective changes to the carrying value of investments in order to maintain a level yield over the life of the investment. Interest income on residential mortgage-backed securities for which risk of credit loss is not deemed remote is recorded under the prospective method as adjustments of yield. Additionally, the Company applies the cost recovery method of accounting for interest to some of the investments within the available-for-sale portfolio as it believes it is probable that it will not recover all, or substantially all, of its principal investment and interest for its asset-backed and other securities given the sustained deterioration in the investment and securities market, the collapse of many asset-backed securities and the low levels to which the securities have been written down. The Company evaluates all residential mortgage-backed and other asset-backed investments for impairment based on management's evaluation of the underlying reasons for the decline in fair value on an individual security basis. When an adverse change in expected cash flows occurs, and if the fair value of a security is less than its carrying value, the investment is written down to fair value through a permanent reduction to its amortized cost in the period the impairment occurs. Securities gains and losses are recognized upon the sale, call or maturity of securities using the specific identification method to determine the cost basis of securities sold. Fair Value of Financial Instruments — Financial instruments consist of cash and cash equivalents, settlement cash and cash equivalents, investments, derivatives, payment service obligations and debt. The carrying values of cash and cash equivalents, settlement cash and cash equivalents, interest-bearing investments and payment service obligations approximate fair value. The carrying value of debt is stated at amortized cost; however, for disclosure purposes the fair value is estimated. See Note 5 — Fair Value Measurement for information regarding the principles and processes used to estimate the fair value of financial instruments. Derivative Financial Instruments — The Company recognizes derivative financial instruments in the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value is recognized through "Transaction and operations support" in the Consolidated Statements of Operations in the period of change. See Note 7 — Derivative Financial Instruments for additional disclosure. Property and Equipment — Property and equipment includes computer hardware, computer software, signage, equipment at agent locations, office furniture and equipment and leasehold improvements, and is stated at cost net of accumulated depreciation and amortization. Property and equipment is depreciated and amortized using a straight-line method over the useful life or term of the lease or license. The cost and related accumulated depreciation and amortization of assets sold or disposed of are removed from the financial statements, with the resulting gain or loss, if any, recognized within "Occupancy, equipment and supplies" in the Consolidated Statements of Operations. See Note 8 — Property and Equipment for additional disclosure. The following table summarizes the e stimated useful lives by major asset category: Type of Asset Useful Life Computer hardware 3 years Computer software 5 - 7 years Signage 3 years Equipment at agent locations 3 - 7 years Office furniture and equipment 7 years Leasehold improvements 10 years Tenant allowances for leasehold improvements are capitalized as leasehold improvements upon completion of the improvement and amortized over the shorter of the remaining term of the lease or 10 years. Computer software includes acquired and internally developed software. Property and equipment are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable by comparing the carrying value of the assets to the estimated future undiscounted cash flows to be generated by the asset. If an impairment is determined to exist for property and equipment, the carrying value of the asset is reduced to the estimated fair value. Goodwill and Intangible Assets — Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is assigned to the reporting unit in which the acquired business will operate. Intangible assets are recorded at their estimated fair value at the date of acquisition. In the year following the period in which identified intangible assets become fully amortized, the fully amortized balances are removed from the gross asset and accumulated amortization amounts. Intangible assets with indefinite lives are not amortized. Intangible assets that are not amortized are evaluated for impairment on a quarterly basis. As of December 31, 2020, the Company had no indefinite-lived intangible asset and as of December 31, 2019, the Company's only indefinite-lived intangible asset was cryptocurrency. Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable by comparing the carrying value of the assets to the estimated future undiscounted cash flows to be generated by the asset. If an impairment is determined to exist for intangible assets, the carrying value of the asset is reduced to the estimated fair value. Intangible assets with finite lives are amortized using a straight-line method over their respective useful lives as follows: Type of Intangible Asset Useful Life Contractual and customer relationships 3 - 15 years Non-compete agreements 3 - 5 years Developed technology 5 - 7 years Goodwill is not amortized but is instead subject to impairment testing. The Company evaluates its goodwill for impairment annually as of October 1 of each year or more frequently if impairment indicators arise in accordance with Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other. When testing goodwill for impairment, the Company may elect to perform either a qualitative test or a quantitative test to determine if it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value. During a qualitative analysis, the Company considers the impact of any changes to the following factors: macroeconomic, industry and market factors, cost factors, and changes in overall financial performance, as well as any other relevant events and uncertainties impacting a reporting unit. If the qualitative assessment does not conclude that it is more likely than not that the estimated fair value of the reporting unit is greater than the carrying value, the Company performs a quantitative analysis. In a quantitative test, the carrying value of the reporting unit is compared to its estimated fair value. If the fair value of a reporting unit exceeds its carrying amount, there is no impairment. If not, to the extent the carrying amount of the reporting unit exceeds its fair value, an impairment charge of the reporting unit's goodwill would be recognized; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Payments on Long-Term Contracts — The Company makes payments to certain agents and financial institution customers as an incentive to enter into long-term contracts. The payments, or signing bonuses, are generally required to be refunded pro rata in the event of nonperformance under, or cancellation of, the contract by the customer. Signing bonuses are viewed as prepaid commissions expense and are, therefore, capitalized and amortized over the life of the related contract. Amortization of signing bonuses on long-term contracts is recorded within "Fee and other commissions expense" in the Consolidated Statements of Operations. The carrying values of the signing bonuses are reviewed whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Income Taxes — The provision for income taxes is computed based on the pre-tax income (loss) included in the Consolidated Statements of Operations. Deferred tax assets and liabilities are recorded based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and their respective tax basis, and operating loss and tax credit carry-forwards on a taxing jurisdiction basis. The Company measures deferred tax assets and liabilities using enacted statutory tax rates that will apply in the years in which the Company expects the temporary differences to be recovered or paid. The Company's ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carry-back or carry-forward periods provided for in the tax law. The Company establishes valuation allowances for its deferred tax assets based on a more-likely-than-not threshold. To the extent management believes that recovery is not likely, a valuation allowance is established in the period in which the determination is made. The legislation commonly known as the "Tax Cuts and Jobs Act," and also known as H.R. 1 - 115 th Congress (the "TCJA"), includes global intangible low-taxed income ("GILTI") provisions, which impose a U.S. income inclusion on foreign income in excess of a deemed return on tangible assets of foreign corporations. In accordance with ASC 235-10-50, the Company elected in the fourth quarter of 2018 to treat GILTI inclusions as a current period expense when incurred under ASC Topic 740, Income Taxes. The liability for unrecognized tax benefits is recorded as a non-cash item within "Accounts payable and other liabilities" in the Consolidated Balance Sheets. The Company records interest and penalties for unrecognized tax benefits within "Income tax (benefit) expense" in the Consolidated Statements of Operations. See Note 1 4 — Income Taxes for additional disclosure. Treasury Stock — Repurchased common stock is stated at cost and is presented as a separate component of stockholders' deficit. See Note 1 2 — Stockholders ' Deficit for additional disclosure. Non-U.S. Dollar Translation — The Company converts assets and liabilities of foreign operations to their U.S. dollar equivalents at rates in effect at the balance sheet dates and records the translation adjustments within "Accumulated other comprehensive loss" in the Consolidated Balance Sheets. Income statements of foreign operations are translated from the operation's functional currency to U.S. dollar equivalents at the average exchange rate for the month. Non-U.S. dollar exchange transaction gains and losses are reported within "Transaction and operations support" in the Consolidated Statements of Operations. Revenue Recognition — The Company earns revenues from consideration specified in contracts with customers and recognizes revenue when it satisfies its performance obligations by transferring control over its services and products to customers. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities. The following is a description of the principal activities, separated by reporting segments, from which the Company generates revenues. For more information about the Company's reporting segments, see Note 1 7 — Segment Information For tabular revenue disclosures see Note 1 8 — Revenue Recognition Global Funds Transfer Segment: Money transfer fee revenue — The Company earns money transfer revenues primarily from consumer transaction fees and the management of currency exchange spreads on money transfer transactions involving different "send" and "receive" currencies. Fees are collected from consumers at the time of transaction. In a cash-to-cash money transfer transaction, both the agent initiating the transaction and the receiving agent earn a commission that is generally a fixed fee or is based on a percentage of the fee charged to the consumer. When a money transfer transaction is initiated at a MoneyGram-owned store, kiosk or via our online platform, typically only the receiving agent earns a commission. Each money transfer is considered a separate agreement between the Company and the consumer and includes only one performance obligation that is satisfied at a point in time, which is when the funds are made available for pick up. Money transfer funds are typically available for pick up within 24 hours of being sent. The consumer is in control of the service, as the consumer picks the "send" and "receive" locations as well as the transaction currency. Normally, the Company provides fee refunds to consumers only if the transaction is canceled within 30 minutes of initiating the transfer and the transfer amount has not been picked up by the Receiver. As such, fee refunds are accounted for within the same period as the origination of the transaction and no liability for the amount of expected returns is recorded on the Consolidated Balance Sheets. The Company recognizes revenues on a gross basis for money transfer services as the Company is considered the principal in these transactions. Under our loyalty programs for money transfer services, consumers earn rewards based on transaction frequency. In 2018, the Company introduced the MoneyGram Plus Rewards program, which allows members to earn discounts on future transactions. The MoneyGram Plus Rewards program activity for the years ended December 31, 2020 and 2019 was insignificant to the Company's results of operations. Bill payment services fee revenue — Bill payment revenues are earned primarily from fees charged to consumers for each transaction completed. Our primary bill payment service offering is our ExpressPayment service, which we offer at substantially all of our money transfer agent locations, at certain agent locations in select Caribbean and European countries and through our digital solutions. Through our bill payment services, consumers can complete urgent bill payments, pay routine bills, or load and reload prepaid debit cards with cash at an agent location or with a credit or debit card. We offer consumers same-day and two or three-day payment service options; the service option is dependent upon our agreement with the biller. Each bill payment service is considered a separate agreement with the consumer and includes only one performance obligation that is satisfied at a point in time, when the funds are transferred to the designated institution, which is generally within the same day. The consumer is in control of the service, as the consumer picks out the "send" location and time. MoneyGram does not offer refunds for bill payment services and revenue is recognized on a gross basis as the Company is considered the principal in these transactions. Other revenue — Includes breakage income, fees from royalties, contract terminations, insufficient funds and other one-time charges. The Company recognizes breakage revenue for unclaimed money transfers when the likelihood of consumer pick-up becomes remote based on historical experience and there is no requirement for remitting balances to government agencies. Financial Paper Products Segment: Money order fee revenue — Consumers use our money orders to make payments in lieu of cash or personal checks. We generate revenue from money orders by charging per item and other fees, as well as from the investment of funds underlying outstanding money orders. The Company contracts with agents and/or financial institutions for this product and associated services. We sell money orders under the MoneyGram brand and on a private label or on a co-branded basis with certain agents and financial institutions in the U.S. The Company recognizes revenue when an agent sells a money order because the funds are immediately made available to the consumer. As such, each sale of a money order and related service is considered a separate performance obligation that is satisfied at a point in time. Official check outsourcing services fee revenue — Official checks are used by consumers where a payee requires a check drawn on a bank. Financial institutions also use official checks to pay their own obligations. Like money orders, the Company generates revenue from official check outsourcing services through U.S. banks and credit unions by charging per item and other fees, as well as from the investment of funds underlying outstanding official checks. The Company's consumer for official checks is considered the financial institution. The official checks services and products are considered a bundle of services and products that are provided to the financial institution on an ongoing basis. As such, revenue from these services is recognized on a monthly basis. Revenue corresponds directly with the value of MoneyGram's services and/or products completed to date and for which the Company has a right to invoice. Monthly revenue may vary based on the number of official checks issued and other ancillary services provided to the financial institution. Other revenue — Includes fees from money order service revenue, proof adjustments, early contract terminations, money order photo and replacement fees and other one-time charges. The Company recognizes service revenue from money orders that have not been redeemed within a one-year period from issuance. Proof adjustment fees are generally unresolved and not recouped as they pertain to immaterial bank variances. The Company recognizes as revenue the net proof adjustments amount on a monthly basis. Investment Revenue: Investment revenue, which is not within the scope of ASC Topic 606 per ASC 606-10-15-2, is earned from the investment of funds generated from the sale of payment instruments, primarily official checks and money orders, and consists of interest income, dividend income, income received on our cost recovery securities and amortization of premiums and discounts. Investment revenue varies depending on the level of investment balances and the yield on our investments. Fee and Other Commissions Expense — The Company incurs fee commissions primarily related to our Global Funds Transfer services. In a money transfer transaction, both the agent initiating the transaction and the receiving agent earn a commission that is generally either a fixed fee or is based on a percentage of the fee charged to the consumer. The agent initiating the transaction and the receiving agent also earn non-U.S. dollar exchange commissions, which are generally based on a percentage of the non-U.S. dollar exchange spread. In a bill payment transaction, the agent initiating the transaction receives a commission that is generally based on a percentage of the fee charged to the consumer and, in limited circumstances, the biller receives a commission that is based on a percentage of the fee charged to the consumer. The Company generally does not pay commissions to agents on the sale of money orders, except, in certain limited circumstances, for large agents where we may pay a fixed commission based on total money order transactions. Investment Commissions Expense — Investment commissions expense consists of amounts paid to financial institution customers based on short-term interest rate indices times the average outstanding cash balances of official checks sold by the financial institution. Investment commissions are recognized each month based on the average outstanding balances of each financial institution customer and their contractual variable rate for that month. Direct Transaction Expense — Direct transaction expense includes expenses related to the processing of money transfers, such as customer authentication and funding costs. Market Development Fees — Market development fees are fees paid by Ripple Labs Inc. ("Ripple") to the Company for developing and bringing liquidity to foreign exchange markets, facilitated by their ODL platform, and providing a reliable level of foreign exchange trading activity. The liquidity services provided by the Company are not considered distinct under ASC Topic 606, Revenue from Contracts with Customers, and consequently MoneyGram recognizes fees received for market development services as vendor consideration in accordance with ASC Topic 705, Cost of Sales and Services. The fees are presented as a contra expense to offset costs incurred to Ripple and are recorded as incurred within "Transaction and operations support" in the Consolidated Statements of Operations. Per the terms of the commercial agreement, the Company does not pay fees to Ripple for its usage of the ODL platform and there are no claw back or refund provisions. For the year ended December 31, 2020 and 2019, market development fees were $50.2 million and $11.3 million, respectively. Additionally, as of December 31, 2020, the Company had no receivable from Ripple for market development fees. As of December 31, 2019, the Company had a receivable from Ripple for market development fees of $0.9 million. For more information on the Ripple commercial agreement, see Note 20 — Related Parties . Marketing and Advertising Expense — Marketing and advertising costs are expensed as incurred or at the time the advertising first takes place and are recorded in the "Transaction and operations support" line in the Consolidated Statements of Operations. Marketing and advertising expense was $16.2 million, $48.1 million and $51.2 million for 2020, 2019 and 2018, respectively. Stock-Based Compensation — Stock-based compensation awards are measured at fair value at the date of grant and expensed using the straight-line method over their vesting or service periods. For grants to employees, expense, net of estimated forfeitures, is recognized in the "Compensation and benefits" line and expense for grants to non-employee directors is recorded in the "Transaction and operations support" line in the Consolidated Statements of Operations. The Company accounts for modifications to its share-based payment awards in accordance with the provisions of ASC Topic 718, Compensation - Stock Compensation. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the share price and other pertinent factors at that date, and is recognized as compensation cost on the date of modification (for vested awards) or over the remaining vesting or service period (for unvested awards). Any unrecognized compensation cost remaining from the original award is recognized over the vesting period of the modified award. See Note 1 3 — Stock-Based Compensation for additional disclosure of the Company's stock-based compensation. Earnings Per Share — For all periods in which they are outstanding, the Series D Participating Convertible Preferred Stock (the "D Stock") and the Second Lien Warrants (as defined in Note 10 — Debt ) 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. Recently Adopted Accounting Standards — 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 U.S. GAAP. 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 1 9 — Leases for more information related to the Company's leases. 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, as such, its disclosure requirements is reflected in the 2020 Annual Report on Form 10-K, see Note 11 — Pension and Other Benefits . This standard does not impact our consolidated financial statements. Recently Issued Accounting Standards and Related Developments Not yet Adopted — In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 • ASU 2019-10 (Issued November 2019) — Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates • ASU 2019-11 (Issued November 2019) — Codification Improvements to Topic 326, Financial Instruments - Credit Losses • ASU 2020-02 (Issued February 2020) — Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) (SEC Update) • ASU 2020-03 (Issued March 2020) — Codification Improvements to Financial Instruments ASU 2019-10 changed the effective date of ASU 2016-13 for public business entities that meet the definition of a U.S. Securities and Exchange Commission ("SEC") filer but that are eligible to be a smaller reporting company to fiscal years beginning after December 15, 2022. MoneyGram is a smaller reporting company and, as such, will adopt the amendments in these standards in 2023. We are still evaluating these ASUs, but we do not believe the adoption will have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The amendments in this ASU provide, if certain criteria are met, optional expedients and exceptions for applying the GAAP requirements for contract modifications, hedging relationships and sales or transfers of debt securities that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform through December 31, 2022. The adoption of this ASU is optional and the election can be made anytime during the effective period. The amendments in this ASU are effective as of March 12, 2020 through December 31, 2022. MoneyGram is currently evaluating the impact of this standard and has not yet determined whether we will elect the optional expedients. In August 2020, th |
Restructuring and Reorganizatio
Restructuring and Reorganization Costs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Reorganization Costs [Abstract] | |
Restructuring and Reorganization Costs | In 2019, the Company committed to an operational plan to reduce overall operating expenses, including the elimination of approximat ely 120 positions across the Company (the "2019 Organizational Realignment"). In the first half of 2020, this number was revised to approximately 100 positions as the operational plan drew closer to completion. The workforce reduction was designed to streamline operations and structure the Company in a way that is more agile and aligned around our plan to execute market-specific strategies tailored to different segments. The workforce reduction was substantially completed in the first quarter of 2020 with $8.5 million of costs incurred consisting primarily of one-time termination benefits for employee severance and related costs, which are recorded within "Compensation and benefits" on the Consolidated Statements of Operations in the Global Funds Transfer reporting segment. The following table is a roll-forward of the reorganization costs accrual as of December 31, 2020: (Amounts in millions) 2019 Organizational Realignment Balance, December 31, 2019 $ 4.6 Expenses 1.7 Cash payments (6.3) Balance, December 31, 2020 $ — The following table is a summary of the total cumulative reorganization costs incurred to date in operating expenses as of December 31, 2020: (Amounts in millions) Total Balance, December 31, 2019 $ 6.8 First quarter 2020 0.7 Second quarter 2020 0.7 Third quarter 2020 (0.3) Fourth quarter 2020 0.6 Total cumulative reorganization costs incurred to date $ 8.5 |
Settlement Assets and Payment S
Settlement Assets and Payment Service Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure | The Company's primary licensed entities are MoneyGram Payment Systems, Inc. ("MPSI"), MoneyGram International SRL and MoneyGram International Limited, which enable us to offer our money transfer service in the European Economic Area as well as around the globe. MPSI is regulated by various U.S. state agencies that generally require the Company to maintain a pool of assets with an investment rating bearing one of the three highest grades as defined by a nationally recognized rating agency ("permissible investments") in an amount equal to the payment service obligations, as defined by each state, for those regulated payment instruments, namely teller checks, agent checks, money orders and money transfers. The regulatory payment service assets measure varies by state but in all cases excludes investments rated below A-. The most restrictive states may also exclude assets held at banks that do not belong to a national insurance program, varying amounts of accounts receivable balances and/or assets held in the SPE. The regulatory payment service obligations measure varies by state but in all cases is substantially lower than the Company's payment service obligations as disclosed in the Consolidated Balance Sheets as the Company is not regulated by state agencies for payment service obligations primarily resulting from outstanding cashier's checks. We are also subject to licensing or other regulatory requirements in various other jurisdictions. Licensing requirements may include minimum net worth, provision of surety bonds or letters of credit, compliance with operational procedures, agent oversight and the maintenance of settlement assets in an amount equivalent to outstanding payment service obligations, as defined by our various regulators. The regulatory and contractual requirements do not require the Company to specify individual assets held to meet its payment service obligations, nor is the Company required to deposit specific assets into a trust, escrow or other special account. Rather, the Company must maintain a pool of liquid assets sufficient to comply with the requirements. No third-party places limitations, legal or otherwise, on the Company regarding the use of its individual liquid assets. The Company is able to withdraw, deposit or sell its individual liquid assets at will, with no prior notice or penalty, provided the Company maintains a total pool of liquid assets sufficient to meet the regulatory and contractual requirements. Regulatory requirements also require MPSI to maintain positive net worth, with certain states requiring that MPSI maintain positive tangible net worth. The Company was in compliance with its contractual and financial regulatory requirements as of December 31, 2020. The following table summarizes the amount of settlement assets and payment service obligations as of December 31: (Amounts in millions) 2020 2019 Settlement assets: Settlement cash and cash equivalents $ 1,883.2 $ 1,531.1 Receivables, net 825.0 715.5 Interest-bearing investments 991.2 985.9 Available-for-sale investments 3.5 4.5 $ 3,702.9 $ 3,237.0 Payment service obligations $ (3,702.9) $ (3,237.0) |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring | 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. A three-level hierarchy is used for fair value measurements based upon the observability of the inputs to the valuation of an asset or liability as of the measurement date. Under the hierarchy, the highest priority is given to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), followed by observable inputs (Level 2) and unobservable inputs (Level 3). A financial instrument's level within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the Company's valuation methodologies used to estimate the fair value for assets and liabilities: Assets and liabilities that are measured at fair value on a recurring basis: • Available-for-sale investments — For residential mortgage-backed securities issued by U.S. government agencies, fair value measures are obtained from an independent pricing service. As market quotes are generally not readily available or accessible for these specific securities, the pricing service measures fair value through the use of pricing models utilizing reported market quotes adjusted for observable inputs, such as market prices for comparable securities, spreads, prepayment speeds, yield curves and delinquency rates. Accordingly, these securities are classified as Level 2 financial instruments. For asset-backed and other securities, which include investments in limited partnerships, market quotes are generally not available. The Company utilizes broker quotes to measure market value, if available. Because the inputs and assumptions that brokers use to develop prices are unobservable, valuations that are based on brokers' quotes are classified as Level 3. Also, the Company uses pricing services that utilize pricing models based on market observable and unobservable data. The observable inputs include quotes for comparable securities, yield curves, default indices, interest rates, historical prepayment speeds and delinquency rates. These pricing models also apply an inactive market adjustment as a significant unobservable input. Accordingly, asset-backed and other securities valued using third-party pricing models are classified as Level 3. • Derivative financial instruments — Derivatives consist of forward contracts to manage income statement exposure to non-U.S. dollar exchange risk arising from the Company's assets and liabilities denominated in non-U.S. dollar currencies. The Company's forward contracts are well-established products, allowing the use of standardized models with market-based inputs. These models do not contain a high level of subjectivity, and the inputs are readily observable. Accordingly, the Company has classified its forward contracts as Level 2 financial instruments. See Note 7 — Derivative Financial Instruments for additional disclosure on the Company's forward contracts. There were no transfers between Level 1 and Level 2, or transfers into or out of level 3 of the fair value hierarchy. 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 December 31, 2020 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 3.0 $ — $ 3.0 Asset-backed and other securities — 0.5 0.5 Forward contracts 0.1 — 0.1 Total financial assets $ 3.1 $ 0.5 $ 3.6 Financial liabilities: Forward contracts $ 2.2 $ — $ 2.2 December 31, 2019 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 3.6 $ — $ 3.6 Asset-backed and other securities — 0.9 0.9 Forward contracts — — — Total financial assets $ 3.6 $ 0.9 $ 4.5 Financial liabilities: Forward contracts $ 0.8 $ — $ 0.8 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 for the years ended December 31: (Amounts in millions) 2020 2019 2018 Beginning balance $ 0.9 $ 1.2 $ 1.4 Change in unrealized losses (0.4) (0.3) (0.2) Ending balance $ 0.5 $ 0.9 $ 1.2 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 the first lien credit facility is estimated using an observable market quotation (Level 2). The fair value of the second lien credit facility is estimated using unobservable market inputs (Level 3), including broker quotes for comparable traded securities and yield curves. The following table provides the carrying value and fair value for the first and second lien credit facilities for the years ended December 31: (Amounts in millions) 2020 2019 Carrying value Fair value Carrying value Fair value First lien credit facility $635.3 $635.3 $641.8 $577.6 Second lien credit facility $254.6 $254.3 $251.4 $236.7 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 December 31, 2020 and 2019. The Company records the investments in its Pension Plan trust at fair value. The majority of the Pension Plan's investments is common/collective trusts held by the Pension Plan's trustee. The fair values of the Pension Plan's investments are determined based on the current market values of the underlying assets. See Note 1 1 — Pension and Other Benefits for additional disclosure of investments held by the Pension Plan. Assets and liabilities measured at fair value on a non-recurring basis — Assets and liabilities that are measured at fair value on a non-recurring basis relate primarily to the Company's property and equipment, goodwill and other intangible assets, which are remeasured only in the event of an impairm ent. Fair value remeasurements are normally based on significant unobservable inputs (Level 3). Tangible and intangible asset fair values are derived using accepted valuation methodologies. If it is determined an impairment has occurred, the carrying value of the asset is reduced to fair value with a corresponding charge to "Other expenses" in the Consolidated Statements of Operations. |
Investment Portfolio
Investment Portfolio | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investment Portfolio | The Company's portfolio is invested in cash and cash equivalents, interest-bearing investments and available-for-sale investments as described in Note 2 — Summary of Significant Accounting Policies . The following table shows the components of the investment portfolio as of December 31: (Amounts in millions) 2020 2019 Cash $ 2,076.8 $ 1,675.4 Money market securities 2.5 2.5 Cash and cash equivalents (1) 2,079.3 1,677.9 Interest-bearing investments 991.2 985.9 Available-for-sale investments 3.5 4.5 Total investment portfolio $ 3,074.0 $ 2,668.3 (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. Cash and Cash Equivalents — Cash and cash equivalents consist of interest-bearing deposit accounts, non-interest-bearing transaction accounts and money market securities. The Company's money market securities are invested in one f und, which is AAA rated and consists of U.S. Treasury bills, notes or other obligations issued or guaranteed by the U.S. government and its agencies, as well as repurchase agreements secured by such instruments. Interest-bearing Investments — Interest-bearing investments consist of time deposits and certificates of deposit with maturities of up to 24 months and are issued from financial institutions rated A- or better as of December 31, 2020. Available-for-sale Investments — Available-for-sale investments consist of residential mortgage-backed securities and asset-backed and other securities. The following table is a summary of the amortized cost and fair value of available-for-sale investments: (Amounts in millions) Amortized Gross Gross Fair December 31, 2020 Residential mortgage-backed securities $ 2.6 $ 0.4 $ — $ 3.0 Asset-backed and other securities 0.2 0.5 (0.2) 0.5 Total $ 2.8 $ 0.9 $ (0.2) $ 3.5 December 31, 2019 Residential mortgage-backed securities $ 3.3 $ 0.3 $ — $ 3.6 Asset-backed and other securities 0.2 0.7 — 0.9 Total $ 3.5 $ 1.0 $ — $ 4.5 As of December 31, 2020 and 2019, 86% and 80%, 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 years ended December 31, 2020 and 2019, the Company had no realized gains or losses. The company had nominal realized gains and losses in 2018. As of December 31, 2020 and 2019, net unrealized gains, net of tax of $1.2 million and $1.6 million, respectively, were included in the Consolidated Balance Sheets within "Accumulated other comprehensive loss." Investment Ratings — In rating the securities in its investment portfolio, the Company uses ratings from Moody's Investor Service ("Moody's"), Standard & Poor's ("S&P") and Fitch Ratings ("Fitch"). If the rating agencies have split ratings, the Company uses the lower of the highest two out of three ratings across the rating agencies for disclosure purposes. If the institution has only two ratings, the Company uses the lower of the two ratings for disclosure purposes. Securities issued or backed by U.S. government agencies are included in the AAA rating category. Investment grade is defined as a security having a Moody's equivalent rating of Aaa, Aa, A or Baa or an S&P or Fitch equivalent rating of AAA, AA, A or BBB. The Company's investments consisted of the following ratings as of December 31: 2020 2019 (Amounts in millions, except percentages) Number of Fair Percent of Number of Fair Percent of Investment grade 9 $ 3.0 86 % 10 $ 3.6 80 % Below investment grade 35 0.5 14 % 35 0.9 20 % Total 44 $ 3.5 100 % 45 $ 4.5 100 % Had the Company used the lowest rating from the rating agencies in the information presented above, there would be no change to the classifications as of December 31, 2020 and 2019. 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 | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instrument Detail [Abstract] | |
Derivative Financial Instruments | The Company uses forward contracts to manage its non-U.S. dollar needs and non-U.S. dollar exchange risk arising from its assets and liabilities denominated in non-U.S. dollars. While these contracts may mitigate certain non-U.S. dollar 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 gains related to assets and liabilities denominated in non-U.S. dollars are included within "Transaction and operations support" in the Consolidated Statements of Operations and within "Net cash provided by operating activities" in the Consolidated Statements of Cash Flows: (Amounts in millions) 2020 2019 2018 Net realized non-U.S. dollar gain (loss) $ 26.6 $ (7.4) $ (5.8) Net (loss) gain from the related forward contracts (11.9) 11.2 10.2 Net gains from non-U.S. dollar transactions and related forward contracts $ 14.7 $ 3.8 $ 4.4 As of December 31, 2020 and 2019, the Company had $643.8 million and $349.1 million, respectively, of outstanding notional amounts relating to its non-U.S. dollar forward contracts. As of December 31, 2020 and 2019, the Company reflects the following fair values of derivative forward contract instruments in its 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 2020 2019 2020 2019 2020 2019 Forward contracts Other assets $ 1.0 $ 0.2 $ (0.9) $ (0.2) $ 0.1 $ — 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 2020 2019 2020 2019 2020 2019 Forward contracts Accounts payable and other liabilities $ 3.1 $ 1.0 $ (0.9) $ (0.2) $ 2.2 $ 0.8 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 non-U.S. dollar 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | The following table is a summary of "Property and equipment, net" as of December 31: (Amounts in millions) 2020 2019 Computer hardware and software $ 512.8 $ 503.6 Signage 56.1 53.3 Equipment at agent locations 48.9 59.2 Office furniture and equipment 28.4 28.4 Leasehold improvements 27.0 26.5 Total property and equipment 673.2 671.0 Accumulated depreciation and amortization (525.1) (494.9) Total property and equipment, net $ 148.1 $ 176.1 Depreciation and amortization expense for property and equipment for 2020, 2019 and 2018 was $63.9 million, $73.2 million and $74.8 million, respectively. No impairments of property and equipment were recorded during 2020, 2019 and 2018. At December 31, 2020 and 2019, the Company had $0.5 million and $5.9 million, respectively, in accrued purchases of property and equipment included within "Accounts payable and other liabilities" in the Consolidated Balance Sheets. During 2020 and 2019, the Company had nominal losses related to disposals of its property and equipment. During 2018, the Company recognized a loss of $0.1 million on disposals of its property and equipment. The loss was recorded within "Occupancy, equipment and supplies" in the Consolidated Statements of Operations. For the years ended December 31, 2020 and 2019, software develop ment costs of $28.2 million and $48.3 million, respectively, were capitalized. At December 31, 2020 and 2019, there were $105.3 million and $114.6 million, respectively, of unamortized software development costs included in property and equipment. As of December 31, 2020 and 2019, the Company had $1.5 million a nd $2.2 million, respectively, in net capitalized implementation costs related to hosting arrangements that are service contracts. These costs are recorded within "Other assets" in the Consolidated Balance Sheets and the related amortization is recorded in the same line item in the Consolidated Statements of Operations as other fees associated with the service arrangements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | Goodwill — The Company's goodwill balance was $442.2 million as of December 31, 2020 and 2019, and all relates to the Global Funds Transfer segment. The Company performed an annual assessment of goodwill during the fourth quarter of 2020, 2019 and 2018. No impairments of goodwill were recorded in 2020, 2019 and 2018. Intangibles — All of the Company's intangible assets are included within "Other assets" in the Consolidated Balance Sheets. As of December 31, 2020, the Company had no cryptocurrency indefinite-lived intangible assets. The following table is a summary of finite-lived intangible assets as of December 31: 2020 2019 (Amounts in millions) Gross Accumulated Net Gross Accumulated Net Contractual and customer relationships $ 4.1 $ (3.2) $ 0.9 $ 4.1 $ (2.6) $ 1.5 Developed technology 0.6 (0.5) 0.1 0.6 (0.5) 0.1 Total finite-intangible assets $ 4.7 $ (3.7) $ 1.0 $ 4.7 $ (3.1) $ 1.6 Intangible asset amortization expense for 2020, 2019 and 2018 was $0.5 million, $0.6 million and $1.5 million, respectively. The estimated future intangible asset amortization expense is $0.6 million and $0.4 million for 2021 and 2022, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | The following is a summary of the Company's outstanding debt as of December 31: (Amounts in millions, except percentages) 2020 2019 7.00% first lien credit facility due 2023 $ 635.3 $ 641.8 13.00% second lien credit facility due 2024 254.6 251.4 Senior secured credit facilities 889.9 893.2 Unamortized debt issuance costs and debt discounts (32.1) (42.9) Total debt, net $ 857.8 $ 850.3 First Lien Credit Agreement and Revolving Credit Facility — The First Lien Credit Agreement provides for (a) 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 (the "First Lien Revolving Credit Facility") and (b) 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 First Lien Credit Agreement provides that in the event the Company's cash balance exceeds $130.0 million at the end of any month, the Company would be required to use such excess cash to pay any outstanding obligations to the revolving lenders under our First Lien Revolving Credit Facility, and that the Company may not draw on the First Lien Revolving Credit Facility to the extent that the Company would have a cash balance in excess of $130.0 million after giving effect to such borrowing. As of December 31, 2020, the Company had no borrowings and nominal outstanding letters of credit 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"). 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, 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 First Lien Credit Facility requires the company to not exceed a maximum first lien leverage ratio of 4.00:1.00 and 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 to exceed its aggregate payment service obligations. The Company's assets in excess of payment service obligations used for the asset coverage calculation were $196.1 million and $146.8 million as of December 31, 2020 and December 31, 2019, respectively. The table below summarizes the Revolver Financial Covenants Under the First Lien Credit Agreement, 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 December 31, 2020, the Company was in compliance w ith its financial covenants: our interest coverage ratio was 3.276 to 1.00, our first lien leverage ratio was 2.503 to 1.00 and our total leverage ratio was 3.505 to 1.00. We continuously monitor our compliance with our debt covenants. Debt Issuance Costs —For the First Lien Term Credit Facility and the Second Lien Term Credit Facility, the Company presents debt issuance costs as a direct deduction from the carrying amount of the related indebtedness and amortizes these costs over the term of the related debt liability using the effective interest meth od. For the First Lien Revolving Credit Facility, the Company presents debt issuance costs within "Other assets" on its consolidated Balance Sheets and amortizes these costs ratably over the term of the First Lien Revolving Credit Facility. Amortization of debt issuance costs is recorded within "Interest expense" on the Consolidated Statements of Operations. The unamortized costs associated with the First Lien Revolving Credit Facility were $1.5 million and $2.4 million as of December 31, 2020 and 2019, respectively. Debt Discount — The Company records debt discount as a deduction from the carrying amount of the related indebtedness on its Consolidated Balance Sheets with the respective debt discount amortization recorded within "Interest expense." Debt Extinguishment Costs — In 2019, the Company recognized debt extinguishment costs of $2.4 million in connection with the termination of the First Lien Revolving Credit Facility which are recorded within "Other non-operating expense (income)" on the Consolidated Statements of Operations. There were no debt extinguishment costs recognized in 2020 or 2018. Maturities — At December 31, 2020, debt totaling $619.2 million and $254.6 million will mature in June 2023 and June 2024, respectively, while debt principal totaling $16.1 million will be paid quarterly in increments of approximately $1.6 million through the maturity date. Any borrowings under the First Lien Revolving Credit Facility will mature in September 2022. |
Pension and Other Benefits
Pension and Other Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Benefits | Pension Benefits — The Company's Pension Plan is a frozen, non-contributory funded plan under which no new service or compensation credits are accrued by the plan participants. Cash accumulation accounts continue to be credited with interest credits until participants withdraw their money from the Pension Plan. It is the Company's policy to fund at least the minimum required contribution each year plus additional discretionary amounts as available and necessary to minimize expenses of the plan. Supplemental Executive Retirement Plans — The Company has obligations under various SERPs, which are unfunded non-qualified defined benefit pension plans providing postretirement income to their participants. As of December 31, 2020, all benefit accruals under the SERPs are frozen with the exception of one plan for which service is frozen but future pay increases are reflected for active participants. It is the Company's policy to fund the SERPs as benefits are paid. The Company's Pension Plan and SERPs are collectively referred to as our "Pension." Postretirement Benefits Other Than Pensions — The Company has an unfunded defined benefit postretirement plan ("Postretirement Benefits") that provides medical and life insurance for its participants. The Company amended the Postretirement Benefits to close it to new participants as of December 31, 2009. Effective July 1, 2011, the Postretirement Benefits was amended to eliminate eligibility for participants eligible for Medicare coverage. As a result of this plan amendment, the Company no longer receives the Medicare retiree drug subsidy. The Company's funding policy is to make contributions to the Postretirement Benefits as benefits are paid. Actuarial Valuation Assumptions — The measurement date for the Company's Pension and Postretirement Benefits is December 31. The following table is a summary of the weighted-average actuarial assumptions used in calculating net periodic benefit expense (income) and the benefit obligation for the years ended and as of December 31: Pension Plan SERPs Postretirement Benefits 2020 2019 2018 2020 2019 2018 2020 2019 2018 Net periodic benefit expense (income): Discount rate for benefit obligation 3.23 % 3.57 % 3.58 % 3.18 % 4.32 % 3.65 % 3.33 % 4.41 % 3.72 % Discount rate for interest cost 2.83 % 3.09 % 3.13 % 2.70 % 3.88 % 3.20 % 2.77 % 3.91 % 3.20 % Expected return on plan assets 2.07 % 2.91 % 4.59 % — — — — — — Cash balance interest crediting rate 1.73 % 2.75 % 2.08 % — — — — — — Rate of compensation increase — — — 5.75 % 5.75 % 5.75 % — — — Medical trend rate: Pre-65 initial healthcare cost trend rate — — — — — — 6.79 % 7.25 % 7.75 % Post-65 initial healthcare cost trend rate — — — — — — 7.51 % 8.25 % 7.75 % Pre and post-65 ultimate healthcare cost trend rate — — — — — — 4.50 % 4.50 % 4.50 % Year ultimate healthcare cost trend rate is reached for pre/post-65, respectively — — — — — — 2027 2025 2025/ 2027 Benefit obligation: Discount rate 2.51 % 3.23 % 4.25 % 2.41 % 3.18 % 4.32 % 2.64 % 3.33 % 4.41 % Cash balance interest crediting rate 1.36 % 1.73 % 2.75 % — — — — — — Rate of compensation increase — — — 5.75 % 5.75 % 5.75 % — — — Medical trend rate: Pre-65 initial healthcare cost trend rate — — — — — — 6.46 % 6.79 % 7.25 % Post-65 initial healthcare cost trend rate — — — — — — 7.08 % 7.51 % 8.25 % Pre and post-65 ultimate healthcare cost trend rate — — — — — — 4.50 % 4.50 % 4.50 % Year ultimate healthcare cost trend rate is reached for pre/post-65 — — — — — — 2028 2027 2025 The Company utilizes a building-block approach in determining the long-term expected rate of return on plan assets. The expected return on plan assets is calculated using a calculated value of plan assets that is determined each year by adjusting the previous year's value by expected returns, benefit payments and contributions. Asset gains and losses are reflected as equal adjustments over a three-year period. Historical markets are studied and long-term historical relationships between equity securities and fixed income securities are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, are evaluated before long-term capital market assumptions are determined. The long-term portfolio return also takes proper consideration of diversification and rebalancing. Peer data and historical returns are reviewed for reasonableness and appropriateness. Actuarial gains and losses are amortized using the Corridor approach, by amortizing the balance exceeding 10% of the greater of the benefit obligation or the fair value of plan assets. The amortization period is primarily based on the average remaining expected life of plan participants for the Pension and the average remaining expected life of plan participants for the Postretirement Benefits. The Company estimated the interest cost components utilizing a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to their underlying projected cash flows. Pension Assets — The Company employs a liability-driven investment approach whereby a mix of equity and fixed income securities are used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed income securities. Furthermore, equity securities are diversified across large and small capitalized securities and international securities. Other assets, such as real estate and high yield bonds, are used to further diversify equity allocations. Fixed income securities are primarily invested in a mix of investment grade corporate bonds, government bonds and a smaller allocation to non-investment grade debt. The Company uses a dynamic strategy to determine the allocation of return-seeking assets driven by the Pension Plan's funded ratio so that when the funded status increases above prescribed levels, the allocation to equities will decrease and fixed income increase proportionally. Investment risk is measured and monitored on an ongoing basis, including quarterly investment portfolio reviews and periodic liability measurements. As of December 31, 2020, the Pension assets consisted of approximately 8% in equity securities, 81% in fixed income and 11% in real estate. The Company records its Pension Plan's assets at fair value as described in Note 5 — Fair Value Measurement The following is a description of the Pension Plan's investments at fair value and valuation methodologies: • Common/collective trusts — The fair values of the underlying funds in the common/collective trusts are valued based on the unit value established for each fund at each valuation date. The unit value of a collective investment fund is calculated by dividing the fund's net asset value on the calculation date by the number of units of the fund that are outstanding on the calculation date, which is derived from observable purchase and redemption activity in the collective investment fund. The Company's common/collective trusts are categorized in Level 2 to the extent that they are readily redeemable at their net asset value. • Real estate — The Pension Plan trust holds an investment in a real estate development project that the Company considers to be a Level 3 asset for valuation purposes because it requires the use of unobservable inputs in its fair value measurement. The fair value of this investment represents the estimated fair value of the plan's related ownership percentage in the project based upon an appraisal of the underlying real property as of each balance sheet date. The fund investment strategy for this asset is long-term capital appreciation. The following table is a summary of the Pension Plan's financial assets recorded at fair value, by hierarchy level: (Amounts in millions) Level 2 Level 3 Total December 31, 2020 Common/collective trusts Short-term investment fund $ 0.9 $ — $ 0.9 Equity securities: Large cap 2.0 — 2.0 Small cap 0.5 — 0.5 International 1.2 — 1.2 Fixed income securities 36.3 — 36.3 Real estate — 5.3 5.3 Total investments in the fair value hierarchy $ 40.9 $ 5.3 $ 46.2 December 31, 2019 Common/collective trusts Short-term investment fund $ 1.9 $ — $ 1.9 Equity securities: Large cap 1.4 — 1.4 Small cap 0.3 — 0.3 International 0.9 — 0.9 Fixed income securities 30.9 — 30.9 Real estate — 5.1 5.1 Total investments in the fair value hierarchy $ 35.4 $ 5.1 $ 40.5 The Company does not have participant redemption restrictions for its common/collective trust investments. The following table sets forth additional disclosures for the Pension Plan assets fair value estimated using net asset value per share: (Amounts in millions) Fair Value Redemptions Frequency (if currently eligible) Redemption Notice Period December 31, 2020 $ 40.9 Daily 15 Days December 31, 2019 $ 35.4 Daily 15 Days Plan Financial Information — Net periodic benefit expense for the Pension includes the following components for the years ended December 31: Pension Postretirement Benefits (Amounts in millions) 2020 2019 2018 2020 2019 2018 Settlement charge $ — $ 31.3 $ — $ — $ — $ — Interest cost 3.1 5.4 6.3 — — — Expected return on plan assets (0.8) (2.7) (5.0) — — — Amortization of net actuarial loss 2.0 2.6 4.3 0.1 0.1 0.1 Amortization of prior service cost 0.1 0.1 0.1 — — — Net periodic benefit expense $ 4.4 $ 36.7 $ 5.7 $ 0.1 $ 0.1 $ 0.1 Net periodic benefit expense for the Pension and Postretirement Benefits is recorded within "Other non-operating expense (income)" on the Consolidated Statements of Operations. In June 2019, the Company paid an insurance company $1.2 million to assume a portion of its Pension Plan liability, without recourse. As a result of the sale, the Company reduced its Pension Plan liability by $74.3 million and recognized a non-cash charge of $31.3 million that represents a corresponding portion of the Pension Plan accumulated other comprehensive loss. The transfer of the Pension obligations was completed exclusively with the use of Pension assets and did not impact the Company's cash balance or liquidity position. The following tables are a summary of the amounts recognized in other comprehensive income (loss) and net periodic benefit expense for the years ended December 31: (Amounts in millions) Pension Postretirement 2020 Net actuarial loss (gain) $ 4.5 $ (0.1) Amortization of net actuarial loss (2.0) (0.1) Amortization of prior service cost (0.1) — Total recognized in other comprehensive income 2.4 (0.2) Total recognized in net periodic benefit expense 4.4 0.1 Total recognized in other comprehensive income and net periodic benefit expense $ 6.8 $ (0.1) 2019 Settlement charge $ (31.3) $ — Net actuarial loss 8.5 0.1 Amortization of net actuarial loss (2.6) (0.1) Amortization of prior service cost (0.1) — Total recognized in other comprehensive income (25.5) — Total recognized in net periodic benefit expense 36.7 0.1 Total recognized in other comprehensive income and net periodic benefit expense $ 11.2 $ 0.1 2018 Net actuarial gain $ (7.8) $ (0.1) Amortization of net actuarial loss (4.3) (0.1) Amortization of prior service cost (0.1) — Total recognized in other comprehensive loss (12.2) (0.2) Total recognized in net periodic benefit expense 5.7 0.1 Total recognized in other comprehensive loss and net periodic benefit expense $ (6.5) $ (0.1) The following tables are 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 Postretirement Benefits as of and for the years ended December 31: Pension Postretirement Benefits (Amounts in millions) 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at the beginning of the year $ 117.3 $ 191.3 $ 0.7 $ 0.6 Settlement impact — (75.5) — — Interest cost 3.1 5.4 — — Actuarial loss (gain) 7.2 17.1 (0.1) 0.1 Benefits paid (7.5) (21.0) — — Benefit obligation at the end of the year $ 120.1 $ 117.3 $ 0.6 $ 0.7 Change in plan assets: Fair value of plan assets at the beginning of the year $ 40.5 $ 115.3 $ — $ — Settlement impact — (75.5) — — Actual return on plan assets 3.5 11.4 — — Employer contributions 9.7 10.3 — — Benefits paid (7.5) (21.0) — — Fair value of plan assets at the end of the year $ 46.2 $ 40.5 $ — $ — Unfunded status at the end of the year $ 73.9 $ 76.8 $ 0.6 $ 0.7 In 2020, the net actuarial loss of $7.2 million affecting the benefit obligation of the Pension was due to the decrease in discount rate and the net actuarial gain of $0.1 million affecting the benefit obligation of the Postretirement Benefits was due to the decrease in liability resulting from participant deaths partially offset by the decrease in the discount rate. In 2019, the net actuarial losses of $17.1 million and $0.1 million affecting the benefit obligation of the Pension and the Postretirement Benefits, respectively, was due to the decrease in the discount rate. In October 2020, the Society of Actuaries issued updated mortality projection scales. The Company adopted the updated mortality projection scales on its measurement date, which decreased the Pension Plan benefit obligation. The unfunded status of the Pension Plan was $5.3 million and $8.9 million at December 31, 2020 and 2019, respectively, and the unfunded status of the SERPs was $68.6 million and $67.9 million at December 31, 2020 and 2019, respectively. The following table summarizes the components recognized in the Consolidated Balance Sheets relating to the Pension and Postretirement Benefits as of December 31: Pension Postretirement Benefits Total (Amounts in millions) 2020 2019 2020 2019 2020 2019 Pension and other postretirement benefits liability $ 73.9 $ 76.8 $ 0.6 $ 0.7 $ 74.5 $ 77.5 Accumulated other comprehensive loss: Net actuarial loss, net of tax $ 38.2 $ 36.5 $ 0.4 $ 0.4 $ 38.6 $ 36.9 Prior service cost, net of tax 0.1 0.1 — — 0.1 0.1 Total $ 38.3 $ 36.6 $ 0.4 $ 0.4 $ 38.7 $ 37.0 The following table summarizes the benefit obligation and accumulated benefit obligation for the Pension Plan, SERPs and Postretirement Benefits fair value of plan assets as of December 31: Pension Plan SERPs Postretirement Benefits (Amounts in millions) 2020 2019 2020 2019 2020 2019 Benefit obligation $ 51.5 $ 49.2 $ 68.6 $ 67.9 $ 0.6 $ 0.7 Accumulated benefit obligation 51.5 49.2 68.6 67.9 — — Fair value of plan assets 46.2 40.5 — — — — The following table summarizes the estimated future benefit payments for the Pension and Postretirement Benefits for the years ended December 31: (Amounts in millions) 2021 2022 2023 2024 2025 2026-2030 Pension $ 8.5 $ 7.9 $ 7.9 $ 7.1 $ 7.0 $ 33.0 Postretirement benefits — — — — — 0.1 Although the Company has no minimum r equired contribution for the Pension Plan in 2021, we expect to contribute $4.0 million to the Pension Plan in 2021 . The Company will continue to make contributions to the SERPs and the Postretirement Benefits to the extent benefits are paid. Aggregate benefits paid for the unfunded plans are expected to be $5.7 million in 2021. Employee Savings Plan — The Company has an employee savings plan that qualifies under Section 401(k) of the Internal Revenue Code of 1986, as amended. Contributions to, and costs of, the 401(k) defined contribution plan totaled $3.7 million, $4.5 million and $4.4 million in 2020, 2019 and 2018, respectively. International Benefit Plans — The Company's international subsidiaries have certain defined contribution plans. Contributions to, and costs related to, international plans were $2.0 million, $1.6 million and $2.5 million for 2020, 2019 and 2018, respectively. |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | Common Stock — The Company's Amended and Restated Certificate of Incorporation, as amended, provides for the issuance of up to 162,500,000 shares of common stock with a par value of $0.01. The holders of MoneyGram common stock are entitled to one vote per share on all matters to be voted upon by its stockholders. The holders of common stock have no preemptive, conversion or other subscription rights. There are no redemption or sinking fund provisions applicable to the common stock. The determination to pay dividends on common stock will be at the discretion of the Board of Directors and will depend on applicable laws and the Company's financial condition, results of operations, cash requirements, prospects and such other factors as the Board of Directors may deem relevant. The Company's ability to declare or pay dividends or distributions to the holders of the Company's common stock is restricted under the Company's 2013 Credit Agreement. No dividends were paid in 2020, 2019 or 2018. Preferred Stock — The Company's Amended and Restated Certificate of Incorporation provides for the issuance of up to 7,000,000 shares of preferred stock that may be issued in one or more series, with each series to have certain rights and preferences as shall be determined in the unlimited discretion of the Company's Board of Directors, including, without limitation, voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences. Series D Participating Convertible Preferred Stock (the "D Stock") — In 2011, the Company issued 71,282 shares of D Stock to Goldman Sachs. Each share of D Stock has a liquidation preference of $0.01 and is convertible into 125 shares of common stock. In 2020, Goldman Sachs converted all of its 71,282 shares of D Stock into 8,910,234 shares of common stock with a par value $0.01 per share. The following table is a summary of the Company's authorized, issued and outstanding stock as of December 31, 2020: D Stock Common Stock Treasury Authorized Issued Outstanding Authorized Issued Outstanding January 1, 2018 200,000 71,282 (71,282) 162,500,000 58,823,567 (54,238,344) 4,585,223 Release for restricted stock units and stock options exercised — — — — — (1,378,105) (1,378,105) December 31, 2018 200,000 71,282 (71,282) 162,500,000 58,823,567 (55,616,449) 3,207,118 Release for restricted stock units — — — — — (877,212) (877,212) Shares issued to Ripple as part of SPA (1) — — — — 6,237,523 (6,237,523) — December 31, 2019 200,000 71,282 (71,282) 162,500,000 65,061,090 (62,731,184) 2,329,906 Release for restricted stock units — — — — 56,358 (876,121) (819,763) Preferred stock - series D conversion — (71,282) 71,282 — 7,413,322 (8,910,234) (1,496,912) December 31, 2020 200,000 — — 162,500,000 72,530,770 (72,517,539) 13,231 (1) For more details see Note 20 — Related Parties . Participation Agreement between the Investors and Wal-Mart Stores, Inc. — Goldman Sachs (the "Investor") has a Participation Agreement with Walmart Inc. ("Walmart"), under which the Investor is obligated to pay Walmart certain percentages of any accumulated cash payments received by the Investor in excess of the Investor's original investment in the Company. While the Company is not a party to and has no obligations to Walmart or additional obligations to the Investor under, the Participation Agreement, the Company must recognize the Participation Agreement in its consolidated financial statements as the Company indirectly benefits from the agreement. Any future payments by the Investor to Walmart may result in an expense that could be material to the Company's financial position or results of operations but would have no impact on the Company's cash flows. As liquidity events are dependent on many external factors and uncertainties, the Company does not consider a liquidity event to be probable at this time for the Investor and has not recognized any further liability or expense related to the Participation Agreement. Accumulated Other Comprehensive Loss — The following table details the components of "Accumulated other comprehensive loss" as of December 31: (Amounts in millions) 2020 2019 Net unrealized gains on securities classified as available-for-sale, net of tax $ 1.2 $ 1.6 Cumulative non-U.S. dollar translation adjustments, net of tax (20.9) (28.1) Pension and postretirement benefits adjustments, net of tax (38.7) (37.0) Accumulated other comprehensive loss $ (58.4) $ (63.5) The following table is a summary of the significant amounts reclassified out of each component of "Accumulated other comprehensive loss" during the years ended December 31: (Amounts in millions) 2020 2019 2018 Statement of Operations Location Pension and postretirement benefits adjustments: Amortization of prior service credit $ 0.1 $ 0.1 $ 0.1 "Other non-operating expense (income)" Amortization of net actuarial loss 2.1 2.7 4.4 "Other non-operating expense (income)" Settlement charge — 31.3 — "Other non-operating expense (income)" Total before tax 2.2 34.1 4.5 Tax benefit, net (0.5) (7.9) (1.0) Total, net of tax $ 1.7 $ 26.2 $ 3.5 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 non-U.S. dollar 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 (0.3) (13.8) 6.1 (8.0) Amounts reclassified from accumulated other comprehensive loss — — 3.5 3.5 Net current year other comprehensive (loss) income (0.3) (13.8) 9.6 (4.5) December 31, 2018 1.9 (24.2) (45.2) (67.5) Cumulative effect of adoption of ASU 2018-02 — (3.7) (11.4) (15.1) Other comprehensive loss before reclassification (0.3) (0.2) (6.6) (7.1) Amounts reclassified from accumulated other comprehensive loss — — 26.2 26.2 Net current year other comprehensive (loss) income (0.3) (0.2) 19.6 19.1 December 31, 2019 1.6 (28.1) (37.0) (63.5) Other comprehensive (loss) income before reclassification (0.4) 7.2 (3.4) 3.4 Amounts reclassified from accumulated other comprehensive loss — — 1.7 1.7 Net current year other comprehensive (loss) income (0.4) 7.2 (1.7) 5.1 December 31, 2020 $ 1.2 $ (20.9) $ (38.7) $ (58.4) |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | The MoneyGram International, Inc. 2005 Omnibus Incentive Plan ("2005 Plan") provides for the granting of equity-based compensation awards, including stock options, stock appreciation rights, restricted stock units and restricted stock awards (collectively, "share-based awards") to officers, employees and directors. In May 2015, the Company's stockholders approved an amendment and restatement of the 2005 Plan increasing the aggregate number of shares that may be issued from 12,925,000 to 15,425,000 shares. As of December 31, 2020, the Company has remaining authorization to issue future grants of up to 4,972,432 shares. The calculated fair value of share-based awards is recognized as compensation cost using the straight-line method over the vesting or service period in the Company's financial statements. Stock-based compensation is recognized only for those share-based awards expected to vest, with forfeitures estimated at the date of grant and evaluated and adjusted periodically to reflect the Company's historical experience and future expectations. Any change in the forfeiture assumption will be accounted for as a change in estimate, with the cumulative effect of the change on periods previously reported being reflected in the financial statements of the period in which the change is made. The Company recognized stock-based compensation expense of $6.6 million, $7.9 million and $12.4 million for the years ended December 31 2020, 2019 and 2018, respectively, all of which related to restricted stock units. Stock Options — All outstanding option awards were granted with an exercise price equal to the closing market price of the Company's common stock on the date of grant. All outstanding stock option award agreements contain certain forfeiture and non-compete provisions. There were no options granted in 2020, 2019 or 2018. All options granted in 2014, 2013 and 2012 have a term of 10 years. Prior to the fourth quarter of 2011, options granted were either time-based, vesting over a four-year period, or performance-based, vesting over a five-year period. All options issued after the fourth quarter of 2011 are time-based, with options granted in the fourth quarter of 2011 through the first part of 2014 vesting over a four-year period, and the remaining options granted in 2014 vesting over a three-year period, in an equal number of shares each year. The following table is a summary of the Company's stock option activity for the year ended December 31, 2020: Shares Weighted- Weighted- Aggregate Options outstanding at December 31, 2019 409,296 $ 19.34 2.4 years $ — Forfeited/Expired (131,334) 18.82 Options outstanding, vested or expected to vest, 277,962 $ 19.58 1.8 years $ — There were no options exercised in 2020, 2019 or 2018. As of December 31, 2020, the Company had no unrecognized stock option expense related to outstanding options. Restricted Stock Units — In March 2020 and 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. In March 2018, the Company granted time-based and performance-based restricted stock units. The time-based restricted stock units vest in three equal installments on each anniversary of the grant date. The performance-based restricted stock units were subject to performance conditions and a one-year performance period. When the conditions were satisfied at the end of the one-year performance period, the performance-based restricted stock units became time-based restricted stock units that vest in three equal installments on each anniversary of the grant date. For purposes of determining the fair value of restricted stock units and performance-based restricted stock units, the fair value is calculated based on the stock price at the time of grant. For performance-based restricted stock units, expense is recognized if achievement of the performance goal is deemed probable, with the amount of expense recognized based on the Company's best estimate of the ultimate achievement level. For grants to employees, expense is recognized in the "Compensation and benefits" line and expense for grants to Non-Employee Directors is recorded in the "Transaction and operations support" line in the Consolidated Statements of Operations using the straight-line method over the vesting period. The following table is a summary of the Company's restricted stock unit activity as of December 31, 2020: Total Weighted-Average Grant-Date Fair Value Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value ($000,000) Restricted stock units outstanding at December 31, 2019 2,731,758 $ 5.02 0.9 years $ 5.7 Granted 3,762,725 2.06 Vested and converted to shares (1,197,760) 6.25 Forfeited (138,488) 3.45 Restricted stock units outstanding at December 31, 2020 5,158,235 $ 2.62 0.95 years $ 28.2 Restricted stock units vested and deferred at December 31, 2020 290,324 $ 3.27 $ 1.6 The following table is a summary of the Company's restricted stock unit compensation information for the years ended December 31: (Amounts in millions) 2020 2019 2018 Weighted-average grant-date fair value of restricted stock units vested during the year $ 7.5 $ 10.4 $ 16.6 Total intrinsic value of vested and converted shares $ 2.9 $ 3.2 $ 22.3 As of December 31, 2020, the Company's outstanding restricted stock units had unrecognized compensation expense of $7.0 million with a remaining weighted-average vesting period of 1.7 years. Unrecognized restricted stock unit expense and the remaining weighted-average vesting period are presented using the Company's current estimate of achievement of performance goals. The Company had no cash-settled restricted stock units for the twelve months ended December 31, 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The following table is a summary of the components of income (loss) before income taxes for the years ended December 31: (Amounts in millions) 2020 2019 2018 U.S. $ (0.3) $ (76.5) $ (49.6) Foreign 6.4 12.2 38.7 Income (loss) before income taxes $ 6.1 $ (64.3) $ (10.9) Foreign income consists of income from the Company's international subsidiaries. Most of the Company's wholly-owned subsidiaries recognize revenue based solely on services agreements with the primary U.S. operating subsidiary. The following table is a summary of the income tax expense (benefit) for the years ended December 31: (Amounts in millions) 2020 2019 2018 Current: Federal $ (1.4) $ (0.2) $ 5.9 State 2.1 1.5 1.7 Foreign 4.2 8.2 (4.0) Current income tax expense 4.9 9.5 3.6 Deferred: Federal 7.1 (10.4) 6.5 State 1.9 (1.9) 1.0 Foreign 0.1 (1.2) 2.0 Deferred income tax expense (benefit) 9.1 (13.5) 9.5 Income tax expense (benefit) $ 14.0 $ (4.0) $ 13.1 As of December 31, 2020, the Company had a tax payable of $23.7 million recorded within "Accounts payable and other liabilities" and a tax receivable of $7.4 million recorded within "Other assets" on the Co nsolidated Balance Sheets. As of December 31, 2019, the Company had a tax payable of $22.4 million recorded within "Accounts payable and other liabilities" and a tax receivable of $12.8 million recorded within "Other assets" on the Consolidated Balance Sheets. The following table is a reconciliation of the expected federal income tax expense (benefit) at statutory rates to the actual income tax expense (benefit) for the years ended in December 31: (Amounts in millions) 2020 2019 2018 Income tax expense (benefit) at statutory federal income tax rate $ 1.3 $ (13.5) $ (2.3) Tax effect of: State income tax, net of federal income tax effect (0.4) (1.3) 0.2 Valuation allowances 12.0 2.2 0.7 International taxes 1.5 3.4 (0.8) Deferred prosecution agreement permanent difference — — 8.4 Other net permanent differences 1.8 1.7 0.9 U.S. general business credits (3.6) (2.4) — Change in unrecognized tax benefits 2.4 1.2 (0.4) Stock-based compensation 0.7 3.8 (0.6) Impact from the TCJA — 1.1 (1.3) BEAT (0.6) — 5.6 U.S. taxation of foreign earnings (1.1) 0.5 7.0 Reorganization — — (3.6) Other — (0.7) (0.7) Income tax expense (benefit) $ 14.0 $ (4.0) $ 13.1 In 2020, the Company recognized an income tax expense of $14.0 million on a pre-tax income of $6.1 million. Our income tax rate was higher than the statutory rate primarily due to an increase in valuation allowance, an increase in unrecognized tax benefits, non-deductible expenses, and international taxes, all of which were partially offset by U.S. general business credits and a change in U.S. tax law. As a result of the issuance of the final Section 951A and Section 954 regulations by the U.S. Treasury Department and the Internal Revenue Service (the "IRS") on July 20, 2020, the Company recorded a discrete tax benefit of $1.7 million in the third quarter of 2020 related to both the direct and indirect effects of the GILTI high-tax exclusions being applied retroactively to tax years 2018 and 2019. In 2019, the Company recognized an income tax benefit of $4.0 million on a pre-tax loss of $64.3 million . Our income tax rate was lower than the statutory rate primarily due to the reversal of tax benefits on share-based compensation, an increase in valuation allowance, non-deductible expenses and foreign taxes, all of which were partially offset by U.S. general business credits. In 2019, as a result of the issuance of the final Section 965 regulations by the U.S. Treasury Department and the Internal Revenue Service ("IRS") on January 15, 2019, the Company recognized tax expense of $1.1 million to revise its one-time transition tax liability, which resulted in no tax due as a result of offsetting foreign tax credits. In 2018, the Company recognized an income tax expense of $13.1 million on a pre-tax loss of $10.9 million, primarily due to the tax impact of the nondeductibility of the accrual related to the five-year deferred prosecution agreement (the "DPA") as further discussed in Note 1 5 — Commitments and Contingencies and the foreign subsidiary income inclusion and base erosion and anti-abuse tax ("BEAT") enacted under the TCJA, partially offset by the one-time $3.6 million deferred tax benefit from a reorganization of our corporate structure. The following table is a summary of the Company's deferred tax assets and liabilities as of December 31: (Amounts in millions) 2020 2019 Deferred tax assets: Basis difference in revalued investments $ 54.0 $ 55.3 Tax loss carryovers 24.4 25.7 Tax credit carryovers 15.6 12.9 Postretirement benefits and other employee benefits 8.4 7.9 Bad debt and other reserves 2.2 1.1 Lease liabilities 12.0 11.5 Depreciation & amortization 11.6 12.1 Interest expense carryovers 1.3 2.4 Other 7.5 7.9 Valuation allowances (81.2) (71.2) Total deferred tax assets 55.8 65.6 Deferred tax liability: Depreciation and amortization and other (66.0) (67.8) Lease right-of-use assets (11.0) (10.6) Total deferred tax liability (77.0) (78.4) Net deferred tax liability $ (21.2) $ (12.8) The Company offsets deferred tax asset positions with deferred tax liability positions based on right to offset in each respective tax jurisdiction. As of December 31, 2020, net deferred tax asset positions of $4.6 million were included within "Other assets" and net deferred tax liability positions of $25.8 million we re included within "Accounts payable and other liabilities" in the Consolidated Balance Sheets. As of December 31, 2019, net deferred tax asset positions of $5.2 million were reflected within "Other assets" and net deferred tax liability positions of $18.0 million were included within "Accounts payable and other liabilities" in the Consolidated Balance Sheets. The valuation allowances as of December 31, 2020 and 2019, primarily relate to basis differen ces in revalued investments, capital loss carryovers, U.S. tax credit carryovers, and certain state and foreign tax loss carryovers. The net $10.0 million increase in our valuation allowances is based on our more likely than not assessment that $12.0 million of our U.S. tax credits and state and foreign tax loss carryovers will expire prior to utilization, offset by a $2.0 million decrease for expired capital losses previously reduced by valuation allowances. The following table is a summary of the amounts and expiration dates of tax loss carry-forwards (not tax effected) and credit carry-forwards as of December 31, 2020: (Amounts in millions) Expiration Amount U.S. capital loss carry-forwards 2021 - 2025 $ 34.5 U.S. net operating loss carry-forwards 2025 - Indefinite $ 37.8 U.S. tax credit carry-forwards 2024- 2040 $ 15.6 Unrecognized tax benefits are recorded within "Accounts payable and other liabilities" in the Consolidated Balance Sheets. The following table is a reconciliation of unrecognized tax benefits for the years ended December 31: (Amounts in millions) 2020 2019 2018 Beginning balance $ 18.2 $ 17.9 $ 28.7 Additions based on tax positions related to prior years 0.9 0.9 0.7 Additions based on tax positions related to current year 0.6 — 0.8 Settlements with cash or attributes — (0.1) — Reductions for tax positions of prior years and other — (0.5) (12.3) Ending balance $ 19.7 $ 18.2 $ 17.9 As of December 31, 2020, 2019 and 2018, the liability for unrecognized tax benefits was $19.7 million , $18.2 million and $17.9 million , respectively, exclusive of interest and penalties. For 2020, 2019 and 2018, the net amount of unrecognized tax benefits that if recognized would impact the effective tax rate was $19.7 million , $18.2 million and $17.9 million, respectively. The Company accrues interest and penalties for unrecognized tax benefits through "Income tax (benefit) expense" in the Consolidated Statements of Operations. For 2020, 2019 and 2018, the Company's accrual for interest and penalties increased by $1.1 million, increased by $1.0 million and decreased by $1.6 million, respectively. As of December 31, 2020 and 2019, the Company had a liabilit y of $9.4 million a nd $8.3 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 15 — 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 December 31, 2020, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits over the next 12 months. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Letters of Credit — At December 31, 2020, the Compan y had no borrowings and nominal outstanding letters of credit under the First Lien Revolving Credit Facility. 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 Compan y ha d $57.0 million and $57.5 million of estimated li ability recorded within "Accounts payable and other liabilities" in the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019, respectively. For the years 2020 and 2019, a nominal charge was recorded for legal proceedings and $42.0 million during 2018 within "Transaction and operations support" in the 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 deferred prosecution agree ment (the "DPA") that Money Gram 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 believes the case is without merit and 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 were 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 asserted that the individual defendants caused MoneyGram to make material misstatements regarding MoneyGram's compliance with the stipulated order and DPA described below and breached their fiduciary duties in connection with MoneyGram's compliance programs. The lawsuit sought unspecified damages, equitable relief, interest and costs and attorneys' fees. On February 24, 2020, the United States District for the Northern District of Texas entered an agreed final judgment dismissing the consolidated case. On December 28, 2019, another MoneyGram shareholder filed a putative derivative action suit in the Court of Chancery of the State of Delaware, New Castle County, against certain of MoneyGram's officers and directors. The Delaware suit asserted claims for breach of fiduciary duty and other common law theories and sought unspecified damages on behalf of MoneyGram based on allegations that the individual defendants failed to take appropriate actions to prevent or remedy noncompliance with the stipulated order and DPA described below. On December 31, 2020, the Court of Chancery granted the motion to dismiss filed by MoneyGram and the individual defendants, holding that the complaint failed to plead particularized facts showing a substantial likelihood that MoneyGram’s directors acted in bad faith. The Company believes the Delaware case is without merit and intends to vigorously defend any appeal or further motion that the plaintiff may file. 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 Amended DPA with the MDPA and U.S. DOJ (collectively, the "Government") da ted 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." On February 25, 2020, the Company entered into an Amendment to and Extension of the DPA Agreement which extended the due date to November 8, 2020 for the final $55.0 million payment due to the Government pursuant to the Amended DPA. On July 24, 2020, the Company entered into the Second Amendment to the Amendment to and Extension of the Deferred Prosecution Agreement which further extended the due date of the $55.0 million payment to May 9, 2021 and also reduced the frequency of the reporting requirements under the Amended DPA from monthly to quarterly. The Company continues to engage in discussions with the Government regarding a potential reduction of the $55.0 million payment. The Company intends to fulfill its obligation regarding the final payment and the other terms of the Amended DPA. Under the Agreements, as amended, 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 9, 2021, and is to be made available by the Government 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 sepa rate 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 and has met with the NYDFS to discuss the 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. CFPB — On February 12, 2020, the Company received a Report of Examination ("ROE") from the Consumer Financial Protection Bureau ("CFPB") stating that previous findings from a 2019 exam were not remediated, and the matter would be referred to its Enforcement Unit. On March 18, 2020, the Company received a Civil Investigative Demand ("CID") from the CFPB's Enforcement Unit. On June 11, 2020, the Company provided a timely response to the ROE describ ing the remedial actions taken and that the findings have been substantially remediated. On August 21, 2020, the Company completed its production in response to the CID. 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 results of operations, and we cannot predict when the CFPB will conclude its review of the CID. 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 ("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 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 Tax Court on July 27, 2015 for an appeal to the U.S. Court of Appeals for the Fifth Circuit ("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 filed with the court. Each party 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 the Tax Court issued an opinion on December 3, 2019 denying the Company’s motion for summary judgment. MoneyGram disagrees with many of the U.S. Tax Court's findings and filed a Notice of Appeal to the Fifth Circuit on February 21, 2020. The matter is currently pending before the Fifth Circuit Court of Appeals. 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 Tax Court did not change the Company’s assessment regarding the likelihood of whether these deductions would ultimately be sustained. Accordingly, no change in the valuation allowance was made for this matter as of December 31, 2020. Pending the ultimate outcome of the Tax Court proceeding, the Company may be required to file amended state returns and make additional cash payments up to $21.2 million on amo u nts that have previously been accrued. The Company recently filed a Notice of Appeal to the Fifth Circuit on February 21, 2020, and therefore expects that any potential payment would not be due before 2021. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | The following table is a reconciliation of the weighted-average amounts used in calculating loss per share for the years ended December 31: (Amounts in millions) 2020 2019 2018 Basic and diluted common shares outstanding 77.8 71.1 64.3 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 Warrants (as defined below) 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: (Amounts in millions) 2020 2019 2018 Shares related to stock options 0.3 0.9 1.8 Shares related to restricted stock units 4.5 2.7 2.3 Shares related to Ripple warrants 6.0 1.4 — Shares excluded from the computation 10.8 5.0 4.1 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
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. W almart is our only agent, for both the Global Funds Transfer and Financial Paper Products segments, that accounts for more than 10% of total revenue. In 2020, Walmart accounted for 13% of total revenue and 16% in 2019 and 2018. The Company's Chief Operating Decision Maker reviews segment operating income and segment operating margin to assess segment performance and allocate resources. Segment accounting policies are the same as those described in Note 2 — Summary of Significant Accounting Policies . Investment revenue is allocated to each segment based on the average investable balances generated by that segment's sale of payment instruments during the period. All operating expenses that have not been classified in the above segments are reported as "Oth er". These unallocated expenses in 2020 include $0.7 million of legal expenses and other net corporate costs of $1.2 million. These unallocated expenses in 2019 include $1.6 million of legal expenses; outsourcing, independent contractor and consultant costs of $1.4 million; and other net corporate costs of $0.8 million. Unallocated expenses in 2018 include $2.6 million of legal expenses; outsourcing, independent contractor and consultant costs of $1.8 million; and other net corporate costs of $1.8 million. The following table is a summary of the total revenue by segment for the years ended December 31: (Amounts in millions) 2020 2019 2018 Global Funds Transfer revenue Money transfer revenue $ 1,104.7 $ 1,123.9 $ 1,273.4 Bill payment revenue 46.2 59.4 74.5 Total Global Funds Transfer revenue 1,150.9 1,183.3 1,347.9 Financial Paper Products revenue Money order revenue 43.4 53.0 55.3 Official check revenue 22.9 48.8 44.4 Total Financial Paper Products revenue 66.3 101.8 99.7 Total revenue $ 1,217.2 $ 1,285.1 $ 1,447.6 The following table is a summary of the operating income (loss) by segment and detail of the income (loss) before income taxes for the years ended December 31: (Amounts in millions) 2020 2019 2018 Global Funds Transfer operating income (loss) $ 84.4 $ 22.0 $ (5.9) Financial Paper Products operating income 20.5 33.8 30.6 Total segment operating income 104.9 55.8 24.7 Other operating loss (1.9) (3.8) (6.2) Total operating income 103.0 52.0 18.5 Interest expense 92.4 77.0 53.6 Other non-operating expense (income) 4.5 39.3 (24.2) Income (loss) before income taxes $ 6.1 $ (64.3) $ (10.9) The following table is a summary of depreciation and amortization expense by segment for the years ended December 31: (Amounts in millions) 2020 2019 2018 Global Funds Transfer $ 57.3 $ 65.8 $ 68.1 Financial Paper Products 7.1 8.0 8.0 Other — — 0.2 Total depreciation and amortization $ 64.4 $ 73.8 $ 76.3 The following table is a summary of capital expenditures by segment for the years ended December 31: (Amounts in millions) 2020 2019 2018 Global Funds Transfer $ 31.5 $ 50.5 $ 50.7 Financial Paper Products 3.9 6.1 5.8 Total capital expenditures $ 35.4 $ 56.6 $ 56.5 The following table sets forth assets by segment as of December 31: (Amounts in millions) 2020 2019 Global Funds Transfer $ 1,397.2 $ 1,318.3 Financial Paper Products 3,247.4 2,819.1 Other 29.5 47.6 Total assets $ 4,674.1 $ 4,185.0 Revenue by geographic area — International revenues are defined as revenues generated from money transfer and bill payment transactions originating in a country other than the U.S. There are no individual countries from which the Company generates revenues, other than the U.S., that exceed 10% of total revenues for the years ended December 31, 2020, 2019 and 2018. The following table details total revenue by major geographic area for the years ended December 31: (Amounts in millions) 2020 2019 2018 U.S. $ 543.8 $ 611.4 $ 743.9 International 673.4 673.7 703.7 Total revenue $ 1,217.2 $ 1,285.1 $ 1,447.6 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
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 for the years ended December 31: (Amounts in millions) 2020 2019 2018 Global Funds Transfer revenue Money transfer fee revenue $ 1,083.4 $ 1,102.1 $ 1,255.4 Bill payment services fee revenue 46.2 59.4 74.5 Other revenue 21.3 21.8 17.8 Total Global Funds Transfer fee and other revenue $ 1,150.9 $ 1,183.3 $ 1,347.7 Financial Paper Products revenue Money order fee revenue 7.3 8.7 11.2 Official check outsourcing services fee revenue 7.4 8.7 9.1 Other revenue 31.6 29.7 30.1 Total Financial Paper Products fee and other revenue 46.3 47.1 50.4 Investment revenue 20.0 54.7 49.5 Total revenue $ 1,217.2 $ 1,285.1 $ 1,447.6 Timing of revenue recognition: Services and products transferred at a point in time $ 1,137.0 $ 1,170.2 $ 1,341.1 Products transferred over time 7.4 8.7 9.1 Total revenue from services and products 1,144.4 1,178.9 1,350.2 Investment revenue 20.0 54.7 49.5 Other revenue 52.8 51.5 47.9 Total revenue $ 1,217.2 $ 1,285.1 $ 1,447.6 See Note 2 — Summary of Significant Accounting Policies the Company's accounting policies on revenue recognition. Due to the short-term nature of the Company's services and products, the amount of contract assets and liabilities on the Consolidated Balance Sheets as of December 31, 2020 and 2019, is negligible. Assets for unsettled money transfers, money orders and consumer payments are included within "Settlement assets" with a corresponding liability recorded within "Payment service obligations" on the Consolidated Balance Sheets. For more information on these assets and liabilities see Note 2 — Summary of Significant Accounting Policies . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | The Company's leases consist primarily of operating leases for buildings, equipment and vehicles. Finance leases are immaterial. The ROU asset and the lease liability are calculated based on the remaining minimum rental payments under current leasing standards for existing operating leases. The reduction in the carrying amount of the ROU asset and changes in the lease liability are presented within "Operating activities" on the Consolidated Statements of Cash Flows. We elected the package of practical expedients, which permitted us to not reassess our prior conclusions about lease identification, lease classification and initial direct costs under the new standard. 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 2030. 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 December 31, 2020 and 2019, the leases had a weighted-average remaining lease term of 7.3 years and 6.2 years, respectively. 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. The Company considered the most relevant major interest rate in the specific geographical location such as the Prime Rate in the U.S. and U.K. or the collateralized interest rate for non-financial institutions of the European Central Bank. These rates were then adjusted for the Company's specific credit ratings or economic conditions and lease terms of the specific portfolio. As of December 31, 2020 and 2019, the weighted-average discount rate was 5.7% and 5.4%, respectively. 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 Consolidated Balance Sheets. Lease expense for buildings and equipment is included within "Occupancy, equipment and supplies" on the Consolidated Statements of Operations, while lease expense for our vehicles is included within "Compensation and benefits." 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. The following table is a summary of the Company's lease expense for its operating leases for the year ended December 31: (Amounts in millions) 2020 2019 Buildings, equipment and vehicle leases $ 15.0 $ 15.8 Short-term and variable lease cost 1.2 1.7 Total lease cost $ 16.2 $ 17.5 The Company's rent expense, net of sublease agreements, for the year ended December 31, 2018 was $18.3 million. Supplemental cash flow information related to leases was as follows for the year ended December 31: (Amounts in millions) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 15.3 $ 15.8 ROU assets obtained in exchange for lease obligations 15.0 11.6 Maturities of operating lease liabilities as of December 31, 2020 were as follows: (Amounts in millions) Future Minimum Lease Payments 2021 $ 14.0 2022 10.5 2023 7.9 2024 7.9 2025 7.6 Thereafter 25.4 Total 73.3 Less: present value discount (14.2) Lease liability - operating $ 59.1 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |
Related Party Transactions | In June 2019, the Company entered into a multiple element arrangement with Ripple Labs Inc. ("Ripple") consisting of two contracts: a securities purchase agreement (the "SPA") and a commercial agreement. Pursuant to the SPA, the Company issued and sold to Ripple an aggregate of 6,237,523 shares of common stock at a purchase price of $4.10 per share and warrants to purchase 5,957,600 shares of common stock ("Ripple Warrants") at a per share reference price of $4.10 per share of common stock underlying the Ripple Warrant, exercisable at $0.01 per underlying share of common stock pursuant to separate issuances of common stock and Ripple Warrants, one in June 2019 and another in November 2019. Through the commercial agreement, which is scheduled to expire on July 1, 2023, we utilized Ripple's ODL platform, as well as XRP, for cross-border foreign exchange currency settlements. The Company was compensated by Ripple in XRP for developing and bringing liquidity to foreign exchange markets, facilitated by the ODL platform, and providing a reliable level of foreign exchange trading activity. We refer to this compensation as market development fees. On November 25, 2020, Ripple initiated the sale of 4,000,000 shares through a series of open market transactions that occurred from November 27, 2020 to December 14, 2020. As of December 31, 2020, Ripple held 2,237,523 shares of our common stock. The Company accounts for the XRP received as an indefinite-lived intangible asset, which is measured based on the fair market value of the XRP. Any future liquidation of such indefinite-lived intangible assets will result in capital gains or losses and will be recorded within "Occupancy, equipment and supplies" in the Consolidated Statement of Operations. See Note 9 — Goodwill and Intangible Assets for more information on the Company's indefinite-lived intangible assets. MoneyGram recognizes the XRP fees received from Ripple as vendor consideration, which is presented as an offset to costs incurred to the vendor within "Transaction and operations support" in the Consolidated Statements of Operations. All activity related to the Ripple commercial agreement, including purchases and sales of XRP and consideration received in XRP, is presented as part of operating activities in the Consolidated Statement of Cash Flows. Per the terms of the commercial agreement, the Company does not pay fees to Ripple for its usage of the ODL platform and there are no claw back or refund provisions. On December 22, 2020, the SEC filed a lawsuit against Ripple alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset offering in violation of the registration provisions of the Securities Act of 1933. Subsequently, substantially all of the U.S.-based digital asset exchanges removed XRP from their platforms. MoneyGram ceased transacting with Ripple under the commercial agreement in early December 2020 and has not since resumed trading. It is possible that MoneyGram will not resume transacting with Ripple under the commercial agreement and will be unable to receive the related market development fees in 2021 and beyond. Per the terms of the commercial agreement, the Company does not pay fees to Ripple for its usage of the ODL platform or the related software and there are no clawback or refund provisions. Related party transactions are not necessarily indicative of an arm's length transaction or comparable to a transaction that had been entered into with independent parties. The "Transaction and operations support" line on the Consolidated Statements of Operations includes market development fees of $50.2 million and $11.3 million for the years ended December 31, 2020 and December 31, 2019, respectively. As of December 31, 2020, the "Other assets" line in the Consolidated Balance Sheets had no accounts receivable from Ripple and no cryptocurrency indefinite-lived intangible asset. As of December 31, 2019, accounts receivable and cryptocurrency indefinite-lived intangible asset were $0.9 million and $6.2 million, respectively. |
Subsequent Events
Subsequent Events | Jan. 11, 2021 |
Subsequent Events [Abstract] | |
Subsequent Events | 2021 Organizational Realignment — On January 11, 2021, MoneyGram committed to an operational plan to reduce overall operating expenses, including the elimination of approximately 90 positions across the Company and certain actions to reduce other ongoing operating expenses, including real estate-related expenses (the “2021 Organizational Realignment”). The actions are designed to streamline operations and structure the Company in a way that will be more agile and aligned around its plan to execute market-specific strategies. The total expected cost of the 2021 Organizational Realignment is approximately $9.7 million, which includes approximately $6.2 million in one-time cash severance expenditures and $3.5 million in real estate-related and other cash expenditures. The Company expects the 2021 Organizational Realignment to reduce operating expenses by approximately $18.0 million on an annualized basis. The Company anticipates the workforce reduction portion of the 2021 Organizational Realignment to be substantially completed in the first quarter of 2021 and related cash expenditures to be substantially paid out in 2021. The Company’s estimates are based on a number of assumptions. Actual results may differ materially, and additional charges not currently expected may be incurred in connection with, or as a result of, the 2021 Organizational Realignment. Potential change to reportable segment — MoneyGram’s direct-to-consumer digital business, or MGO, is currently a product line within our Global Funds Transfer reportable segment. Given the significant growth, both in terms of revenue and transaction volumes, we are evaluating a potential change to our current reportable segments. This change, would involve adding MGO as a third reportable segment. The Company expects to complete its analysis in the first half of 2021 and if deemed appropriate we will be reporting our MGO business as a separate reportable segment in 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation — The accompanying consolidated financial statements of MoneyGram are prepared in conformity with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The 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 U.S. 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. | |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of MoneyGram International, Inc. and its subsidiaries. Intercompany profits, transactions and account balances have been eliminated in consolidation. Reclassification — Certain prior amounts have been reclassified in order to conform to the current year presentation. In 2020, the Company changed the presentation of its right-of-use assets and associated lease liabilities in the accompanying Consolidated Balance Sheets and Consolidated Statements of Cash Flows. Increases to our right-of-asset and liabilities that result from new operating leases, extension of existing operating leases or modifications of existing operating leases are excluded from the Consolidated Statements of Cash Flows as these are non-cash items in period they occur. | |
Cash and Cash Equivalents, Policy | Cash and cash equivalents — The Company defines cash and cash equivalents and settlement cash and cash equivalents as cash on hand and all highly liquid debt instruments with original maturities of three months or less at the purchase date. | |
Restricted Assets Policy | 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. Settlement assets consist of settlement cash and cash equivalents, receivables and investments. Payment service obligations primarily consist of outstanding payment instruments; amounts owed to financial institutions for funds paid to the Company to cover clearings of official check payment instruments, remittances and clearing adjustments; amounts owed to agents for funds paid to consumers on behalf of the Company; commissions owed to financial institution customers and agents for instruments sold; amounts owed to investment brokers for purchased securities and unclaimed instruments owed to various states. | |
Receivables, Policy | Receivables, net (included in settlement assets) — The Company has receivables due from financial institutions and agents for payment instruments sold and amounts advanced by the Company to certain agents for operational and local regulatory purposes. These receivables are outstanding from the day of the sale of the payment instrument until the financial institution or agent remits the funds to the Company. The Company provides an allowance for the portion of the receivable estimated to become uncollectible based on its history of collection experience, known collection issues, such as agent suspensions and bankruptcies, consumer credit card chargebacks and insufficient funds and other matters the Company identifies in its routine collection monitoring. Receivables are generally considered past due one day after the contractual remittance schedule, which is typically one day to three days after the sale of the underlying payment instrument. Receivables are generally written off against the allowance one year after becoming past due. | |
Investment, Policy | Investments (included in settlement assets) — The Company classifies securities as available-for-sale. The Company has no securities classified as trading or held-to-maturity. Time deposits and certificates of deposits with original maturities of up to 24 months are classified as interest-bearing investments and recorded at amortized cost. Securities held for indefinite periods of time, including any securities that may be sold to assist in the clearing of payment service obligations or in the management of the investment portfolio, are classified as available-for-sale securities. These securities are recorded at fair value, with the net after-tax unrealized gain or loss recorded within "Accumulated other comprehensive loss" in the stockholders' deficit section of the Consolidated Balance Sheets. Realized gains and losses and other-than-temporary impairments are recorded in the Consolidated Statements of Operations under "Total other expenses." Interest income on residential mortgage-backed securities for which risk of credit loss is deemed remote is recorded utilizing the level yield method. Changes in estimated cash flows, both positive and negative, are accounted for with retrospective changes to the carrying value of investments in order to maintain a level yield over the life of the investment. Interest income on residential mortgage-backed securities for which risk of credit loss is not deemed remote is recorded under the prospective method as adjustments of yield. Additionally, the Company applies the cost recovery method of accounting for interest to some of the investments within the available-for-sale portfolio as it believes it is probable that it will not recover all, or substantially all, of its principal investment and interest for its asset-backed and other securities given the sustained deterioration in the investment and securities market, the collapse of many asset-backed securities and the low levels to which the securities have been written down. The Company evaluates all residential mortgage-backed and other asset-backed investments for impairment based on management's evaluation of the underlying reasons for the decline in fair value on an individual security basis. When an adverse change in expected cash flows occurs, and if the fair value of a security is less than its carrying value, the investment is written down to fair value through a permanent reduction to its amortized cost in the period the impairment occurs. Securities gains and losses are recognized upon the sale, call or maturity of securities using the specific identification method to determine the cost basis of securities sold. | |
Fair Value of Financial Instruments, Policy | Fair Value of Financial Instruments — Financial instruments consist of cash and cash equivalents, settlement cash and cash equivalents, investments, derivatives, payment service obligations and debt. The carrying values of cash and cash equivalents, settlement cash and cash equivalents, interest-bearing investments and payment service obligations approximate fair value. The carrying value of debt is stated at amortized cost; however, for disclosure purposes the fair value is estimated. See Note 5 — Fair Value Measurement for information regarding the principles and processes used to estimate the fair value of financial instruments. 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. | |
Derivatives, Policy | Derivative Financial Instruments — The Company recognizes derivative financial instruments in the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value is recognized through "Transaction and operations support" in the Consolidated Statements of Operations in the period of change. See Note 7 — Derivative Financial Instruments for additional disclosure. | |
Property, Plant and Equipment, Policy | Property and Equipment — Property and equipment includes computer hardware, computer software, signage, equipment at agent locations, office furniture and equipment and leasehold improvements, and is stated at cost net of accumulated depreciation and amortization. Property and equipment is depreciated and amortized using a straight-line method over the useful life or term of the lease or license. The cost and related accumulated depreciation and amortization of assets sold or disposed of are removed from the financial statements, with the resulting gain or loss, if any, recognized within "Occupancy, equipment and supplies" in the Consolidated Statements of Operations. See Note 8 — Property and Equipment for additional disclosure. The following table summarizes the e stimated useful lives by major asset category: Type of Asset Useful Life Computer hardware 3 years Computer software 5 - 7 years Signage 3 years Equipment at agent locations 3 - 7 years Office furniture and equipment 7 years Leasehold improvements 10 years Tenant allowances for leasehold improvements are capitalized as leasehold improvements upon completion of the improvement and amortized over the shorter of the remaining term of the lease or 10 years. Computer software includes acquired and internally developed software. Property and equipment are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable by comparing the carrying value of the assets to the estimated future undiscounted cash flows to be generated by the asset. If an impairment is determined to exist for property and equipment, the carrying value of the asset is reduced to the estimated fair value. | |
Goodwill and Intangible Assets, Policy | Goodwill and Intangible Assets — Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is assigned to the reporting unit in which the acquired business will operate. Intangible assets are recorded at their estimated fair value at the date of acquisition. In the year following the period in which identified intangible assets become fully amortized, the fully amortized balances are removed from the gross asset and accumulated amortization amounts. Intangible assets with indefinite lives are not amortized. Intangible assets that are not amortized are evaluated for impairment on a quarterly basis. As of December 31, 2020, the Company had no indefinite-lived intangible asset and as of December 31, 2019, the Company's only indefinite-lived intangible asset was cryptocurrency. Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable by comparing the carrying value of the assets to the estimated future undiscounted cash flows to be generated by the asset. If an impairment is determined to exist for intangible assets, the carrying value of the asset is reduced to the estimated fair value. Intangible assets with finite lives are amortized using a straight-line method over their respective useful lives as follows: Type of Intangible Asset Useful Life Contractual and customer relationships 3 - 15 years Non-compete agreements 3 - 5 years Developed technology 5 - 7 years Goodwill is not amortized but is instead subject to impairment testing. The Company evaluates its goodwill for impairment annually as of October 1 of each year or more frequently if impairment indicators arise in accordance with Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other. When testing goodwill for impairment, the Company may elect to perform either a qualitative test or a quantitative test to determine if it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value. During a qualitative analysis, the Company considers the impact of any changes to the following factors: macroeconomic, industry and market factors, cost factors, and changes in overall financial performance, as well as any other relevant events and uncertainties impacting a reporting unit. If the qualitative assessment does not conclude that it is more likely than not that the estimated fair value of the reporting unit is greater than the carrying value, the Company performs a quantitative analysis. In a quantitative test, the carrying value of the reporting unit is compared to its estimated fair value. If the fair value of a reporting unit exceeds its carrying amount, there is no impairment. If not, to the extent the carrying amount of the reporting unit exceeds its fair value, an impairment charge of the reporting unit's goodwill would be recognized; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. | |
Long-Duration Contracts, Policy | Payments on Long-Term Contracts — The Company makes payments to certain agents and financial institution customers as an incentive to enter into long-term contracts. The payments, or signing bonuses, are generally required to be refunded pro rata in the event of nonperformance under, or cancellation of, the contract by the customer. Signing bonuses are viewed as prepaid commissions expense and are, therefore, capitalized and amortized over the life of the related contract. Amortization of signing bonuses on long-term contracts is recorded within "Fee and other commissions expense" in the Consolidated Statements of Operations. The carrying values of the signing bonuses are reviewed whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. | |
Income Tax, Policy | Income Taxes — The provision for income taxes is computed based on the pre-tax income (loss) included in the Consolidated Statements of Operations. Deferred tax assets and liabilities are recorded based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and their respective tax basis, and operating loss and tax credit carry-forwards on a taxing jurisdiction basis. The Company measures deferred tax assets and liabilities using enacted statutory tax rates that will apply in the years in which the Company expects the temporary differences to be recovered or paid. The Company's ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carry-back or carry-forward periods provided for in the tax law. The Company establishes valuation allowances for its deferred tax assets based on a more-likely-than-not threshold. To the extent management believes that recovery is not likely, a valuation allowance is established in the period in which the determination is made. The legislation commonly known as the "Tax Cuts and Jobs Act," and also known as H.R. 1 - 115 th Congress (the "TCJA"), includes global intangible low-taxed income ("GILTI") provisions, which impose a U.S. income inclusion on foreign income in excess of a deemed return on tangible assets of foreign corporations. In accordance with ASC 235-10-50, the Company elected in the fourth quarter of 2018 to treat GILTI inclusions as a current period expense when incurred under ASC Topic 740, Income Taxes. The liability for unrecognized tax benefits is recorded as a non-cash item within "Accounts payable and other liabilities" in the Consolidated Balance Sheets. The Company records interest and penalties for unrecognized tax benefits within "Income tax (benefit) expense" in the Consolidated Statements of Operations. See Note 1 4 — Income Taxes for additional disclosure. | |
Stockholders' Equity, Policy | Treasury Stock — Repurchased common stock is stated at cost and is presented as a separate component of stockholders' deficit. See Note 1 2 — Stockholders ' Deficit for additional disclosure. | |
Foreign Currency Transactions and Translations Policy | Non-U.S. Dollar Translation — The Company converts assets and liabilities of foreign operations to their U.S. dollar equivalents at rates in effect at the balance sheet dates and records the translation adjustments within "Accumulated other comprehensive loss" in the Consolidated Balance Sheets. Income statements of foreign operations are translated from the operation's functional currency to U.S. dollar equivalents at the average exchange rate for the month. Non-U.S. dollar exchange transaction gains and losses are reported within "Transaction and operations support" in the Consolidated Statements of Operations. | |
Revenue Recognition, Policy | Revenue Recognition — The Company earns revenues from consideration specified in contracts with customers and recognizes revenue when it satisfies its performance obligations by transferring control over its services and products to customers. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities. The following is a description of the principal activities, separated by reporting segments, from which the Company generates revenues. For more information about the Company's reporting segments, see Note 1 7 — Segment Information For tabular revenue disclosures see Note 1 8 — Revenue Recognition Global Funds Transfer Segment: Money transfer fee revenue — The Company earns money transfer revenues primarily from consumer transaction fees and the management of currency exchange spreads on money transfer transactions involving different "send" and "receive" currencies. Fees are collected from consumers at the time of transaction. In a cash-to-cash money transfer transaction, both the agent initiating the transaction and the receiving agent earn a commission that is generally a fixed fee or is based on a percentage of the fee charged to the consumer. When a money transfer transaction is initiated at a MoneyGram-owned store, kiosk or via our online platform, typically only the receiving agent earns a commission. Each money transfer is considered a separate agreement between the Company and the consumer and includes only one performance obligation that is satisfied at a point in time, which is when the funds are made available for pick up. Money transfer funds are typically available for pick up within 24 hours of being sent. The consumer is in control of the service, as the consumer picks the "send" and "receive" locations as well as the transaction currency. Normally, the Company provides fee refunds to consumers only if the transaction is canceled within 30 minutes of initiating the transfer and the transfer amount has not been picked up by the Receiver. As such, fee refunds are accounted for within the same period as the origination of the transaction and no liability for the amount of expected returns is recorded on the Consolidated Balance Sheets. The Company recognizes revenues on a gross basis for money transfer services as the Company is considered the principal in these transactions. Under our loyalty programs for money transfer services, consumers earn rewards based on transaction frequency. In 2018, the Company introduced the MoneyGram Plus Rewards program, which allows members to earn discounts on future transactions. The MoneyGram Plus Rewards program activity for the years ended December 31, 2020 and 2019 was insignificant to the Company's results of operations. Bill payment services fee revenue — Bill payment revenues are earned primarily from fees charged to consumers for each transaction completed. Our primary bill payment service offering is our ExpressPayment service, which we offer at substantially all of our money transfer agent locations, at certain agent locations in select Caribbean and European countries and through our digital solutions. Through our bill payment services, consumers can complete urgent bill payments, pay routine bills, or load and reload prepaid debit cards with cash at an agent location or with a credit or debit card. We offer consumers same-day and two or three-day payment service options; the service option is dependent upon our agreement with the biller. Each bill payment service is considered a separate agreement with the consumer and includes only one performance obligation that is satisfied at a point in time, when the funds are transferred to the designated institution, which is generally within the same day. The consumer is in control of the service, as the consumer picks out the "send" location and time. MoneyGram does not offer refunds for bill payment services and revenue is recognized on a gross basis as the Company is considered the principal in these transactions. Other revenue — Includes breakage income, fees from royalties, contract terminations, insufficient funds and other one-time charges. The Company recognizes breakage revenue for unclaimed money transfers when the likelihood of consumer pick-up becomes remote based on historical experience and there is no requirement for remitting balances to government agencies. Financial Paper Products Segment: Money order fee revenue — Consumers use our money orders to make payments in lieu of cash or personal checks. We generate revenue from money orders by charging per item and other fees, as well as from the investment of funds underlying outstanding money orders. The Company contracts with agents and/or financial institutions for this product and associated services. We sell money orders under the MoneyGram brand and on a private label or on a co-branded basis with certain agents and financial institutions in the U.S. The Company recognizes revenue when an agent sells a money order because the funds are immediately made available to the consumer. As such, each sale of a money order and related service is considered a separate performance obligation that is satisfied at a point in time. Official check outsourcing services fee revenue — Official checks are used by consumers where a payee requires a check drawn on a bank. Financial institutions also use official checks to pay their own obligations. Like money orders, the Company generates revenue from official check outsourcing services through U.S. banks and credit unions by charging per item and other fees, as well as from the investment of funds underlying outstanding official checks. The Company's consumer for official checks is considered the financial institution. The official checks services and products are considered a bundle of services and products that are provided to the financial institution on an ongoing basis. As such, revenue from these services is recognized on a monthly basis. Revenue corresponds directly with the value of MoneyGram's services and/or products completed to date and for which the Company has a right to invoice. Monthly revenue may vary based on the number of official checks issued and other ancillary services provided to the financial institution. Other revenue — Includes fees from money order service revenue, proof adjustments, early contract terminations, money order photo and replacement fees and other one-time charges. The Company recognizes service revenue from money orders that have not been redeemed within a one-year period from issuance. Proof adjustment fees are generally unresolved and not recouped as they pertain to immaterial bank variances. The Company recognizes as revenue the net proof adjustments amount on a monthly basis. Investment Revenue: Investment revenue, which is not within the scope of ASC Topic 606 per ASC 606-10-15-2, is earned from the investment of funds generated from the sale of payment instruments, primarily official checks and money orders, and consists of interest income, dividend income, income received on our cost recovery securities and amortization of premiums and discounts. Investment revenue varies depending on the level of investment balances and the yield on our investments. | |
Commissions Expense, Policy | Fee and Other Commissions Expense — The Company incurs fee commissions primarily related to our Global Funds Transfer services. In a money transfer transaction, both the agent initiating the transaction and the receiving agent earn a commission that is generally either a fixed fee or is based on a percentage of the fee charged to the consumer. The agent initiating the transaction and the receiving agent also earn non-U.S. dollar exchange commissions, which are generally based on a percentage of the non-U.S. dollar exchange spread. In a bill payment transaction, the agent initiating the transaction receives a commission that is generally based on a percentage of the fee charged to the consumer and, in limited circumstances, the biller receives a commission that is based on a percentage of the fee charged to the consumer. The Company generally does not pay commissions to agents on the sale of money orders, except, in certain limited circumstances, for large agents where we may pay a fixed commission based on total money order transactions. | |
Investment Commissions Expense Policy | Investment Commissions Expense — Investment commissions expense consists of amounts paid to financial institution customers based on short-term interest rate indices times the average outstanding cash balances of official checks sold by the financial institution. Investment commissions are recognized each month based on the average outstanding balances of each financial institution customer and their contractual variable rate for that month. | |
Selling, General and Administrative Expenses, Policy | Direct Transaction Expense — Direct transaction expense includes expenses related to the processing of money transfers, such as customer authentication and funding costs. | |
Advertising Cost, Policy | Marketing and Advertising Expense — Marketing and advertising costs are expensed as incurred or at the time the advertising first takes place and are recorded in the "Transaction and operations support" line in the Consolidated Statements of Operations. Marketing and advertising expense was $16.2 million, $48.1 million and $51.2 million for 2020, 2019 and 2018, respectively. | |
Share-based Compensation, Option and Incentive Plans Policy | Stock-Based Compensation — Stock-based compensation awards are measured at fair value at the date of grant and expensed using the straight-line method over their vesting or service periods. For grants to employees, expense, net of estimated forfeitures, is recognized in the "Compensation and benefits" line and expense for grants to non-employee directors is recorded in the "Transaction and operations support" line in the Consolidated Statements of Operations. The Company accounts for modifications to its share-based payment awards in accordance with the provisions of ASC Topic 718, Compensation - Stock Compensation. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the share price and other pertinent factors at that date, and is recognized as compensation cost on the date of modification (for vested awards) or over the remaining vesting or service period (for unvested awards). Any unrecognized compensation cost remaining from the original award is recognized over the vesting period of the modified award. See Note 1 3 — Stock-Based Compensation for additional disclosure of the Company's stock-based compensation. | |
Earnings Per Share, Policy | Earnings Per Share — For all periods in which they are outstanding, the Series D Participating Convertible Preferred Stock (the "D Stock") and the Second Lien Warrants (as defined in Note 10 — Debt ) 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. | |
New Accounting Pronouncements, Policy | Recently Adopted Accounting Standards — 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 U.S. GAAP. 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 1 9 — Leases for more information related to the Company's leases. 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, as such, its disclosure requirements is reflected in the 2020 Annual Report on Form 10-K, see Note 11 — Pension and Other Benefits . This standard does not impact our consolidated financial statements. Recently Issued Accounting Standards and Related Developments Not yet Adopted — In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 • ASU 2019-10 (Issued November 2019) — Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates • ASU 2019-11 (Issued November 2019) — Codification Improvements to Topic 326, Financial Instruments - Credit Losses • ASU 2020-02 (Issued February 2020) — Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) (SEC Update) • ASU 2020-03 (Issued March 2020) — Codification Improvements to Financial Instruments ASU 2019-10 changed the effective date of ASU 2016-13 for public business entities that meet the definition of a U.S. Securities and Exchange Commission ("SEC") filer but that are eligible to be a smaller reporting company to fiscal years beginning after December 15, 2022. MoneyGram is a smaller reporting company and, as such, will adopt the amendments in these standards in 2023. We are still evaluating these ASUs, but we do not believe the adoption will have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The amendments in this ASU provide, if certain criteria are met, optional expedients and exceptions for applying the GAAP requirements for contract modifications, hedging relationships and sales or transfers of debt securities that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform through December 31, 2022. The adoption of this ASU is optional and the election can be made anytime during the effective period. The amendments in this ASU are effective as of March 12, 2020 through December 31, 2022. MoneyGram is currently evaluating the impact of this standard and has not yet determined whether we will elect the optional expedients. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity . This ASU changes how entities account for convertible instruments and contracts in an entity's own equity and simplifies the accounting for convertible instruments by removing certain separation models for convertible instruments. This ASU also modifies the guidance on diluted earnings per share calculations. The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We are currently evaluating the impact of this standard on our consolidated financial statements. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy | Fair Value of Financial Instruments — Financial instruments consist of cash and cash equivalents, settlement cash and cash equivalents, investments, derivatives, payment service obligations and debt. The carrying values of cash and cash equivalents, settlement cash and cash equivalents, interest-bearing investments and payment service obligations approximate fair value. The carrying value of debt is stated at amortized cost; however, for disclosure purposes the fair value is estimated. See Note 5 — Fair Value Measurement for information regarding the principles and processes used to estimate the fair value of financial instruments. 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Allowance for Credit Losses on Financing Receivables | The following summary details the activity within the allowance for credit losses for the years ended December 31: (Amounts in millions) 2020 2019 2018 Beginning balance $ 4.6 $ 7.3 $ 6.6 Provision 14.3 6.5 11.2 Write-offs, net of recoveries (9.4) (9.2) (10.5) Ending balance $ 9.5 $ 4.6 $ 7.3 |
Property, Plant and Equipment | The following table summarizes the e stimated useful lives by major asset category: Type of Asset Useful Life Computer hardware 3 years Computer software 5 - 7 years Signage 3 years Equipment at agent locations 3 - 7 years Office furniture and equipment 7 years Leasehold improvements 10 years The following table is a summary of "Property and equipment, net" as of December 31: (Amounts in millions) 2020 2019 Computer hardware and software $ 512.8 $ 503.6 Signage 56.1 53.3 Equipment at agent locations 48.9 59.2 Office furniture and equipment 28.4 28.4 Leasehold improvements 27.0 26.5 Total property and equipment 673.2 671.0 Accumulated depreciation and amortization (525.1) (494.9) Total property and equipment, net $ 148.1 $ 176.1 |
Schedule of Finite-Lived Intangible Assets | Intangible assets with finite lives are amortized using a straight-line method over their respective useful lives as follows: Type of Intangible Asset Useful Life Contractual and customer relationships 3 - 15 years Non-compete agreements 3 - 5 years Developed technology 5 - 7 years The following table is a summary of finite-lived intangible assets as of December 31: 2020 2019 (Amounts in millions) Gross Accumulated Net Gross Accumulated Net Contractual and customer relationships $ 4.1 $ (3.2) $ 0.9 $ 4.1 $ (2.6) $ 1.5 Developed technology 0.6 (0.5) 0.1 0.6 (0.5) 0.1 Total finite-intangible assets $ 4.7 $ (3.7) $ 1.0 $ 4.7 $ (3.1) $ 1.6 |
Schedule of Earnings Per Share, Basic and Diluted | The following table is a reconciliation of the weighted-average amounts used in calculating loss per share for the years ended December 31: (Amounts in millions) 2020 2019 2018 Basic and diluted common shares outstanding 77.8 71.1 64.3 |
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: (Amounts in millions) 2020 2019 2018 Shares related to stock options 0.3 0.9 1.8 Shares related to restricted stock units 4.5 2.7 2.3 Shares related to Ripple warrants 6.0 1.4 — Shares excluded from the computation 10.8 5.0 4.1 |
Restructuring and Reorganizat_2
Restructuring and Reorganization Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Reorganization Costs [Abstract] | |
Schedule of Restructuring and Reorganization Costs Accrual | The following table is a roll-forward of the reorganization costs accrual as of December 31, 2020: (Amounts in millions) 2019 Organizational Realignment Balance, December 31, 2019 $ 4.6 Expenses 1.7 Cash payments (6.3) Balance, December 31, 2020 $ — |
Summary of Total Cumulative Restructuring and Reorganization Costs Incurred by Reporting Segment | The following table is a summary of the total cumulative reorganization costs incurred to date in operating expenses as of December 31, 2020: (Amounts in millions) Total Balance, December 31, 2019 $ 6.8 First quarter 2020 0.7 Second quarter 2020 0.7 Third quarter 2020 (0.3) Fourth quarter 2020 0.6 Total cumulative reorganization costs incurred to date $ 8.5 |
Settlement Assets and Payment_2
Settlement Assets and Payment Service Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets and Other Liabilities | The following table summarizes the amount of settlement assets and payment service obligations as of December 31: (Amounts in millions) 2020 2019 Settlement assets: Settlement cash and cash equivalents $ 1,883.2 $ 1,531.1 Receivables, net 825.0 715.5 Interest-bearing investments 991.2 985.9 Available-for-sale investments 3.5 4.5 $ 3,702.9 $ 3,237.0 Payment service obligations $ (3,702.9) $ (3,237.0) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 3.0 $ — $ 3.0 Asset-backed and other securities — 0.5 0.5 Forward contracts 0.1 — 0.1 Total financial assets $ 3.1 $ 0.5 $ 3.6 Financial liabilities: Forward contracts $ 2.2 $ — $ 2.2 December 31, 2019 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 3.6 $ — $ 3.6 Asset-backed and other securities — 0.9 0.9 Forward contracts — — — Total financial assets $ 3.6 $ 0.9 $ 4.5 Financial liabilities: Forward contracts $ 0.8 $ — $ 0.8 |
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 for the years ended December 31: (Amounts in millions) 2020 2019 2018 Beginning balance $ 0.9 $ 1.2 $ 1.4 Change in unrealized losses (0.4) (0.3) (0.2) Ending balance $ 0.5 $ 0.9 $ 1.2 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table provides the carrying value and fair value for the first and second lien credit facilities for the years ended December 31: (Amounts in millions) 2020 2019 Carrying value Fair value Carrying value Fair value First lien credit facility $635.3 $635.3 $641.8 $577.6 Second lien credit facility $254.6 $254.3 $251.4 $236.7 |
Investment Portfolio (Tables)
Investment Portfolio (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Components of Investment Portfolio | The following table shows the components of the investment portfolio as of December 31: (Amounts in millions) 2020 2019 Cash $ 2,076.8 $ 1,675.4 Money market securities 2.5 2.5 Cash and cash equivalents (1) 2,079.3 1,677.9 Interest-bearing investments 991.2 985.9 Available-for-sale investments 3.5 4.5 Total investment portfolio $ 3,074.0 $ 2,668.3 (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 Gross Gross Fair December 31, 2020 Residential mortgage-backed securities $ 2.6 $ 0.4 $ — $ 3.0 Asset-backed and other securities 0.2 0.5 (0.2) 0.5 Total $ 2.8 $ 0.9 $ (0.2) $ 3.5 December 31, 2019 Residential mortgage-backed securities $ 3.3 $ 0.3 $ — $ 3.6 Asset-backed and other securities 0.2 0.7 — 0.9 Total $ 3.5 $ 1.0 $ — $ 4.5 |
Schedule of Investment Ratings | Investment grade is defined as a security having a Moody's equivalent rating of Aaa, Aa, A or Baa or an S&P or Fitch equivalent rating of AAA, AA, A or BBB. The Company's investments consisted of the following ratings as of December 31: 2020 2019 (Amounts in millions, except percentages) Number of Fair Percent of Number of Fair Percent of Investment grade 9 $ 3.0 86 % 10 $ 3.6 80 % Below investment grade 35 0.5 14 % 35 0.9 20 % Total 44 $ 3.5 100 % 45 $ 4.5 100 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instrument Detail [Abstract] | |
Summary of Gains (Losses) Related to Assets and Liabilities Denominated in Foreign Currencies | The following net gains related to assets and liabilities denominated in non-U.S. dollars are included within "Transaction and operations support" in the Consolidated Statements of Operations and within "Net cash provided by operating activities" in the Consolidated Statements of Cash Flows: (Amounts in millions) 2020 2019 2018 Net realized non-U.S. dollar gain (loss) $ 26.6 $ (7.4) $ (5.8) Net (loss) gain from the related forward contracts (11.9) 11.2 10.2 Net gains from non-U.S. dollar transactions and related forward contracts $ 14.7 $ 3.8 $ 4.4 |
Fair Values of Derivative Forward Contract Instruments | As of December 31, 2020 and 2019, the Company reflects the following fair values of derivative forward contract instruments in its 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 2020 2019 2020 2019 2020 2019 Forward contracts Other assets $ 1.0 $ 0.2 $ (0.9) $ (0.2) $ 0.1 $ — 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 2020 2019 2020 2019 2020 2019 Forward contracts Accounts payable and other liabilities $ 3.1 $ 1.0 $ (0.9) $ (0.2) $ 2.2 $ 0.8 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | The following table summarizes the e stimated useful lives by major asset category: Type of Asset Useful Life Computer hardware 3 years Computer software 5 - 7 years Signage 3 years Equipment at agent locations 3 - 7 years Office furniture and equipment 7 years Leasehold improvements 10 years The following table is a summary of "Property and equipment, net" as of December 31: (Amounts in millions) 2020 2019 Computer hardware and software $ 512.8 $ 503.6 Signage 56.1 53.3 Equipment at agent locations 48.9 59.2 Office furniture and equipment 28.4 28.4 Leasehold improvements 27.0 26.5 Total property and equipment 673.2 671.0 Accumulated depreciation and amortization (525.1) (494.9) Total property and equipment, net $ 148.1 $ 176.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets with finite lives are amortized using a straight-line method over their respective useful lives as follows: Type of Intangible Asset Useful Life Contractual and customer relationships 3 - 15 years Non-compete agreements 3 - 5 years Developed technology 5 - 7 years The following table is a summary of finite-lived intangible assets as of December 31: 2020 2019 (Amounts in millions) Gross Accumulated Net Gross Accumulated Net Contractual and customer relationships $ 4.1 $ (3.2) $ 0.9 $ 4.1 $ (2.6) $ 1.5 Developed technology 0.6 (0.5) 0.1 0.6 (0.5) 0.1 Total finite-intangible assets $ 4.7 $ (3.7) $ 1.0 $ 4.7 $ (3.1) $ 1.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following is a summary of the Company's outstanding debt as of December 31: (Amounts in millions, except percentages) 2020 2019 7.00% first lien credit facility due 2023 $ 635.3 $ 641.8 13.00% second lien credit facility due 2024 254.6 251.4 Senior secured credit facilities 889.9 893.2 Unamortized debt issuance costs and debt discounts (32.1) (42.9) Total debt, net $ 857.8 $ 850.3 |
Credit Agreement Quarterly Financial Covenants | The table below summarizes the Revolver Financial Covenants Under the First Lien Credit Agreement, 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) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Assumptions Used | The measurement date for the Company's Pension and Postretirement Benefits is December 31. The following table is a summary of the weighted-average actuarial assumptions used in calculating net periodic benefit expense (income) and the benefit obligation for the years ended and as of December 31: Pension Plan SERPs Postretirement Benefits 2020 2019 2018 2020 2019 2018 2020 2019 2018 Net periodic benefit expense (income): Discount rate for benefit obligation 3.23 % 3.57 % 3.58 % 3.18 % 4.32 % 3.65 % 3.33 % 4.41 % 3.72 % Discount rate for interest cost 2.83 % 3.09 % 3.13 % 2.70 % 3.88 % 3.20 % 2.77 % 3.91 % 3.20 % Expected return on plan assets 2.07 % 2.91 % 4.59 % — — — — — — Cash balance interest crediting rate 1.73 % 2.75 % 2.08 % — — — — — — Rate of compensation increase — — — 5.75 % 5.75 % 5.75 % — — — Medical trend rate: Pre-65 initial healthcare cost trend rate — — — — — — 6.79 % 7.25 % 7.75 % Post-65 initial healthcare cost trend rate — — — — — — 7.51 % 8.25 % 7.75 % Pre and post-65 ultimate healthcare cost trend rate — — — — — — 4.50 % 4.50 % 4.50 % Year ultimate healthcare cost trend rate is reached for pre/post-65, respectively — — — — — — 2027 2025 2025/ 2027 Benefit obligation: Discount rate 2.51 % 3.23 % 4.25 % 2.41 % 3.18 % 4.32 % 2.64 % 3.33 % 4.41 % Cash balance interest crediting rate 1.36 % 1.73 % 2.75 % — — — — — — Rate of compensation increase — — — 5.75 % 5.75 % 5.75 % — — — Medical trend rate: Pre-65 initial healthcare cost trend rate — — — — — — 6.46 % 6.79 % 7.25 % Post-65 initial healthcare cost trend rate — — — — — — 7.08 % 7.51 % 8.25 % Pre and post-65 ultimate healthcare cost trend rate — — — — — — 4.50 % 4.50 % 4.50 % Year ultimate healthcare cost trend rate is reached for pre/post-65 — — — — — — 2028 2027 2025 |
Schedule of Allocation of Plan Assets | The following table is a summary of the Pension Plan's financial assets recorded at fair value, by hierarchy level: (Amounts in millions) Level 2 Level 3 Total December 31, 2020 Common/collective trusts Short-term investment fund $ 0.9 $ — $ 0.9 Equity securities: Large cap 2.0 — 2.0 Small cap 0.5 — 0.5 International 1.2 — 1.2 Fixed income securities 36.3 — 36.3 Real estate — 5.3 5.3 Total investments in the fair value hierarchy $ 40.9 $ 5.3 $ 46.2 December 31, 2019 Common/collective trusts Short-term investment fund $ 1.9 $ — $ 1.9 Equity securities: Large cap 1.4 — 1.4 Small cap 0.3 — 0.3 International 0.9 — 0.9 Fixed income securities 30.9 — 30.9 Real estate — 5.1 5.1 Total investments in the fair value hierarchy $ 35.4 $ 5.1 $ 40.5 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | The following table sets forth additional disclosures for the Pension Plan assets fair value estimated using net asset value per share: (Amounts in millions) Fair Value Redemptions Frequency (if currently eligible) Redemption Notice Period December 31, 2020 $ 40.9 Daily 15 Days December 31, 2019 $ 35.4 Daily 15 Days |
Schedule of Net Periodic Benefit Expense (Income) | Pension Postretirement Benefits (Amounts in millions) 2020 2019 2018 2020 2019 2018 Settlement charge $ — $ 31.3 $ — $ — $ — $ — Interest cost 3.1 5.4 6.3 — — — Expected return on plan assets (0.8) (2.7) (5.0) — — — Amortization of net actuarial loss 2.0 2.6 4.3 0.1 0.1 0.1 Amortization of prior service cost 0.1 0.1 0.1 — — — Net periodic benefit expense $ 4.4 $ 36.7 $ 5.7 $ 0.1 $ 0.1 $ 0.1 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The following tables are a summary of the amounts recognized in other comprehensive income (loss) and net periodic benefit expense for the years ended December 31: (Amounts in millions) Pension Postretirement 2020 Net actuarial loss (gain) $ 4.5 $ (0.1) Amortization of net actuarial loss (2.0) (0.1) Amortization of prior service cost (0.1) — Total recognized in other comprehensive income 2.4 (0.2) Total recognized in net periodic benefit expense 4.4 0.1 Total recognized in other comprehensive income and net periodic benefit expense $ 6.8 $ (0.1) 2019 Settlement charge $ (31.3) $ — Net actuarial loss 8.5 0.1 Amortization of net actuarial loss (2.6) (0.1) Amortization of prior service cost (0.1) — Total recognized in other comprehensive income (25.5) — Total recognized in net periodic benefit expense 36.7 0.1 Total recognized in other comprehensive income and net periodic benefit expense $ 11.2 $ 0.1 2018 Net actuarial gain $ (7.8) $ (0.1) Amortization of net actuarial loss (4.3) (0.1) Amortization of prior service cost (0.1) — Total recognized in other comprehensive loss (12.2) (0.2) Total recognized in net periodic benefit expense 5.7 0.1 Total recognized in other comprehensive loss and net periodic benefit expense $ (6.5) $ (0.1) |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The following tables are 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 Postretirement Benefits as of and for the years ended December 31: Pension Postretirement Benefits (Amounts in millions) 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at the beginning of the year $ 117.3 $ 191.3 $ 0.7 $ 0.6 Settlement impact — (75.5) — — Interest cost 3.1 5.4 — — Actuarial loss (gain) 7.2 17.1 (0.1) 0.1 Benefits paid (7.5) (21.0) — — Benefit obligation at the end of the year $ 120.1 $ 117.3 $ 0.6 $ 0.7 Change in plan assets: Fair value of plan assets at the beginning of the year $ 40.5 $ 115.3 $ — $ — Settlement impact — (75.5) — — Actual return on plan assets 3.5 11.4 — — Employer contributions 9.7 10.3 — — Benefits paid (7.5) (21.0) — — Fair value of plan assets at the end of the year $ 46.2 $ 40.5 $ — $ — Unfunded status at the end of the year $ 73.9 $ 76.8 $ 0.6 $ 0.7 |
Schedule of Amounts Recognized in Balance Sheet | The following table summarizes the components recognized in the Consolidated Balance Sheets relating to the Pension and Postretirement Benefits as of December 31: Pension Postretirement Benefits Total (Amounts in millions) 2020 2019 2020 2019 2020 2019 Pension and other postretirement benefits liability $ 73.9 $ 76.8 $ 0.6 $ 0.7 $ 74.5 $ 77.5 Accumulated other comprehensive loss: Net actuarial loss, net of tax $ 38.2 $ 36.5 $ 0.4 $ 0.4 $ 38.6 $ 36.9 Prior service cost, net of tax 0.1 0.1 — — 0.1 0.1 Total $ 38.3 $ 36.6 $ 0.4 $ 0.4 $ 38.7 $ 37.0 |
Schedule of Accumulated and Projected Benefit Obligations | The following table summarizes the benefit obligation and accumulated benefit obligation for the Pension Plan, SERPs and Postretirement Benefits fair value of plan assets as of December 31: Pension Plan SERPs Postretirement Benefits (Amounts in millions) 2020 2019 2020 2019 2020 2019 Benefit obligation $ 51.5 $ 49.2 $ 68.6 $ 67.9 $ 0.6 $ 0.7 Accumulated benefit obligation 51.5 49.2 68.6 67.9 — — Fair value of plan assets 46.2 40.5 — — — — |
Schedule of Expected Benefit Payments | The following table summarizes the estimated future benefit payments for the Pension and Postretirement Benefits for the years ended December 31: (Amounts in millions) 2021 2022 2023 2024 2025 2026-2030 Pension $ 8.5 $ 7.9 $ 7.9 $ 7.1 $ 7.0 $ 33.0 Postretirement benefits — — — — — 0.1 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Activity of Company's Authorized Issued and Outstanding | The following table is a summary of the Company's authorized, issued and outstanding stock as of December 31, 2020: D Stock Common Stock Treasury Authorized Issued Outstanding Authorized Issued Outstanding January 1, 2018 200,000 71,282 (71,282) 162,500,000 58,823,567 (54,238,344) 4,585,223 Release for restricted stock units and stock options exercised — — — — — (1,378,105) (1,378,105) December 31, 2018 200,000 71,282 (71,282) 162,500,000 58,823,567 (55,616,449) 3,207,118 Release for restricted stock units — — — — — (877,212) (877,212) Shares issued to Ripple as part of SPA (1) — — — — 6,237,523 (6,237,523) — December 31, 2019 200,000 71,282 (71,282) 162,500,000 65,061,090 (62,731,184) 2,329,906 Release for restricted stock units — — — — 56,358 (876,121) (819,763) Preferred stock - series D conversion — (71,282) 71,282 — 7,413,322 (8,910,234) (1,496,912) December 31, 2020 200,000 — — 162,500,000 72,530,770 (72,517,539) 13,231 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table details the components of "Accumulated other comprehensive loss" as of December 31: (Amounts in millions) 2020 2019 Net unrealized gains on securities classified as available-for-sale, net of tax $ 1.2 $ 1.6 Cumulative non-U.S. dollar translation adjustments, net of tax (20.9) (28.1) Pension and postretirement benefits adjustments, net of tax (38.7) (37.0) Accumulated other comprehensive loss $ (58.4) $ (63.5) |
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" during the years ended December 31: (Amounts in millions) 2020 2019 2018 Statement of Operations Location Pension and postretirement benefits adjustments: Amortization of prior service credit $ 0.1 $ 0.1 $ 0.1 "Other non-operating expense (income)" Amortization of net actuarial loss 2.1 2.7 4.4 "Other non-operating expense (income)" Settlement charge — 31.3 — "Other non-operating expense (income)" Total before tax 2.2 34.1 4.5 Tax benefit, net (0.5) (7.9) (1.0) Total, net of tax $ 1.7 $ 26.2 $ 3.5 |
Summary of Changes to Accumulated Other Comprehensive Loss By Component | 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 non-U.S. dollar 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 (0.3) (13.8) 6.1 (8.0) Amounts reclassified from accumulated other comprehensive loss — — 3.5 3.5 Net current year other comprehensive (loss) income (0.3) (13.8) 9.6 (4.5) December 31, 2018 1.9 (24.2) (45.2) (67.5) Cumulative effect of adoption of ASU 2018-02 — (3.7) (11.4) (15.1) Other comprehensive loss before reclassification (0.3) (0.2) (6.6) (7.1) Amounts reclassified from accumulated other comprehensive loss — — 26.2 26.2 Net current year other comprehensive (loss) income (0.3) (0.2) 19.6 19.1 December 31, 2019 1.6 (28.1) (37.0) (63.5) Other comprehensive (loss) income before reclassification (0.4) 7.2 (3.4) 3.4 Amounts reclassified from accumulated other comprehensive loss — — 1.7 1.7 Net current year other comprehensive (loss) income (0.4) 7.2 (1.7) 5.1 December 31, 2020 $ 1.2 $ (20.9) $ (38.7) $ (58.4) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table is a summary of the Company's stock option activity for the year ended December 31, 2020: Shares Weighted- Weighted- Aggregate Options outstanding at December 31, 2019 409,296 $ 19.34 2.4 years $ — Forfeited/Expired (131,334) 18.82 Options outstanding, vested or expected to vest, 277,962 $ 19.58 1.8 years $ — |
Summary of Restricted Stock Unit Activity | The following table is a summary of the Company's restricted stock unit activity as of December 31, 2020: Total Weighted-Average Grant-Date Fair Value Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value ($000,000) Restricted stock units outstanding at December 31, 2019 2,731,758 $ 5.02 0.9 years $ 5.7 Granted 3,762,725 2.06 Vested and converted to shares (1,197,760) 6.25 Forfeited (138,488) 3.45 Restricted stock units outstanding at December 31, 2020 5,158,235 $ 2.62 0.95 years $ 28.2 Restricted stock units vested and deferred at December 31, 2020 290,324 $ 3.27 $ 1.6 |
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 for the years ended December 31: (Amounts in millions) 2020 2019 2018 Weighted-average grant-date fair value of restricted stock units vested during the year $ 7.5 $ 10.4 $ 16.6 Total intrinsic value of vested and converted shares $ 2.9 $ 3.2 $ 22.3 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The following table is a summary of the components of income (loss) before income taxes for the years ended December 31: (Amounts in millions) 2020 2019 2018 U.S. $ (0.3) $ (76.5) $ (49.6) Foreign 6.4 12.2 38.7 Income (loss) before income taxes $ 6.1 $ (64.3) $ (10.9) |
Schedule of Components of Income Tax Expense (Benefit) | Foreign income consists of income from the Company's international subsidiaries. Most of the Company's wholly-owned subsidiaries recognize revenue based solely on services agreements with the primary U.S. operating subsidiary. The following table is a summary of the income tax expense (benefit) for the years ended December 31: (Amounts in millions) 2020 2019 2018 Current: Federal $ (1.4) $ (0.2) $ 5.9 State 2.1 1.5 1.7 Foreign 4.2 8.2 (4.0) Current income tax expense 4.9 9.5 3.6 Deferred: Federal 7.1 (10.4) 6.5 State 1.9 (1.9) 1.0 Foreign 0.1 (1.2) 2.0 Deferred income tax expense (benefit) 9.1 (13.5) 9.5 Income tax expense (benefit) $ 14.0 $ (4.0) $ 13.1 |
Schedule of Effective Income Tax Rate Reconciliation | The following table is a reconciliation of the expected federal income tax expense (benefit) at statutory rates to the actual income tax expense (benefit) for the years ended in December 31: (Amounts in millions) 2020 2019 2018 Income tax expense (benefit) at statutory federal income tax rate $ 1.3 $ (13.5) $ (2.3) Tax effect of: State income tax, net of federal income tax effect (0.4) (1.3) 0.2 Valuation allowances 12.0 2.2 0.7 International taxes 1.5 3.4 (0.8) Deferred prosecution agreement permanent difference — — 8.4 Other net permanent differences 1.8 1.7 0.9 U.S. general business credits (3.6) (2.4) — Change in unrecognized tax benefits 2.4 1.2 (0.4) Stock-based compensation 0.7 3.8 (0.6) Impact from the TCJA — 1.1 (1.3) BEAT (0.6) — 5.6 U.S. taxation of foreign earnings (1.1) 0.5 7.0 Reorganization — — (3.6) Other — (0.7) (0.7) Income tax expense (benefit) $ 14.0 $ (4.0) $ 13.1 |
Schedule of Deferred Tax Assets and Liabilities | The following table is a summary of the Company's deferred tax assets and liabilities as of December 31: (Amounts in millions) 2020 2019 Deferred tax assets: Basis difference in revalued investments $ 54.0 $ 55.3 Tax loss carryovers 24.4 25.7 Tax credit carryovers 15.6 12.9 Postretirement benefits and other employee benefits 8.4 7.9 Bad debt and other reserves 2.2 1.1 Lease liabilities 12.0 11.5 Depreciation & amortization 11.6 12.1 Interest expense carryovers 1.3 2.4 Other 7.5 7.9 Valuation allowances (81.2) (71.2) Total deferred tax assets 55.8 65.6 Deferred tax liability: Depreciation and amortization and other (66.0) (67.8) Lease right-of-use assets (11.0) (10.6) Total deferred tax liability (77.0) (78.4) Net deferred tax liability $ (21.2) $ (12.8) |
Summary of Operating Loss Carryforwards and Tax Credit Carryforwards Expirations | The following table is a summary of the amounts and expiration dates of tax loss carry-forwards (not tax effected) and credit carry-forwards as of December 31, 2020: (Amounts in millions) Expiration Amount U.S. capital loss carry-forwards 2021 - 2025 $ 34.5 U.S. net operating loss carry-forwards 2025 - Indefinite $ 37.8 U.S. tax credit carry-forwards 2024- 2040 $ 15.6 |
Schedule of Unrecognized Tax Benefit Roll Forward | The following table is a reconciliation of unrecognized tax benefits for the years ended December 31: (Amounts in millions) 2020 2019 2018 Beginning balance $ 18.2 $ 17.9 $ 28.7 Additions based on tax positions related to prior years 0.9 0.9 0.7 Additions based on tax positions related to current year 0.6 — 0.8 Settlements with cash or attributes — (0.1) — Reductions for tax positions of prior years and other — (0.5) (12.3) Ending balance $ 19.7 $ 18.2 $ 17.9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table is a reconciliation of the weighted-average amounts used in calculating loss per share for the years ended December 31: (Amounts in millions) 2020 2019 2018 Basic and diluted common shares outstanding 77.8 71.1 64.3 |
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: (Amounts in millions) 2020 2019 2018 Shares related to stock options 0.3 0.9 1.8 Shares related to restricted stock units 4.5 2.7 2.3 Shares related to Ripple warrants 6.0 1.4 — Shares excluded from the computation 10.8 5.0 4.1 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Revenue by Segment | The following table is a summary of the total revenue by segment for the years ended December 31: (Amounts in millions) 2020 2019 2018 Global Funds Transfer revenue Money transfer revenue $ 1,104.7 $ 1,123.9 $ 1,273.4 Bill payment revenue 46.2 59.4 74.5 Total Global Funds Transfer revenue 1,150.9 1,183.3 1,347.9 Financial Paper Products revenue Money order revenue 43.4 53.0 55.3 Official check revenue 22.9 48.8 44.4 Total Financial Paper Products revenue 66.3 101.8 99.7 Total revenue $ 1,217.2 $ 1,285.1 $ 1,447.6 |
Operating Income by Segment | The following table is a summary of the operating income (loss) by segment and detail of the income (loss) before income taxes for the years ended December 31: (Amounts in millions) 2020 2019 2018 Global Funds Transfer operating income (loss) $ 84.4 $ 22.0 $ (5.9) Financial Paper Products operating income 20.5 33.8 30.6 Total segment operating income 104.9 55.8 24.7 Other operating loss (1.9) (3.8) (6.2) Total operating income 103.0 52.0 18.5 Interest expense 92.4 77.0 53.6 Other non-operating expense (income) 4.5 39.3 (24.2) Income (loss) before income taxes $ 6.1 $ (64.3) $ (10.9) |
Reconciliation of Depreciation, Amortization and Capital Expenditures from Segments to Consolidated | The following table is a summary of depreciation and amortization expense by segment for the years ended December 31: (Amounts in millions) 2020 2019 2018 Global Funds Transfer $ 57.3 $ 65.8 $ 68.1 Financial Paper Products 7.1 8.0 8.0 Other — — 0.2 Total depreciation and amortization $ 64.4 $ 73.8 $ 76.3 |
Schedule of Capital Expenditures from Segments to Consolidated | The following table is a summary of capital expenditures by segment for the years ended December 31: (Amounts in millions) 2020 2019 2018 Global Funds Transfer $ 31.5 $ 50.5 $ 50.7 Financial Paper Products 3.9 6.1 5.8 Total capital expenditures $ 35.4 $ 56.6 $ 56.5 |
Assets by Segment | The following table sets forth assets by segment as of December 31: (Amounts in millions) 2020 2019 Global Funds Transfer $ 1,397.2 $ 1,318.3 Financial Paper Products 3,247.4 2,819.1 Other 29.5 47.6 Total assets $ 4,674.1 $ 4,185.0 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table details total revenue by major geographic area for the years ended December 31: (Amounts in millions) 2020 2019 2018 U.S. $ 543.8 $ 611.4 $ 743.9 International 673.4 673.7 703.7 Total revenue $ 1,217.2 $ 1,285.1 $ 1,447.6 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 for the years ended December 31: (Amounts in millions) 2020 2019 2018 Global Funds Transfer revenue Money transfer fee revenue $ 1,083.4 $ 1,102.1 $ 1,255.4 Bill payment services fee revenue 46.2 59.4 74.5 Other revenue 21.3 21.8 17.8 Total Global Funds Transfer fee and other revenue $ 1,150.9 $ 1,183.3 $ 1,347.7 Financial Paper Products revenue Money order fee revenue 7.3 8.7 11.2 Official check outsourcing services fee revenue 7.4 8.7 9.1 Other revenue 31.6 29.7 30.1 Total Financial Paper Products fee and other revenue 46.3 47.1 50.4 Investment revenue 20.0 54.7 49.5 Total revenue $ 1,217.2 $ 1,285.1 $ 1,447.6 Timing of revenue recognition: Services and products transferred at a point in time $ 1,137.0 $ 1,170.2 $ 1,341.1 Products transferred over time 7.4 8.7 9.1 Total revenue from services and products 1,144.4 1,178.9 1,350.2 Investment revenue 20.0 54.7 49.5 Other revenue 52.8 51.5 47.9 Total revenue $ 1,217.2 $ 1,285.1 $ 1,447.6 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 for the year ended December 31: (Amounts in millions) 2020 2019 Buildings, equipment and vehicle leases $ 15.0 $ 15.8 Short-term and variable lease cost 1.2 1.7 Total lease cost $ 16.2 $ 17.5 The Company's rent expense, net of sublease agreements, for the year ended December 31, 2018 was $18.3 million. Supplemental cash flow information related to leases was as follows for the year ended December 31: (Amounts in millions) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 15.3 $ 15.8 ROU assets obtained in exchange for lease obligations 15.0 11.6 |
Schedule of Operating Lease Maturities | Maturities of operating lease liabilities as of December 31, 2020 were as follows: (Amounts in millions) Future Minimum Lease Payments 2021 $ 14.0 2022 10.5 2023 7.9 2024 7.9 2025 7.6 Thereafter 25.4 Total 73.3 Less: present value discount (14.2) Lease liability - operating $ 59.1 |
Description of the Business a_2
Description of the Business and Basis of Presentation (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | |
Description of the Business and Basis of Presentation [Abstract] | ||
Number of reportable segments | Segment | 2 | |
Right-of-use asset obtained in exchange for finance lease liability | $ 15 | $ 11.6 |
Deferred Tax Assets, Valuation Allowance, previous period | $ 10.1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||||
Allowance for doubtful accounts receivable | $ 9.5 | $ 4.6 | $ 7.3 | $ 6.6 |
Provision for doubtful accounts | 14.3 | 6.5 | 11.2 | |
Allowance for doubtful accounts receivable, write-offs | $ (9.4) | $ (9.2) | $ (10.5) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives by Major Asset Category (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | Contractual and Customer Relationships | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 3 years |
Minimum | Non-compete Agreements | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 3 years |
Minimum | Developed Technology | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 5 years |
Maximum | Contractual and Customer Relationships | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 15 years |
Maximum | Non-compete Agreements | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 5 years |
Maximum | Developed Technology | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 7 years |
Computer Hardware and Software | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 3 years |
Computer Software, Intangible Asset | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 5 years |
Computer Software, Intangible Asset | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 7 years |
Signage | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 3 years |
Agent Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 3 years |
Agent Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 7 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 7 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 10 years |
Summary of SIgnificant Accoun_6
Summary of SIgnificant Accounting Policies - Amortized Finite Lived Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Contractual and Customer Relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 3 years |
Contractual and Customer Relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 15 years |
Non-compete Agreements | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 3 years |
Non-compete Agreements | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 5 years |
Developed Technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 5 years |
Developed Technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Weighted-Average Common Shares Basic and Diluted (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Basic | 77.8 | 71.1 | 64.3 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the computation | 10.8 | 5 | 4.1 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the computation | 0.3 | 0.9 | 1.8 |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the computation | 4.5 | 2.7 | 2.3 |
Warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the computation | 6 | 1.4 | 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Maturities of time deposits, description | 24 months | ||
Capitalized computer software, additions | $ 28,200,000 | $ 48,300,000 | |
Capitalized computer software, gross | 105,300,000 | 114,600,000 | |
Marketing and advertising expense | 16,200,000 | 48,100,000 | $ 51,200,000 |
Accounts receivable | 0 | 900,000 | |
Affiliated Entity | |||
Market development fees | $ 50,200,000 | $ 11,300,000 | |
Minimum | |||
Contractual remittance schedule range of days | 1 day | ||
Maximum | |||
Contractual remittance schedule range of days | 3 days |
Restructuring and Reorganizat_3
Restructuring and Reorganization Costs - Schedule of Restructuring and Reorganization Costs Accrual (Details) - 2019 Organizational Realignment $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 4.6 |
Expenses | 1.7 |
Cash payments | (6.3) |
Ending Balance | $ 0 |
Restructuring and Reorganizat_4
Restructuring and Reorganization Costs - Summary of Total Cumulative Restructuring and Reorganization Costs Incurred By Reporting Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Organizational Realignment Items | $ 0.6 | $ (0.3) | $ 0.7 | $ 0.7 | $ 8.5 | $ 6.8 |
Restructuring and Reorganizat_5
Restructuring and Reorganization Costs - Additional Information (Details) - 2019 Organizational Realignment - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 0 | $ 4.6 |
Restructuring And Reorganization Costs | 1.7 | |
Cash payments | $ (6.3) |
Settlement Assets and Payment_3
Settlement Assets and Payment Service Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Receivables, net | $ 825 | $ 715.5 |
Interest-bearing investments | 991.2 | 985.9 |
Available-for-sale investments: | 3.5 | 4.5 |
Settlement assets | 3,702.9 | 3,237 |
Payment service obligations | (3,702.9) | (3,237) |
Settlement cash and cash equivalents | $ 1,883.2 | $ 1,531.1 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities Measured at Fair Value by Hierarchy Level (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Available-for-sale investments: | $ 3.5 | $ 4.5 |
Total financial assets | 40.9 | 35.4 |
Fair Value, Measurements, Recurring | ||
Financial Assets: | ||
Total financial assets | 3.6 | 4.5 |
Residential Mortgage-Backed Securities — Agencies | Fair Value, Measurements, Recurring | ||
Financial Assets: | ||
Available-for-sale investments: | 3 | 3.6 |
Asset-Backed and Other Securities | ||
Financial Assets: | ||
Available-for-sale investments: | 0.5 | 0.9 |
Asset-Backed and Other Securities | Fair Value, Measurements, Recurring | ||
Financial Assets: | ||
Available-for-sale investments: | 0.5 | 0.9 |
Forward Contracts | Fair Value, Measurements, Recurring | ||
Financial Assets: | ||
Forward contracts | 0.1 | 0 |
Financial Liabilities: | ||
Forward contracts | 2.2 | 0.8 |
Level 2 | Fair Value, Measurements, Recurring | ||
Financial Assets: | ||
Total financial assets | 3.1 | 3.6 |
Level 2 | Residential Mortgage-Backed Securities — Agencies | Fair Value, Measurements, Recurring | ||
Financial Assets: | ||
Available-for-sale investments: | 3 | 3.6 |
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 | 0.1 | 0 |
Financial Liabilities: | ||
Forward contracts | 2.2 | 0.8 |
Level 3 | Fair Value, Measurements, Recurring | ||
Financial Assets: | ||
Total financial assets | 0.5 | 0.9 |
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: | 0.5 | 0.9 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 0.9 | $ 1.2 | $ 1.4 |
Change in unrealized losses | (0.4) | (0.3) | (0.2) |
Ending balance | $ 0.5 | $ 0.9 | $ 1.2 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior secured credit facilities | $ 889.9 | $ 893.2 |
Level 2 | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 635.3 | 577.6 |
First Lien Credit Facility due 2023 | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior secured credit facilities | 635.3 | 641.8 |
Second Lien Credit Facility due 2024 | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 254.3 | 236.7 |
Senior secured credit facilities | $ 254.6 | $ 251.4 |
Investment Portfolio - Componen
Investment Portfolio - Components of Investment Portfolio (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investment [Line Items] | ||
Cash | $ 2,076.8 | $ 1,675.4 |
Money market securities | 2.5 | 2.5 |
Cash and cash equivalents | 2,079.3 | 1,677.9 |
Interest-bearing investments | 991.2 | 985.9 |
Available-for-sale investments: | 3.5 | 4.5 |
Total investment portfolio | $ 3,074 | $ 2,668.3 |
Investment Portfolio - Availabl
Investment Portfolio - Available for Sale Investments (Substantially Restricted) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investment [Line Items] | ||
Amortized cost | $ 2.8 | $ 3.5 |
Gross unrealized gains | 0.9 | 1 |
Fair value | 3.5 | 4.5 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.2) | 0 |
Residential Mortgage-Backed Securities | ||
Investment [Line Items] | ||
Amortized cost | 2.6 | 3.3 |
Gross unrealized gains | 0.4 | 0.3 |
Fair value | 3 | 3.6 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Asset-Backed and Other Securities | ||
Investment [Line Items] | ||
Amortized cost | 0.2 | 0.2 |
Gross unrealized gains | 0.5 | 0.7 |
Fair value | 0.5 | 0.9 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ (0.2) | $ 0 |
Investment Portfolio Investment
Investment Portfolio Investment Portfolio - Investment Ratings (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Investment [Line Items] | ||
Number of securities | 44 | 45 |
Available-for-sale investments: | $ 3.5 | $ 4.5 |
Percent of Investment | 100.00% | 100.00% |
External Credit Rating, Investment Grade [Member] | ||
Investment [Line Items] | ||
Number of securities | 9 | 10 |
Available-for-sale investments: | $ 3 | $ 3.6 |
Percent of Investment | 86.00% | 80.00% |
External Credit Rating, Non Investment Grade [Member] | ||
Investment [Line Items] | ||
Number of securities | 35 | 35 |
Available-for-sale investments: | $ 0.5 | $ 0.9 |
Percent of Investment | 14.00% | 20.00% |
Investment Portfolio - Addition
Investment Portfolio - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Investment [Line Items] | ||
Number of investments in money market securities | 1 | |
Maturities of time deposits, description | 24 months | |
Percentage of available-for-sale investments collateralized by US government agency debentures | 86.00% | 80.00% |
Assets, fair value disclosure | $ 40.9 | $ 35.4 |
Available-for-sale securities, amortized cost basis | 2.8 | 3.5 |
Accumulated other comprehensive income (loss), other than temporary impairment, not credit loss, net of tax, available-for-sale, debt securities | $ 1.2 | $ 1.6 |
Available for sale securities fair value estimates percentage of third party pricing | 95.00% | 94.00% |
Available for sale securities fair value estimates percentage of broker pricing | 5.00% | 6.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of (Gains) Losses Related to Assets and Liabilities Denominated in Foreign Currencies (Detail) - Transaction and operations support - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net realized non-U.S. dollar gain (loss) | $ 26.6 | $ (7.4) | $ (5.8) |
Net (loss) gain from the related forward contracts | (11.9) | 11.2 | 10.2 |
Net gains from non-U.S. dollar transactions and related forward contracts | $ 14.7 | $ 3.8 | $ 4.4 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Values of Derivative Forward Contract Instruments (Detail) - Foreign Exchange Forward - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross amount of recognized assets | $ 1 | $ 0.2 |
Gross amount of offset | (0.9) | (0.2) |
Net amount of assets presented in the consolidated balance sheets | 0.1 | 0 |
Accounts Payable and Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross amount of recognized liabilities | 3.1 | 1 |
Gross amount of offset | (0.9) | (0.2) |
Net amount of liabilities presented in the consolidated balance sheets | $ 2.2 | $ 0.8 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivatives, Fair Value [Line Items] | ||
Forward contracts outstanding notional amount | $ 643.8 | $ 349.1 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 673.2 | $ 671 |
Accumulated depreciation and amortization | (525.1) | (494.9) |
Property and equipment, net | 148.1 | 176.1 |
Computer Hardware and Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 512.8 | 503.6 |
Signage | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 56.1 | 53.3 |
Office Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 28.4 | 28.4 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 27 | 26.5 |
Equipment At Agent Locations | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 48.9 | $ 59.2 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 64.4 | $ 73.8 | $ 76.3 |
Accrued purchases of property and equipment | 0.5 | 5.9 | |
Gain (loss) on disposition of property plant equipment | 0.1 | ||
Capitalized computer software, net | 1.5 | 2.2 | |
Depreciation, Depletion and Amortization | 63.9 | 73.2 | $ 74.8 |
Capitalized computer software, additions | $ 28.2 | $ 48.3 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Components of Finite-Lived Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 4.7 | $ 4.7 |
Accumulated amortization | (3.7) | (3.1) |
Net carrying value | 1 | 1.6 |
Contractual and Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 4.1 | 4.1 |
Accumulated amortization | (3.2) | (2.6) |
Net carrying value | 0.9 | 1.5 |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 0.6 | 0.6 |
Accumulated amortization | (0.5) | (0.5) |
Net carrying value | $ 0.1 | $ 0.1 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | $ 0.5 | $ 0.6 | $ 1.5 |
Estimated future intangible asset amortization expense, 2020 | 0.6 | ||
Goodwill | 442.2 | 442.2 | |
Cryptocurrency | 0 | 6.2 | |
Estimated future intangible asset amortization expense, 2021 | 0.4 | ||
Global Funds Transfer | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 442.2 | $ 442.2 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 26, 2019 |
Debt Instrument [Line Items] | |||
Senior secured credit facilities | $ 889.9 | $ 893.2 | |
Unamortized debt issuance costs and debt discounts | (32.1) | (42.9) | |
Debt, net | 857.8 | 850.3 | |
First Lien Credit Facility due 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 635.3 | 641.8 | $ 645 |
Effective interest rate | 7.00% | ||
Second Lien Credit Facility due 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 254.6 | $ 251.4 | $ 245 |
Effective interest rate | 13.00% |
Debt Debt - Quarterly Financial
Debt Debt - Quarterly Financial Covenants (Details) | Dec. 31, 2020 |
Credit Agreement Quarterly Financial Covenants [Line Items] | |
Interest coverage minimum ratio | 3.276 |
First lien leverage ratio not to exceed | 2.503 |
Total leverage ratio not to exceed | 3.505 |
July 1, 2020 through December 31, 2020 | |
Credit Agreement Quarterly Financial Covenants [Line Items] | |
Interest coverage minimum ratio | 3.276 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 28, 2020 | Jun. 26, 2019 | |
Debt Instrument [Line Items] | ||||||
Debt extinguishment costs | $ 2.4 | $ 0 | $ 2.4 | $ 0 | ||
Cash payments for interest | 77.5 | $ 63.3 | $ 50.7 | |||
Long-term debt, maturities, repayments of principal in year four | 619.2 | |||||
Long-term debt, maturities, repayments of principal in year five | 254.6 | |||||
Debt instrument quarterly incremental payment amount | $ 16.1 | |||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Warrant exercise price (in dollars per share) | $ 15 | |||||
Assets In excess of payment service obligations | $ 196.1 | $ 146.8 | ||||
Interest coverage minimum ratio | 3.276 | |||||
First lien leverage ratio not to exceed | 2.503 | |||||
Total leverage ratio not to exceed | 3.505 | |||||
Debt issuance costs, net | $ 1.5 | $ 2.4 | ||||
cash balance limit | $ 130 | |||||
Class of warrant or right, outstanding | 5,957,600 | |||||
July 1, 2020 through December 31, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Interest coverage minimum ratio | 3.276 | |||||
First Lien Credit Facility due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 635.3 | $ 641.8 | $ 645 | |||
Effective interest rate | 7.00% | |||||
Debt instrument principal amount to be paid in quarterly increments | $ 1.6 | |||||
Term Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 0 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | 35 | |||||
Second Lien Credit Facility due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 254.6 | $ 251.4 | $ 245 | |||
Effective interest rate | 13.00% | |||||
Warrant exercise price (in dollars per share) | $ 2.41 | |||||
Class of warrant or right, outstanding | 5,423,470 |
Pension and Other Benefits Pens
Pension and Other Benefits Pension assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate | 3.23% | 3.57% | 3.58% |
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate for interest cost | 2.83% | 3.09% | 3.13% |
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term rate of return on plan assets | 2.07% | 2.91% | 4.59% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 1.73% | 2.75% | 2.08% |
Defined benefit plan, assumptions used calculating net periodic benefit cost, rate of compensation increase | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating net periodic benefit cost initial pre-65 health care cost trend rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating net periodic benefit cost initial post-65 health care cost trend rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating net periodic benefit cost ultimate health care cost trend rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating benefit obligation, discount rate | 2.51% | 3.23% | 4.25% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 1.36% | 1.73% | 2.75% |
Defined benefit plan, assumptions used calculating benefit obligation, rate of compensation increase | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating benefit obligation pre-65 initial health care cost trend rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating benefit obligation post-65 initial health care cost trend rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating benefit obligation ultimate health care cost trend rate | 0.00% | 0.00% | 0.00% |
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate | 3.18% | 4.32% | 3.65% |
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate for interest cost | 2.70% | 3.88% | 3.20% |
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating net periodic benefit cost, rate of compensation increase | 5.75% | 5.75% | 5.75% |
Defined benefit plan, assumptions used calculating net periodic benefit cost initial pre-65 health care cost trend rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating net periodic benefit cost initial post-65 health care cost trend rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating net periodic benefit cost ultimate health care cost trend rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating benefit obligation, discount rate | 2.41% | 3.18% | 4.32% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating benefit obligation, rate of compensation increase | 5.75% | 5.75% | 5.75% |
Defined benefit plan, assumptions used calculating benefit obligation pre-65 initial health care cost trend rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating benefit obligation post-65 initial health care cost trend rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating benefit obligation ultimate health care cost trend rate | 0.00% | 0.00% | 0.00% |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate | 3.33% | 4.41% | 3.72% |
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate for interest cost | 2.77% | 3.91% | 3.20% |
Defined benefit plan, assumptions used calculating net periodic benefit cost, expected long-term rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating net periodic benefit cost, rate of compensation increase | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating net periodic benefit cost initial pre-65 health care cost trend rate | 6.79% | 7.25% | 7.75% |
Defined benefit plan, assumptions used calculating net periodic benefit cost initial post-65 health care cost trend rate | 7.51% | 8.25% | 7.75% |
Defined benefit plan, assumptions used calculating net periodic benefit cost ultimate health care cost trend rate | 4.50% | 4.50% | 4.50% |
Defined benefit plan, assumptions used calculating net periodic benefit cost year that rate reaches ultimate pre-65 trend rate | 2027 | 2025 | 2025 |
Defined benefit plan, assumptions used calculating net periodic benefit cost year that rate reaches ultimate post-65 trend rate | 2027 | ||
Defined benefit plan, assumptions used calculating benefit obligation, discount rate | 2.64% | 3.33% | 4.41% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating benefit obligation, rate of compensation increase | 0.00% | 0.00% | 0.00% |
Defined benefit plan, assumptions used calculating benefit obligation pre-65 initial health care cost trend rate | 6.46% | 6.79% | 7.25% |
Defined benefit plan, assumptions used calculating benefit obligation post-65 initial health care cost trend rate | 7.08% | 7.51% | 8.25% |
Defined benefit plan, assumptions used calculating benefit obligation ultimate health care cost trend rate | 4.50% | 4.50% | 4.50% |
Defined benefit plan, assumptions used calculating benefit obligation year that rate reaches ultimate pre-65 trend rate | 2028 | 2027 | 2025 |
Pension and Other Benefits Fina
Pension and Other Benefits Financial Assets Recorded at Fair Value by Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | $ 40.9 | $ 35.4 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 46.2 | 40.5 |
Pension Plan | Short-term Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0.9 | 1.9 |
Pension Plan | Defined Benefit Plan, Equity Securities, Large Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 2 | 1.4 |
Pension Plan | Defined Benefit Plan, Equity Securities, Small Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0.5 | 0.3 |
Pension Plan | Defined Benefit Plan, Equity Securities, Non-US | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 1.2 | 0.9 |
Pension Plan | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 36.3 | 30.9 |
Pension Plan | Defined Benefit Plan, Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 5.3 | 5.1 |
Pension Plan | Level 2 | Short-term Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0.9 | 1.9 |
Pension Plan | Level 2 | Defined Benefit Plan, Equity Securities, Large Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 2 | 1.4 |
Pension Plan | Level 2 | Defined Benefit Plan, Equity Securities, Small Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0.5 | 0.3 |
Pension Plan | Level 2 | Defined Benefit Plan, Equity Securities, Non-US | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 1.2 | 0.9 |
Pension Plan | Level 2 | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 36.3 | 30.9 |
Pension Plan | Level 2 | Defined Benefit Plan, Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Pension Plan | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 5.3 | 5.1 |
Pension Plan | Level 3 | Short-term Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Pension Plan | Level 3 | Defined Benefit Plan, Equity Securities, Large Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Pension Plan | Level 3 | Defined Benefit Plan, Equity Securities, Small Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Pension Plan | Level 3 | Defined Benefit Plan, Equity Securities, Non-US | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Pension Plan | Level 3 | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Pension Plan | Level 3 | Defined Benefit Plan, Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | $ 5.3 | $ 5.1 |
Pension and Other Benefits Pe_2
Pension and Other Benefits Pension Plan Assets Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Assets, fair value disclosure | $ 40.9 | $ 35.4 |
Fair value, investments, entities that calculate net asset value per share, investment redemption, frequency | Daily | Daily |
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period | 15 days | 15 days |
Net Periodic Benefit Expense Am
Net Periodic Benefit Expense Amortized from Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement charge | $ 0 | $ 31.3 | $ 0 |
Interest cost | 3.1 | 5.4 | 6.3 |
Expected return on plan assets | (0.8) | (2.7) | (5) |
Amortization of net actuarial loss | 2 | 2.6 | 4.3 |
Amortization of prior service cost (credit) | 0.1 | 0.1 | 0.1 |
Net periodic benefit expense | 4.4 | 36.7 | 5.7 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement charge | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss | 0.1 | 0.1 | 0.1 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Net periodic benefit expense | $ 0.1 | $ 0.1 | $ 0.1 |
Pension and Other Benefits Amou
Pension and Other Benefits Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Settlement charge | $ 31.3 | |||
Pension Plan | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Settlement charge | $ (31.3) | |||
Other comprehensive income (loss), defined benefit plan, gain (loss) arising during period, before tax | $ 4.5 | 8.5 | $ (7.8) | |
Amortization of net actuarial loss | (2) | (2.6) | (4.3) | |
Other comprehensive (income) loss, defined benefit plan, prior service cost (credit), reclassification adjustment from AOCI, before tax | (0.1) | (0.1) | (0.1) | |
Other comprehensive (income) loss, defined benefit plan, after reclassification adjustment, before tax | 2.4 | (25.5) | (12.2) | |
Defined benefit plan, net periodic benefit cost (credit) | 4.4 | 36.7 | 5.7 | |
Defined benefit plan, amount recognized in net periodic benefit cost (credit) and other comprehensive (income) loss, before tax | 6.8 | 11.2 | (6.5) | |
Other Postretirement Benefits Plan | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Settlement charge | 0 | |||
Other comprehensive income (loss), defined benefit plan, gain (loss) arising during period, before tax | (0.1) | 0.1 | (0.1) | |
Amortization of net actuarial loss | (0.1) | (0.1) | (0.1) | |
Other comprehensive (income) loss, defined benefit plan, prior service cost (credit), reclassification adjustment from AOCI, before tax | 0 | 0 | 0 | |
Other comprehensive (income) loss, defined benefit plan, after reclassification adjustment, before tax | (0.2) | 0 | (0.2) | |
Defined benefit plan, net periodic benefit cost (credit) | 0.1 | 0.1 | 0.1 | |
Defined benefit plan, amount recognized in net periodic benefit cost (credit) and other comprehensive (income) loss, before tax | $ (0.1) | $ 0.1 | $ (0.1) |
Pension and Other Benefits Pe_3
Pension and Other Benefits Pension Unfunded Status Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, benefit obligation | $ 120.1 | $ 117.3 | $ 191.3 |
Benefit obligation - settlement impact | 0 | (75.5) | |
Interest cost | 3.1 | 5.4 | 6.3 |
Defined benefit plan, benefit obligation, actuarial gain (loss) | 7.2 | 17.1 | |
Defined benefit plan, benefit obligation, benefits paid | (7.5) | (21) | |
Defined benefit plan, plan assets, amount | 46.2 | 40.5 | 115.3 |
Plan assets - settlement impact | 0 | (75.5) | |
Defined benefit plan, plan assets, increase (decrease) for actual return (loss) | 3.5 | 11.4 | |
Defined benefit plan, plan assets, contributions by employer | 9.7 | 10.3 | |
Defined benefit plan, plan assets, benefits paid | (7.5) | (21) | |
Defined benefit plan, funded (unfunded) status of plan | 73.9 | 76.8 | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, benefit obligation | 0.6 | 0.7 | 0.6 |
Benefit obligation - settlement impact | 0 | 0 | |
Interest cost | 0 | 0 | 0 |
Defined benefit plan, benefit obligation, actuarial gain (loss) | (0.1) | 0.1 | |
Defined benefit plan, benefit obligation, benefits paid | 0 | 0 | |
Defined benefit plan, plan assets, amount | 0 | 0 | $ 0 |
Plan assets - settlement impact | 0 | 0 | |
Defined benefit plan, plan assets, increase (decrease) for actual return (loss) | 0 | 0 | |
Defined benefit plan, plan assets, contributions by employer | 0 | 0 | |
Defined benefit plan, plan assets, benefits paid | 0 | 0 | |
Defined benefit plan, funded (unfunded) status of plan | $ 0.6 | $ 0.7 |
Pension and Other Benefits Am_2
Pension and Other Benefits Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension and other postretirement benefits | $ 74.5 | $ 77.5 |
Accumulated other comprehensive income (loss), defined benefit plan, gain (loss), after tax | 38.6 | 36.9 |
Accumulated other comprehensive (income) loss, defined benefit plan, prior service cost (credit), after tax | 0.1 | 0.1 |
Accumulated other comprehensive (income) loss, defined benefit plan, after tax | 38.7 | 37 |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension and other postretirement benefits | 73.9 | 76.8 |
Accumulated other comprehensive income (loss), defined benefit plan, gain (loss), after tax | 38.2 | 36.5 |
Accumulated other comprehensive (income) loss, defined benefit plan, prior service cost (credit), after tax | 0.1 | 0.1 |
Accumulated other comprehensive (income) loss, defined benefit plan, after tax | 38.3 | 36.6 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension and other postretirement benefits | 0.6 | 0.7 |
Accumulated other comprehensive income (loss), defined benefit plan, gain (loss), after tax | 0.4 | 0.4 |
Accumulated other comprehensive (income) loss, defined benefit plan, prior service cost (credit), after tax | 0 | 0 |
Accumulated other comprehensive (income) loss, defined benefit plan, after tax | $ 0.4 | $ 0.4 |
Pension and Other Benefits Accu
Pension and Other Benefits Accumulated and Projected Benefit Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, pension plan with accumulated benefit obligation in excess of plan assets, projected benefit obligation | $ 51.5 | $ 49.2 |
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation | 51.5 | 49.2 |
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, plan assets | 46.2 | 40.5 |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, pension plan with accumulated benefit obligation in excess of plan assets, projected benefit obligation | 68.6 | 67.9 |
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation | 68.6 | 67.9 |
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, plan assets | 0 | 0 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, pension plan with accumulated benefit obligation in excess of plan assets, projected benefit obligation | 0.6 | 0.7 |
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation | 0 | 0 |
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, plan assets | $ 0 | $ 0 |
Pension and Other Benefits Expe
Pension and Other Benefits Expected Benefit Payments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plan 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, expected future benefit payment, next twelve months | $ 8.5 | |
Defined benefit plan, expected future benefit payment, year two | $ 7.9 | |
Defined benefit plan, expected future benefit payment, year three | 7.9 | |
Defined benefit plan, expected future benefit payment, year four | 7.1 | |
Defined benefit plan, expected future benefit payment, year five | 7 | |
Defined benefit plan, expected future benefit payment, five fiscal years thereafter | 33 | |
Other Postretirement Benefits Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, expected future benefit payment, next twelve months | 0 | |
Defined benefit plan, expected future benefit payment, year two | 0 | |
Defined benefit plan, expected future benefit payment, year three | 0 | |
Defined benefit plan, expected future benefit payment, year four | 0 | |
Defined benefit plan, expected future benefit payment, year five | 0 | |
Defined benefit plan, expected future benefit payment, five fiscal years thereafter | $ 0.1 |
Pension and Other Benefits Addi
Pension and Other Benefits Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined benefit plan, benefit obligation, payment for settlement | $ 1.2 | |||
Liability, defined benefit pension plan | 74.3 | |||
Settlement charge | $ 31.3 | |||
Pension Plan | ||||
Settlement charge | $ (31.3) | |||
Defined benefit plan, funded (unfunded) status of plan | $ (73.9) | $ (76.8) | ||
Defined benefit plan, required future payment, next twelve months | 0 | |||
Defined benefit plan, expected future employer contributions, next fiscal year | $ 4 | |||
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate | 3.23% | 3.57% | 3.58% | |
Defined benefit plan, pension plan with accumulated benefit obligation in excess of plan assets, projected benefit obligation | $ 51.5 | $ 49.2 | ||
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation | 51.5 | 49.2 | ||
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, plan assets | 46.2 | 40.5 | ||
Pension Plan 1 | ||||
Defined benefit plan, funded (unfunded) status of plan | 5.3 | 8.9 | ||
Defined benefit plan, expected future benefit payment, next twelve months | 8.5 | |||
Supplemental Employee Retirement Plan | ||||
Defined benefit plan, funded (unfunded) status of plan | $ 68.6 | $ 67.9 | ||
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate | 3.18% | 4.32% | 3.65% | |
Defined benefit plan, pension plan with accumulated benefit obligation in excess of plan assets, projected benefit obligation | $ 68.6 | $ 67.9 | ||
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation | 68.6 | 67.9 | ||
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, plan assets | 0 | 0 | ||
SERP and Postretirement Benefits | ||||
Defined benefit plan, expected future benefit payment, next twelve months | 5.7 | |||
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits | ||||
Defined contribution plan, cost | 3.7 | 4.5 | $ 4.4 | |
Contribution expense related to international benefit plans | 2 | 1.6 | $ 2.5 | |
Other Postretirement Benefits Plan | ||||
Settlement charge | 0 | |||
Defined benefit plan, funded (unfunded) status of plan | (0.6) | $ (0.7) | ||
Defined benefit plan, expected future benefit payment, next twelve months | $ 0 | |||
Defined benefit plan, assumptions used calculating net periodic benefit cost, discount rate | 3.33% | 4.41% | 3.72% | |
Defined benefit plan, pension plan with accumulated benefit obligation in excess of plan assets, projected benefit obligation | $ 0.6 | $ 0.7 | ||
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation | 0 | 0 | ||
Defined benefit plan, plan with accumulated benefit obligation in excess of plan assets, plan assets | $ 0 | $ 0 |
Stockholders' Deficit Schedule
Stockholders' Deficit Schedule of Activity of Company's Common Stock (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Preferred stock, shares authorized | 7,000,000 | ||||
Preferred stock, shares outstanding | 0 | (71,282) | |||
Common stock, shares authorized | 162,500,000 | 162,500,000 | |||
Common stock, shares, issued | 72,530,770 | 65,061,090 | |||
Common stock, shares, outstanding | (72,517,539) | (62,731,184) | |||
Treasury stock (shares) | 13,231 | 2,329,906 | |||
Preferred Stock, Shares, Retired | $ (71,282) | ||||
Conversion of Stock, Shares Converted | 71,282 | ||||
Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Convertible Preferred Stock, Shares Issued upon Conversion | (8,910,234) | ||||
Stock issued during period, shares, new issues | (7,413,322) | ||||
Treasury Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Convertible Preferred Stock, Shares Issued upon Conversion | (1,496,912) | ||||
D Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Preferred stock, shares authorized | 200,000 | 200,000 | 200,000 | 200,000 | |
Preferred stock, shares issued | 0 | 71,282 | 71,282 | 71,282 | |
Preferred stock, shares outstanding | 0 | (71,282) | (71,282) | (71,282) | |
Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock, shares authorized | 162,500,000 | 162,500,000 | 162,500,000 | 162,500,000 | |
Common stock, shares, issued | 72,530,770 | 65,061,090 | 58,823,567 | 58,823,567 | |
Common stock, shares, outstanding | (72,517,539) | (62,731,184) | (55,616,449) | (54,238,344) | |
Stock issued during period, shares, share-based compensation, net of forfeitures | (876,121) | (877,212) | (1,378,105) | ||
Stock issued during period, shares, new issues | (56,358) | (6,237,523) | |||
Treasury Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Treasury stock (shares) | 13,231 | 2,329,906 | 3,207,118 | 4,585,223 | |
Stock issued during period, shares, share-based compensation, net of forfeitures | (819,763) | (877,212) | (1,378,105) |
Stockholders' Deficit Schedul_2
Stockholders' Deficit Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (58.4) | $ (63.5) | ||
Net unrealized gains on securities classified as available-for-sale, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1.2 | 1.6 | $ 1.9 | $ 2.2 |
Cumulative non-U.S. dollar translation adjustments, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (20.9) | (28.1) | (24.2) | (10.4) |
Pension and postretirement benefits adjustments, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (38.7) | $ (37) | $ (45.2) | $ (54.8) |
Stockholders' Deficit - Summary
Stockholders' Deficit - Summary of Significant Amounts Reclassified (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Tax benefit, net | $ 1 | $ 2 | $ (1.8) |
Other comprehensive income (loss), defined benefit plan, gain (loss), reclassification adjustment from AOCI, after tax | 3.4 | 6.6 | (6.1) |
Net unrealized gains on securities classified as available-for-sale, net of tax | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 | 0 | 0 |
Pension and postretirement benefits adjustments, net of tax | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from accumulated other comprehensive income, current period, net of tax | (1.7) | (26.2) | (3.5) |
Pension and postretirement benefits adjustments, net of tax | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other comprehensive (income) loss, defined benefit plan, prior service cost (credit), reclassification adjustment from AOCI, before tax | 0.1 | 0.1 | 0.1 |
Amortization of net actuarial loss | 2.1 | 2.7 | 4.4 |
Settlement charge | 0 | 31.3 | 0 |
Total before tax | 2.2 | 34.1 | 4.5 |
Tax benefit, net | (0.5) | (7.9) | (1) |
Other comprehensive income (loss), defined benefit plan, gain (loss), reclassification adjustment from AOCI, after tax | $ 1.7 | $ 26.2 | $ 3.5 |
Stockholders' Deficit - Summa_2
Stockholders' Deficit - Summary of Changes To Accumulated Other Comprehensive Loss By Component (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ (63.5) | ||
Other comprehensive income (loss), net of tax | 5.1 | $ 19.1 | $ (4.5) |
Cumulative effect of adoption of ASU 2018-02 | 0 | ||
Ending balance | (58.4) | (63.5) | |
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 | 1.6 | 1.9 | 2.2 |
Other comprehensive (loss) income before reclassification | (0.4) | (0.3) | (0.3) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (0.4) | (0.3) | (0.3) |
Cumulative effect of adoption of ASU 2018-02 | 0 | ||
Ending balance | 1.2 | 1.6 | 1.9 |
Cumulative non-U.S. dollar translation adjustments, net of tax | |||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (28.1) | (24.2) | (10.4) |
Other comprehensive (loss) income before reclassification | 7.2 | (0.2) | (13.8) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 7.2 | (0.2) | (13.8) |
Cumulative effect of adoption of ASU 2018-02 | (3.7) | ||
Ending balance | (20.9) | (28.1) | (24.2) |
Pension and postretirement benefits adjustments, net of tax | |||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (37) | (45.2) | (54.8) |
Other comprehensive (loss) income before reclassification | (3.4) | (6.6) | 6.1 |
Amounts reclassified from accumulated other comprehensive loss | (1.7) | (26.2) | (3.5) |
Other comprehensive income (loss), net of tax | (1.7) | 19.6 | 9.6 |
Cumulative effect of adoption of ASU 2018-02 | (11.4) | ||
Ending balance | (38.7) | (37) | (45.2) |
Accumulated Other Comprehensive Loss | |||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (63.5) | (67.5) | (63) |
Other comprehensive (loss) income before reclassification | 3.4 | (7.1) | (8) |
Amounts reclassified from accumulated other comprehensive loss | (1.7) | (26.2) | (3.5) |
Other comprehensive income (loss), net of tax | 5.1 | 19.1 | (4.5) |
Cumulative effect of adoption of ASU 2018-02 | (15.1) | ||
Ending balance | (58.4) | (63.5) | (67.5) |
Retained Loss | |||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Roll Forward] | |||
Other comprehensive income (loss), net of tax | $ 0 | 0 | $ 0 |
Cumulative effect of adoption of ASU 2018-02 | $ 15.1 |
Stockholders' Deficit - Additio
Stockholders' Deficit - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Jul. 28, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||||
Common stock, shares authorized | 162,500,000 | 162,500,000 | |||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized | 7,000,000 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (58.4) | $ (63.5) | |||
Cumulative effect of adoption of ASU 2018-02 | 0 | ||||
Conversion of Stock, Shares Converted | 71,282 | ||||
Cumulative non-U.S. dollar translation adjustments, net of tax | |||||
Class of Stock [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (20.9) | (28.1) | $ (24.2) | $ (10.4) | |
Cumulative effect of adoption of ASU 2018-02 | (3.7) | ||||
Pension and postretirement benefits adjustments, net of tax | |||||
Class of Stock [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (38.7) | (37) | $ (45.2) | $ (54.8) | |
Cumulative effect of adoption of ASU 2018-02 | $ (11.4) | ||||
D Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized | 200,000 | 200,000 | 200,000 | 200,000 | |
Preferred stock, shares issued | 0 | 71,282 | 71,282 | 71,282 | |
Preferred stock, conversion basis | 125 | ||||
Treasury Stock | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, number of shares authorized to be repurchased | 12,000,000 | ||||
Stock repurchase program number of shares repurchased under program | 9,842,509 | ||||
Stock repurchase program, remaining number of shares authorized to be repurchased | 2,157,491 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 6.6 | $ 7.9 | $ 12.4 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - Stock Options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Option Activity | ||
Shares, options outstanding, beginning balance | 409,296 | |
Shares, forfeited/expired | (131,334) | |
Shares, options outstanding, ending balance | 277,962 | 409,296 |
Weighted Average Exercise Price | ||
Weighted average exercise price, options outstanding (usd per share), beginning balance | $ 19.34 | |
Weighted-average exercise price, forfeited/expired (usd per share) | 18.82 | |
Weighted average exercise price, options outstanding (usd per share), ending balance | $ 19.58 | $ 19.34 |
Additional Disclosures | ||
Weighted average remaining contractual term options outstanding (years) | 1 year 9 months 18 days | 2 years 4 months 24 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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity Instruments Other than Options, Nonvested, Number of Shares | ||
Restricted stock units outstanding (shares), beginning balance | 2,731,758 | |
Granted (shares) | 3,762,725 | |
Vested and converted to shares (shares) | (1,197,760) | |
Forfeited (shares) | (138,488) | |
Restricted stock units outstanding (shares), ending balance | 5,158,235 | 2,731,758 |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||
Restricted stock units outstanding (usd per share), beginning balance | $ 5.02 | |
Granted (usd per share) | 2.06 | |
Vested and converted to shares (usd per share) | 6.25 | |
Forfeited (usd per share) | 3.45 | |
Restricted stock units outstanding (usd per share), ending balance | $ 2.62 | $ 5.02 |
Weighted average remaining contractual term options outstanding (years) | 11 months 12 days | 10 months 24 days |
Restricted stock units outstanding, aggregate intrinsic value | $ 28.2 | $ 5.7 |
Restricted stock units vested and outstanding (shares) | 290,324 | |
Restricted stock units vested and outstanding (usd per share) | $ 3.27 | |
Restricted stock units vested and outstanding, aggregate intrinsic value | $ 1.6 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Restricted Stock Unit Compensation Information (Detail) - Restricted Stock Units (RSUs) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 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 year | $ 7.5 | $ 10.4 | $ 16.6 |
Total intrinsic value of vested and converted shares | $ 2.9 | $ 3.2 | $ 22.3 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2016 | May 01, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 12,925,000 | 15,425,000 | ||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 4,972,432 | |||||
Unrecognized stock option expense | $ 0 | |||||
Unrecognized restricted stock unit expense | $ 7,000,000 | |||||
Remaining weighted-average vesting period (years) | 1 year 8 months 12 days | |||||
Share-based compensation arrangement by share-based payment award, compensation cost | $ 0 | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | 10 years | 10 years |
Income Taxes Income Taxes - Com
Income Taxes Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Loss from continuing operations before income taxes, domestic | $ (0.3) | $ (76.5) | $ (49.6) |
Income (loss) before income taxes | (6.1) | 64.3 | 10.9 |
Income from continuing operations before income taxes, foreign | $ 6.4 | $ 12.2 | $ 38.7 |
Income Taxes Income Taxes - Inc
Income Taxes Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current federal tax expense (benefit) | $ (1.4) | $ (0.2) | $ 5.9 |
Current state and local tax expense (benefit) | 2.1 | 1.5 | 1.7 |
Current foreign tax expense (benefit) | 4.2 | 8.2 | (4) |
Current income tax expense (benefit) | 4.9 | 9.5 | 3.6 |
Deferred federal income tax expense (benefit) | 7.1 | (10.4) | 6.5 |
Deferred state and local income tax expense (benefit) | 1.9 | (1.9) | 1 |
Deferred foreign income tax expense (benefit) | 0.1 | (1.2) | 2 |
Deferred income tax expense (benefit) | 9.1 | (13.5) | 9.5 |
Income tax expense (benefit) | $ 14 | $ (4) | $ 13.1 |
Income Taxes Income Taxes - Rec
Income Taxes Income Taxes - Reconciliation of the Expected Federal Income Tax at Statutory Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate reconciliation at federal statutory income tax rate, amount | $ 1.3 | $ (13.5) | $ (2.3) |
Effective income tax rate reconciliation, state and local income taxes, amount | (0.4) | (1.3) | 0.2 |
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | 12 | 2.2 | 0.7 |
Effective income tax rate reconciliation, foreign income tax rate differential, amount | 1.5 | 3.4 | (0.8) |
Effective income tax rate reconciliation, nondeductible expense, other, amount | 0 | 0 | 8.4 |
Effective income tax rate reconciliation, nondeductible expense, amount | 1.8 | 1.7 | 0.9 |
Effective income tax rate reconciliation, tax credit, amount | (3.6) | (2.4) | 0 |
Effective income tax rate reconciliation, tax contingency, amount | 2.4 | 1.2 | (0.4) |
Effective income tax rate reconciliation, nondeductible expense, share-based compensation cost, amount | 0.7 | 3.8 | (0.6) |
Effective income tax rate reconciliation, change in enacted tax rate, amount | 0 | 1.1 | (1.3) |
Effective income tax rate reconciliation Tax Cuts And Jobs Act transition tax on accumulated foreign earning | (0.6) | 0 | 5.6 |
Effective income tax rate reconciliation Tax Cuts And Jobs Act U.S. taxation of foreign earnings | (1.1) | 0.5 | 7 |
Effective income tax rate reconciliation, other adjustments, amount | 0 | 0 | (3.6) |
Effective income tax rate reconciliation, other reconciling items, amount | 0 | (0.7) | (0.7) |
Income tax expense (benefit) | $ 14 | $ (4) | $ 13.1 |
Income Taxes Income Taxes - Def
Income Taxes Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, investments | $ 54 | $ 55.3 |
Deferred tax assets, operating loss carryforwards | 24.4 | 25.7 |
Deferred tax assets, tax credit carryforwards | 15.6 | 12.9 |
Deferred tax assets, tax deferred expense, compensation and benefits | 8.4 | 7.9 |
Deferred tax assets, tax deferred expense, reserves and accruals | 2.2 | 1.1 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent | 12 | 11.5 |
Deferred Tax Assets, Property, Plant and Equipment | 11.6 | 12.1 |
Deferred tax assets, other | 7.5 | 7.9 |
Deferred tax assets, valuation allowance | (81.2) | (71.2) |
Deferred tax assets, net of valuation allowance | 55.8 | 65.6 |
Deferred tax liabilities, property, plant and equipment | (66) | (67.8) |
Deferred Tax Liabilities, Leasing Arrangements | (11) | (10.6) |
Deferred tax liabilities, gross | (77) | (78.4) |
Deferred tax liabilities, net | (21.2) | (12.8) |
Deferred Tax Asset, Interest Carryforward | $ 1.3 | $ 2.4 |
Income Taxes Income Taxes - Amo
Income Taxes Income Taxes - Amount and Expiration Dates of Tax Loss Carry Forwards (Not Tax Effected) and Credit Carry Forwards (Details) $ in Millions | Dec. 31, 2020USD ($) |
Internal Revenue Service (IRS) | Expiration Date 2020 to Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 37.8 |
Internal Revenue Service (IRS) | Expiration Date 2024 to 2039 | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforward, amount | 15.6 |
Capital Loss Carryforward | Expiration Date 2020 to 2024 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 34.5 |
Income Taxes Income Taxes - R_2
Income Taxes Income Taxes - Reconciliation of Unrecognized Tax Benefits for the Period (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 19.7 | $ 18.2 | $ 17.9 | $ 28.7 |
Unrecognized tax benefits, increase resulting from prior period tax positions | 0.9 | 0.9 | 0.7 | |
Unrecognized tax benefits, increase resulting from current period tax positions | 0.6 | 0 | 0.8 | |
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities | 0 | (0.1) | 0 | |
Unrecognized tax benefits, decrease resulting from prior period tax positions | $ 0 | $ (0.5) | $ (12.3) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 28, 2020 | Jan. 15, 2019 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||||||
Accrued income taxes | $ 23,700,000 | $ 22,400,000 | |||||
Income taxes receivable | 7,400,000 | 12,800,000 | |||||
Income tax expense (benefit) | 14,000,000 | (4,000,000) | $ 13,100,000 | ||||
Income (loss) before income taxes | 6,100,000 | (64,300,000) | (10,900,000) | ||||
Deferred tax benefit, corporate reorganization | (3,600,000) | ||||||
Discrete tax expense related to Section 965 regulations | $ 1,100,000 | ||||||
Deferred tax assets, net | 4,600,000 | 5,200,000 | |||||
Liability for unrecognized tax benefits | 19,700,000 | 18,200,000 | 17,900,000 | $ 28,700,000 | |||
Unrecognized tax benefits that if recognized could impact the effective tax rate | 19,700,000 | 18,200,000 | 17,900,000 | ||||
Interest and penalties | 1,100,000 | 1,000,000 | (1,600,000) | ||||
Income tax penalties and interest accrued | 9,400,000 | 8,300,000 | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 2,000,000 | ||||||
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | $ 3,600,000 | $ 2,400,000 | 0 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | 0.01 | ||||
Warrant exercise price (in dollars per share) | $ 15 | ||||||
Sale of Stock, Percentage of Ownership before Transaction | 4.95% | ||||||
Warrants and Rights Outstanding, Maturity Date | Jul. 28, 2023 | ||||||
Deferred Tax Assets, Net of Valuation Allowance | $ 55,800,000 | $ 65,600,000 | |||||
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | (12,000,000) | (2,200,000) | $ (700,000) | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (10,000,000) | ||||||
Discrete Tax Expense Related to GILTI in prior years | 1,700,000 | ||||||
Accounts Payable and Other Liabilities [Member] | |||||||
Income Tax Examination [Line Items] | |||||||
Deferred income tax liabilities, net | $ 25,800,000 | $ 18,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||||
Nov. 30, 2018 | Mar. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2019 | Nov. 08, 2018 | |
Commitments and Contingencies [Line Items] | ||||||||
Loss contingency accrual | $ 57 | $ 57.5 | ||||||
Term Credit Facility | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Debt instrument, face amount | 0 | |||||||
Debt instrument, face amount | 0 | |||||||
Internal Revenue Service (IRS) | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Deductions on securities losses | $ 900 | |||||||
Tax adjustments | $ 63.7 | $ 186.9 | ||||||
Income Taxes Paid | $ 61 | |||||||
Deferred Prosecution Agreement | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Effect on future cash flows | $ 55 | |||||||
Loss contingency accrual | $ 125 | |||||||
Payments for legal settlements | $ 70 |
Segment Information - Revenue b
Segment Information - Revenue by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,217.2 | $ 1,285.1 | $ 1,447.6 |
Litigation settlement | 42 | ||
Litigation settlement | 42 | ||
Global Funds Transfer | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,150.9 | 1,183.3 | 1,347.9 |
Global Funds Transfer | Money Transfer Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,104.7 | 1,123.9 | 1,273.4 |
Global Funds Transfer | Bill Payment Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenues | 46.2 | 59.4 | 74.5 |
Financial Paper Products | |||
Segment Reporting Information [Line Items] | |||
Revenues | 66.3 | 101.8 | 99.7 |
Financial Paper Products | Money Order Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenues | 43.4 | 53 | 55.3 |
Financial Paper Products | Official Check Revenue | |||
Segment Reporting Information [Line Items] | |||
Revenues | 22.9 | 48.8 | 44.4 |
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Litigation settlement | 0.7 | 1.6 | 2.6 |
Litigation settlement | $ 0.7 | $ 1.6 | $ 2.6 |
Segment Information - Operating
Segment Information - Operating Income by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total operating income | $ 103 | $ 52 | $ 18.5 |
Interest expense | 92.4 | 77 | 53.6 |
Other non-operating expense (income) | 4.5 | 39.3 | (24.2) |
Income (loss) before income taxes | 6.1 | (64.3) | (10.9) |
Global Funds Transfer | |||
Segment Reporting Information [Line Items] | |||
Total operating income | 84.4 | 22 | (5.9) |
Financial Paper Products | |||
Segment Reporting Information [Line Items] | |||
Total operating income | 20.5 | 33.8 | 30.6 |
Total Segment Operating Income | |||
Segment Reporting Information [Line Items] | |||
Total operating income | 104.9 | 55.8 | 24.7 |
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Total operating income | $ (1.9) | $ (3.8) | $ (6.2) |
Segment Information Segment Inf
Segment Information Segment Information - Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 64.4 | $ 73.8 | $ 76.3 |
Global Funds Transfer | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 57.3 | 65.8 | 68.1 |
Financial Paper Products | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 7.1 | 8 | 8 |
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 0 | $ 0 | $ 0.2 |
Segment Information Segment I_2
Segment Information Segment Information - Capital Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Payments to acquire productive assets | $ 35.4 | $ 56.6 | $ 56.5 |
Global Funds Transfer | |||
Segment Reporting Information [Line Items] | |||
Payments to acquire productive assets | 31.5 | 50.5 | 50.7 |
Financial Paper Products | |||
Segment Reporting Information [Line Items] | |||
Payments to acquire productive assets | $ 3.9 | $ 6.1 | $ 5.8 |
Segment Information - Assets by
Segment Information - Assets by Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Total assets | $ 4,674.1 | $ 4,185 |
Global Funds Transfer | ||
Assets: | ||
Total assets | 1,397.2 | 1,318.3 |
Financial Paper Products | ||
Assets: | ||
Total assets | 3,247.4 | 2,819.1 |
Other Segments | ||
Assets: | ||
Total assets | $ 29.5 | $ 47.6 |
Segment Information Segment I_3
Segment Information Segment Information - Revenue by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 1,217.2 | $ 1,285.1 | $ 1,447.6 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 543.8 | 611.4 | 743.9 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 673.4 | $ 673.7 | $ 703.7 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Percentage of total revenue | 13.00% | 16.00% | 16.00% |
Depreciation and amortization | $ 64.4 | $ 73.8 | $ 76.3 |
Other general and administrative expense | 1.8 | ||
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Other general expense | 1.4 | $ 1.8 | |
Other general and administrative expense | $ 1.2 | $ 0.8 |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition - Services & Products (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 1,217.2 | $ 1,285.1 | $ 1,447.6 |
Investment revenue | 20 | 54.7 | 49.5 |
Other Revenue | |||
Revenues | 52.8 | 51.5 | 47.9 |
Total Revenue from Services and Products | |||
Revenues | 1,144.4 | 1,178.9 | 1,350.2 |
Global Funds Transfer | |||
Revenues | 1,150.9 | 1,183.3 | 1,347.9 |
Global Funds Transfer | Money Transfer Fee Revenue | |||
Revenues | 1,083.4 | 1,102.1 | 1,255.4 |
Global Funds Transfer | Bill Payment Services Fee Revenue | |||
Revenues | 46.2 | 59.4 | 74.5 |
Global Funds Transfer | Other Revenue | |||
Revenues | 21.3 | 21.8 | 17.8 |
Global Funds Transfer | Total Global Funds Transfer Fee and Other Revenue | |||
Revenues | 1,150.9 | 1,183.3 | 1,347.7 |
Financial Paper Products | |||
Revenues | 66.3 | 101.8 | 99.7 |
Financial Paper Products | Other Revenue | |||
Revenues | 31.6 | 29.7 | 30.1 |
Financial Paper Products | Money Order Fee Revenue | |||
Revenues | 7.3 | 8.7 | 11.2 |
Financial Paper Products | Official Check Outsourcing Services Fee Revenue | |||
Revenues | 7.4 | 8.7 | 9.1 |
Financial Paper Products | Total Financial Paper Products Fee and Other Revenue | |||
Revenues | 46.3 | 47.1 | 50.4 |
Services and Products Transferred at a Point in Time | |||
Revenues | 1,137 | 1,170.2 | 1,341.1 |
Products Transferred Over Time | |||
Revenues | $ 7.4 | $ 8.7 | $ 9.1 |
Leases Leases - Summary of the
Leases Leases - Summary of the Lease Expense and Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Buildings, equipment and vehicle leases | $ 15 | $ 15.8 |
Short-term and variable lease cost | 1.2 | 1.7 |
Cash paid for amounts included in the measurement of operating lease liabilities | 15.3 | 15.8 |
Right-of-use asset obtained in exchange for finance lease liability | 15 | 11.6 |
Total lease cost | $ 16.2 | $ 17.5 |
Leases Leases - Schedule of Ope
Leases Leases - Schedule of Operating Lease Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 14 | |
2022 | 10.5 | |
2023 | 7.9 | |
2024 | 7.9 | |
2025 | 7.6 | |
Thereafter | 25.4 | |
Total | 73.3 | |
Less: present value discount | (14.2) | |
Lease liability - operating | $ 59.1 | $ 54.2 |
Leases Leases - Additional Info
Leases Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Lease liability - operating | $ 59.1 | $ 54.2 | |
Noncancellable operating leases terminate date | 2030 | ||
Right-of-use asset, operating lease | $ 55.1 | $ 50 | |
Weighted average remaining lease term (in years) | 7 years 3 months 18 days | 6 years 2 months 12 days | |
Weighted average discount rate (as a percentage) | 5.70% | 5.40% | |
Operating leases, rent expense | $ 18.3 |
Related Parties Related Parties
Related Parties Related Parties - Ripple Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Accounts receivable | $ 0 | $ 900,000 |
Common Stock, Shares, Issued | 72,530,770 | 65,061,090 |
Common Stock, the rest of shares after sale | 2,237,523 | |
Securities Purchase Agreement (Ripple) | ||
Related Party Transaction [Line Items] | ||
Common Stock, Shares, Issued | 6,237,523 | |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Market development fees | $ 50,200,000 | $ 11,300,000 |
Accounts Receivable, Related Parties, Noncurrent | ||
Related Party Transaction [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 0 |
Related Parties Related Parti_2
Related Parties Related Parties - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2020 | Nov. 25, 2020 | Jul. 28, 2020 | Dec. 31, 2019 | Jun. 17, 2019 |
Related Party Transaction [Line Items] | |||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Class of warrant or right, outstanding | 5,957,600 | ||||
Common Stock, the rest of shares after sale | 2,237,523 | ||||
Shares issued, price per share | $ 4.10 | ||||
Common Stock, Shares, Issued | 72,530,770 | 65,061,090 | |||
Common Stock, Shares, sold | $ 4 | ||||
Common Stock, the rest of shares after sale | 2,237,523 | ||||
Cryptocurrency | $ 0 | $ 6.2 | |||
Accounts Receivable, Related Parties, Noncurrent | |||||
Related Party Transaction [Line Items] | |||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 0 | ||||
Securities Purchase Agreement (Ripple) | |||||
Related Party Transaction [Line Items] | |||||
Common Stock, Shares, Issued | 6,237,523 |
Subsequent Events (Details)
Subsequent Events (Details) - Forecast | Jan. 11, 2021USD ($) |
Subsequent Event [Line Items] | |
Other Restructuring Costs | $ 3,500,000 |
Restructuring and Related Cost, Future operating expense reduction | $ 18,000,000 |
Restructuring and Related Cost, Number of Positions Eliminated | 90 |
Severance Costs | $ 6,200,000 |
Restructuring and Related Cost, Expected Cost | $ 9,700,000 |