Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 001-32903 | ||
Entity Registrant Name | THE WESTERN UNION COMPANY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-4531180 | ||
Entity Address, Address Line One | 7001 East Belleview Avenue | ||
Entity Address, City or Town | Denver | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80237 | ||
City Area Code | 866 | ||
Local Phone Number | 405-5012 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | WU | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9.2 | ||
Entity Common Stock, Shares Outstanding | 393,527,543 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001365135 | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s proxy statement for the 2022 annual meeting of stockholders are incorporated into Part III of this Annual Report on Form 10‑K | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Denver, Colorado |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
CONSOLIDATED STATEMENTS OF INCOME | ||||
Revenues | $ 5,070.8 | $ 4,835 | $ 5,292.1 | |
Type of Revenue | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | |
Expenses: | ||||
Cost of services | $ 2,896.4 | $ 2,826.5 | $ 3,086.5 | |
Type of Cost of Service | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | |
Selling, general, and administrative | $ 1,051.3 | $ 1,041.2 | $ 1,271.6 | |
Total expenses | [1] | 3,947.7 | 3,867.7 | 4,358.1 |
Operating income | 1,123.1 | 967.3 | 934 | |
Other income/(expense): | ||||
Gain on divestitures of businesses (Note 5) | 524.6 | |||
Gain on sale of noncontrolling interest in a private company (Note 5) | 47.9 | |||
Pension settlement charges (Note 12) | (109.8) | |||
Interest income | 1.4 | 3.2 | 6.3 | |
Interest expense | (105.5) | (118.5) | (152) | |
Other income/(expense), net | (21.7) | 3.1 | 8.5 | |
Total other income/(expense), net | (187.7) | (112.2) | 387.4 | |
Income before income taxes | 935.4 | 855.1 | 1,321.4 | |
Provision for income taxes | 129.6 | 110.8 | 263.1 | |
Net income | $ 805.8 | $ 744.3 | $ 1,058.3 | |
Earnings per share: | ||||
Basic (USD per share) | $ 1.98 | $ 1.81 | $ 2.47 | |
Diluted (USD per share) | $ 1.97 | $ 1.79 | $ 2.46 | |
Weighted-average shares outstanding: | ||||
Basic (shares) | 406.8 | 412.3 | 427.6 | |
Diluted (shares) | 408.9 | 415.2 | 430.9 | |
[1] | As further described in Note 7, total expenses include amounts incurred with related parties of $ 54.7 million, $ 54.6 million, and $ 57.1 million for the years ended December 31, 2021, 2020, and 2019 , respectively. |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF INCOME | |||
Related party expenses | $ 54.7 | $ 54.6 | $ 57.1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 805.8 | $ 744.3 | $ 1,058.3 |
Other comprehensive income, net of reclassifications and tax (Note 14): | |||
Unrealized gains/(losses) on investment securities | (27.9) | 33.6 | 25.8 |
Unrealized gains/(losses) on hedging activities | 49.2 | (26.9) | (11) |
Defined benefit pension plan adjustments (Note 12) | 86.1 | 42.8 | 7.2 |
Total other comprehensive income | 107.4 | 49.5 | 22 |
Comprehensive income | $ 913.2 | $ 793.8 | $ 1,080.3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and cash equivalents | $ 1,208.3 | $ 1,428.2 | |
Settlement assets | 2,843.5 | 3,821.4 | |
Property and equipment, net of accumulated depreciation of $650.4 and $659.9, respectively | 129.4 | 150.4 | |
Goodwill | 2,034.6 | 2,566.6 | |
Other intangible assets, net of accumulated amortization of $731.8 and $1044.6, respectively | 417.1 | 505 | |
Other assets | 737.7 | 1,024.7 | |
Assets held for sale (Note 5) | 1,452.9 | ||
Total assets | 8,823.5 | 9,496.3 | |
Liabilities: | |||
Accounts payable and accrued liabilities | 450.2 | 500.9 | |
Settlement obligations | 2,843.5 | 3,821.4 | |
Income taxes payable | 870.7 | 928.9 | |
Deferred tax liability, net | 203.8 | 188.9 | |
Borrowings | [1] | 3,008.4 | 3,067.2 |
Other liabilities | 269.4 | 802.4 | |
Liabilities associated with assets held for sale (Note 5) | 821.9 | ||
Total liabilities | 8,467.9 | 9,309.7 | |
Commitments and contingencies (Note 6) | |||
Stockholders' equity | |||
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued | |||
Common stock, $0.01 par value; 2,000 shares authorized; 393.8 shares and 411.2 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 3.9 | 4.1 | |
Capital surplus | 941 | 885.1 | |
Accumulated deficit | (537.2) | (543.1) | |
Accumulated other comprehensive loss | (52.1) | (159.5) | |
Total stockholders' equity | 355.6 | 186.6 | |
Total liabilities and stockholders' equity | $ 8,823.5 | $ 9,496.3 | |
[1] | As of December 31, 2021, the Company’s weighted-average effective rate on total borrowings was approximately 3.3 % . |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Accumulated Depreciation on Property Plant and Equipment | $ 650.4 | $ 659.9 |
Accumulated Amortization on Other Intangible Assets | $ 731.8 | $ 1,044.6 |
Stockholders' Equity: | ||
Preferred stock, par value (USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 10 | 10 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000 | 2,000 |
Common stock, shares issued | 393.8 | 411.2 |
Common stock, shares outstanding | 393.8 | 411.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 805.8 | $ 744.3 | $ 1,058.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 49.6 | 61.3 | 79.6 |
Amortization | 158.6 | 164.3 | 178.1 |
Pension settlement charges (Note 12) | 109.8 | ||
Gain on divestiture of businesses, excluding transaction costs (Note 5) | (532.1) | ||
Gain on sale of noncontrolling interest in a private company (Note 5) | (47.9) | ||
Deferred income tax provision/(benefit) (Note 11) | (2.6) | 13.9 | (24.5) |
Other non-cash items, net | 149.6 | 145.8 | 118.4 |
Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in: | |||
Other assets | (73) | (44.4) | 7.5 |
Accounts payable and accrued liabilities | (24.8) | (96.6) | 94.3 |
Income taxes payable (Note 11) | (56.2) | (94.4) | (36.8) |
Other liabilities | (23.6) | (16.7) | (28.2) |
Net cash provided by operating activities | 1,045.3 | 877.5 | 914.6 |
Cash flows from investing activities | |||
Payments for capitalized contract costs | (107.5) | (69.1) | (46.6) |
Payments for internal use software | (69.4) | (51.2) | (33) |
Purchases of property and equipment | (37.7) | (36.5) | (48.1) |
Purchases of settlement investments | (433) | (6,421.1) | (5,866.1) |
Proceeds from the sale of settlement investments | 755.3 | 5,978.4 | 5,219.1 |
Maturities of settlement investments | 229.7 | 182.6 | 181.7 |
Proceeds from the sale of former corporate headquarters and other property (Note 4) | 49.4 | ||
Proceeds from the sale of noncontrolling interest in a private company (Note 4) | 50.9 | ||
Proceeds from divestitures of businesses, net of cash divested (Note 5) | 711.7 | ||
Purchase the noncontrolling interest in stc Bank (Note 5) | (200) | ||
Other investing activities | 3.7 | (6) | 48.3 |
Net cash (used in)/provided by investing activities | 192 | (373.5) | 167 |
Cash flows from financing activities | |||
Cash dividends and dividend equivalents paid | (381.6) | (370.3) | (340.8) |
Common stock repurchased (Note 14) | (409.9) | (239.7) | (552.6) |
Net proceeds from/(repayments of) commercial paper | 195 | (165) | 120 |
Net proceeds from issuance of borrowings | 891.7 | 495.9 | |
Principal payments on borrowings | (1,150) | (824.9) | |
Make-whole premium on early extinguishment of debt (Note 16) | (14.3) | ||
Proceeds from exercise of options | 11.6 | 2.2 | 36.7 |
Net change in settlement obligations | (412.2) | 587.6 | (414.3) |
Other financing activities | 0.2 | (0.7) | (4.1) |
Net cash used in financing activities | (1,269.5) | (185.9) | (1,484.1) |
Net change in cash and cash equivalents, including settlement, and restricted cash | (32.2) | 318.1 | (402.5) |
Cash and cash equivalents, including settlement, and restricted cash at beginning of period | 2,143.1 | 1,825 | 2,227.5 |
Cash and cash equivalents, including settlement, and restricted cash at end of period | 2,110.9 | 2,143.1 | 1,825 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents on balance sheet | 1,208.3 | 1,428.2 | 1,450.5 |
Settlement cash and cash equivalents (Note 8) | 835.5 | 695.7 | 368.2 |
Restricted cash in Other assets | 29.4 | 19.2 | 6.3 |
Cash and cash equivalents included in Assets held for sale (Note 5) | 37.7 | ||
Cash and cash equivalents, including settlement, and restricted cash | 2,110.9 | 2,143.1 | 1,825 |
Supplemental cash flow information: | |||
Interest paid | 101.6 | 109.6 | 151.3 |
Income taxes paid | 185.9 | 187.3 | 318.9 |
Cash paid for lease liabilities | 46.5 | 65.9 | 53.8 |
Non-cash lease liabilities arising from obtaining right-of-use assets (Note 13) | 18.5 | 38.6 | 269.1 |
Internal use software capitalized but not yet paid | $ 26.4 | $ 0.2 | $ 1.6 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital Surplus | Accumulated Deficit | Accumulated Other Comprehensive Loss | Adoption of new accounting pronouncements | Adoption of new accounting pronouncementsAccumulated Deficit |
Beginning balance at Dec. 31, 2018 | $ (309.8) | $ 4.4 | $ 755.6 | $ (838.8) | $ (231) | ||
Beginning balance (shares) at Dec. 31, 2018 | 441.2 | ||||||
Increase/(Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,058.3 | 1,058.3 | |||||
Stock-based compensation | 48.9 | 48.9 | |||||
Common stock dividends and dividend equivalents declared | (342.6) | (342.6) | |||||
Repurchase and retirement of common shares | (553) | $ (0.2) | (552.8) | ||||
Repurchase and retirement of common shares (shares) | (27.6) | ||||||
Shares issued under stock-based compensation plans | 36.7 | 36.7 | |||||
Shares issued under stock-based compensation plans (shares) | 4.4 | ||||||
Other comprehensive income (Note 14) | 22 | 22 | |||||
Ending balance at Dec. 31, 2019 | (39.5) | $ 4.2 | 841.2 | (675.9) | (209) | $ (0.6) | $ (0.6) |
Ending balance (shares) at Dec. 31, 2019 | 418 | ||||||
Increase/(Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 744.3 | 744.3 | |||||
Stock-based compensation | 41.7 | 41.7 | |||||
Common stock dividends and dividend equivalents declared | (373.2) | (373.2) | |||||
Repurchase and retirement of common shares | (237.8) | $ (0.1) | (237.7) | ||||
Repurchase and retirement of common shares (shares) | (9.4) | ||||||
Shares issued under stock-based compensation plans | 2.2 | 2.2 | |||||
Shares issued under stock-based compensation plans (shares) | 2.6 | ||||||
Other comprehensive income (Note 14) | 49.5 | 49.5 | |||||
Ending balance at Dec. 31, 2020 | $ 186.6 | $ 4.1 | 885.1 | (543.1) | (159.5) | ||
Ending balance (shares) at Dec. 31, 2020 | 411.2 | 411.2 | |||||
Increase/(Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 805.8 | 805.8 | |||||
Stock-based compensation | 44.3 | 44.3 | |||||
Common stock dividends and dividend equivalents declared | (384.8) | (384.8) | |||||
Repurchase and retirement of common shares | (415.3) | $ (0.2) | (415.1) | ||||
Repurchase and retirement of common shares (shares) | (20.1) | ||||||
Shares issued under stock-based compensation plans | 11.6 | 11.6 | |||||
Shares issued under stock-based compensation plans (shares) | 2.7 | ||||||
Other comprehensive income (Note 14) | 107.4 | 107.4 | |||||
Ending balance at Dec. 31, 2021 | $ 355.6 | $ 3.9 | $ 941 | $ (537.2) | $ (52.1) | ||
Ending balance (shares) at Dec. 31, 2021 | 393.8 | 393.8 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT) (Parentheticals) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT) | |||||||||||||||
Common stock dividends (USD per share) | $ 0.235 | $ 0.235 | $ 0.235 | $ 0.235 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.94 | $ 0.90 | $ 0.80 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Business and Basis of Presentation | |
Business and Basis of Presentation | 1. Business and Basis of Presentation Business The Western Union Company (“Western Union” or the “Company”) is a leader in global money movement and payment services, providing people and businesses with fast, reliable, and convenient ways to send money and make payments around the world. The Western Union ® brand is globally recognized. The Company’s services are available through a network of agent locations in more than 200 countries and territories and also through money transfer transactions conducted and funded through websites and mobile applications marketed under the Company’s brands (“westernunion.com”) and transactions initiated on internet and mobile applications hosted by the Company’s third-party white label or co-branded digital partners (together with westernunion.com, “Digital Money Transfer”). Each location in the Company’s agent network is capable of providing one or more of the Company’s services. The Western Union business consists of the following segments: • Consumer-to-Consumer - The Consumer-to-Consumer operating segment facilitates money transfers, which are sent from retail agent locations worldwide or through websites and mobile devices, including Digital Money Transfer services. The Company’s money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. • Business Solutions - The Business Solutions operating segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals. The significant majority of the Business Solutions business relates to exchanges of currency at spot rates, which enable customers to make cross-currency payments. In addition, in certain countries, the Company writes foreign currency forward and option contracts for customers to facilitate future payments. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. See Note 5 for further information regarding this transaction. All businesses and other services that have not been classified in the above segments are reported as Other, which primarily includes the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services. In May 2019, the Company sold a substantial majority of its United States based electronic bill payment services, as discussed in Note 5. The Company’s other services, in addition to certain corporate costs such as costs related to strategic initiatives, including costs for the review and closing of mergers, acquisitions, and divestitures, are also included in Other. See Note 18 for further information regarding the Company’s segments. There are legal or regulatory limitations on transferring certain assets of the Company outside of the countries where these assets are located. However, there are generally no limitations on the use of these assets within those countries. Additionally, the Company must meet minimum capital requirements in some countries in order to maintain operating licenses. As of December 31, 2021, the Company's restricted net assets associated with these asset limitations and minimum capital requirements totaled approximately $ 460 million. Various aspects of the Company’s services and businesses are subject to United States federal, state, and local regulation, as well as regulation by foreign jurisdictions, including certain banking and other financial services regulations. Basis of Presentation The financial statements in this Annual Report on Form 10‑K are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. Consistent with industry practice, the accompanying Consolidated Balance Sheets are unclassified due to the short-term nature of the Company’s settlement obligations contrasted with the Company’s ability to invest cash awaiting settlement in long-term investment securities. Cash Flow Classification Revision Beginning in the fourth quarter of 2021, the Company revised its presentation to include changes in settlement cash associated with settlement obligations as a financing activity and changes in settlement cash from purchases, proceeds, and maturities of settlement investments as an investing activity within its Consolidated Statements of Cash Flows. Previously, the changes in settlement assets and settlement obligations were presented on a net basis within operating activities in the Company’s Consolidated Statements of Cash Flows. Prior year amounts have been revised to conform to this presentation. These changes in presentation have been concluded to be immaterial, having no impact on the Company’s previously reported net income, financial position, or cash flows from operating activities, as changes in the Company’s settlement assets exactly offset changes in its settlement obligations. However, the revised presentation shows all changes associated with settlement cash in the Consolidated Statements of Cash Flows instead of in the Notes to the Consolidated Financial Statements. The following tables present the effects of the changes in presentation of these cash flows, compared to the previously reported Consolidated Statements of Cash Flows (in millions): Year Ended December 31, 2020 As Previously Reported (a) Revisions As Revised Net cash provided by/(used in): Operating activities $ 877.5 $ — $ 877.5 Investing activities (b) ( 113.4 ) ( 260.1 ) ( 373.5 ) Financing activities (c) ( 773.5 ) 587.6 ( 185.9 ) Net change in cash and cash equivalents, including settlement, and restricted cash $ ( 9.4 ) $ 327.5 $ 318.1 (a) As reported in the Company's Form 10-K filed with the SEC on February 19, 2021. (b) The financial statement lines included in Investing activities are Purchases of settlement investments, Proceeds from the sale of settlement investments, and Maturities of settlement investments. (c) The financial statement line included in Financing activities is Net change in settlement obligations. Year Ended December 31, 2019 As Previously Reported (a) Revisions As Revised Net cash provided by/(used in): Operating activities $ 914.6 $ — $ 914.6 Investing activities (b) 632.3 ( 465.3 ) 167.0 Financing activities (c) ( 1,069.8 ) ( 414.3 ) ( 1,484.1 ) Net change in cash and cash equivalents, including settlement, and restricted cash $ 477.1 $ ( 879.6 ) $ ( 402.5 ) (a) As reported in the Company's Form 10-K filed with the SEC on February 20, 2020. (b) The financial statement lines included in Investing activities are Purchases of settlement investments, Proceeds from the sale of settlement investments, and Maturities of settlement investments. (c) The financial statement line included in Financing activities is Net change in settlement obligations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. Principles of Consolidation The Company consolidates financial results when it has a controlling financial interest in a subsidiary via voting rights or when it has both the power to direct the activities of an entity that most significantly impact the entity’s economic performance and the ability to absorb losses or the right to receive benefits of the entity that could potentially be significant to the entity. The Company utilizes the equity method of accounting when it is able to exercise significant influence over an entity’s operations, which generally occurs when the Company has an ownership interest between 20% and 50%. Earnings Per Share The calculation of basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Outstanding options to purchase Western Union stock and unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested, using the treasury stock method. The treasury stock method assumes proceeds from the exercise price of stock options and the unamortized compensation expense of options and restricted stock are available to acquire shares at an average market price throughout the period, and therefore, reduce the dilutive effect. Shares excluded from the diluted earnings per share calculation under the treasury stock method, primarily due to outstanding restricted stock units and options to purchase shares of Western Union stock, as the assumed proceeds of the restricted stock and options per unit were above the Company’s average share price during the periods and their effect was anti-dilutive, were 2.3 million, 1.6 million, and 1.9 million, respectively, of shares for the years ended December 31, 2021, 2020, and 2019. The following table provides the calculation of diluted weighted-average shares outstanding (in millions): Year Ended December 31, 2021 2020 2019 Basic weighted-average shares outstanding 406.8 412.3 427.6 Common stock equivalents 2.1 2.9 3.3 Diluted weighted-average shares outstanding 408.9 415.2 430.9 Fair Value Measurements The Company determines the fair values of its assets and liabilities that are recognized or disclosed at fair value in accordance with the hierarchy described below. The fair values of the assets and liabilities held in the Company’s defined benefit plan trust (“Trust”) have been recognized or disclosed utilizing the same hierarchy. The following three levels of inputs may be used to measure fair value: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. For most of these assets, the Company utilizes pricing services that use multiple prices as inputs to determine daily market values. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires significant management judgment or estimation. The Company holds assets classified as Level 3 that are recognized and disclosed at fair value on a non-recurring basis related to the Company’s business combinations, where the values of the intangible assets and goodwill acquired in a purchase are derived utilizing one of the three recognized approaches: the market approach, the income approach, or the cost approach. Carrying amounts for many of the Company’s financial instruments, including cash and cash equivalents, settlement cash and cash equivalents, and settlement receivables and settlement obligations approximate fair value due to their short maturities. Available-for-sale investment securities, as further discussed in Notes 8 and 9, and derivative financial instruments, as further discussed in Notes 9 and 15, are carried at fair value. Fixed-rate notes are carried at their original issuance values and adjusted over time to amortize or accrete that value to par, except for portions of notes that were hedged by interest rate swap agreements in prior years, as disclosed in Note 15. The fair values of fixed-rate notes are disclosed in Note 9 and are based on market quotations. The fair values of non-financial assets and liabilities related to the Company’s business combinations, as applicable, will be disclosed in Note 5. The fair value of the assets in the Trust, which held the assets for the Company’s defined benefit pension plan, is disclosed in Note 12. Business Combinations The Company accounts for all business combinations where control over another entity is obtained using the acquisition method of accounting, which requires that most assets (both tangible and intangible), liabilities (including contingent consideration), and remaining noncontrolling interests be recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets less liabilities and noncontrolling interests is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or noncontrolling interests made subsequent to the acquisition date, but within the measurement period, which is one year or less, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded within Net income. Any cost or equity method interest that the Company holds in the acquired company prior to the acquisition is remeasured to fair value at acquisition with a resulting gain or loss recognized within Other income/(expense), net for the difference between fair value and existing book value. Results of operations of the acquired company are included in the Company’s results from the date of the acquisition forward and include amortization expense arising from acquired intangible assets. The Company expenses all costs as incurred related to or involved with an acquisition in Selling, general, and administrative expenses. Cash and Cash Equivalents Highly liquid investments (other than those included in settlement assets) with maturities of three months or less at the date of purchase (that are readily convertible to cash) are considered cash equivalents and are stated at cost, which approximates fair value. The Company maintains cash and cash equivalent balances, including a portion in money market funds, with a group of globally diversified banks and financial institutions. The Company limits the concentration of its cash and cash equivalents with any one institution and regularly reviews investment concentrations and credit worthiness of these institutions. Allowance for Credit Losses For the Company’s accounting policies with respect to the allowance for credit losses, refer to Note 8. Settlement Assets and Obligations Settlement assets represent funds received or to be received from agents and others for unsettled money transfers, money orders, and consumer payments. The Company records corresponding settlement obligations relating to amounts payable under money transfers, money orders, and consumer payment service arrangements. Settlement assets and obligations also include amounts receivable from, and payable to, customers for the value of their cross-currency payment transactions related to the Business Solutions segment. Settlement assets consist of cash and cash equivalents, receivables from agents, Business Solutions customers, and others, and investment securities. Cash received by Western Union agents generally becomes available to the Company within one week after initial receipt by the agent. Cash equivalents consist of short-term time deposits, commercial paper, and other highly liquid investments. Receivables from agents represent funds collected by such agents, but in transit to the Company. Western Union has a large and diverse agent base, thereby reducing the credit risk of the Company from any one agent. The Company performs ongoing credit evaluations of its agents’ financial condition and credit worthiness. Receivables from Business Solutions customers arise from cross-currency payment transactions in the Business Solutions segment. Receivables occur when funds have been paid out to a beneficiary but not yet received from the customer. Collection of these receivables ordinarily occurs within a few days. To mitigate risk associated with potential Business Solutions customer defaults, the Company performs credit reviews on an ongoing basis. Settlement obligations consist of money transfer, money order and payment service payables, and payables to agents. Money transfer payables represent amounts to be paid to transferees when they request their funds. Most agents typically settle with transferees first and then obtain reimbursement from the Company. Money order payables represent amounts not yet presented for payment. Payment service payables represent amounts to be paid to utility companies, auto finance companies, mortgage servicers, financial service providers, government agencies, and others. Due to the agent funding and settlement process, payables to agents represent amounts due to agents for money transfers that have been settled with transferees. Refer to Note 8 for additional details on the Company’s settlement assets and obligations. Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the lesser of the estimated life of the related assets (generally three to seven years for equipment and furniture and fixtures) or the lease term. Maintenance and repairs, which do not extend the useful life of the respective assets, are charged to expense as incurred. Property and equipment consisted of the following (in millions): December 31, 2021 2020 Equipment $ 607.7 $ 608.9 Leasehold improvements and other 151.2 153.7 Furniture and fixtures 46.2 45.4 Projects in process 0.3 2.3 Total property and equipment, gross 805.4 810.3 Less accumulated depreciation ( 669.7 ) ( 659.9 ) Property and equipment, net (a) $ 135.7 $ 150.4 (a) As of December 31, 2021, Property and equipment, net includes Assets held for sale of $ 6.3 million, which consists of property and equipment of the Company's Business Solutions business, as further described in Note 5. Amounts charged to expense for depreciation of property and equipment were $ 49.6 million, $ 61.3 million, and $ 79.6 million during the years ended December 31, 2021, 2020, and 2019 , respectively. Goodwill Goodwill represents the excess of purchase price over the fair value of tangible and other intangible assets acquired less liabilities assumed, arising from business combinations. In the event a reporting unit’s carrying amount exceeds its fair value, the Company recognizes an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. The Company’s annual impairment assessment did no t identify any goodwill impairment during the years ended December 31, 2021, 2020, and 2019 . Other Intangible Assets Other intangible assets primarily consist of contract costs (primarily amounts paid to agents in connection with establishing and renewing long-term contracts), software, and acquired contracts. Other intangible assets are generally amortized on a straight-line basis over the length of the contract or benefit period. Included in the Consolidated Statements of Income is amortization expense of $ 158.6 million, $ 164.3 million, and $ 178.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. Acquired contracts include customer and contractual relationships and networks of subagents that are recognized in connection with the Company’s acquisitions. The Company purchases and develops software that is used in providing services and in performing administrative functions. Internal and external software development costs incurred that are directly related to the chosen design, development, and testing phases of the software are capitalized once the Company has completed all planning and analysis activities. Any other software development related costs are expensed as incurred. Capitalization of costs ceases when the product is available for general use. Software development costs and purchased software are generally amortized over a term of three to seven years . The Company capitalizes initial payments for new and renewed agent contracts to the extent recoverable through future operations or penalties in the case of early termination. The Company’s accounting policy is to limit the amount of capitalized costs for a given contract to the lesser of the estimated future cash flows from the contract or the termination fees the Company would receive in the event of early termination of the contract. The following table provides the components of other intangible assets (in millions): December 31, 2021 December 31, 2020 Weighted- Average Amortization Net of Net of Period Initial Accumulated Initial Accumulated (in years) Cost Amortization Cost Amortization Capitalized contract costs 6.2 $ 532.7 $ 242.0 $ 574.4 $ 308.0 Internal use software 4.3 388.7 128.8 310.3 55.5 Acquired contracts 11.6 552.9 50.2 561.7 75.8 Acquired trademarks 25.4 30.1 10.8 30.1 12.0 Other intangibles 4.3 19.4 — 19.4 — Projects in process (b) (a) 35.7 35.7 53.7 53.7 Total other intangible assets (b) 8.0 $ 1,559.5 $ 467.5 $ 1,549.6 $ 505.0 (a) Not applicable as the assets have not been placed in service. (b) As of December 31, 2021 , Projects in process and Total other intangible assets, net includes Assets held for sale of $ 2.3 million and $ 50.4 million, respectively, which consists of Other intangible assets associated with the Company's Business Solutions business as further described in Note 5. The estimated future aggregate amortization expense for existing other intangible assets as of December 31, 2021 , including the Business Solutions business, would be $ 141.9 million in 2022, $ 106.1 million in 2023, $ 82.7 million in 2024, $ 48.6 million in 2025, $ 24.0 million in 2026, and $ 28.5 million thereafter. However, included in these amounts are future aggregate amortization expenses related to Assets held for sale of $ 16.2 million in 2022, $ 10.1 million in 2023, $ 7.1 million in 2024, $ 6.3 million in 2025, $ 5.5 million in 2026, and $ 2.9 million thereafter. Beginning in August 2021, the Company stopped amortizing these held for sale assets over the terms of their useful lives. Other intangible assets are reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In such reviews, estimated undiscounted cash flows associated with these assets or operations are compared with their carrying values to determine if a write-down to fair value (normally measured by the present value technique) is required. The Company recorded immaterial impairments related to other intangible assets during the years ended December 31, 2021, 2020, and 2019 . Revenue Recognition For the Company’s accounting policies with respect to revenue recognition, refer to Note 3. Cost of Services Cost of services primarily consists of agent commissions and expenses for call centers, settlement operations, and related information technology costs. Expenses within these functions include personnel, software, equipment, telecommunications, bank fees, credit losses, depreciation, amortization, and other expenses incurred in connection with providing money transfer and other payment services. Advertising Costs Advertising costs are charged to operating expenses as incurred. Advertising costs for the years ended December 31, 2021, 2020, and 2019 were $ 177.8 million, $ 177.0 million, and $ 209.1 million, respectively. Income Taxes The Company accounts for income taxes under the liability method, which requires that deferred tax assets and liabilities be determined based on the expected future income tax consequences of events that have been recognized in the consolidated financial statements. Deferred tax assets and liabilities are recognized based on temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. The Company routinely assesses the realizability of its deferred tax assets. A valuation allowance must be established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company recognizes the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company accounts for the effects of global intangible low-taxed income taxed in the United States as a component of income tax expense in the period the tax arises. Foreign Currency Translation The United States dollar is the functional currency for substantially all of the Company’s businesses. Revenues and expenses are translated at average exchange rates prevailing during the period. Foreign currency denominated assets and liabilities for those businesses for which the local currency is the functional currency are translated into United States dollars based on exchange rates at the end of the year. The effects of foreign exchange gains and losses arising from the translation of assets and liabilities of these businesses are included as a component of AOCL in the accompanying Consolidated Balance Sheets. Foreign currency denominated monetary assets and liabilities of businesses for which the United States dollar is the functional currency are remeasured based on exchange rates at the end of the period, and the resulting remeasurement gains and losses are recognized in net income. Non-monetary assets and liabilities of these operations are remeasured at historical rates in effect when the asset was recognized or the liability was incurred. The Company has bill payment and other businesses in Argentina for which the local currency is the functional currency. However, as Argentina is currently classified as a highly inflationary economy, all changes in the value of the Argentine peso on these businesses’ monetary assets and liabilities are reflected in net income. Derivatives The Company has used derivatives to: (i) minimize its exposures related to changes in foreign currency exchange rates and, periodically, interest rates and (ii) facilitate cross-currency Business Solutions payments by writing derivatives to customers. The Company recognizes all derivatives in the Other assets and Other liabilities captions in the accompanying Consolidated Balance Sheets at their fair value. All cash flows associated with derivatives are included in Cash flows from operating activities in the Consolidated Statements of Cash Flows. Certain of the Company’s derivative arrangements are designated as either cash flow hedges or fair value hedges at the time of inception, and others are not designated as accounting hedges. • Cash flow hedges – Cash flow hedges consist of foreign currency hedging of forecasted revenues, as well as hedges of the forecasted issuance of fixed-rate debt. Derivative fair value changes that are captured in AOCL are reclassified to earnings in the same period the hedged item affects earnings when the instrument is effective in offsetting the change in cash flows attributable to the risk being hedged. The Company excludes time value from the assessment of effectiveness, and the initial value of the excluded components is amortized into Revenues within the Consolidated Statements of Income. For foreign currency cash flow hedges entered into before January 1, 2018, which was the date the Company adopted this accounting treatment, all changes in the fair value of the excluded components were recognized immediately in Revenues during the year ended December 31, 2019. • Fair value hedges - Fair value hedges consist of hedges of fixed-rate debt, through interest rate swaps. Changes in the fair value of derivatives that are designated as fair value hedges of fixed-rate debt are recorded in Interest expense. The offsetting change in value of the related debt instrument attributable to changes in the benchmark interest rate is also recorded in Interest expense. There were no fair value hedges outstanding as of December 31, 2021 and 2020. • Undesignated - Derivative contracts entered into to reduce the foreign exchange variability related to: (i) money transfer settlement assets and obligations, generally with maturities from a few days up to one month , and (ii) certain foreign currency denominated cash and other asset and liability positions, typically with maturities of less than one year at inception, are not designated as hedges for accounting purposes, and changes in their fair value are included in Selling, general, and administrative. The Company is also exposed to risk from derivative contracts written to its customers arising from its cross-currency Business Solutions payment operations. The majority of these derivative contracts have a duration at inception of less than one year. The Company aggregates its Business Solutions payments foreign currency exposures arising from customer contracts, including the derivative contracts described above, and hedges the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties (economic hedge contracts) as part of a broader foreign currency portfolio, including significant spot exchanges of currency in addition to forwards and options. The changes in the fair value related to these contracts are recorded in Revenues. The fair value of the Company’s derivatives is derived from standardized models that use market-based inputs (e.g., forward prices for foreign currency). The details of each designated hedging relationship must be formally documented at the inception of the arrangement, including the risk management objective, hedging strategy, hedged item, specific risks being hedged, the derivative instrument, and how effectiveness is being assessed. The derivative must be highly effective in offsetting the changes in cash flows or fair value of the hedged item, and effectiveness is evaluated quarterly on a retrospective and prospective basis. Legal Contingencies The Company is a party to certain legal and regulatory proceedings with respect to a variety of matters. The Company records an accrual for these contingencies to the extent that a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than other amounts within the range, that amount is accrued. When no amount within a range of loss appears to be a better estimate than any other amount, the lowest amount in the range is accrued. Stock-Based Compensation The Company has a stock-based compensation plan that provides for grants of Western Union stock options, restricted stock awards, restricted stock units, and deferred stock units to employees and non-employee directors of the Company. All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. The Company generally recognizes compensation expense on awards on a straight-line basis over the requisite service period for the entire award, with an estimate for forfeitures. Refer to Note 17 for additional discussion regarding details of the Company’s stock-based compensation plans. Severance and Other Related Expenses The Company records severance-related expenses once they are both probable and estimable in accordance with the provisions of the applicable accounting guidance for severance provided under an ongoing benefit arrangement. One-time involuntary benefit arrangements and other costs are generally recognized when the liability is incurred. The Company also evaluates impairment issues associated with restructuring and other activities when the carrying amount of the related assets may not be fully recoverable, in accordance with the appropriate accounting guidance. Recently Adopted Accounting Pronouncements On January 1, 2020 , the Company adopted a new accounting standard that requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. Additionally, the standard requires certain credit losses relating to investment securities classified as available-for-sale to be recorded through an allowance for credit losses. The Company recognized the cumulative effect of the new accounting standard as an adjustment to the January 1, 2020 balance of Accumulated deficit in the Consolidated Balance Sheets, and the adoption of the new accounting standard did not have a material impact on the Company’s January 1, 2020 accumulated deficit. In accordance with the modified retrospective approach, the comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. Refer to Note 8 for additional information and the related disclosures. On January 1, 2019 , the Company adopted a new accounting standard, as amended, that requires the Company to record assets and liabilities on the balance sheet for lease-related rights and obligations and disclose key information about its leasing arrangements. The Company elected the effective date method, utilized the modified retrospective approach upon adoption, and elected the package of practical expedients available under the new standard, including the expedients to not reassess whether an existing contract is a lease or contains a lease and whether the lease is an operating or finance lease. This new standard establishes a right-of-use (“ROU”) model that requires the Company to recognize ROU assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months at commencement of the lease. Refer to Note 13 for additional information and the related disclosures. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
Revenue | 3. Revenue The Company’s revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the principal amount sent, whether the money transfer involves different send and receive currencies, the difference between the exchange rate set by the Company to the customer and the rate available in the wholesale foreign exchange market, and speed of service, as applicable. The Company also offers several other services, including foreign exchange and payment services and other bill payment services, for which revenue is impacted by similar factors. For the substantial majority of the Company’s revenues, the Company acts as the principal in transactions and reports revenue on a gross basis, as the Company controls the service at all times prior to transfer to the customer, is primarily responsible for fulfilling the customer contracts, has the risk of loss, and has the ability to establish transaction prices. The Company also provides services to financial institutions and other third parties to enable such entities to offer money transfer services to their own customers under their brands. Generally, in these arrangements, consumers agree to terms and conditions specified by the financial institution or other third party that, among other things, establish pricing paid by the consumer for the service. The Company recognizes revenue on a net basis under these arrangements. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company recognized $ 4,865.5 million , $ 4,625.1 million , and $ 5,033.2 million in revenues from contracts with customers for the years ended December 31, 2021, 2020, and 2019, respectively. There were no material upfront costs incurred to obtain contracts with customers during these same periods. Under the Company’s loyalty programs, which are primarily offered in its money transfer services, the Company must fulfill loyalty program rewards earned by customers. The loyalty program redemption activity has been and continues to be insignificant to the Company’s results of operations for the years ended December 31, 2021, 2020, and 2019, and the Company has immaterial contract liability balances as of December 31, 2021 and 2020, which primarily relate to its customer loyalty programs and other services. Contract asset balances related to customers were also immaterial as of December 31, 2021 and 2020, as the Company typically receives payment of consideration from its customers prior to satisfying performance obligations under the customer contracts. In addition to revenue generated from contracts with customers, the Company recognizes revenue from other sources, including the sale of derivative financial instruments and investment income generated on settlement assets primarily related to money transfer and money order services. The Company analyzes its different services individually to determine the appropriate basis for revenue recognition, as further described below. Revenues from consumer money transfers are included in the Company’s Consumer-to-Consumer segment, revenues from foreign exchange and payment services are included in the Company’s Business Solutions segment, and revenues from consumer bill payment and other services are not included in the Company’s segments and are reported as Other. See Note 18 for further information on the Company’s segments. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. See Note 5 for further information regarding this transaction. Consumer Money Transfers For the Company’s money transfer services, customers agree to the Company’s terms and conditions at the time of initiating a transaction. In a money transfer, the Company has one performance obligation as the customer engages the Company to perform one integrated service which typically occurs within minutes — collect the customer’s money and make funds available for payment to a designated person in the currency requested. Therefore, the Company recognizes revenue upon completion of the following: (i) the customer’s acknowledgment of the Company’s terms and conditions and payment information has been received by the Company, (ii) the Company has agreed to process the money transfer, (iii) the Company has provided the customer a unique transaction identification number, and (iv) funds are available to be picked up by the customer’s designated receiving party. The transaction price is comprised of a transaction fee and the difference between the exchange rate set by the Company to the customer and the rate available in the wholesale foreign exchange market, as applicable, both of which are readily determinable at the time the transaction is initiated. Foreign Exchange and Payment Services For the Company’s foreign exchange and payment services, customers agree to terms and conditions for all transactions, either at the time of initiating a transaction or signing a contract with the Company to provide payment services on the customer’s behalf. In the majority of the Company’s foreign exchange and payment services, the Company makes payments to the recipient to satisfy its performance obligation to the customer, and therefore, the Company recognizes revenue on foreign exchange and payment services when this performance obligation has been fulfilled. Revenues from foreign exchange and payment services are primarily comprised of the difference between the exchange rate set by the Company to the customer and the rate available in the wholesale foreign exchange market. Consumer Bill Payments and Other The Company offers bill payment and other services that vary by contractual features, including the types and amounts of fixed charges and with respect to how fees are billed and collected. The identification of the contract with the customer for revenue recognition purposes is consistent with these features for each of the Company’s bill payment and other services. As with consumer money transfers, customers engage the Company to perform one integrated service — collect money from the consumer and process the transaction, thereby providing billers with real-time or near real-time information regarding consumer payments and simplifying the billers’ collection efforts. Management has determined that the substantial majority of the Company’s revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the years ended December 31, 2021, 2020, and 2019 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated. Year Ended December 31, 2021 Foreign Consumer Exchange Money and Payment Consumer Other Transfers Services Bill Payments Services Total Regions: North America $ 1,625.7 $ 101.8 $ 73.3 $ 57.1 $ 1,857.9 Europe and Russia/CIS 1,381.3 145.5 5.8 1.1 1,533.7 Middle East, Africa, and South Asia 660.8 2.2 0.6 — 663.6 Latin America and the Caribbean 376.6 3.4 75.8 7.3 463.1 East Asia and Oceania 276.5 69.6 1.1 — 347.2 Revenues from contracts with customers $ 4,320.9 $ 322.5 $ 156.6 $ 65.5 $ 4,865.5 Other revenues (a) 73.1 99.3 13.3 19.6 205.3 Total revenues $ 4,394.0 $ 421.8 $ 169.9 $ 85.1 $ 5,070.8 Year Ended December 31, 2020 Foreign Consumer Exchange Money and Payment Consumer Other Transfers Services Bill Payments Services Total Regions: North America $ 1,605.5 $ 83.6 $ 75.1 $ 57.0 $ 1,821.2 Europe and Russia/CIS 1,330.0 121.1 3.6 1.8 1,456.5 Middle East, Africa, and South Asia 630.0 1.5 0.4 — 631.9 Latin America and the Caribbean 310.1 2.4 75.8 7.9 396.2 East Asia and Oceania 257.4 60.5 1.4 — 319.3 Revenues from contracts with customers $ 4,133.0 $ 269.1 $ 156.3 $ 66.7 $ 4,625.1 Other revenues (a) 87.0 87.0 14.0 21.9 209.9 Total revenues $ 4,220.0 $ 356.1 $ 170.3 $ 88.6 $ 4,835.0 Year Ended December 31, 2019 Foreign Consumer Exchange Money and Payment Consumer Other Transfers Services Bill Payments (b) Services Total Regions: North America $ 1,653.5 $ 95.4 $ 223.0 $ 55.9 $ 2,027.8 Europe and Russia/CIS 1,350.1 127.1 3.2 4.1 1,484.5 Middle East, Africa, and South Asia 642.0 1.8 0.4 — 644.2 Latin America and the Caribbean 395.2 3.4 129.4 15.3 543.3 East Asia and Oceania 263.5 68.4 1.5 — 333.4 Revenues from contracts with customers $ 4,304.3 $ 296.1 $ 357.5 $ 75.3 $ 5,033.2 Other revenues (a) 103.5 92.7 37.3 25.4 258.9 Total revenues $ 4,407.8 $ 388.8 $ 394.8 $ 100.7 $ 5,292.1 (a) Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources. (b) On February 28, 2019, the Company entered into an agreement with ACI Worldwide Corp. and ACW Worldwide, Inc. to sell its United States electronic bill payments business known as “Speedpay” and closed the transaction on May 9, 2019. Included within North America revenues are Speedpay revenues of $ 125.4 million for the year ended December 31, 2019. |
Restructuring-Related Expenses
Restructuring-Related Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring-Related Expenses | |
Restructuring-Related Expenses | 4. Restructuring-Related Expenses On August 1, 2019, the Company’s Board of Directors approved a plan to change the Company’s operating model and improve its business processes and cost structure by reorganizing the Company’s senior management, including those managers reporting to the Chief Executive Officer (“CEO”), reducing its headcount, and consolidating various facilities. While certain of the expenses may be identifiable to the Company’s segments, primarily to the Company’s Consumer-to-Consumer segment, the expenses are not included in the measurement of segment operating income provided to the Chief Operating Decision Maker (“CODM”) for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company’s segment operating income results. These expenses are specific to this initiative; however, the types of expenses related to this initiative are similar to expenses that the Company has previously incurred and can reasonably be expected to incur in the future. All expenses for this initiative have been incurred as of December 31, 2020, and substantially all of the liability had been paid in cash as of December 31, 2021. The following table summarizes the expenses related to the restructuring accruals, which are included in Accounts payable and accrued liabilities in the Company’s Consolidated Balance Sheets, and the total expenses incurred since the inception of the restructuring plan (in millions): Severance and Facility Related and Closures, Employee Consulting, Benefits and Other Total Balance, December 31, 2019 $ 71.2 $ 2.1 $ 73.3 Expenses (a) 11.8 25.0 36.8 Cash payments ( 58.7 ) ( 24.0 ) ( 82.7 ) Non-cash benefits/(charges) (a) 0.6 ( 1.8 ) ( 1.2 ) Balance, December 31, 2020 $ 24.9 $ 1.3 $ 26.2 Total expenses incurred $ 109.8 $ 42.5 $ 152.3 (a) Non-cash benefits/(charges) include non-cash write-offs and accelerated depreciation of ROU assets and leasehold improvements and a non-cash benefit for adjustments to stock compensation for awards forfeited by employees. These amounts have been removed from the liability balance in the table above as they do not impact the restructuring accruals. The following table presents restructuring-related expenses as reflected in the Consolidated Statements of Income (in millions): Year Ended December 31, 2020 2019 Cost of services $ 4.5 $ 39.8 Selling, general, and administrative 32.3 75.7 Total expenses, pre-tax $ 36.8 $ 115.5 Total expenses, net of tax $ 31.5 $ 90.0 |
Divestitures, Investment Activi
Divestitures, Investment Activities, and Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Divestitures Investment Activities and Goodwill [Abstract] | |
Divestitures, Investment Activities, and Goodwill | 5. Divestitures, Investment Activities, and Goodwill Assets Held for Sale On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC (collectively, the "Buyer") for cash consideration of $ 910 million, subject to regulatory and working capital adjustments. The divestiture is expected to result in a gain on the sale and is subject to regulatory approval and other closing conditions. The sale is expected to be completed in two primary closings, with the entirety of the cash consideration due at the first closing. The expected gain on the sale will be recognized at each closing, based on the book values and fair values of the operations sold at each closing. The first closing is expected to be completed during the first quarter of 2022 and to primarily exclude the operations in the European Union and the United Kingdom. The second closing is currently expected by late 2022, pending required regulatory approvals. During the period between the closings, the Company will pay to the Buyer a measure of profit of the European Union and United Kingdom operations, adjusted for the provision for income taxes, occupancy charges for employees of the Buyer using Company facilities, and other items. The Company has presented the assets of its Business Solutions business as held for sale, along with the associated liabilities, as it believes completion of the sale is probable. However, in the event that: (a) the first closing has not occurred by August 4, 2022, due to a failure to obtain regulatory approvals by that date, and such failure is not primarily caused by the Company’s material breach, or (b) the agreement is terminated prior to August 4, 2022, and at the time of such termination either (i) there is a final order or other legal prohibition (not primarily caused by the Company’s material breach) precluding the first closing, or (ii) there is a material, unresolved breach by Buyer or its affiliates of their undertakings relating to obtaining the regulatory approvals, the Company would be entitled to a termination fee of $ 63.7 million. In the event that the first closing is completed but the second closing does not occur by February 4, 2023, the Company may, with appropriate notice to the Buyer, otherwise dispose of the European Union and United Kingdom operations, with any profit realized on disposition remitted to the Buyer, and conversely, any loss indemnified by the Buyer. Business Solutions revenues were $ 421.8 million , $ 356.1 million , and $ 388.8 million , and direct operating expenses, which exclude corporate allocations, were $ 317.7 million, $ 319.5 million, and $ 334.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. Operating costs directly associated with this divestiture and incurred during the year ended December 31, 2021 were $ 14.4 million. The following table reflects the assets held for sale and associated liabilities of the Business Solutions business in the accompanying Consolidated Balance Sheet (in millions). These balances are subject to regulatory capital and other requirements and will be finalized upon the closing of the deal. December 31, 2021 Cash and cash equivalents $ 37.7 Settlement assets 566.0 Property and equipment, net of accumulated depreciation of $ 19.3 6.3 Goodwill 532.0 Other intangible assets, net of accumulated amortization of $ 360.2 50.4 Other assets 260.5 Total assets $ 1,452.9 Accounts payable and accrued liabilities $ 61.6 Settlement obligations 566.0 Other liabilities 194.3 Total liabilities $ 821.9 The Company also expects to reclassify approximately $ 17.8 million of unrealized currency translation gains currently included within AOCL into net income at the first closing. Divestitures On February 28, 2019, the Company entered into an agreement with ACI Worldwide Corp. and ACW Worldwide, Inc. (together, “ACI”) to sell its United States electronic bill payment business known as Speedpay, which had been included as a component of Other in the Company’s segment reporting. The Company received approximately $ 750 million and recorded a pre-tax gain on the sale of approximately $ 523 million, which is included in Gain on divestitures of businesses in the accompanying Consolidated Statements of Income, in the all-cash transaction that closed on May 9, 2019. Speedpay revenues included in the Company’s results were $ 125.4 million, and Speedpay direct operating expenses were $ 98.2 million for the year ended December 31, 2019. On May 6, 2019, the Company completed the sale of Paymap Inc. (“Paymap”), which provides electronic mortgage bill payment services, for contingent consideration and immaterial cash proceeds received at closing. The Company recorded an immaterial pre-tax gain related to this sale during 2019. In 2020, the Company sold its former corporate headquarters and other property and recorded an immaterial pre-tax net gain on the sales. The proceeds from these sales have been included in Cash flows from investing activities within the Company’s Consolidated Statements of Cash Flows for the year ended December 31, 2020. Investment Activities The Company entered into an agreement in November 2020, which was subsequently amended, to acquire an ownership interest in stc Bank (formerly Saudi Digital Payments Company), a subsidiary of Saudi Telecom Company and one of the Company’s Consumer-to-Consumer digital white label partners. Under the terms of the amended agreement, the Company agreed to invest $ 200.0 million for a 15 % ownership in stc Bank (“Investment”), and this transaction closed in October 2021. In conjunction with the Investment, the Company and stc Bank extended and expanded the terms of their commercial agreement. T he Company assigned a value of $ 36.0 million to certain rights under the commercial agreement that are included in Other assets in the Consolidated Balance Sheets as of December 31, 2021 and are being amortized over the life of the agreement. The Company is measuring the Investment at cost, less any impairment, adjusted for any changes resulting from observable price changes in orderly transactions for identical or similar investments in stc Bank. In April 2021, the Company sold a substantial majority of the noncontrolling interest it held in a private company for cash proceeds of $ 50.9 million. The Company recorded a gain of $ 47.9 million within Total other income/(expense), net, during the year ended December 31, 2021. The Company retains an immaterial equity interest in this private company. Goodwill The following tables present changes to goodwill for the years ended December 31, 2021 and 2020 and the accumulated impairment losses as of December 31, 2021, 2020, and 2019 (in millions): Consumer-to- Business Consumer Solutions (a) Other Total January 1, 2020 goodwill, net $ 1,980.7 $ 532.0 $ 53.9 $ 2,566.6 Additions — — — — December 31, 2020 goodwill, net $ 1,980.7 $ 532.0 $ 53.9 $ 2,566.6 Additions — — — — December 31, 2021 goodwill, net $ 1,980.7 $ 532.0 $ 53.9 $ 2,566.6 As of December 31, 2021 2020 2019 Goodwill, gross $ 3,030.6 $ 3,030.6 $ 3,030.6 Accumulated impairment losses ( 464.0 ) ( 464.0 ) ( 464.0 ) Goodwill, net (a) $ 2,566.6 $ 2,566.6 $ 2,566.6 (a) As of December 31, 2021, Goodwill of $ 532.0 million related to the Company's Business Solutions business is included in Assets held for sale on the Company's Consolidated Balance Sheets, as further described above. All of the Company's accumulated impairment losses relate to the Business Solutions business. The Company did no t record any goodwill impairments during the years ended December 31, 2021, 2020, and 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 6. Commitments and Contingencies Letters of Credit and Bank Guarantees The Company had approximately $ 450 million in outstanding letters of credit and bank guarantees as of December 31, 2021, primarily held in connection with safeguarding consumer funds, lease arrangements, and certain agent agreements. The Company expects to renew many of its letters of credit and bank guarantees prior to expiration, while certain letters of credit will be terminated, released, or transferred as a result of the sale of the Company's Business Solutions business. Litigation and Related Contingencies The Company is subject to certain claims and litigation that could result in losses, including damages, fines, and/or civil penalties, which could be significant, and in some cases, criminal charges. The Company regularly evaluates the status of legal matters to assess whether a loss is probable and reasonably estimable in determining whether an accrual is appropriate. Furthermore, in determining whether disclosure is appropriate, the Company evaluates each legal matter to assess if there is at least a reasonable possibility that a material loss or additional material losses may have been incurred. The Company also evaluates whether an estimate of possible loss or range of loss can be made. Unless otherwise specified below, the Company believes that there is at least a reasonable possibility that a loss or additional loss may have been incurred for each of the matters described below. For those matters that the Company believes there is at least a reasonable possibility that a loss or additional loss may have been incurred and can reasonably estimate the loss or potential loss, the reasonably possible potential litigation losses in excess of the Company’s recorded liability for probable and estimable losses was approximately $ 30 million as of December 31, 2021. For the remaining matters, management is unable to provide a meaningful estimate of the possible loss or range of loss because, among other reasons: (i) the proceedings are in preliminary stages; (ii) specific damages have not been sought; (iii) damage claims are unsupported and/or unreasonable; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; or (vi) novel legal issues or unsettled legal theories are being asserted. The outcomes of legal actions are unpredictable and subject to significant uncertainties, and it is inherently difficult to determine whether any loss is probable or even possible. It is also inherently difficult to estimate the amount of any loss, and there may be matters for which a loss is probable or reasonably possible but not currently estimable. Accordingly, actual losses may be in excess of the established liability or the range of reasonably possible loss. Legal Matters In October 2015, Consumidores Financieros Asociación Civil para su Defensa, an Argentinian consumer association, filed a purported class action lawsuit in Argentina’s National Commercial Court No. 19 against the Company’s subsidiary Western Union Financial Services Argentina S.R.L. (“WUFSA”). The lawsuit alleges, among other things, that WUFSA’s fees for money transfers sent from Argentina are excessive and that WUFSA does not provide consumers with adequate information about foreign exchange rates. The plaintiff is seeking, among other things, an order requiring WUFSA to reimburse consumers for the fees they paid and the foreign exchange revenue associated with money transfers sent from Argentina, plus punitive damages. The complaint does not specify a monetary value of the claim or a time period. In November 2015, the Court declared the complaint formally admissible as a class action. The notice of claim was served on WUFSA in May 2016, and in June 2016 WUFSA filed a response to the claim and moved to dismiss it on statute of limitations and standing grounds. In April 2017, the Court deferred ruling on the motion until later in the proceedings. The process for notifying potential class members has been completed, and the case proceeded to the evidentiary stage. The case will be stayed until (i) the Attorney-General instructs the Prosecutor to continue to litigate the claims on behalf of the plaintiff (during the time the registration of Consumidores Financieros before the Secretary of Commerce remains suspended); or (ii) the parties report to the Court that the plaintiff recovered its legal capacity. Due to the stage of this matter, the Company is unable to predict the outcome or the possible loss or range of loss, if any, associated with this matter. WUFSA intends to defend itself vigorously. In April 2019, certain family members of Quinn Schansman filed a complaint seeking damages and other relief against a number of financial institutions, including The Western Union Company and Western Union Financial Services, Inc., in the United States District Court for the Southern District of New York, alleging that the defendants violated the United States Anti-Terrorism Act. The operative complaint alleges that the defendants provided funding to a terrorist organization by processing money transfers to groups or individuals associated with the Donetsk People’s Republic (“DPR”), a pro-Russian separatist group in eastern Ukraine. The complaint alleges that DPR downed Malaysian Airlines Flight 17, on which Mr. Schansman was a passenger. On September 30, 2021, the Court denied the defendants’ motion to dismiss the operative complaint. Due to the preliminary stage of this matter, the ultimate outcome and any potential financial impact to the Company cannot be reasonably determined at this time. The Company intends to defend itself vigorously in this matter. In addition to the principal matters described above, the Company is a party to a variety of other legal matters that arise in the normal course of the Company’s business. While the results of these other legal matters cannot be predicted with certainty, management believes that the final outcome of these matters will not have a material adverse effect either individually or in the aggregate on the Company’s financial condition, results of operations, or cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | 7. Related Party Transactions The Company has ownership interests in certain of its agents accounted for under the equity method of accounting. The Company pays these agents commissions for money transfer and other services provided on the Company’s behalf. Commission expense recognized for these agents for the years ended December 31, 2021, 2020, and 2019 totaled $ 54.7 million, $ 54.6 million, and $ 57.1 million, respectively. |
Settlement Assets and Obligatio
Settlement Assets and Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Settlement Assets and Obligations | |
Settlement Assets and Obligations | 8. Settlement Assets and Obligations Settlement assets represent funds received or to be received from agents and others for unsettled money transfers, money orders, and consumer payments. The Company records corresponding settlement obligations relating to amounts payable under money transfers, money orders, and consumer payment service arrangements. Settlement assets and obligations also include amounts receivable from, and payable to, customers for the value of their cross-currency payment transactions related to the Business Solutions segment. Settlement assets and obligations consisted of the following (in millions): December 31, 2021 Settlement assets: Cash and cash equivalents $ 835.5 Receivables from agents, Business Solutions customers, and others 1,198.8 Less: Allowance for credit losses ( 23.7 ) Receivables from agents, Business Solutions customers, and others, net 1,175.1 Investment securities 1,398.9 Total settlement assets (a) $ 3,409.5 Settlement obligations: Money transfer, money order, and payment service payables $ 2,838.9 Payables to agents 570.6 Total settlement obligations (a) $ 3,409.5 December 31, 2020 Settlement assets: Cash and cash equivalents $ 695.7 Receivables from agents, Business Solutions customers, and others 1,188.3 Less: Allowance for credit losses ( 53.2 ) Receivables from agents, Business Solutions customers, and others, net 1,135.1 Investment securities 1,990.6 Total settlement assets $ 3,821.4 Settlement obligations: Money transfer, money order, and payment service payables $ 2,902.9 Payables to agents 918.5 Total settlement obligations $ 3,821.4 (a) As of December 31, 2021 , both Settlement assets and Settlement obligations include $ 566.0 million classified as Assets held for sale and Liabilities associated with assets held for sale (see Note 5). Allowance for Credit Losses On January 1, 2020, the Company adopted a new accounting standard related to the estimation of the allowance for credit losses, as discussed in Note 2. However, due to the short-term nature of the Company’s receivables and the Company’s historical and expected collections practice, the adoption did not have a material impact on the Company’s financial position or results of operations. Receivables from agents and others primarily represent funds collected by such agents, but in transit to the Company, and were $ 1,125.9 million and $ 1,081.2 million as of December 31, 2021 and 2020, respectively. Cash received by Western Union agents generally becomes available to the Company within one week after initial receipt by the agent. Western Union has a large and diverse agent base, thereby reducing the credit risk of the Company from any one agent. The Company performs ongoing credit evaluations of its agents’ financial condition and credit worthiness. Receivables from Business Solutions customers arise from cross-currency payment transactions in the Business Solutions segment. Business Solutions receivables totaled $ 49.2 million and $ 53.9 million as of December 31, 2021 and 2020, respectively. Receivables occur when funds have been paid out to a beneficiary but not yet received from the customer. Collection of these receivables ordinarily occurs within a few days. To mitigate risk associated with potential Business Solutions customer defaults, the Company performs credit reviews on an ongoing basis. The Company establishes and monitors an allowance for credit losses related to receivables from agents and others, and Business Solutions customers. The Company estimates the allowance based on its historical collections experience, adjusted for current conditions and forecasts of future economic conditions. Given the short-term nature of these receivables, the Company does not expect the impact of forecasted economic conditions on its allowance for credit losses to be significant. The Company has estimated credit losses based on information known as of December 31, 2021 . The following tables summarize the activity in the allowance for credit losses on receivables from agents and others, and Business Solutions customers (in millions): Agents and Business Solutions Others Customers Allowance for credit losses as of January 1, 2021 $ 49.3 $ 3.9 Current period provision for expected credit losses (a) 8.9 4.2 Write-offs charged against the allowance ( 44.8 ) ( 2.1 ) Recoveries of amounts previously written off 6.8 — Impacts of foreign currency exchange rates and other ( 2.2 ) ( 0.3 ) Allowance for credit losses as of December 31, 2021 $ 18.0 $ 5.7 Agents and Business Solutions Others Customers Allowance for credit losses as of January 1, 2020 $ 20.4 $ 4.5 Current period provision for expected credit losses (a) 39.9 2.0 Write-offs charged against the allowance ( 11.9 ) ( 3.1 ) Recoveries of amounts previously written off 2.3 — Impacts of foreign currency exchange rates and other ( 1.4 ) 0.5 Allowance for credit losses as of December 31, 2020 $ 49.3 $ 3.9 (a) Provision does not include losses from chargebacks or fraud associated with transactions initiated through the Company’s digital channels, as these losses are not credit-related. The Company recognized losses that were not credit-related of $ 51.4 million and $ 41.3 million, respectively, for the years ended December 31, 2021 and 2020 . Prior to the adoption of the new accounting standard discussed above, the Company recorded an allowance for doubtful accounts when it was probable that the related receivable balance would not be collected based on its history of collection experience, known collection issues, such as agent suspensions and bankruptcies, consumer chargebacks and insufficient funds, and other matters the Company identified in its routine collection monitoring. During the year ended December 31, 2019, the provision for doubtful accounts (bad debt expense) reflected in the Consolidated Statements of Income was $ 47.1 million. In addition, from time to time, the Company has made advances to its agents. The Company generally owes settlement funds payable to these agents that offset these advances. These amounts advanced to agents are included within Other assets in the accompanying Consolidated Balance Sheets. As of December 31, 2021 and 2020, amounts advanced to agents were $ 146.9 million and $ 135.9 million, respectively, and the related allowances for credit losses were immaterial. Investment Securities Investment securities included in Settlement assets in the Company’s Consolidated Balance Sheets consist primarily of highly-rated state and municipal debt securities, including fixed-rate term notes and variable-rate demand notes. Variable-rate demand note securities can be put (sold at par) typically on a daily basis with settlement periods ranging from the same day to one week but have varying maturities through 2050 . These securities may be used by the Company for short-term liquidity needs and held for short periods of time. Investment securities are exposed to market risk due to changes in interest rates and credit risk. The Company is required to hold highly-rated, investment grade securities, and such investments are restricted to satisfy outstanding settlement obligations in accordance with applicable regulatory requirements. The Company’s investment securities are classified as available-for-sale and recorded at fair value. Western Union regularly monitors credit risk and attempts to mitigate its exposure by investing in highly-rated securities and through investment diversification. Unrealized gains on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes. Available-for-sale securities with a fair value below the amortized cost basis are evaluated on an individual basis to determine whether the impairment is due to credit-related factors or noncredit-related factors. Factors that could indicate a credit loss exists include but are not limited to: (i) negative earnings performance, (ii) credit rating downgrades, or (iii) adverse changes in the regulatory or economic environment of the asset. Any impairment that is not credit-related is excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes, unless the Company intends to sell the impaired security or it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. Credit-related impairments are recognized immediately as an adjustment to earnings, regardless of whether the Company has the ability or intent to hold the security to maturity, and are limited to the difference between fair value and the amortized cost basis. As of and for the years ended December 31, 2021 and 2020 , the Company’s allowance for credit losses and provision for credit losses on its available-for-sale securities were immaterial. The components of investment securities are as follows (in millions): Gross Gross Net Amortized Fair Unrealized Unrealized Unrealized December 31, 2021 Cost Value Gains Losses Gains/(Losses) Settlement assets: Cash and cash equivalents: Money market funds $ 7.9 $ 7.9 $ — $ — $ — Available-for-sale securities: State and municipal debt securities (a) 1,182.6 1,219.9 39.8 ( 2.5 ) 37.3 State and municipal variable-rate demand notes 84.8 84.8 — — — Corporate and other debt securities 58.1 57.8 0.2 ( 0.5 ) ( 0.3 ) United States government agency mortgage-backed securities 35.6 36.4 0.8 — 0.8 Total available-for-sale securities 1,361.1 1,398.9 40.8 ( 3.0 ) 37.8 Total investment securities $ 1,369.0 $ 1,406.8 $ 40.8 $ ( 3.0 ) $ 37.8 Gross Gross Net Amortized Fair Unrealized Unrealized Unrealized December 31, 2020 Cost Value Gains Losses Gains/(Losses) Settlement assets: Cash and cash equivalents: Money market funds $ 13.1 $ 13.1 $ — $ — $ — Available-for-sale securities: State and municipal debt securities (a) 1,234.1 1,303.9 69.8 — 69.8 State and municipal variable-rate demand notes 562.1 562.1 — — — Corporate and other debt securities 71.6 72.8 1.2 — 1.2 United States government agency mortgage-backed securities 50.3 51.8 1.5 — 1.5 Total available-for-sale securities 1,918.1 1,990.6 72.5 — 72.5 Total investment securities $ 1,931.2 $ 2,003.7 $ 72.5 $ — $ 72.5 (a) The majority of these securities are fixed-rate instruments. There were no investments with a single issuer or individual securities representing greater than 10% of total investment securities as of December 31, 2021 and 2020. The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of December 31, 2021 (in millions): Fair Value Due within 1 year $ 162.5 Due after 1 year through 5 years 575.6 Due after 5 years through 10 years 503.5 Due after 10 years 157.3 Total $ 1,398.9 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay the obligations, or the Company may have the right to put the obligation prior to its contractual maturity, as with variable-rate demand notes. Variable-rate demand notes with a fair value of $ 84.8 million are included in the “Due after 10 years” category in the table above. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | 9. Fair Value Measurements Fair value, as defined by the relevant accounting standards, represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Refer to Note 2 for additional information on how the Company measures fair value. The following tables present the Company’s assets and liabilities which are measured at fair value on a recurring basis, by balance sheet line item (in millions): Fair Value Measurement Using Total December 31, 2021 Level 1 Level 2 Fair Value Assets: Settlement assets: Measured at fair value through net income: Money market funds $ 7.9 $ — $ 7.9 Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income): State and municipal debt securities — 1,219.9 1,219.9 State and municipal variable-rate demand notes — 84.8 84.8 Corporate and other debt securities — 57.8 57.8 United States government agency mortgage-backed securities — 36.4 36.4 Other assets: Derivatives — 247.7 247.7 Total assets $ 7.9 $ 1,646.6 $ 1,654.5 Liabilities: Other liabilities: Derivatives $ — $ 183.8 $ 183.8 Total liabilities $ — $ 183.8 $ 183.8 Fair Value Measurement Using Total December 31, 2020 Level 1 Level 2 Fair Value Assets: Settlement assets: Measured at fair value through net income: Money market funds $ 13.1 $ — $ 13.1 Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income): State and municipal debt securities — 1,303.9 1,303.9 State and municipal variable-rate demand notes — 562.1 562.1 Corporate and other debt securities — 72.8 72.8 United States government agency mortgage-backed securities — 51.8 51.8 Other assets: Derivatives — 453.3 453.3 Total assets $ 13.1 $ 2,443.9 $ 2,457.0 Liabilities: Other liabilities: Derivatives $ — $ 430.3 $ 430.3 Total liabilities $ — $ 430.3 $ 430.3 There were no material, non-recurring fair value adjustments or transfers between Level 1 and Level 2 measurements during the years ended December 31, 2 0 21 and 2 0 20 . Other Fair Value Measurements The carrying amounts for many of the Company’s financial instruments, including certain cash and cash equivalents, settlement cash and cash equivalents, and settlement receivables and obligations approximate fair value due to their short maturities. The Company’s borrowings are classified as Level 2 within the valuation hierarchy, and the aggregate fair value of these borrowings was based on quotes from multiple banks. Fixed-rate notes are carried in the Company’s Consolidated Balance Sheets at their original issuance values as adjusted over time to amortize or accrete that value to par. As of December 31, 2021, the carrying value and fair value of the Company’s borrowings were $ 3,008.4 million and $ 3,217.2 million, respectively (see Note 16). As of December 31, 2020, the carrying value and fair value of the Company’s borrowings were $ 3,067.2 million and $ 3,348.0 million, respectively. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets and Other Liabilities | |
Other Assets and Other Liabilities | 10. Other Assets and Other Liabilities The following table summarizes the components of Other assets and Other liabilities (in millions): December 31, 2021 2020 Other assets: Derivatives $ 247.7 $ 453.3 Other investments (Note 5) 166.3 7.7 ROU assets 164.5 189.1 Amounts advanced to agents 146.9 135.9 Prepaid expenses 85.5 81.0 Equity method investments 38.4 34.5 Prepaid pension costs (Note 12) — 39.9 Other 148.9 83.3 Total other assets (a) $ 998.2 $ 1,024.7 Other liabilities: Operating lease liabilities $ 203.0 $ 234.9 Derivatives 183.8 430.3 Accrued agent contract costs (b) 5.4 77.1 Other 71.5 60.1 Total other liabilities (a) $ 463.7 $ 802.4 (a) As of December 31, 2021, Other assets include $ 260.5 million classified as Assets held for sale, and Other liabilities include $ 194.3 million classified as Liabilities associated with assets held for sale (see Note 5). (b) Represents accrued and unpaid contract costs for new and renewed agent contracts. The majority of the balance as of December 31, 2020 was paid in January 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | 11. Income Taxes The components of pre-tax income, generally based on the jurisdiction of the legal entity, were as follows (in millions): Year Ended December 31, 2021 2020 2019 Domestic $ ( 59.9 ) $ — $ 434.7 Foreign 995.3 855.1 886.7 Total pre-tax income $ 935.4 $ 855.1 $ 1,321.4 For the years ended December 31, 2021, 2020, and 2019 , 106 %, 100 % and 67 % of the Company’s pre-tax income was derived from foreign sources, respectively. For the year ended December 31, 2019, the Company’s domestic pre-tax income increased due to the net gain on the sales of the Speedpay and Paymap businesses, as discussed in Note 5. The provision for income taxes was as follows (in millions): Year Ended December 31, 2021 2020 2019 Federal $ 40.3 $ 50.1 $ 153.7 State and local 1.4 1.1 22.9 Foreign 87.9 59.6 86.5 Total provision for income taxes $ 129.6 $ 110.8 $ 263.1 The Company’s effective tax rates differed from statutory rates as follows: Year Ended December 31, 2021 2020 2019 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefits 0.2 % 0.5 % 1.4 % Foreign rate differential, net of United States tax paid on foreign earnings ( 3.3 %, 5.6 %, and 2.3 %, respectively) ( 9.5 )% ( 8.3 )% ( 5.5 )% Divestitures — % — % 2.4 % Change in Business Solutions permanent reinvestment assertion 1.9 % — % — % Lapse of statute of limitations ( 0.5 )% ( 0.7 )% ( 0.5 )% Valuation allowances — % 0.2 % 0.1 % Other 0.8 % 0.2 % 1.0 % Effective tax rate 13.9 % 12.9 % 19.9 % The increase in the Company’s effective tax rate for the year ended December 31, 2021 compared to the prior year is primarily due to deferred taxes from changes in certain of the Company's permanent reinvestment assertions relating to its decision to classify its Business Solutions business as held for sale in the current period, partially offset by discrete tax benefits associated with the pension termination and other items. The decrease in the Company’s effective tax rate for the year ended December 31, 2020 compared to the prior year is primarily due to a reduction in domestic pre-tax income, prior period settlements in certain geographies, and discrete tax benefits in the current period. The Company’s provision for income taxes consisted of the following components (in millions): Year Ended December 31, 2021 2020 2019 Current: Federal $ 43.9 $ 35.7 $ 169.4 State and local 4.3 1.9 18.1 Foreign 84.0 59.3 100.1 Total current taxes 132.2 96.9 287.6 Deferred: Federal ( 3.6 ) 14.4 ( 15.7 ) State and local ( 2.9 ) ( 0.8 ) 4.8 Foreign 3.9 0.3 ( 13.6 ) Total deferred taxes ( 2.6 ) 13.9 ( 24.5 ) $ 129.6 $ 110.8 $ 263.1 Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the book and tax bases of the Company’s assets and liabilities. The following table outlines the principal components of deferred tax items (in millions): December 31, 2021 2020 Deferred tax assets related to: Reserves, accrued expenses and employee-related items $ 13.6 $ 22.9 Lease liabilities 21.2 23.8 Tax attribute carryovers 28.0 30.2 Intangibles, property and equipment 11.8 15.1 Other 8.9 8.6 Valuation allowance ( 17.8 ) ( 18.6 ) Total deferred tax assets 65.7 82.0 Deferred tax liabilities related to: Intangibles, property and equipment 218.6 218.0 Lease right-of-use assets 13.8 15.8 Prepaid pension costs — 7.8 Outside basis difference in Business Solutions 17.9 — Other 7.4 14.2 Total deferred tax liabilities 257.7 255.8 Net deferred tax liability (a) $ 192.0 $ 173.8 a) As of December 31, 2021 and 2020, deferred tax assets that cannot be fully offset by deferred tax liabilities in the respective tax jurisdictions of $ 11.8 million and $ 15.1 million, respectively, are reflected in Other assets in the Consolidated Balance Sheets. The valuation allowances are primarily the result of uncertainties regarding the Company’s ability to recognize tax benefits associated with certain United States foreign tax credit carryforwards and certain foreign and state net operating losses. Such uncertainties include generating sufficient United States foreign tax credit limitation related to passive income and generating sufficient income. Changes in circumstances, or the identification and implementation of relevant tax planning strategies, could make it foreseeable that the Company will recover these deferred tax assets in the future, which could lead to a reversal of these valuation allowances and a reduction in income tax expense. Outside tax basis differences of approximately $ 642 million as of December 31, 2021 primarily relate to undistributed foreign earnings not already subject to United States income tax and additional outside basis difference inherent in certain entities. To the extent such outside basis differences are attributable to undistributed earnings not already subject to United States tax, such undistributed earnings continue to be indefinitely reinvested in foreign operations. Upon the future realization of the Company’s basis difference, the Company could be subject to United States income taxes, state income taxes, and possible withholding taxes payable to various foreign countries. However, determination of this amount of unrecognized deferred tax liability is not practicable because of complexities associated with its hypothetical calculation. Tax reform legislation enacted into United States law in 2017 ("the Tax Act") imposed a domestic one-time tax on the Company’s previously undistributed earnings of foreign subsidiaries, with certain exceptions. This tax charge, combined with the Company’s other 2017 United States taxable income and tax attributes, resulted in a 2017 United States federal tax liability of approximately $ 800 million, of which approximately $ 541 million remained as of December 31, 2021. The Company has elected to pay this liability in periodic installments through 2025. For each of the years ended December 31, 2021, 2020, and 2019, the Company made installment payments of $ 63.4 million, $ 64.0 million, and $ 64.0 million, respectively. Uncertain Tax Positions The Company has established contingency reserves for a variety of material, known tax exposures. As of December 31, 2021, the total amount of tax contingency reserves was $ 318.6 million, including accrued interest and penalties, net of related items. The Company’s tax reserves reflect management’s judgment as to the resolution of the issues involved if subject to judicial review or other settlement. While the Company believes its reserves are adequate to cover reasonably expected tax risks, there can be no assurance that, in all instances, an issue raised by a tax authority will be resolved at a financial cost that does not exceed its related reserve. With respect to these reserves, the Company’s income tax expense would include: (i) any changes in tax reserves arising from material changes during the period in the facts and circumstances (i.e., new information) surrounding a tax issue and (ii) any difference from the Company’s tax position as recorded in the financial statements and the final resolution of a tax issue during the period. Such resolution could materially increase or decrease income tax expense in the Company’s consolidated financial statements in future periods and could impact operating cash flows. Unrecognized tax benefits represent the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s consolidated financial statements and are reflected in Income taxes payable in the Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties and before offset of related items, is as follows (in millions): 2021 2020 Balance as of January 1 $ 340.7 $ 293.9 Increase related to current period tax positions (a) 3.1 2.8 Increase related to prior period tax positions (b) 7.3 49.7 Decrease related to prior period tax positions ( 2.0 ) ( 1.9 ) Decrease due to settlements with taxing authorities ( 0.6 ) — Decrease due to lapse of applicable statute of limitations ( 3.4 ) ( 3.2 ) Decrease due to effects of foreign currency exchange rates ( 0.5 ) ( 0.6 ) Balance as of December 31 $ 344.6 $ 340.7 (a) Includes recurring accruals for issues which initially arose in previous periods. (b) Includes gross accrual for tax positions associated with current audits. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $ 333.2 million and $ 329.2 million as of December 31, 2021 and 2020, respectively, excluding interest and penalties. The Company recognizes interest and penalties with respect to unrecognized tax benefits in Provision for income taxes in its Consolidated Statements of Income and records the associated liability in Income taxes payable in its Consolidated Balance Sheets. The Company recognized $ 4.4 million, $ 1.9 million, and $ 6.0 million in interest and penalties during the years ended December 31, 2021, 2020, and 2019 , respectively. The Company has accrued $ 32.8 million and $ 28.6 million for the payment of interest and penalties as of December 31, 2021 and 2020, respectively. The unrecognized tax benefits accrual as of December 31, 2021 consists of federal, state, and foreign tax matters. It is reasonably possible that the Company’s total unrecognized tax benefits will decrease by approximately $ 55 million during the next 12 months in connection with various matters which may be resolved. The Company and its subsidiaries file tax returns for the United States, for multiple states and localities, and for various non-United States jurisdictions, and the Company has identified the United States as its major tax jurisdiction, as the income tax imposed by any one foreign country is not material to the Company. The Company’s United States federal income tax returns since 2017 are eligible to be examined. The Internal Revenue Service (“IRS”) commenced an examination of the Company’s U.S. consolidated income tax returns for 2017 and 2018 in the prior year. The IRS anticipates completion of the examination phase in 2022. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefit Plans | |
Employee Benefit Plans | 12. Employee Benefit Plans Defined Contribution Plans The Company administers several defined contribution plans in various countries globally, including The Western Union Company Incentive Savings Plan (the “401(k)”), which covers eligible employees on the United States payroll. Such plans have vesting and employer contribution provisions that vary by country. In addition, the Company sponsors a non-qualified deferred compensation plan for a select group of highly compensated United States employees. The plan provides tax-deferred contributions and the restoration of Company matching contributions otherwise limited under the 401(k). The aggregate amount charged to expense in connection with all of the above plans was $ 17.8 million, $ 18.4 million, and $ 20.0 million for the years ended December 31, 2021, 2020, and 2019, respectively. Defined Benefit Plan The Company had a frozen defined benefit pension plan (the “Plan”), for which the funded status was reported in the Consolidated Balance Sheets and measured as the difference between the fair value of the plan assets and the projected benefit obligation. Plan assets, which were managed in a third-party trust, primarily consisted of fixed income and equity investments and had a total fair value of $ 280.6 million as of December 31, 2020. On July 22, 2021, the Company’s Board of Directors approved a plan to terminate and settle the Plan. Upon settlement in the fourth quarter of 2021, the Company transferred Plan assets to an insurance company that will provide for and pay the remaining benefits to participants. The Company incurred $ 109.8 million of charges associated with this settlement. The pre-tax balance in AOCL associated with the Plan, along with costs related to the settlement, were recorded as a component of Total other income/(expense), net, with the related income tax effects recorded in Provision for income taxes, in the Consolidated Statements of Income. As of December 31, 2021 , the Company had $ 18.4 million of restricted cash and $ 11.9 million of investments remaining from the settlement, which are included in Other assets in the Consolidated Balance Sheets. These assets will be used to fund contributions to the Company's defined contribution plan in future periods. The benefit obligation was $ 240.7 million and the discount rate assumption used in the measurement of this obligation was 1.66 % for the year ended December 31, 2020. As of December 31, 2020 , the fair value of the plan assets exceeded the projected benefit obligation, which resulted in prepaid pension costs of $ 39.9 million as reported in Other assets. The Plan’s overfunded status as of December 31, 2020 was primarily due to favorable investment returns relative to the expected return on plan assets during the year then ended. The net periodic benefit cost associated with the Plan was $ 9.4 million, $ 4.4 million, and $ 4.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. The Company made no material contributions to the Plan during the years ended December 31, 2021 and 2020 . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 13. Leases The Company leases real properties for use as administrative and sales offices, in addition to transportation, office, and other equipment. The Company determines if a contract contains a lease arrangement at the inception of the contract. For leases in which the Company is the lessee, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Operating lease ROU assets are initially measured at the present value of lease payments over the lease term plus initial direct costs, if any. If a lease does not provide a discount rate and the rate cannot be readily determined, an incremental borrowing rate is used to determine the present value of future lease payments. Lease and variable non-lease components within the Company’s lease agreements are accounted for separately. The Company has no material leases in which the Company is the lessor. The Company’s leasing arrangements are classified as operating leases, for which expense is recognized on a straight-line basis. As of December 31, 2021 and 2020 , total ROU assets were $ 164.5 million and $ 189.1 million , respectively, and operating lease liabilities were $ 203.0 million and $ 234.9 million , respectively. The ROU assets and operating lease liabilities are included in Other assets and Other liabilities, respectively, in the Company’s Consolidated Balance Sheets. Cash paid for operating lease liabilities is included in Cash flows from operating activities in the Company’s Consolidated Statements of Cash Flows. Operating lease costs, which are included in Total expenses in the Company’s Consolidated Statements of Income, were $ 50.6 million, $ 59.8 million, and $ 56.7 million for the years ended December 31, 2021, 2020, and 2019, respectively. Short-term and variable lease costs were not material for the years ended December 31, 2021, 2020, and 2019. The Company’s leases have remaining terms from less than 1 year to nearly 10 years . Certain of these leases contain escalation provisions and/or renewal options, giving the Company the right to extend the lease by up to 10 years . However, a substantial majority of these options are not reflected in the calculation of the ROU asset and operating lease liability due to uncertainty surrounding the likelihood of renewal. The following table summarizes the weighted-average lease terms and discount rates for operating lease liabilities: December 31, 2021 December 31, 2020 Weighted-average remaining lease term (in years) 6.8 7.2 Weighted-average discount rate 5.4 % 5.6 % The following table represents maturities of operating lease liabilities as of December 31, 2021 (in millions): December 31, 2021 Due within 1 year $ 45.9 Due after 1 year through 2 years 38.8 Due after 2 years through 3 years 33.8 Due after 3 years through 4 years 28.7 Due after 4 years through 5 years 23.8 Due after 5 years 69.9 Total lease payments 240.9 Less imputed interest ( 37.9 ) Total operating lease liabilities $ 203.0 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity/(Deficit) | |
Stockholders' Equity | 14. Stockholders’ Equity Accumulated Other Comprehensive Loss AOCL includes all changes in equity during a period that have not yet been recognized in income, except those resulting from transactions with shareholders. The components include unrealized gains and losses on investment securities, unrealized gains and losses from cash flow hedging activities, foreign currency translation adjustments, and defined benefit pension plan adjustments. Unrealized gains and losses on investment securities that are available for sale, primarily state and municipal debt securities, are included in AOCL until the investment is either sold or experiences a credit loss. See Note 8 for further discussion. The effective portion of the change in the fair value of derivatives that qualifies as a cash flow hedge is recorded in AOCL. Generally, amounts are recognized in income when the related forecasted transaction affects earnings. See Note 15 for further discussion. While the United States dollar is the functional currency for substantially all of the Company’s businesses, the assets and liabilities of foreign subsidiaries whose functional currency is not the United States dollar are translated using the appropriate exchange rate as of the end of the year. Foreign currency translation adjustments represent unrealized gains and losses on assets and liabilities arising from the difference in these foreign currencies compared to the United States dollar. These gains and losses are accumulated in other comprehensive income/(loss). When a foreign subsidiary is substantially liquidated or sold, the cumulative translation gain or loss is removed from AOCL and recognized as a component of the gain or loss on the liquidation or sale. On July 22, 2021, the Company’s Board of Directors approved a plan to terminate and settle the Company’s frozen defined benefit pension plan. As discussed in Note 12, in the fourth quarter of 2021, the Company settled its defined benefit pension plan and incurred approximately $ 109.8 million of charges associated with this settlement. The pre-tax balance in AOCL was reclassified as a component of Total other income/(expense), net, with the related income tax effects recorded in Provision for income taxes in the Consolidated Statements of Income. The following table details reclassifications out of AOCL and into Net income. All amounts reclassified from AOCL affect the line items as indicated below, and the amounts in parentheses indicate decreases to Net income in the Consolidated Statements of Income. Amounts Reclassified from AOCL to Net Income Income Statement Year Ended December 31, Income for the period (in millions) Location 2021 2020 2019 Accumulated other comprehensive loss components: Gains/(losses) on investment securities: Available-for-sale securities Revenues $ 3.7 $ 0.6 $ 0.6 Income tax expense Provision for income taxes ( 0.8 ) ( 0.1 ) ( 0.1 ) Total reclassification adjustments related to investment securities, net of tax 2.9 0.5 0.5 Gains/(losses) on cash flow hedges: Foreign currency contracts Revenues ( 7.6 ) 1.2 14.2 Interest rate contracts Interest expense ( 0.6 ) ( 0.6 ) — Interest rate contracts Other income/(expense), net 0.7 — — Income tax benefit/(expense) Provision for income taxes — 0.1 ( 0.1 ) Total reclassification adjustments related to cash flow hedges, net of tax ( 7.5 ) 0.7 14.1 Effects of 2021 settlement and amortization of components of defined benefit plans: Settlement charges Pension settlement charges ( 109.8 ) — — Actuarial loss Other income/(expense), net ( 9.9 ) ( 12.1 ) ( 10.8 ) Income tax benefit Provision for income taxes 25.7 2.7 2.4 Total reclassification adjustments related to defined benefit plans, net of tax ( 94.0 ) ( 9.4 ) ( 8.4 ) Total reclassifications, net of tax $ ( 98.6 ) $ ( 8.2 ) $ 6.2 The following tables summarize the components of AOCL, net of tax in the accompanying Consolidated Balance Sheets (in millions): Investment Hedging Foreign Defined Securities Activities Translation Pension Plan Total As of December 31, 2020 $ 58.3 $ ( 30.5 ) $ ( 101.2 ) $ ( 86.1 ) $ ( 159.5 ) Unrealized gains/(losses) ( 31.0 ) 42.9 — ( 8.7 ) 3.2 Tax benefit/(expense) 6.0 ( 1.2 ) — 0.8 5.6 Amounts reclassified from AOCL into earnings, net of tax ( 2.9 ) 7.5 — 94.0 98.6 As of December 31, 2021 $ 30.4 $ 18.7 $ ( 101.2 ) $ — $ ( 52.1 ) Investment Hedging Foreign Defined Securities Activities Translation Pension Plan Total As of December 31, 2019 $ 24.7 $ ( 3.6 ) $ ( 101.2 ) $ ( 128.9 ) $ ( 209.0 ) Unrealized gains/(losses) 41.5 ( 26.4 ) — 43.5 58.6 Tax benefit/(expense) ( 7.4 ) 0.2 — ( 10.1 ) ( 17.3 ) Amounts reclassified from AOCL into earnings, net of tax ( 0.5 ) ( 0.7 ) — 9.4 8.2 As of December 31, 2020 $ 58.3 $ ( 30.5 ) $ ( 101.2 ) $ ( 86.1 ) $ ( 159.5 ) Investment Hedging Foreign Defined Securities Activities Translation Pension Plan Total As of December 31, 2018 $ ( 1.1 ) $ 7.4 $ ( 101.2 ) $ ( 136.1 ) $ ( 231.0 ) Unrealized gains/(losses) 33.6 2.0 — ( 2.0 ) 33.6 Tax benefit/(expense) ( 7.3 ) 1.1 — 0.8 ( 5.4 ) Amounts reclassified from AOCL into earnings, net of tax ( 0.5 ) ( 14.1 ) — 8.4 ( 6.2 ) As of December 31, 2019 $ 24.7 $ ( 3.6 ) $ ( 101.2 ) $ ( 128.9 ) $ ( 209.0 ) Cash Dividends Paid Cash dividends paid for the years ended December 31, 2021, 2020, and 2019 were $ 380.5 million, $ 369.9 million, and $ 340.8 million, respectively. Dividends per share declared quarterly by the Company’s Board of Directors during the years ended 2021, 2020, and 2019 were as follows: Year Q1 Q2 Q3 Q4 2021 $ 0.235 $ 0.235 $ 0.235 $ 0.235 2020 $ 0.225 $ 0.225 $ 0.225 $ 0.225 2019 $ 0.20 $ 0.20 $ 0.20 $ 0.20 On February 10, 2022 , the Company’s Board of Directors declared a quarterly cash dividend of $ 0.235 per common share payable on March 31, 2022 . Share Repurchases During the years ended December 31, 2021, 2020, and 2019, 19.5 million , 8.5 million , and 26.9 million shares, respectively, were repurchased for $ 400.0 million, $ 217.4 million, and $ 540.0 million, respectively, excluding commissions, at an average cost of $ 20.56 , $ 25.45 , and $ 20.07 , respectively, under the share repurchase authorizations approved by the Company's Board of Directors, including one which expired on December 31, 2021 . On February 10, 2022, the Company's Board of Directors authorized $ 1.0 billion of common stock repurchases through December 31, 2024. The amounts included in the Common stock repurchased line in the Company’s Consolidated Statements of Cash Flows represent both shares authorized by the Board of Directors for repurchase under publicly announced authorizations and shares withheld from employees to cover tax withholding obligations on restricted stock units that have vested. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2021 | |
Derivatives | |
Derivatives | 15. Derivatives The Company is exposed to foreign currency exchange risk resulting from fluctuations in exchange rates, primarily the euro, and, to a lesser degree, the Canadian dollar, the British pound, and other currencies, related to forecasted revenues and settlement assets and obligations, as well as on certain foreign currency denominated cash and other asset and liability positions. The Company is also exposed to risk from derivative contracts, primarily from customer derivatives, arising from its cross-currency Business Solutions payment operations. Additionally, the Company is exposed to interest rate risk related to changes in market rates both prior to and subsequent to the issuance of debt. The Company has used derivatives to: (i) minimize its exposures related to changes in foreign currency exchange rates and interest rates and (ii) facilitate cross-currency Business Solutions payments by writing derivatives to customers. The Company executes derivatives with established financial institutions; the substantial majority of these financial institutions have a credit rating of "A-" or higher from a major credit rating agency. Customer derivatives written by the Company’s Business Solutions operations primarily involve small and medium size enterprises. The primary credit risk inherent in derivative agreements represents the possibility that a loss may occur from the nonperformance of a counterparty to the agreements. The Company performs a review of the credit risk of these counterparties at the inception of the contract and on an ongoing basis, while also monitoring the concentration of its contracts with any individual counterparty. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements, but takes action when doubt arises about the counterparties’ ability to perform. These actions may include requiring Business Solutions customers to post or increase collateral, and for all counterparties, the possible termination of the related contracts. The Company’s hedged foreign currency exposures are in liquid currencies; consequently, there is minimal risk that appropriate derivatives to maintain the hedging program would not be available in the future. Foreign Currency Derivatives The Company’s policy is to use longer duration foreign currency forward contracts, with maturities of up to 36 months at inception and a targeted weighted-average maturity of approximately one year , to help mitigate some of the risk that changes in foreign currency exchange rates compared to the United States dollar could have on forecasted revenues denominated in other currencies related to its business. As of December 31, 2021 , these foreign currency forward contracts had maturities of a maximum of 24 months with a weighted-average maturity of approximately one year . These contracts are accounted for as cash flow hedges of forecasted revenue, with effectiveness assessed based on changes in the spot rate of the affected currencies during the period of designation and thus time value is excluded from the assessment of effectiveness. The initial value of the excluded components is amortized into Revenues within the Company’s Consolidated Statements of Income. The Company also uses short duration foreign currency forward contracts, generally with maturities ranging from a few days to one month , to offset foreign exchange rate fluctuations on settlement assets and obligations between initiation and settlement. In addition, forward contracts, typically with maturities of less than one year at inception, are utilized to offset foreign exchange rate fluctuations on certain foreign currency denominated cash and other asset and liability positions. None of these contracts are designated as accounting hedges. The aggregate equivalent United States dollar notional amounts of foreign currency forward contracts as of December 31, 2021 and 2020 were as follows (in millions): December 31, 2021 Contracts designated as hedges: Euro $ 399.9 Canadian dollar 134.0 Australian dollar 58.4 Swiss franc 45.9 British pound 43.8 Swedish krona 30.7 Japanese yen 30.4 Other (a) 0.9 Contracts not designated as hedges: Euro $ 755.7 British pound 148.1 Canadian dollar 144.2 Australian dollar 98.1 Mexican peso 96.3 Philippine peso 76.2 Indian rupee 63.4 Japanese yen 46.0 Russian ruble 44.4 Chinese yuan 31.6 New Zealand dollar 26.6 Swiss franc 25.1 Swedish krona 25.1 Other (a) 132.7 December 31, 2020 Contracts designated as hedges: Euro $ 428.9 Canadian dollar 131.9 British pound 71.9 Australian dollar 58.3 Swiss franc 41.1 Japanese yen 36.6 Other (a) 29.5 Contracts not designated as hedges: Euro $ 533.0 British pound 153.9 Mexican peso 105.0 Indian rupee 81.0 Canadian dollar 71.5 Australian dollar 68.1 Japanese yen 39.6 Philippine peso 35.2 Russian ruble 31.2 Indonesian rupiah 29.1 Swedish krona 26.0 Other (a) 151.5 (a) Comprised of exposures to various currencies; none of these individual currency exposures is greater than $ 25 million. Business Solutions Operations The Company writes derivatives, primarily foreign currency forward contracts and option contracts, mostly with small and medium size enterprises and derives a currency spread from this activity as part of its Business Solutions operations. The Company aggregates its Business Solutions foreign currency exposures arising from customer contracts, including the derivative contracts described above, and hedges the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties (economic hedge contracts). The derivatives written are part of the broader portfolio of foreign currency positions arising from the Company’s cross-currency payments operations, which primarily include spot exchanges of currency, in addition to forwards and options. Foreign exchange revenues from the total portfolio of positions were $ 366.8 million, $ 311.9 million, and $ 343.1 million for the years ended December 31, 2021, 2020, and 2019, respectively, and were included in Revenues in the Company’s Consolidated Statements of Income. None of the derivative contracts used in Business Solutions operations are designated as accounting hedges, and the majority of these derivative contracts have a duration at inception of less than one year . The aggregate equivalent United States dollar notional amount of derivative customer contracts held by the Company in its Business Solutions operations was approximately $ 8.0 billion as of December 31, 2021 and 2020. The significant majority of customer contracts are written in the following currencies: the United States dollar, euro, and the Canadian dollar. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. See Note 5 for further information regarding this transaction. Interest Rate Hedging Periodically, the Company utilizes interest rate swaps to effectively change the interest rate payments on a portion of its notes from fixed-rate payments to short-term, variable-rate payments in order to manage its overall exposure to interest rate fluctuations. The Company designates these derivatives as fair value hedges. The change in the fair value of the interest rate swaps is offset by a change in the carrying value of the debt being hedged within Borrowings in the Consolidated Balance Sheets. Interest expense in the Consolidated Statements of Income has been adjusted to include the effects of interest accrued on the swaps. During the fourth quarter of 2020, the Company entered into two treasury locks to partially fix the treasury yield component associated with the refinance of unsecured notes set to expire in 2022. The notional amounts of these treasury locks were $ 100.0 million and $ 150.0 million and were designated as cash flow hedges at the time the agreements were executed. These treasury locks were terminated in the first quarter of 2021 in conjunction with the issuance of $ 600.0 million of aggregate principal amount of 1.350 % unsecured notes due March 15, 2026 (“2026 Notes”). The Company received a total of $ 3.3 million upon termination, of which $ 2.6 million was deferred as a component of AOCL and will be amortized to Interest expense in the Consolidated Statements of Income over the term of the 2026 Notes. As a portion of the forecasted interest payments on the 2026 Notes will occur outside the time period originally specified at designation of the treasury locks as cash flow hedges, $ 0.7 million was recognized in Other income/(expense), net in the Consolidated Statements of Income, upon termination. Balance Sheet The following table summarizes the fair value of derivatives reported in the Company’s Consolidated Balance Sheets as of December 31, 2021 and 2020 (in millions): Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet December 31, December 31, Balance Sheet December 31, December 31, Location 2021 2020 Location 2021 2020 Derivatives designated as hedges: Foreign currency cash flow hedges Other assets $ 30.6 $ 9.1 Other liabilities $ 2.6 $ 24.9 Interest rate cash flow hedges Other assets — — Other liabilities — 0.1 Total derivatives designated as hedges $ 30.6 $ 9.1 $ 2.6 $ 25.0 Derivatives not designated as hedges: Business Solutions operations - foreign currency (a) Other assets $ 213.1 $ 441.4 Other liabilities $ 174.1 $ 402.5 Foreign currency Other assets 4.0 2.8 Other liabilities 7.1 2.8 Total derivatives not designated as hedges $ 217.1 $ 444.2 $ 181.2 $ 405.3 Total derivatives $ 247.7 $ 453.3 $ 183.8 $ 430.3 (a) In many circumstances, the Company allows its Business Solutions customers to settle part or all of their derivative contracts prior to maturity. However, the offsetting positions originally entered into with financial institution counterparties do not allow for similar settlement. To mitigate this, additional foreign currency contracts are entered into with financial institution counterparties to offset the original economic hedge contracts. This frequently results in changes in the Company’s derivative assets and liabilities that may not directly align with the performance in the underlying derivatives business. The fair values of derivative assets and liabilities associated with contracts that include netting language that the Company believes to be enforceable have been netted in the following tables to present the Company’s net exposure with these counterparties. The Company’s rights under these agreements generally allow for transactions to be settled on a net basis, including upon early termination, which could occur upon the counterparty’s default, a change in control, or other conditions. In addition, certain of the Company’s other agreements include netting provisions, the enforceability of which may vary from jurisdiction to jurisdiction, depending on the circumstances. Due to the uncertainty related to the enforceability of these provisions, the derivative balances associated with these agreements are included within "Derivatives that are not or may not be subject to master netting arrangement or similar agreement" in the following tables. In certain circumstances, the Company may require its Business Solutions customers to maintain collateral balances, which may mitigate the risk associated with potential customer defaults. The following tables summarize the gross and net fair value of derivative assets and liabilities as of December 31, 2021 and 2020 (in millions): Offsetting of Derivative Assets Gross Gross Net Amounts Derivatives Amounts of Amounts Offset Presented Not Offset Recognized in the Consolidated in the Consolidated in the Consolidated Net December 31, 2021 Assets Balance Sheets Balance Sheets Balance Sheets Amounts Derivatives subject to a master netting arrangement or similar agreement $ 163.9 $ — $ 163.9 $ ( 92.4 ) $ 71.5 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 83.8 Total $ 247.7 December 31, 2020 Derivatives subject to a master netting arrangement or similar agreement $ 165.1 $ — $ 165.1 $ ( 155.1 ) $ 10.0 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 288.2 Total $ 453.3 Offsetting of Derivative Liabilities Gross Gross Net Amounts Derivatives Amounts of Amounts Offset Presented Not Offset Recognized in the Consolidated in the Consolidated in the Consolidated Net December 31, 2021 Liabilities Balance Sheets Balance Sheets Balance Sheets Amounts Derivatives subject to a master netting arrangement or similar agreement $ 109.6 $ — $ 109.6 $ ( 92.4 ) $ 17.2 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 74.2 Total $ 183.8 December 31, 2020 Derivatives subject to a master netting arrangement or similar agreement $ 356.2 $ — $ 356.2 $ ( 155.1 ) $ 201.1 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 74.1 Total $ 430.3 Income Statement Cash Flow and Fair Value Hedges The effective portion of the change in the fair value of derivatives that qualify as cash flow hedges is recorded in AOCL in the Company’s Consolidated Balance Sheets. Generally, amounts are recognized in income when the related forecasted transaction affects earnings. The following table presents the pre-tax amount of unrealized gains/(losses) recognized in other comprehensive income from cash flow hedges for the years ended December 31, 2021, 2020, and 2019 (in millions): Year Ended December 31, 2021 2020 2019 Foreign currency derivatives (a) $ 39.5 $ ( 26.3 ) $ 2.0 Interest rate derivatives 3.4 ( 0.1 ) — (a) For the years ended December 31, 2021, 2020, and 2019 , gains/(losses) of ($ 2.4 ) million, $ 0.3 million, and $ 1.5 million, respectively, represent amounts excluded from the assessment of effectiveness and recognized in other comprehensive income, for which an amortization approach is applied. The following table presents the location and amounts of pre-tax net gains/(losses) from fair value and cash flow hedging relationships recognized in the Consolidated Statements of Income for the years ended December 31, 2021, 2020, and 2019 (in millions): Year Ended December 31, 2021 2020 2019 Interest Other Income/ Interest Interest Revenues Expense (Expense), net Revenues Expense Revenues Expense Total amounts presented in the Consolidated Statements of Income in which the effects of cash flow hedges are recorded $ 5,070.8 $ ( 105.5 ) $ ( 21.7 ) $ 4,835.0 $ ( 118.5 ) $ 5,292.1 $ ( 152.0 ) Gain/(loss) on fair value hedges: Interest rate derivatives: Hedged items — — — — — — ( 0.1 ) Derivatives designated as hedging instruments — — — — — — 1.0 Gain/(loss) on cash flow hedges: Foreign currency derivatives: Gains/(losses) reclassified from AOCL into earnings ( 7.6 ) — — 1.2 — 14.2 — Amount excluded from effectiveness testing recognized in earnings based on an amortization approach 6.1 — — 10.4 — 11.5 — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value — — — — — 2.9 — Interest rate derivatives: Gains/(losses) reclassified from AOCL into earnings — ( 0.6 ) 0.7 — ( 0.6 ) — — Undesignated Hedges The following table presents the location and amount of pre-tax net gains/(losses) from undesignated hedges in the Consolidated Statements of Income on derivatives for the years ended December 31, 2021, 2020, and 2019 (in millions): Year Ended December 31, Derivatives (a) Location 2021 2020 2019 Foreign currency derivatives (b) Selling, general, and administrative $ 52.0 $ 15.9 $ 23.9 Foreign currency derivatives Revenues — — 0.3 Total gain $ 52.0 $ 15.9 $ 24.2 (a) The Company uses foreign currency forward and option contracts as part of its Business Solutions payments operations. These derivative contracts are excluded from this table as they are managed as part of a broader currency portfolio that includes non-derivative currency exposures. The gains and losses on these derivatives are included as part of the broader disclosure of portfolio revenue for this business discussed above. (b) The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations, as well as certain foreign currency denominated positions. Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivative activity as displayed above, and included in Selling, general, and administrative in the Consolidated Statements of Income, were $( 56.1 ) million, $( 37.0 ) million, and $( 33.1 ) million for the years ended December 31, 2021, 2020, and 2019 , respectively. All cash flows associated with derivatives are included in Cash flows from operating activities in the Consolidated Statements of Cash Flows. Based on December 31, 2021 foreign exchange rates, an accumulated other comprehensive pre-tax gain of $ 16.5 million related to the foreign currency forward contracts is expected to be reclassified into Revenues within the next 12 months. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings | |
Borrowings | 16. Borrowings The Company’s outstanding borrowings consisted of the following (in millions): December 31, 2021 December 31, 2020 Commercial paper $ 275.0 $ 80.0 Notes: 3.600 % notes due 2022 (a) — 500.0 4.250 % notes due 2023 (b) 300.0 300.0 2.850 % notes due 2025 (b) 500.0 500.0 1.350 % notes due 2026 (effective rate of 1.5 %) (a) 600.0 — 2.750 % notes due 2031 (effective rate of 2.9 %) (a) 300.0 — 6.200 % notes due 2036 (b) 500.0 500.0 6.200 % notes due 2040 (b) 250.0 250.0 Term loan facility borrowing (effective rate of 1.4 %) (a) 300.0 950.0 Total borrowings at par value 3,025.0 3,080.0 Debt issuance costs and unamortized discount, net ( 16.6 ) ( 12.8 ) Total borrowings at carrying value (c) $ 3,008.4 $ 3,067.2 (a) See the Term Loan Facility and Notes sections below for further discussion of the borrowings and repayments of the unsecured notes and term loan made in 2021 . (b) The difference between the stated interest rate and the effective interest rate is not significant. (c) As of December 31, 2021, the Company’s weighted-average effective rate on total borrowings was approximately 3.3 % . The following summarizes the Company’s maturities of notes and term loan at par value as of December 31, 2021 (in millions): Due within 1 year $ — Due after 1 year through 2 years 300.0 Due after 2 years through 3 years 300.0 Due after 3 years through 4 years 500.0 Due after 4 years through 5 years 600.0 Due after 5 years 1,050.0 Total $ 2,750.0 The Company’s obligations with respect to its outstanding borrowings, as described below, rank equally. Commercial Paper Program Pursuant to the Company’s commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $ 1.5 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Company’s Revolving Credit Facility as defined below. The commercial paper notes may have maturities of up to 397 days from date of issuance. The Company’s commercial paper borrowings as of December 31, 2021 had a weighted-average annual interest rate of approximately 0.2 % and a weighted-average term of approximately 5 days . As of December 31, 2021 and 2020, the Company had $ 275.0 million and $ 80.0 million in commercial paper borrowings outstanding, respectively. Revolving Credit Facility On December 18, 2018, the Company entered into a credit agreement providing for unsecured financing facilities in an aggregate amount of $ 1.5 billion, including a $ 250.0 million letter of credit sub-facility (“Revolving Credit Facility”). On December 18, 2019, the Company extended the final maturity date of the Revolving Credit Facility to January 8, 2025. Consistent with the prior facility, as described below, the Company is required to maintain compliance with a consolidated adjusted Earnings before Interest, Taxes, Depreciation and Amortization interest coverage ratio covenant of greater than 3 :1 for each period of four consecutive fiscal quarters. The Revolving Credit Facility supports borrowings under the Company’s commercial paper program. Interest due under the Revolving Credit Facility is fixed for the term of each borrowing and is payable according to the terms of that borrowing. Generally, interest is calculated using a selected LIBOR rate plus an interest rate margin of 110 basis points. A facility fee of 15 basis points is also payable quarterly on the total facility, regardless of usage. Both the interest rate margin and facility fee percentage are based on certain of the Company’s credit ratings. As of December 31, 2021 and 2020 , the Company had no outstanding borrowings under its Revolving Credit Facility. Term Loan Facility On December 18, 2018, the Company extended the Term Loan Facility providing for an unsecured delayed draw term loan facility in an aggregate amount of $ 950.0 million. In October 2016, the Company borrowed $ 575.0 million under the prior term loan facility. In December 2018, the Company borrowed the remaining amount available under the Term Loan Facility. In the first quarter of 2021, proceeds from the 2026 Notes (as defined in Note 15) and the 2031 Notes (as defined below), and cash, including cash generated from operations, were used to repay $ 650.0 million of the Term Loan Facility. On January 4, 2022, the Company repaid all remaining borrowings owed under the Term Loan Facility for total consideration of $ 300.0 million, using proceeds from commercial paper and cash, including cash generated from operations. The Company is no longer able to borrow money under this facility. Notes On March 9, 2021, the Company issued $ 600.0 million of the 2026 Notes and $ 300.0 million of aggregate principal amount of 2.750 % unsecured notes due March 15, 2031 (“2031 Notes”). Interest with respect to these notes is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. If a change of control triggering event occurs, holders of the 2026 Notes and 2031 Notes may require the Company to repurchase some or all of their notes at a price equal to 101 % of the principal amount of their notes, plus any accrued and unpaid interest. The Company may redeem the 2026 Notes and the 2031 Notes, in whole or in part, at any time prior to February 15, 2026 and December 15, 2030, respectively, at the greater of par or a price based on the applicable treasury rate plus 15 and 25 basis points, respectively. The Company may redeem the 2026 Notes and the 2031 Notes at any time after February 15, 2026 and December 15, 2030, respectively, at a price equal to par, plus accrued interest. On November 25, 2019, the Company issued $ 500.0 million of aggregate principal amount of unsecured notes due January 10, 2025 (“2025 Notes”). The Company used the net proceeds from the sale of the 2025 Notes to redeem the Company’s unsecured notes that were due on April 1, 2020 and for general corporate purposes. Interest with respect to the 2025 Notes is payable semi-annually in arrears on January 10 and July 10 of each year, beginning on July 10, 2020, based on the per annum rate of 2.850 %. The interest rate payable on the 2025 Notes will be increased if the debt rating assigned to these notes is downgraded by an applicable credit rating agency, beginning at a downgrade below investment grade. However, in no event will the interest rate on the 2025 Notes exceed 4.850 % per annum. The interest rate payable on the 2025 Notes may also be adjusted downward for debt rating upgrades subsequent to any debt rating downgrades but may not be adjusted below 2.850 % per annum. The Company may redeem the 2025 Notes, in whole or in part, at any time prior to December 10, 2024 at the greater of par or a price based on the applicable treasury rate plus 20 basis points. The Company may redeem the 2025 Notes at any time after December 10, 2024 at a price equal to par, plus accrued interest. On June 11, 2018, the Company issued $ 300.0 million of aggregate principal amount of unsecured notes due June 9, 2023 (“2023 Notes”). Interest with respect to the 2023 Notes is payable semi-annually in arrears on June 9 and December 9 of each year, beginning on December 9, 2018, based on the per annum rate of 4.250 %. The interest rate payable on the 2023 Notes will be increased if the debt rating assigned to these notes is downgraded by an applicable credit rating agency, beginning at a downgrade below investment grade. However, in no event will the interest rate on the 2023 Notes exceed 6.250 % per annum. The interest rate payable on the 2023 Notes may also be adjusted downward for debt rating upgrades subsequent to any debt rating downgrades but may not be adjusted below 4.250 % per annum. The Company may redeem the 2023 Notes, in whole or in part, at any time prior to May 9, 2023 at the greater of par or a price based on the applicable treasury rate plus 25 basis points. The Company may redeem the 2023 Notes at any time after May 9, 2023 at a price equal to par, plus accrued interest. On August 22, 2017, the Company issued $ 250.0 million of aggregate principal amount of unsecured floating rate notes due May 22, 2019 (“Floating Rate Notes”). The Floating Rate Notes were repaid in May 2019 using proceeds from the Speedpay divestiture (see Note 5), commercial paper, and cash, including cash generated from operations. On March 15, 2017, the Company issued $ 400.0 million of aggregate principal amount of unsecured notes due March 15, 2022. On August 22, 2017, the Company issued an additional $ 100.0 million of aggregate principal amount of unsecured notes due March 15, 2022 for an aggregate principal total of $ 500.0 million of 3.600 % unsecured notes (“2022 Notes”). The 2022 Notes were repaid in April 2021 using proceeds from the 2026 Notes and the 2031 Notes. The cost associated with the early termination of the 2022 Notes, including the make-whole premium of $ 14.3 million, was recorded to Other income/(expense), net, during the year ended December 31, 2021. On November 22, 2013, the Company issued $ 250.0 million of aggregate principal amount of unsecured notes due May 22, 2019 (“2019 Notes”). The 2019 Notes were repaid in May 2019 using proceeds from the Speedpay divestiture (see Note 5), commercial paper, and cash, including cash generated from operations. On June 21, 2010, the Company issued $ 250.0 million of aggregate principal amount of unsecured notes due June 21, 2040 (“2040 Notes”). Interest with respect to the 2040 Notes is payable semi-annually on June 21 and December 21 each year based on the fixed per annum rate of 6.200 %. The Company may redeem the 2040 Notes at any time prior to maturity at the greater of par or a price based on the applicable treasury rate plus 30 basis points. On March 30, 2010, the Company exchanged $ 303.7 million of aggregate principal amount of unsecured notes due November 17, 2011 for unsecured notes due April 1, 2020 (“2020 Notes”). Interest with respect to the 2020 Notes was payable semi-annually on April 1 and October 1 each year based on the fixed per annum rate of 5.253 %. In connection with the exchange, note holders were given a 7 % premium ($ 21.2 million), which approximated market value at the exchange date, as additional principal. As this transaction was accounted for as a debt modification, this premium was not charged to expense. Rather, the premium, along with the offsetting hedge accounting adjustments, was accreted into Interest expense over the life of the notes. On November 18, 2019, the Company announced a cash tender offer on the Company’s outstanding 2020 Notes. On November 25, 2019, the Company purchased the principal amount of $ 56.1 million, plus accrued interest, pursuant to the tender offer. On December 27, 2019, the Company redeemed the remaining principal amount of $ 268.8 million, plus accrued interest. The total premium paid to redeem the 2020 Notes was $ 3.1 million. On November 17, 2006, the Company issued $ 500.0 million of aggregate principal amount of unsecured notes due November 17, 2036 (“2036 Notes”). Interest with respect to the 2036 Notes is payable semi-annually on May 17 and November 17 each year based on the fixed per annum rate of 6.200 %. The Company may redeem the 2036 Notes at any time prior to maturity at the greater of par or a price based on the applicable treasury rate plus 25 basis points. The Revolving Credit Facility contains covenants, subject to certain exceptions, that, among other things, limit or restrict the Company’s ability to sell or transfer assets or merge or consolidate with another company, grant certain types of security interests, incur certain types of liens, impose restrictions on subsidiary dividends, enter into sale and leaseback transactions, incur certain subsidiary level indebtedness, or use proceeds in violation of anti-corruption or anti-money laundering laws. The Company’s notes are subject to similar covenants except that only the 2036 Notes contain covenants limiting or restricting subsidiary indebtedness, and none of the Company’s notes are subject to a covenant that limits the Company’s ability to impose restrictions on subsidiary dividends. Certain of the Company’s notes (including the 2023 Notes, 2025 Notes, 2026 Notes, 2031 Notes, and 2040 Notes) include a change of control triggering event provision, as defined in the terms of the notes. If a change of control triggering event occurs, holders of the notes may require the Company to repurchase some or all of their notes at a price equal to 101 % of the principal amount of their notes, plus any accrued and unpaid interest. A change of control triggering event will occur when there is a change of control involving the Company and among other things, within a specified period in relation to the change of control, the notes are downgraded from an investment grade rating to below an investment grade rating by certain major credit rating agencies. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation Plans | |
Stock-Based Compensation Plans | 17. Stock-Based Compensation Plans The Western Union Company 2006 Long-Term Incentive Plan and 2015 Long-Term Incentive Plan The Western Union Company 2015 Long-Term Incentive Plan (“2015 LTIP”), approved on May 15, 2015, provides for the granting of stock options, restricted stock awards and units, unrestricted stock awards and units, and other equity-based awards to employees and non-employee directors of the Company. Prior to this, equity-based awards were granted out of the 2006 Long-Term Incentive Plan (“2006 LTIP”). Shares available for grant under the 2015 LTIP were 15.7 million as of December 31, 2021. Stock options granted to employees under the 2015 LTIP and the 2006 LTIP are issued with exercise prices equal to the fair market value of Western Union common stock on the grant date, have 10-year terms, and typically vest over four equal annual increments beginning one year after the grant date. Stock options granted to executive officers and retirement eligible employees generally vest on a prorated basis upon termination. Compensation expense related to stock options is recognized over the requisite service period, which is the same as the vesting period. Restricted stock units granted to employees typically vest three years after the grant date or vest over three or four equal annual increments beginning one year after the grant date. Restricted stock units granted to executive officers and retirement eligible employees generally vest on a prorated basis upon termination. The fair value of restricted stock units is measured based on the fair value of the shares on the grant date. The majority of stock unit awards granted prior to 2019 do not provide for the payment of dividend equivalents. For those grants, the value of the grant is reduced by the net present value of the foregone dividend equivalent payments. Beginning with awards granted in February 2019, restricted stock units accrue dividend equivalents, with dividend equivalents paid in cash to the extent that the underlying shares vest. Restricted stock units that accrue dividend equivalents are valued using the Company’s stock price on the grant date. Compensation expense related to restricted stock units is recognized over the requisite service period, which is the same as the vesting period. The compensation committee of the Company’s Board of Directors has granted the Company’s executive officers and certain other key employees, excluding the CEO, long-term incentive awards under the 2015 LTIP, which consisted of 50 % Financial PSUs (as defined below), 30 % restricted stock unit awards, and 20 % TSR PSUs (as defined below) in 2021 and 2020 . The former CEO received long-term incentive awards under the 2015 LTIP consisting of 50 % Financial PSUs, 20 % TSR PSUs, 20 % stock option awards, and 10 % restricted stock unit awards in 2021 and 2020 . The compensation committee granted Senior Vice Presidents of the Company awards under the 2015 LTIP, which consisted of 50 % Financial PSUs and 50 % restricted stock unit awards in 2021 and 2020. The compensation committee granted certain other non-executive employees of the Company participating in the 2015 LTIP annual equity grants consisting of restricted stock unit awards and Financial PSUs in 2021 and 2020. In December 2021, the Company granted its new CEO restricted stock units and stock options on the date of hire. The terms of these awards are consistent with the restricted stock units and stock options discussed above, with the exception of the vesting period of the restricted stock units, which vest over two equal increments in August 2022 and February 2023. The performance-based restricted stock units granted to the Company’s executives in 2021 are restricted stock units and consist of two separate awards. The first award consists of performance-based restricted stock units, which require the Company to meet certain annual financial objectives over a three-year performance period (2021 through 2023) (“Financial PSUs”). Beginning with awards granted in February 2019, Financial PSUs accrue dividend equivalents, with dividend equivalents paid in cash to the extent that the underlying shares vest. The second award consists of performance-based restricted stock units with a market condition tied to the Company’s total shareholder return in relation to the S&P 500 Index as calculated over a three-year performance period (2021 through 2023) (“TSR PSUs”). Both of these awards will vest 100 % on the third anniversary of the grant date, contingent upon threshold market and financial performance metrics being met. The actual number of performance-based restricted stock units that the recipients will receive for awards in 2021 and 2020 range from 0 % up to 200 % of the target number of stock units granted, contingent upon actual financial and total shareholder return performance results. The grant date fair value of all performance-based restricted stock units is fixed, and the amount of restricted stock units that will ultimately vest depends upon the level of achievement of the performance and market conditions over the performance period. Financial PSUs and TSR PSUs granted to executive officers and retirement eligible employees generally vest on a prorated basis upon termination. The fair value of the Financial PSUs is measured with a methodology similar to that used to value the restricted stock units discussed above, while the fair value of the TSR PSUs is determined using the Monte-Carlo simulation model. Unlike the Financial PSUs, compensation costs related to the TSR PSUs are recognized regardless of whether the market condition is satisfied, provided that the requisite service period has been completed. The Company has also granted restricted stock units and options under the 2015 LTIP to the non-employee directors of the Company. The fair value of these restricted stock units is measured based on the fair value of the shares on the grant date and may be settled upon vesting unless the participant elects to defer the receipt of common shares under the applicable plan rules. Options have 10-year terms and are issued with exercise prices equal to the fair market value of Western Union common stock on the grant date. Both of these awards vest one year after the grant date and on a prorated basis upon a qualifying departure. Compensation expense for these awards is recognized over the requisite service period, which is the same as the vesting period. Stock Option Activity A summary of stock option activity for the year ended December 31, 2021 was as follows (options and aggregate intrinsic value in millions): Weighted- Weighted-Average Aggregate Options Price (Years) Value Outstanding as of January 1 4.9 $ 19.11 Granted 2.6 $ 18.87 Exercised ( 0.6 ) $ 19.59 Cancelled/forfeited — $ 21.00 Outstanding as of December 31 7.0 $ 18.98 6.9 $ 2.3 Options exercisable as of December 31 3.6 $ 18.48 4.5 $ 1.9 The Company received $ 11.6 million, $ 2.2 million, and $ 36.7 million, in cash proceeds related to the exercise of stock options during the years ended December 31, 2021, 2020, and 2019, respectively. Upon the exercise of stock options, shares of common stock are issued from authorized common shares. The Company realized total tax benefits during the years ended December 31, 2021, 2020, and 2019 from stock option exercises of $ 0.6 million, $ 0.2 million, and $ 2.4 million, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2021, 2020, and 2019 was $ 2.8 million, $ 0.8 million, and $ 11.6 million, respectively. Restricted Stock Activity A summary of activity for restricted stock units and performance-based restricted stock units for the year ended December 31, 2021 was as follows (units in millions): Weighted-Average Units Grant-Date Fair Value Non-vested as of January 1 6.9 $ 20.88 Granted 3.7 $ 22.63 Vested ( 2.1 ) $ 20.03 Forfeited ( 1.0 ) $ 21.52 Non-vested as of December 31 7.5 $ 21.91 Stock-Based Compensation Expense The following table sets forth the total impact on earnings for stock-based compensation expense recognized in the Consolidated Statements of Income resulting from stock options, restricted stock units, performance-based restricted stock units and deferred stock units for the years ended December 31, 2021, 2020, and 2019 (in millions, except per share data): 2021 2020 2019 Stock-based compensation expense $ ( 44.3 ) $ ( 41.7 ) $ ( 48.9 ) Income tax benefit from stock-based compensation expense 7.5 6.9 8.5 Net income impact $ ( 36.8 ) $ ( 34.8 ) $ ( 40.4 ) Earnings per share impact: Basic and diluted $ ( 0.09 ) $ ( 0.08 ) $ ( 0.09 ) As of December 31, 2021 , there was $ 8.1 million of total unrecognized compensation cost, net of assumed forfeitures, related to non-vested stock options, which is expected to be recognized over a weighted-average period of 3.7 years, and there was $ 71.1 million of total unrecognized compensation cost, net of assumed forfeitures, related to non-vested restricted stock units and performance-based restricted stock units, which is expected to be recognized over a weighted-average period of 1.9 years. Fair Value Assumptions The Company used the following assumptions for the Black-Scholes option pricing model to determine the value of Western Union options granted for the years ended December 31, 2021, 2020, and 2019: 2021 2020 2019 Stock options granted: Weighted-average risk-free interest rate 1.3 % 1.5 % 2.5 % Weighted-average dividend yield 4.2 % 4.0 % 4.2 % Volatility 29.1 % 25.2 % 22.8 % Expected term (in years) 7.03 7.12 7.05 Weighted-average grant date fair value $ 3.26 $ 3.96 $ 2.56 Risk-free interest rate - The risk-free rate for stock options granted during all periods presented was determined by using a United States Treasury rate for the period that coincided with the expected terms listed above. Expected dividend yield - The Company’s expected annual dividend yield for all periods presented was the calculation of the annualized Western Union dividend divided by an average Western Union stock price on each respective grant date. Expected volatility - For the Company’s CEO and non-employee directors, the Company used a blend of implied and historical volatility, which was calculated using the market price of traded options on Western Union’s common stock and the historical volatility of Western Union stock data. There were no options granted to non-executive employees in 2021, 2020, or 2019. Expected term - For 2021, 2020, and 2019 , the expected term for the CEO and non-employee director grants was approximately seven years and eight years , respectively. The Company’s expected term for options was based upon, among other things, historical exercises, the vesting term of the Company’s options, and the options’ contractual term of 10 years . The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and the Company’s historical experience and future expectations. The calculated fair value is recognized as compensation cost in the Company’s consolidated financial statements over the requisite service period of the entire award. Compensation cost is recognized only for those options 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 is accounted for as a change in estimate, with the cumulative effect of the change on periods previously reported being reflected in the consolidated financial statements of the period in which the change is made. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segments | |
Segments | 18. Segments As further described in Note 1, the Company classifies its business into two segments: Consumer-to-Consumer and Business Solutions. Operating segments are defined as components of an enterprise that engage in business activities, about which separate financial information is available that is evaluated regularly by the Company’s CODM in allocating resources and assessing performance. The Consumer-to-Consumer operating segment facilitates money transfers between two consumers. The segment includes five geographic regions whose functions are primarily related to generating, managing, and maintaining agent relationships and localized marketing activities. The Company includes Digital Money Transfer transactions in its regions, including transactions from the Company’s arrangements with financial institutions and other third parties to enable such entities to offer money transfer services to their own customers under their brands. By means of common processes and systems, these regions, including Digital Money Transfer transactions, create one interconnected global network for consumer transactions, thereby constituting one Consumer-to-Consumer money transfer business and one operating segment. The Business Solutions operating segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. See Note 5 for further information regarding this transaction. All businesses and other services that have not been classified in the above segments are reported as Other, which primarily includes the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services. In May 2019, the Company sold a substantial majority of its United States based electronic bill payment services, as discussed in Note 5. The Company’s segments are reviewed separately below because each segment represents a strategic business unit that offers different products and serves different markets. The business segment measurements provided to, and evaluated by, the Company’s CODM are computed in accordance with the following principles: • The accounting policies of the segments are the same as those described in the summary of significant accounting policies. • Corporate costs, including stock-based compensation and other overhead, are allocated to the segments primarily based on a percentage of the segments’ revenue compared to total revenue. • As described in Note 4, on August 1, 2019, the Company’s Board of Directors approved an overall plan to change the Company’s operating model and improve its business processes and cost structure by reducing its headcount and consolidating various facilities. For the years ended December 31, 2020 and 2019, the Company incurred $ 36.8 million and $ 115.5 million, respectively, related to this plan. While certain of these expenses may be identifiable to the Company’s segments, primarily the Company’s Consumer-to-Consumer segment, the expenses are not included in the measurement of segment operating income provided to the CODM for purposes of assessing segment performance and decision making with respect to resource allocation. • The CODM does not review total assets by segment for purposes of assessing segment performance and allocating resources. As such, the disclosure of total assets by segment has not been included below. • All items not included in operating income are excluded from the segments. The following tables present the Company’s segment results for the years ended December 31, 2021, 2020, and 2019 (in millions): Year Ended December 31, 2021 2020 2019 Revenues: Consumer-to-Consumer $ 4,394.0 $ 4,220.0 $ 4,407.8 Business Solutions (a) 421.8 356.1 388.8 Other (b) 255.0 258.9 495.5 Total consolidated revenues $ 5,070.8 $ 4,835.0 $ 5,292.1 Operating income: Consumer-to-Consumer $ 977.6 $ 924.7 $ 975.4 Business Solutions (a) 95.5 24.4 46.8 Other (b) 50.0 55.0 27.3 Total segment operating income (c) 1,123.1 1,004.1 1,049.5 Restructuring-related expenses (Note 4) — ( 36.8 ) ( 115.5 ) Total consolidated operating income $ 1,123.1 $ 967.3 $ 934.0 (a) On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business, as further discussed in Note 5. (b) Other primarily consists of the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations. In May 2019, the Company sold a substantial majority of its United States based electronic bill payment services known as Speedpay and Paymap, as discussed in Note 5. Speedpay revenues included in the Company’s results were $ 125.4 million for the year ended December 31, 2019. Speedpay direct operating expenses were $ 98.2 million for the year ended December 31, 2019. Paymap revenues included in the Company’s results were $ 5.3 million for the year ended December 31, 2019. Paymap direct operating expenses were $ 2.2 million for the year ended December 31, 2019. (c) In the first quarter of 2020, the Company changed its expense allocation method so that its corporate data center and network engineering information technology expenses are allocated based on a percentage of relative revenue. In 2019, these costs had been allocated based in part on a percentage of relative transactions. The Company believes that an allocation method based fully on relative revenue presents a more representative view of segment profitability, as certain of the Company’s services, particularly some of its bill payment services and its money order services, have much lower revenues per transaction than the Company’s other services. Further, these technology expenses are becoming increasingly based on data storage utilized and less based on the number of transactions processed. For the year ended December 31, 2019, this change would have decreased Consumer-to-Consumer operating income and increased Other operating income by $ 49.6 million. Business Solutions was not materially impacted by the change in the allocation method. Year Ended December 31, 2021 2020 2019 Depreciation and amortization: Consumer-to-Consumer $ 181.6 $ 178.5 $ 194.5 Business Solutions 16.1 36.1 39.6 Other 10.5 11.0 23.6 Total consolidated depreciation and amortization $ 208.2 $ 225.6 $ 257.7 Capital expenditures: Consumer-to-Consumer $ 192.3 $ 133.5 $ 97.0 Business Solutions 5.2 10.3 7.7 Other 17.1 13.0 23.0 Total consolidated capital expenditures $ 214.6 $ 156.8 $ 127.7 The geographic split of revenue below for the Consumer-to-Consumer and Business Solutions segments and Other is based upon the country where the transaction is initiated with 100 % of the revenue allocated to that country. Long-lived assets, consisting of property and equipment, net, are presented based upon the location of the assets. Based on the method used to attribute revenue between countries described in the paragraph above, each individual country outside the United States accounted for less than 10% of consolidated revenue for the years ended December 31, 2021, 2020, and 2019, respectively. In addition, each individual agent or Business Solutions customer accounted for less than 10% of consolidated revenue during these periods. Information concerning principal geographic areas was as follows (in millions): Year Ended December 31, 2021 2020 2019 Revenue: United States $ 1,702.0 $ 1,678.4 $ 1,896.1 International 3,368.8 3,156.6 3,396.0 Total $ 5,070.8 $ 4,835.0 $ 5,292.1 Long-lived assets: United States (a) $ 82.0 $ 100.4 $ 173.7 International 53.7 50.0 62.5 Total (b) $ 135.7 $ 150.4 $ 236.2 (a) Assets held for sale of $ 49.3 million, which primarily consisted of the Company’s former headquarters, were included in Other assets as of December 31, 2019 in the Company’s Consolidated Balance Sheets. In 2020, the Company sold its former corporate headquarters and other property and recorded an immaterial gain on the sales. (b) As of December 31, 2021, Long-lived assets in United States and International include Assets held for sale of $ 1.4 million and $ 4.9 million, respectively, related to the Company's Business Solutions business, as further discussed in Note 5. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of the Registrant | 12 Months Ended |
Dec. 31, 2021 | |
CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | |
Schedule I - Condensed Financial Information of the Registrant | SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT The following lists the condensed financial information for the parent company as of December 31, 2021 and 2020 and Condensed Statements of Income and Comprehensive Income and Condensed Statements of Cash Flows for each of the three years in the period ended December 31, 2021. THE WESTERN UNION COMPANY CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY) (in millions, except per share amounts) December 31, 2021 2020 Assets Cash and cash equivalents $ 2.1 $ 2.1 Property and equipment, net of accumulated depreciation of $ 50.1 and $ 37.0 , respectively 41.4 54.0 Other assets 90.0 96.2 Investment in subsidiaries 5,450.0 5,661.3 Total assets $ 5,583.5 $ 5,813.6 Liabilities and stockholders' equity Liabilities: Accounts payable and accrued liabilities $ 58.0 $ 53.0 Income taxes payable 477.4 551.5 Payable to subsidiaries, net 1,590.3 1,852.6 Borrowings 3,008.4 3,067.2 Other liabilities 93.8 102.7 Total liabilities 5,227.9 5,627.0 Stockholders' equity: Preferred stock, $ 1.00 par value; 10 shares authorized; no shares issued — — Common stock, $ 0.01 par value; 2,000 shares authorized; 393.8 shares and 411.2 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively 3.9 4.1 Capital surplus 941.0 885.1 Accumulated deficit ( 537.2 ) ( 543.1 ) Accumulated other comprehensive loss ( 52.1 ) ( 159.5 ) Total stockholders' equity 355.6 186.6 Total liabilities and stockholders' equity $ 5,583.5 $ 5,813.6 See Notes to Condensed Financial Statements. THE WESTERN UNION COMPANY CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (PARENT COMPANY ONLY) (in millions) Year Ended December 31, 2021 2020 2019 Revenues $ — $ — $ — Expenses — — — Operating income — — — Gain on divestitures of businesses (Note 4) — — 524.6 Gain on sale of noncontrolling interest in a private company (Note 4) 47.9 — — Interest income — — — Interest expense ( 115.9 ) ( 158.5 ) ( 181.5 ) Other income/(expense), net ( 14.7 ) 3.6 2.7 Income/(loss) before equity earnings of affiliates and income taxes ( 82.7 ) ( 154.9 ) 345.8 Equity in earnings of affiliates, net of tax 869.1 861.7 827.3 Income tax (expense)/benefit 19.4 37.5 ( 114.8 ) Net income 805.8 744.3 1,058.3 Other comprehensive income, net of tax 2.5 0.4 0.2 Other comprehensive income of affiliates, net of tax 104.9 49.1 21.8 Comprehensive income $ 913.2 $ 793.8 $ 1,080.3 See Notes to Condensed Financial Statements. THE WESTERN UNION COMPANY CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY) (in millions) Year Ended December 31, 2021 2020 2019 Cash flows from operating activities Net cash provided by/(used in) operating activities $ 510.4 $ ( 79.0 ) $ 103.1 Cash flows from investing activities Purchases of property and equipment and other ( 0.5 ) ( 1.0 ) ( 9.9 ) Proceeds from the sale of former corporate headquarters (Note 4) — 43.6 — Proceeds from the sale of noncontrolling interest in a private company (Note 4) 50.9 — — Proceeds from divestitures of businesses, net of cash divested (Note 4) — — 711.7 Distributions received from/(capital contributed to) subsidiaries, net 6.5 ( 329.4 ) 74.0 Other investing activities 0.5 ( 2.1 ) — Net cash provided by/(used in) investing activities 57.4 ( 288.9 ) 775.8 Cash flows from financing activities Advances from subsidiaries, net 289.5 1,139.5 194.0 Net proceeds from/(repayments of) commercial paper 195.0 ( 165.0 ) 120.0 Net proceeds from issuance of borrowings 891.7 — 495.9 Principal payments on borrowings ( 1,150.0 ) — ( 824.9 ) Proceeds from exercise of options and other 11.6 2.2 33.3 Cash dividends and dividend equivalents paid ( 381.6 ) ( 370.3 ) ( 340.8 ) Common stock repurchased ( 409.9 ) ( 239.7 ) ( 552.6 ) Make-whole premium on early extinguishment of debt ( 14.3 ) — — Other financing activities 0.2 ( 0.7 ) — Net cash provided by/(used in) financing activities ( 567.8 ) 366.0 ( 875.1 ) Net change in cash and cash equivalents — ( 1.9 ) 3.8 Cash and cash equivalents at beginning of year 2.1 4.0 0.2 Cash and cash equivalents at end of year $ 2.1 $ 2.1 $ 4.0 Supplemental cash flow information: Non-cash financing activity, distribution of note from subsidiary (Note 3) $ 556.1 $ 1,364.4 $ — Cash paid for lease liabilities $ 14.6 $ 20.7 $ 17.0 Non-cash lease liabilities arising from obtaining right-of-use assets (Note 6) $ 0.9 $ 1.5 $ 124.8 See Notes to Condensed Financial Statements. CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT THE WESTERN UNION COMPANY NOTES TO CONDENSED FINANCIAL STATEMENTS 1. Basis of Presentation The Western Union Company (the “Parent”) is a holding company that conducts substantially all of its business operations through its subsidiaries. Under a parent company only presentation, the Parent’s investments in its consolidated subsidiaries are presented under the equity method of accounting, and the condensed financial statements do not present the financial statements of the Parent and its subsidiaries on a consolidated basis. These financial statements should be read in conjunction with The Western Union Company’s consolidated financial statements. 2. Restricted Net Assets Certain assets of the Parent’s subsidiaries totaling approximately $ 460 million as of December 31, 2021 constitute restricted net assets, as there are legal or regulatory limitations on transferring such assets outside of the countries where the respective assets are located. Additionally, certain of the Parent’s subsidiaries must meet minimum capital requirements in some countries in order to maintain operating licenses. 3. Related Party Transactions The Parent enters into contracts with third-party vendors on behalf of its subsidiaries. Because the Parent is a holding company, as noted above, these corporate costs are incurred by the Parent, and the expenses are then allocated to its subsidiaries based primarily on the subsidiaries’ percentage of revenues compared to total revenues. All transactions described below are with subsidiaries of the Parent. The Parent has issued multiple promissory notes payable to its 100% owned subsidiary, First Financial Management Corporation, in exchange for funds distributed to the Parent. All notes pay interest at a fixed rate, may be repaid at any time without penalty, and are included within Payable to subsidiaries, net in the Condensed Balance Sheets. These promissory notes are as follows: Amount Interest Rate Date Issued (in millions) Due Date (per annum) October 1, 2019 (a) $ 162.8 June 30, 2022 1.69 % December 1, 2019 (a) $ 67.4 August 31, 2022 1.61 % December 1, 2020 (a) $ 93.3 August 31, 2023 0.15 % January 1, 2021 (a) $ 289.0 September 30, 2023 0.14 % March 1, 2021 (a) $ 244.3 November 30, 2023 0.12 % (a) This note refinanced a note originally issued on a prior date. On November 8, 2015, the Parent entered into a Revolving Credit Facility agreement (the “Revolver”) with its 100% owned subsidiary, RII Holdings, Inc., which expires on November 8, 2035, providing for unsecured financing facilities in an aggregate amount of $ 3.0 billion. As of December 31, 2021 and 2020 , borrowings outstanding under the Revolver were $ 370.0 million and $ 620.3 million, respectively. The interest rate applicable for outstanding borrowings under the Revolver is the six-month LIBOR rate set on the first day of the calendar year, which was 0.34 % and 0.26 % as of December 31, 2021 and 2020, respectively. Outstanding borrowings under the Revolver are included within Payable to subsidiaries, net in the Condensed Balance Sheets as of December 31, 2021 and 2020. During the years ended December 31, 2021 and 2020, portions of the outstanding balance were repaid by means of non-cash distributions by the Parent’s subsidiaries. The Parent expects to terminate this agreement in connection with the sale of the Business Solutions business, as further discussed in The Western Union Company's consolidated financial statements, Note 5, Divestitures, Investment Activities, and Goodwill. CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT THE WESTERN UNION COMPANY NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) The Parent files its United States federal consolidated income tax return on its and certain of its affiliates’ behalf. Accordingly, the Parent has recorded income taxes payable on behalf of its subsidiaries, and these income taxes payable are significant due to the enactment of the Tax Act into United States law. Excess cash generated from operations of the Parent’s subsidiaries that is not required to meet certain regulatory requirements may be periodically distributed to the Parent in the form of a distribution, although the amounts of such distributions may vary from year to year. The Parent files a consolidated United States federal income tax return and also a number of consolidated state income tax returns on behalf of its subsidiaries. In these circumstances, the Parent is responsible for remitting income tax payments on behalf of the consolidated group. The Parent’s provision for income taxes has been computed as if it were a separate tax-paying entity. 4. Divestitures and Investment Activities Divestitures On February 28, 2019, the Parent entered into an agreement with ACI to sell its United States electronic bill payments business known as Speedpay. The Parent received approximately $ 750 million and recorded a pre-tax gain on the sale of approximately $ 523 million, which is included in Gain on divestitures of businesses in the Condensed Statements of Income and Comprehensive Income, in the all-cash transaction that closed on May 9, 2019. On May 6, 2019, the Parent completed the sale of Paymap, which provides electronic mortgage bill payment services, for contingent consideration and immaterial cash proceeds received at closing. The Parent recorded an immaterial pre-tax gain related to this sale during 2019. In 2020, the Parent sold its former corporate headquarters and recorded an immaterial pre-tax gain on the sale. The proceeds from this sale have been included in Cash flows from investing activities within the Parent’s Condensed Statements of Cash Flows for the year ended December 31, 2020. Investment Activities In April 2021, the Parent sold a substantial majority of the noncontrolling interest it held in a private company for cash proceeds of $ 50.9 million. The Parent recorded a gain of $ 47.9 million within Income/(loss) before equity earnings of affiliates and income taxes, during the year ended December 31, 2021. The Parent retains an immaterial equity interest in this private company. 5. Commitments and Contingencies The Parent had approximately $ 250 million in outstanding letters of credit and bank guarantees as of December 31, 2021 primarily held in connection with safeguarding consumer funds and certain agent agreements. The Parent expects to renew many of its letters of credit and bank guarantees prior to expiration, while certain letters of credit will be terminated, released, or transferred as a result of the sale of the Business Solutions business. CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT THE WESTERN UNION COMPANY NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) 6. Leases The Parent leases real properties primarily for use as administrative and sales offices, in addition to transportation and other equipment. The Parent determines if a contract contains a lease arrangement at the inception of the contract. For leases in which the Parent is the lessee, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Operating lease ROU assets are initially measured at the present value of lease payments over the lease term plus initial direct costs, if any. If a lease does not provide a discount rate and the rate cannot be readily determined, an incremental borrowing rate is used to determine the present value of future lease payments. Lease and variable non-lease components within the Parent’s lease agreements are accounted for separately. The Parent has no material leases in which the Parent is the lessor. The Parent’s leasing arrangements are classified as operating leases, for which expense is recognized on a straight-line basis. As of December 31, 2021 and 2020 , the total ROU assets were $ 56.9 million and $ 63.1 million, respectively, and lease liabilities were $ 91.3 million and $ 100.1 million, respectively. The ROU assets and operating lease liabilities were included in Other assets and Other liabilities , respectively, in the Parent’s Condensed Balance Sheets. Cash paid for operating lease liabilities is recorded as Cash flows from operating activities in the Parent’s Condensed Statements of Cash Flows. Short-term and variable lease costs were not material for the years ended December 31, 2021 and 2020. The Parent’s leases have remaining terms from less than 2 years to nearly 10 years . Certain of these leases contain escalation provisions and/or renewal options, giving the Parent the right to extend the lease by up to 10 years . However, these options are not reflected in the calculation of the ROU asset and lease liability due to uncertainty surrounding the likelihood of renewal. The following table summarizes the weighted-average lease term and discount rate for operating lease liabilities as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Weighted-average remaining lease term (in years) 8.6 9.5 Weighted-average discount rate 5.3 % 5.5 % The following table represents maturities of operating lease liabilities as of December 31, 2021 (in millions): December 31, 2021 Due within 1 year $ 14.9 Due after 1 year through 2 years 14.2 Due after 2 years through 3 years 13.0 Due after 3 years through 4 years 12.5 Due after 4 years through 5 years 10.9 Due after 5 years 50.2 Total lease payments 115.7 Less imputed interest ( 24.4 ) Total operating lease liabilities $ 91.3 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The financial statements in this Annual Report on Form 10‑K are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. Consistent with industry practice, the accompanying Consolidated Balance Sheets are unclassified due to the short-term nature of the Company’s settlement obligations contrasted with the Company’s ability to invest cash awaiting settlement in long-term investment securities. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. |
Principles of Consolidation | Principles of Consolidation The Company consolidates financial results when it has a controlling financial interest in a subsidiary via voting rights or when it has both the power to direct the activities of an entity that most significantly impact the entity’s economic performance and the ability to absorb losses or the right to receive benefits of the entity that could potentially be significant to the entity. The Company utilizes the equity method of accounting when it is able to exercise significant influence over an entity’s operations, which generally occurs when the Company has an ownership interest between 20% and 50%. |
Earnings Per Share | Earnings Per Share The calculation of basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Outstanding options to purchase Western Union stock and unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested, using the treasury stock method. The treasury stock method assumes proceeds from the exercise price of stock options and the unamortized compensation expense of options and restricted stock are available to acquire shares at an average market price throughout the period, and therefore, reduce the dilutive effect. Shares excluded from the diluted earnings per share calculation under the treasury stock method, primarily due to outstanding restricted stock units and options to purchase shares of Western Union stock, as the assumed proceeds of the restricted stock and options per unit were above the Company’s average share price during the periods and their effect was anti-dilutive, were 2.3 million, 1.6 million, and 1.9 million, respectively, of shares for the years ended December 31, 2021, 2020, and 2019. The following table provides the calculation of diluted weighted-average shares outstanding (in millions): Year Ended December 31, 2021 2020 2019 Basic weighted-average shares outstanding 406.8 412.3 427.6 Common stock equivalents 2.1 2.9 3.3 Diluted weighted-average shares outstanding 408.9 415.2 430.9 |
Fair Value Measurements | Fair Value Measurements The Company determines the fair values of its assets and liabilities that are recognized or disclosed at fair value in accordance with the hierarchy described below. The fair values of the assets and liabilities held in the Company’s defined benefit plan trust (“Trust”) have been recognized or disclosed utilizing the same hierarchy. The following three levels of inputs may be used to measure fair value: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. For most of these assets, the Company utilizes pricing services that use multiple prices as inputs to determine daily market values. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires significant management judgment or estimation. The Company holds assets classified as Level 3 that are recognized and disclosed at fair value on a non-recurring basis related to the Company’s business combinations, where the values of the intangible assets and goodwill acquired in a purchase are derived utilizing one of the three recognized approaches: the market approach, the income approach, or the cost approach. Carrying amounts for many of the Company’s financial instruments, including cash and cash equivalents, settlement cash and cash equivalents, and settlement receivables and settlement obligations approximate fair value due to their short maturities. Available-for-sale investment securities, as further discussed in Notes 8 and 9, and derivative financial instruments, as further discussed in Notes 9 and 15, are carried at fair value. Fixed-rate notes are carried at their original issuance values and adjusted over time to amortize or accrete that value to par, except for portions of notes that were hedged by interest rate swap agreements in prior years, as disclosed in Note 15. The fair values of fixed-rate notes are disclosed in Note 9 and are based on market quotations. The fair values of non-financial assets and liabilities related to the Company’s business combinations, as applicable, will be disclosed in Note 5. The fair value of the assets in the Trust, which held the assets for the Company’s defined benefit pension plan, is disclosed in Note 12. |
Business Combinations | Business Combinations The Company accounts for all business combinations where control over another entity is obtained using the acquisition method of accounting, which requires that most assets (both tangible and intangible), liabilities (including contingent consideration), and remaining noncontrolling interests be recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets less liabilities and noncontrolling interests is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or noncontrolling interests made subsequent to the acquisition date, but within the measurement period, which is one year or less, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded within Net income. Any cost or equity method interest that the Company holds in the acquired company prior to the acquisition is remeasured to fair value at acquisition with a resulting gain or loss recognized within Other income/(expense), net for the difference between fair value and existing book value. Results of operations of the acquired company are included in the Company’s results from the date of the acquisition forward and include amortization expense arising from acquired intangible assets. The Company expenses all costs as incurred related to or involved with an acquisition in Selling, general, and administrative expenses. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments (other than those included in settlement assets) with maturities of three months or less at the date of purchase (that are readily convertible to cash) are considered cash equivalents and are stated at cost, which approximates fair value. The Company maintains cash and cash equivalent balances, including a portion in money market funds, with a group of globally diversified banks and financial institutions. The Company limits the concentration of its cash and cash equivalents with any one institution and regularly reviews investment concentrations and credit worthiness of these institutions. |
Allowance for Credit Losses | Allowance for Credit Losses For the Company’s accounting policies with respect to the allowance for credit losses, refer to Note 8. The Company establishes and monitors an allowance for credit losses related to receivables from agents and others, and Business Solutions customers. The Company estimates the allowance based on its historical collections experience, adjusted for current conditions and forecasts of future economic conditions. Given the short-term nature of these receivables, the Company does not expect the impact of forecasted economic conditions on its allowance for credit losses to be significant. The Company has estimated credit losses based on information known as of December 31, 2021 . Prior to the adoption of the new accounting standard discussed above, the Company recorded an allowance for doubtful accounts when it was probable that the related receivable balance would not be collected based on its history of collection experience, known collection issues, such as agent suspensions and bankruptcies, consumer chargebacks and insufficient funds, and other matters the Company identified in its routine collection monitoring. During the year ended December 31, 2019, the provision for doubtful accounts (bad debt expense) reflected in the Consolidated Statements of Income was $ 47.1 million. In addition, from time to time, the Company has made advances to its agents. The Company generally owes settlement funds payable to these agents that offset these advances. These amounts advanced to agents are included within Other assets in the accompanying Consolidated Balance Sheets. |
Settlement Assets and Obligations | Settlement Assets and Obligations Settlement assets represent funds received or to be received from agents and others for unsettled money transfers, money orders, and consumer payments. The Company records corresponding settlement obligations relating to amounts payable under money transfers, money orders, and consumer payment service arrangements. Settlement assets and obligations also include amounts receivable from, and payable to, customers for the value of their cross-currency payment transactions related to the Business Solutions segment. Settlement assets consist of cash and cash equivalents, receivables from agents, Business Solutions customers, and others, and investment securities. Cash received by Western Union agents generally becomes available to the Company within one week after initial receipt by the agent. Cash equivalents consist of short-term time deposits, commercial paper, and other highly liquid investments. Receivables from agents represent funds collected by such agents, but in transit to the Company. Western Union has a large and diverse agent base, thereby reducing the credit risk of the Company from any one agent. The Company performs ongoing credit evaluations of its agents’ financial condition and credit worthiness. Receivables from Business Solutions customers arise from cross-currency payment transactions in the Business Solutions segment. Receivables occur when funds have been paid out to a beneficiary but not yet received from the customer. Collection of these receivables ordinarily occurs within a few days. To mitigate risk associated with potential Business Solutions customer defaults, the Company performs credit reviews on an ongoing basis. Settlement obligations consist of money transfer, money order and payment service payables, and payables to agents. Money transfer payables represent amounts to be paid to transferees when they request their funds. Most agents typically settle with transferees first and then obtain reimbursement from the Company. Money order payables represent amounts not yet presented for payment. Payment service payables represent amounts to be paid to utility companies, auto finance companies, mortgage servicers, financial service providers, government agencies, and others. Due to the agent funding and settlement process, payables to agents represent amounts due to agents for money transfers that have been settled with transferees. Refer to Note 8 for additional details on the Company’s settlement assets and obligations. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the lesser of the estimated life of the related assets (generally three to seven years for equipment and furniture and fixtures) or the lease term. Maintenance and repairs, which do not extend the useful life of the respective assets, are charged to expense as incurred. Property and equipment consisted of the following (in millions): December 31, 2021 2020 Equipment $ 607.7 $ 608.9 Leasehold improvements and other 151.2 153.7 Furniture and fixtures 46.2 45.4 Projects in process 0.3 2.3 Total property and equipment, gross 805.4 810.3 Less accumulated depreciation ( 669.7 ) ( 659.9 ) Property and equipment, net (a) $ 135.7 $ 150.4 (a) As of December 31, 2021, Property and equipment, net includes Assets held for sale of $ 6.3 million, which consists of property and equipment of the Company's Business Solutions business, as further described in Note 5. Amounts charged to expense for depreciation of property and equipment were $ 49.6 million, $ 61.3 million, and $ 79.6 million during the years ended December 31, 2021, 2020, and 2019 , respectively. |
Goodwill | Goodwill Goodwill represents the excess of purchase price over the fair value of tangible and other intangible assets acquired less liabilities assumed, arising from business combinations. In the event a reporting unit’s carrying amount exceeds its fair value, the Company recognizes an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value. The Company’s annual impairment assessment did no t identify any goodwill impairment during the years ended December 31, 2021, 2020, and 2019 . |
Other Intangible Assets | Other Intangible Assets Other intangible assets primarily consist of contract costs (primarily amounts paid to agents in connection with establishing and renewing long-term contracts), software, and acquired contracts. Other intangible assets are generally amortized on a straight-line basis over the length of the contract or benefit period. Included in the Consolidated Statements of Income is amortization expense of $ 158.6 million, $ 164.3 million, and $ 178.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. Acquired contracts include customer and contractual relationships and networks of subagents that are recognized in connection with the Company’s acquisitions. The Company purchases and develops software that is used in providing services and in performing administrative functions. Internal and external software development costs incurred that are directly related to the chosen design, development, and testing phases of the software are capitalized once the Company has completed all planning and analysis activities. Any other software development related costs are expensed as incurred. Capitalization of costs ceases when the product is available for general use. Software development costs and purchased software are generally amortized over a term of three to seven years . The Company capitalizes initial payments for new and renewed agent contracts to the extent recoverable through future operations or penalties in the case of early termination. The Company’s accounting policy is to limit the amount of capitalized costs for a given contract to the lesser of the estimated future cash flows from the contract or the termination fees the Company would receive in the event of early termination of the contract. The following table provides the components of other intangible assets (in millions): December 31, 2021 December 31, 2020 Weighted- Average Amortization Net of Net of Period Initial Accumulated Initial Accumulated (in years) Cost Amortization Cost Amortization Capitalized contract costs 6.2 $ 532.7 $ 242.0 $ 574.4 $ 308.0 Internal use software 4.3 388.7 128.8 310.3 55.5 Acquired contracts 11.6 552.9 50.2 561.7 75.8 Acquired trademarks 25.4 30.1 10.8 30.1 12.0 Other intangibles 4.3 19.4 — 19.4 — Projects in process (b) (a) 35.7 35.7 53.7 53.7 Total other intangible assets (b) 8.0 $ 1,559.5 $ 467.5 $ 1,549.6 $ 505.0 (a) Not applicable as the assets have not been placed in service. (b) As of December 31, 2021 , Projects in process and Total other intangible assets, net includes Assets held for sale of $ 2.3 million and $ 50.4 million, respectively, which consists of Other intangible assets associated with the Company's Business Solutions business as further described in Note 5. The estimated future aggregate amortization expense for existing other intangible assets as of December 31, 2021 , including the Business Solutions business, would be $ 141.9 million in 2022, $ 106.1 million in 2023, $ 82.7 million in 2024, $ 48.6 million in 2025, $ 24.0 million in 2026, and $ 28.5 million thereafter. However, included in these amounts are future aggregate amortization expenses related to Assets held for sale of $ 16.2 million in 2022, $ 10.1 million in 2023, $ 7.1 million in 2024, $ 6.3 million in 2025, $ 5.5 million in 2026, and $ 2.9 million thereafter. Beginning in August 2021, the Company stopped amortizing these held for sale assets over the terms of their useful lives. Other intangible assets are reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In such reviews, estimated undiscounted cash flows associated with these assets or operations are compared with their carrying values to determine if a write-down to fair value (normally measured by the present value technique) is required. The Company recorded immaterial impairments related to other intangible assets during the years ended December 31, 2021, 2020, and 2019 . |
Revenue Recognition | Revenue Recognition For the Company’s accounting policies with respect to revenue recognition, refer to Note 3. The Company’s revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the principal amount sent, whether the money transfer involves different send and receive currencies, the difference between the exchange rate set by the Company to the customer and the rate available in the wholesale foreign exchange market, and speed of service, as applicable. The Company also offers several other services, including foreign exchange and payment services and other bill payment services, for which revenue is impacted by similar factors. For the substantial majority of the Company’s revenues, the Company acts as the principal in transactions and reports revenue on a gross basis, as the Company controls the service at all times prior to transfer to the customer, is primarily responsible for fulfilling the customer contracts, has the risk of loss, and has the ability to establish transaction prices. The Company also provides services to financial institutions and other third parties to enable such entities to offer money transfer services to their own customers under their brands. Generally, in these arrangements, consumers agree to terms and conditions specified by the financial institution or other third party that, among other things, establish pricing paid by the consumer for the service. The Company recognizes revenue on a net basis under these arrangements. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. |
Cost of Services | Cost of Services Cost of services primarily consists of agent commissions and expenses for call centers, settlement operations, and related information technology costs. Expenses within these functions include personnel, software, equipment, telecommunications, bank fees, credit losses, depreciation, amortization, and other expenses incurred in connection with providing money transfer and other payment services. |
Advertising Costs | Advertising Costs Advertising costs are charged to operating expenses as incurred. Advertising costs for the years ended December 31, 2021, 2020, and 2019 were $ 177.8 million, $ 177.0 million, and $ 209.1 million, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes under the liability method, which requires that deferred tax assets and liabilities be determined based on the expected future income tax consequences of events that have been recognized in the consolidated financial statements. Deferred tax assets and liabilities are recognized based on temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. The Company routinely assesses the realizability of its deferred tax assets. A valuation allowance must be established when, based upon available evidence, it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company recognizes the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company accounts for the effects of global intangible low-taxed income taxed in the United States as a component of income tax expense in the period the tax arises. |
Foreign Currency Translation | Foreign Currency Translation The United States dollar is the functional currency for substantially all of the Company’s businesses. Revenues and expenses are translated at average exchange rates prevailing during the period. Foreign currency denominated assets and liabilities for those businesses for which the local currency is the functional currency are translated into United States dollars based on exchange rates at the end of the year. The effects of foreign exchange gains and losses arising from the translation of assets and liabilities of these businesses are included as a component of AOCL in the accompanying Consolidated Balance Sheets. Foreign currency denominated monetary assets and liabilities of businesses for which the United States dollar is the functional currency are remeasured based on exchange rates at the end of the period, and the resulting remeasurement gains and losses are recognized in net income. Non-monetary assets and liabilities of these operations are remeasured at historical rates in effect when the asset was recognized or the liability was incurred. The Company has bill payment and other businesses in Argentina for which the local currency is the functional currency. However, as Argentina is currently classified as a highly inflationary economy, all changes in the value of the Argentine peso on these businesses’ monetary assets and liabilities are reflected in net income. |
Derivatives | Derivatives The Company has used derivatives to: (i) minimize its exposures related to changes in foreign currency exchange rates and, periodically, interest rates and (ii) facilitate cross-currency Business Solutions payments by writing derivatives to customers. The Company recognizes all derivatives in the Other assets and Other liabilities captions in the accompanying Consolidated Balance Sheets at their fair value. All cash flows associated with derivatives are included in Cash flows from operating activities in the Consolidated Statements of Cash Flows. Certain of the Company’s derivative arrangements are designated as either cash flow hedges or fair value hedges at the time of inception, and others are not designated as accounting hedges. • Cash flow hedges – Cash flow hedges consist of foreign currency hedging of forecasted revenues, as well as hedges of the forecasted issuance of fixed-rate debt. Derivative fair value changes that are captured in AOCL are reclassified to earnings in the same period the hedged item affects earnings when the instrument is effective in offsetting the change in cash flows attributable to the risk being hedged. The Company excludes time value from the assessment of effectiveness, and the initial value of the excluded components is amortized into Revenues within the Consolidated Statements of Income. For foreign currency cash flow hedges entered into before January 1, 2018, which was the date the Company adopted this accounting treatment, all changes in the fair value of the excluded components were recognized immediately in Revenues during the year ended December 31, 2019. • Fair value hedges - Fair value hedges consist of hedges of fixed-rate debt, through interest rate swaps. Changes in the fair value of derivatives that are designated as fair value hedges of fixed-rate debt are recorded in Interest expense. The offsetting change in value of the related debt instrument attributable to changes in the benchmark interest rate is also recorded in Interest expense. There were no fair value hedges outstanding as of December 31, 2021 and 2020. • Undesignated - Derivative contracts entered into to reduce the foreign exchange variability related to: (i) money transfer settlement assets and obligations, generally with maturities from a few days up to one month , and (ii) certain foreign currency denominated cash and other asset and liability positions, typically with maturities of less than one year at inception, are not designated as hedges for accounting purposes, and changes in their fair value are included in Selling, general, and administrative. The Company is also exposed to risk from derivative contracts written to its customers arising from its cross-currency Business Solutions payment operations. The majority of these derivative contracts have a duration at inception of less than one year. The Company aggregates its Business Solutions payments foreign currency exposures arising from customer contracts, including the derivative contracts described above, and hedges the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties (economic hedge contracts) as part of a broader foreign currency portfolio, including significant spot exchanges of currency in addition to forwards and options. The changes in the fair value related to these contracts are recorded in Revenues. The fair value of the Company’s derivatives is derived from standardized models that use market-based inputs (e.g., forward prices for foreign currency). The details of each designated hedging relationship must be formally documented at the inception of the arrangement, including the risk management objective, hedging strategy, hedged item, specific risks being hedged, the derivative instrument, and how effectiveness is being assessed. The derivative must be highly effective in offsetting the changes in cash flows or fair value of the hedged item, and effectiveness is evaluated quarterly on a retrospective and prospective basis. |
Legal Contingencies | Legal Contingencies The Company is a party to certain legal and regulatory proceedings with respect to a variety of matters. The Company records an accrual for these contingencies to the extent that a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than other amounts within the range, that amount is accrued. When no amount within a range of loss appears to be a better estimate than any other amount, the lowest amount in the range is accrued. |
Stock-Based Compensation | Stock-Based Compensation The Company has a stock-based compensation plan that provides for grants of Western Union stock options, restricted stock awards, restricted stock units, and deferred stock units to employees and non-employee directors of the Company. All stock-based compensation to employees is required to be measured at fair value and expensed over the requisite service period. The Company generally recognizes compensation expense on awards on a straight-line basis over the requisite service period for the entire award, with an estimate for forfeitures. Refer to Note 17 for additional discussion regarding details of the Company’s stock-based compensation plans. |
Severance and Other Related Expenses | Severance and Other Related Expenses The Company records severance-related expenses once they are both probable and estimable in accordance with the provisions of the applicable accounting guidance for severance provided under an ongoing benefit arrangement. One-time involuntary benefit arrangements and other costs are generally recognized when the liability is incurred. The Company also evaluates impairment issues associated with restructuring and other activities when the carrying amount of the related assets may not be fully recoverable, in accordance with the appropriate accounting guidance. |
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements On January 1, 2020 , the Company adopted a new accounting standard that requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. Additionally, the standard requires certain credit losses relating to investment securities classified as available-for-sale to be recorded through an allowance for credit losses. The Company recognized the cumulative effect of the new accounting standard as an adjustment to the January 1, 2020 balance of Accumulated deficit in the Consolidated Balance Sheets, and the adoption of the new accounting standard did not have a material impact on the Company’s January 1, 2020 accumulated deficit. In accordance with the modified retrospective approach, the comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. Refer to Note 8 for additional information and the related disclosures. On January 1, 2019 , the Company adopted a new accounting standard, as amended, that requires the Company to record assets and liabilities on the balance sheet for lease-related rights and obligations and disclose key information about its leasing arrangements. The Company elected the effective date method, utilized the modified retrospective approach upon adoption, and elected the package of practical expedients available under the new standard, including the expedients to not reassess whether an existing contract is a lease or contains a lease and whether the lease is an operating or finance lease. This new standard establishes a right-of-use (“ROU”) model that requires the Company to recognize ROU assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months at commencement of the lease. Refer to Note 13 for additional information and the related disclosures. |
Investment Securities | Investment Securities Investment securities included in Settlement assets in the Company’s Consolidated Balance Sheets consist primarily of highly-rated state and municipal debt securities, including fixed-rate term notes and variable-rate demand notes. Variable-rate demand note securities can be put (sold at par) typically on a daily basis with settlement periods ranging from the same day to one week but have varying maturities through 2050 . These securities may be used by the Company for short-term liquidity needs and held for short periods of time. Investment securities are exposed to market risk due to changes in interest rates and credit risk. The Company is required to hold highly-rated, investment grade securities, and such investments are restricted to satisfy outstanding settlement obligations in accordance with applicable regulatory requirements. The Company’s investment securities are classified as available-for-sale and recorded at fair value. Western Union regularly monitors credit risk and attempts to mitigate its exposure by investing in highly-rated securities and through investment diversification. Unrealized gains on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes. Available-for-sale securities with a fair value below the amortized cost basis are evaluated on an individual basis to determine whether the impairment is due to credit-related factors or noncredit-related factors. Factors that could indicate a credit loss exists include but are not limited to: (i) negative earnings performance, (ii) credit rating downgrades, or (iii) adverse changes in the regulatory or economic environment of the asset. Any impairment that is not credit-related is excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes, unless the Company intends to sell the impaired security or it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. Credit-related impairments are recognized immediately as an adjustment to earnings, regardless of whether the Company has the ability or intent to hold the security to maturity, and are limited to the difference between fair value and the amortized cost basis. As of and for the years ended December 31, 2021 and 2020 , the Company’s allowance for credit losses and provision for credit losses on its available-for-sale securities were immaterial. |
Foreign Currency - Derivatives | Foreign Currency Derivatives The Company’s policy is to use longer duration foreign currency forward contracts, with maturities of up to 36 months at inception and a targeted weighted-average maturity of approximately one year , to help mitigate some of the risk that changes in foreign currency exchange rates compared to the United States dollar could have on forecasted revenues denominated in other currencies related to its business. As of December 31, 2021 , these foreign currency forward contracts had maturities of a maximum of 24 months with a weighted-average maturity of approximately one year . These contracts are accounted for as cash flow hedges of forecasted revenue, with effectiveness assessed based on changes in the spot rate of the affected currencies during the period of designation and thus time value is excluded from the assessment of effectiveness. The initial value of the excluded components is amortized into Revenues within the Company’s Consolidated Statements of Income. The Company also uses short duration foreign currency forward contracts, generally with maturities ranging from a few days to one month , to offset foreign exchange rate fluctuations on settlement assets and obligations between initiation and settlement. In addition, forward contracts, typically with maturities of less than one year at inception, are utilized to offset foreign exchange rate fluctuations on certain foreign currency denominated cash and other asset and liability positions. None of these contracts are designated as accounting hedges. |
Foreign Currency - Business Solutions | Business Solutions Operations The Company writes derivatives, primarily foreign currency forward contracts and option contracts, mostly with small and medium size enterprises and derives a currency spread from this activity as part of its Business Solutions operations. The Company aggregates its Business Solutions foreign currency exposures arising from customer contracts, including the derivative contracts described above, and hedges the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties (economic hedge contracts). The derivatives written are part of the broader portfolio of foreign currency positions arising from the Company’s cross-currency payments operations, which primarily include spot exchanges of currency, in addition to forwards and options. Foreign exchange revenues from the total portfolio of positions were $ 366.8 million, $ 311.9 million, and $ 343.1 million for the years ended December 31, 2021, 2020, and 2019, respectively, and were included in Revenues in the Company’s Consolidated Statements of Income. None of the derivative contracts used in Business Solutions operations are designated as accounting hedges, and the majority of these derivative contracts have a duration at inception of less than one year . The aggregate equivalent United States dollar notional amount of derivative customer contracts held by the Company in its Business Solutions operations was approximately $ 8.0 billion as of December 31, 2021 and 2020. The significant majority of customer contracts are written in the following currencies: the United States dollar, euro, and the Canadian dollar. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. See Note 5 for further information regarding this transaction. |
Interest Rate Hedging | Interest Rate Hedging Periodically, the Company utilizes interest rate swaps to effectively change the interest rate payments on a portion of its notes from fixed-rate payments to short-term, variable-rate payments in order to manage its overall exposure to interest rate fluctuations. The Company designates these derivatives as fair value hedges. The change in the fair value of the interest rate swaps is offset by a change in the carrying value of the debt being hedged within Borrowings in the Consolidated Balance Sheets. Interest expense in the Consolidated Statements of Income has been adjusted to include the effects of interest accrued on the swaps. |
Segments | The Company’s segments are reviewed separately below because each segment represents a strategic business unit that offers different products and serves different markets. The business segment measurements provided to, and evaluated by, the Company’s CODM are computed in accordance with the following principles: • The accounting policies of the segments are the same as those described in the summary of significant accounting policies. • Corporate costs, including stock-based compensation and other overhead, are allocated to the segments primarily based on a percentage of the segments’ revenue compared to total revenue. • As described in Note 4, on August 1, 2019, the Company’s Board of Directors approved an overall plan to change the Company’s operating model and improve its business processes and cost structure by reducing its headcount and consolidating various facilities. For the years ended December 31, 2020 and 2019, the Company incurred $ 36.8 million and $ 115.5 million, respectively, related to this plan. While certain of these expenses may be identifiable to the Company’s segments, primarily the Company’s Consumer-to-Consumer segment, the expenses are not included in the measurement of segment operating income provided to the CODM for purposes of assessing segment performance and decision making with respect to resource allocation. • The CODM does not review total assets by segment for purposes of assessing segment performance and allocating resources. As such, the disclosure of total assets by segment has not been included below. • All items not included in operating income are excluded from the segments. |
Business and Basis of Present_2
Business and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business and Basis of Presentation | |
Summary of Effects of Changes in Presentation Cash Flows | The following tables present the effects of the changes in presentation of these cash flows, compared to the previously reported Consolidated Statements of Cash Flows (in millions): Year Ended December 31, 2020 As Previously Reported (a) Revisions As Revised Net cash provided by/(used in): Operating activities $ 877.5 $ — $ 877.5 Investing activities (b) ( 113.4 ) ( 260.1 ) ( 373.5 ) Financing activities (c) ( 773.5 ) 587.6 ( 185.9 ) Net change in cash and cash equivalents, including settlement, and restricted cash $ ( 9.4 ) $ 327.5 $ 318.1 (a) As reported in the Company's Form 10-K filed with the SEC on February 19, 2021. (b) The financial statement lines included in Investing activities are Purchases of settlement investments, Proceeds from the sale of settlement investments, and Maturities of settlement investments. (c) The financial statement line included in Financing activities is Net change in settlement obligations. Year Ended December 31, 2019 As Previously Reported (a) Revisions As Revised Net cash provided by/(used in): Operating activities $ 914.6 $ — $ 914.6 Investing activities (b) 632.3 ( 465.3 ) 167.0 Financing activities (c) ( 1,069.8 ) ( 414.3 ) ( 1,484.1 ) Net change in cash and cash equivalents, including settlement, and restricted cash $ 477.1 $ ( 879.6 ) $ ( 402.5 ) (a) As reported in the Company's Form 10-K filed with the SEC on February 20, 2020. (b) The financial statement lines included in Investing activities are Purchases of settlement investments, Proceeds from the sale of settlement investments, and Maturities of settlement investments. (c) The financial statement line included in Financing activities is Net change in settlement obligations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of Diluted Weighted-average Shares Outstanding | The following table provides the calculation of diluted weighted-average shares outstanding (in millions): Year Ended December 31, 2021 2020 2019 Basic weighted-average shares outstanding 406.8 412.3 427.6 Common stock equivalents 2.1 2.9 3.3 Diluted weighted-average shares outstanding 408.9 415.2 430.9 |
Schedule of Property and Equipment | Property and equipment consisted of the following (in millions): December 31, 2021 2020 Equipment $ 607.7 $ 608.9 Leasehold improvements and other 151.2 153.7 Furniture and fixtures 46.2 45.4 Projects in process 0.3 2.3 Total property and equipment, gross 805.4 810.3 Less accumulated depreciation ( 669.7 ) ( 659.9 ) Property and equipment, net (a) $ 135.7 $ 150.4 (a) As of December 31, 2021, Property and equipment, net includes Assets held for sale of $ 6.3 million, which consists of property and equipment of the Company's Business Solutions business, as further described in Note 5. |
Schedule of Components of Other Intangible Assets | The following table provides the components of other intangible assets (in millions): December 31, 2021 December 31, 2020 Weighted- Average Amortization Net of Net of Period Initial Accumulated Initial Accumulated (in years) Cost Amortization Cost Amortization Capitalized contract costs 6.2 $ 532.7 $ 242.0 $ 574.4 $ 308.0 Internal use software 4.3 388.7 128.8 310.3 55.5 Acquired contracts 11.6 552.9 50.2 561.7 75.8 Acquired trademarks 25.4 30.1 10.8 30.1 12.0 Other intangibles 4.3 19.4 — 19.4 — Projects in process (b) (a) 35.7 35.7 53.7 53.7 Total other intangible assets (b) 8.0 $ 1,559.5 $ 467.5 $ 1,549.6 $ 505.0 (a) Not applicable as the assets have not been placed in service. (b) As of December 31, 2021 , Projects in process and Total other intangible assets, net includes Assets held for sale of $ 2.3 million and $ 50.4 million, respectively, which consists of Other intangible assets associated with the Company's Business Solutions business as further described in Note 5. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue | |
Disaggregation of Revenue Earned from Contracts with Customers | Management has determined that the substantial majority of the Company’s revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the years ended December 31, 2021, 2020, and 2019 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated. Year Ended December 31, 2021 Foreign Consumer Exchange Money and Payment Consumer Other Transfers Services Bill Payments Services Total Regions: North America $ 1,625.7 $ 101.8 $ 73.3 $ 57.1 $ 1,857.9 Europe and Russia/CIS 1,381.3 145.5 5.8 1.1 1,533.7 Middle East, Africa, and South Asia 660.8 2.2 0.6 — 663.6 Latin America and the Caribbean 376.6 3.4 75.8 7.3 463.1 East Asia and Oceania 276.5 69.6 1.1 — 347.2 Revenues from contracts with customers $ 4,320.9 $ 322.5 $ 156.6 $ 65.5 $ 4,865.5 Other revenues (a) 73.1 99.3 13.3 19.6 205.3 Total revenues $ 4,394.0 $ 421.8 $ 169.9 $ 85.1 $ 5,070.8 Year Ended December 31, 2020 Foreign Consumer Exchange Money and Payment Consumer Other Transfers Services Bill Payments Services Total Regions: North America $ 1,605.5 $ 83.6 $ 75.1 $ 57.0 $ 1,821.2 Europe and Russia/CIS 1,330.0 121.1 3.6 1.8 1,456.5 Middle East, Africa, and South Asia 630.0 1.5 0.4 — 631.9 Latin America and the Caribbean 310.1 2.4 75.8 7.9 396.2 East Asia and Oceania 257.4 60.5 1.4 — 319.3 Revenues from contracts with customers $ 4,133.0 $ 269.1 $ 156.3 $ 66.7 $ 4,625.1 Other revenues (a) 87.0 87.0 14.0 21.9 209.9 Total revenues $ 4,220.0 $ 356.1 $ 170.3 $ 88.6 $ 4,835.0 Year Ended December 31, 2019 Foreign Consumer Exchange Money and Payment Consumer Other Transfers Services Bill Payments (b) Services Total Regions: North America $ 1,653.5 $ 95.4 $ 223.0 $ 55.9 $ 2,027.8 Europe and Russia/CIS 1,350.1 127.1 3.2 4.1 1,484.5 Middle East, Africa, and South Asia 642.0 1.8 0.4 — 644.2 Latin America and the Caribbean 395.2 3.4 129.4 15.3 543.3 East Asia and Oceania 263.5 68.4 1.5 — 333.4 Revenues from contracts with customers $ 4,304.3 $ 296.1 $ 357.5 $ 75.3 $ 5,033.2 Other revenues (a) 103.5 92.7 37.3 25.4 258.9 Total revenues $ 4,407.8 $ 388.8 $ 394.8 $ 100.7 $ 5,292.1 (a) Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources. (b) On February 28, 2019, the Company entered into an agreement with ACI Worldwide Corp. and ACW Worldwide, Inc. to sell its United States electronic bill payments business known as “Speedpay” and closed the transaction on May 9, 2019. Included within North America revenues are Speedpay revenues of $ 125.4 million for the year ended December 31, 2019. |
Restructuring-Related Expenses
Restructuring-Related Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring-Related Expenses | |
Schedule of Restructuring Accruals | The following table summarizes the expenses related to the restructuring accruals, which are included in Accounts payable and accrued liabilities in the Company’s Consolidated Balance Sheets, and the total expenses incurred since the inception of the restructuring plan (in millions): Severance and Facility Related and Closures, Employee Consulting, Benefits and Other Total Balance, December 31, 2019 $ 71.2 $ 2.1 $ 73.3 Expenses (a) 11.8 25.0 36.8 Cash payments ( 58.7 ) ( 24.0 ) ( 82.7 ) Non-cash benefits/(charges) (a) 0.6 ( 1.8 ) ( 1.2 ) Balance, December 31, 2020 $ 24.9 $ 1.3 $ 26.2 Total expenses incurred $ 109.8 $ 42.5 $ 152.3 (a) Non-cash benefits/(charges) include non-cash write-offs and accelerated depreciation of ROU assets and leasehold improvements and a non-cash benefit for adjustments to stock compensation for awards forfeited by employees. These amounts have been removed from the liability balance in the table above as they do not impact the restructuring accruals. |
Schedule of Restructuring-Related Expenses | The following table presents restructuring-related expenses as reflected in the Consolidated Statements of Income (in millions): Year Ended December 31, 2020 2019 Cost of services $ 4.5 $ 39.8 Selling, general, and administrative 32.3 75.7 Total expenses, pre-tax $ 36.8 $ 115.5 Total expenses, net of tax $ 31.5 $ 90.0 |
Divestitures, Investment Acti_2
Divestitures, Investment Activities, and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Divestitures Investment Activities and Goodwill [Abstract] | |
Schedule of Assets and Liabilities Held for Sale | The following table reflects the assets held for sale and associated liabilities of the Business Solutions business in the accompanying Consolidated Balance Sheet (in millions). These balances are subject to regulatory capital and other requirements and will be finalized upon the closing of the deal. December 31, 2021 Cash and cash equivalents $ 37.7 Settlement assets 566.0 Property and equipment, net of accumulated depreciation of $ 19.3 6.3 Goodwill 532.0 Other intangible assets, net of accumulated amortization of $ 360.2 50.4 Other assets 260.5 Total assets $ 1,452.9 Accounts payable and accrued liabilities $ 61.6 Settlement obligations 566.0 Other liabilities 194.3 Total liabilities $ 821.9 |
Schedule of Changes to Goodwill and Accumulated Impairment Losses | The following tables present changes to goodwill for the years ended December 31, 2021 and 2020 and the accumulated impairment losses as of December 31, 2021, 2020, and 2019 (in millions): Consumer-to- Business Consumer Solutions (a) Other Total January 1, 2020 goodwill, net $ 1,980.7 $ 532.0 $ 53.9 $ 2,566.6 Additions — — — — December 31, 2020 goodwill, net $ 1,980.7 $ 532.0 $ 53.9 $ 2,566.6 Additions — — — — December 31, 2021 goodwill, net $ 1,980.7 $ 532.0 $ 53.9 $ 2,566.6 As of December 31, 2021 2020 2019 Goodwill, gross $ 3,030.6 $ 3,030.6 $ 3,030.6 Accumulated impairment losses ( 464.0 ) ( 464.0 ) ( 464.0 ) Goodwill, net (a) $ 2,566.6 $ 2,566.6 $ 2,566.6 (a) As of December 31, 2021, Goodwill of $ 532.0 million related to the Company's Business Solutions business is included in Assets held for sale on the Company's Consolidated Balance Sheets, as further described above. All of the Company's accumulated impairment losses relate to the Business Solutions business. |
Settlement Assets and Obligat_2
Settlement Assets and Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Settlement Assets and Obligations | |
Schedule of Settlement Assets and Obligations | Settlement assets and obligations consisted of the following (in millions): December 31, 2021 Settlement assets: Cash and cash equivalents $ 835.5 Receivables from agents, Business Solutions customers, and others 1,198.8 Less: Allowance for credit losses ( 23.7 ) Receivables from agents, Business Solutions customers, and others, net 1,175.1 Investment securities 1,398.9 Total settlement assets (a) $ 3,409.5 Settlement obligations: Money transfer, money order, and payment service payables $ 2,838.9 Payables to agents 570.6 Total settlement obligations (a) $ 3,409.5 December 31, 2020 Settlement assets: Cash and cash equivalents $ 695.7 Receivables from agents, Business Solutions customers, and others 1,188.3 Less: Allowance for credit losses ( 53.2 ) Receivables from agents, Business Solutions customers, and others, net 1,135.1 Investment securities 1,990.6 Total settlement assets $ 3,821.4 Settlement obligations: Money transfer, money order, and payment service payables $ 2,902.9 Payables to agents 918.5 Total settlement obligations $ 3,821.4 (a) As of December 31, 2021 , both Settlement assets and Settlement obligations include $ 566.0 million classified as Assets held for sale and Liabilities associated with assets held for sale (see Note 5). |
Summary of Activity in the Allowance for Credit Losses | The following tables summarize the activity in the allowance for credit losses on receivables from agents and others, and Business Solutions customers (in millions): Agents and Business Solutions Others Customers Allowance for credit losses as of January 1, 2021 $ 49.3 $ 3.9 Current period provision for expected credit losses (a) 8.9 4.2 Write-offs charged against the allowance ( 44.8 ) ( 2.1 ) Recoveries of amounts previously written off 6.8 — Impacts of foreign currency exchange rates and other ( 2.2 ) ( 0.3 ) Allowance for credit losses as of December 31, 2021 $ 18.0 $ 5.7 Agents and Business Solutions Others Customers Allowance for credit losses as of January 1, 2020 $ 20.4 $ 4.5 Current period provision for expected credit losses (a) 39.9 2.0 Write-offs charged against the allowance ( 11.9 ) ( 3.1 ) Recoveries of amounts previously written off 2.3 — Impacts of foreign currency exchange rates and other ( 1.4 ) 0.5 Allowance for credit losses as of December 31, 2020 $ 49.3 $ 3.9 (a) Provision does not include losses from chargebacks or fraud associated with transactions initiated through the Company’s digital channels, as these losses are not credit-related. The Company recognized losses that were not credit-related of $ 51.4 million and $ 41.3 million, respectively, for the years ended December 31, 2021 and 2020 . |
Components of Investment Securities | The components of investment securities are as follows (in millions): Gross Gross Net Amortized Fair Unrealized Unrealized Unrealized December 31, 2021 Cost Value Gains Losses Gains/(Losses) Settlement assets: Cash and cash equivalents: Money market funds $ 7.9 $ 7.9 $ — $ — $ — Available-for-sale securities: State and municipal debt securities (a) 1,182.6 1,219.9 39.8 ( 2.5 ) 37.3 State and municipal variable-rate demand notes 84.8 84.8 — — — Corporate and other debt securities 58.1 57.8 0.2 ( 0.5 ) ( 0.3 ) United States government agency mortgage-backed securities 35.6 36.4 0.8 — 0.8 Total available-for-sale securities 1,361.1 1,398.9 40.8 ( 3.0 ) 37.8 Total investment securities $ 1,369.0 $ 1,406.8 $ 40.8 $ ( 3.0 ) $ 37.8 Gross Gross Net Amortized Fair Unrealized Unrealized Unrealized December 31, 2020 Cost Value Gains Losses Gains/(Losses) Settlement assets: Cash and cash equivalents: Money market funds $ 13.1 $ 13.1 $ — $ — $ — Available-for-sale securities: State and municipal debt securities (a) 1,234.1 1,303.9 69.8 — 69.8 State and municipal variable-rate demand notes 562.1 562.1 — — — Corporate and other debt securities 71.6 72.8 1.2 — 1.2 United States government agency mortgage-backed securities 50.3 51.8 1.5 — 1.5 Total available-for-sale securities 1,918.1 1,990.6 72.5 — 72.5 Total investment securities $ 1,931.2 $ 2,003.7 $ 72.5 $ — $ 72.5 (a) The majority of these securities are fixed-rate instruments. |
Contractual Maturities of Debt Securities | The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of December 31, 2021 (in millions): Fair Value Due within 1 year $ 162.5 Due after 1 year through 5 years 575.6 Due after 5 years through 10 years 503.5 Due after 10 years 157.3 Total $ 1,398.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the Company’s assets and liabilities which are measured at fair value on a recurring basis, by balance sheet line item (in millions): Fair Value Measurement Using Total December 31, 2021 Level 1 Level 2 Fair Value Assets: Settlement assets: Measured at fair value through net income: Money market funds $ 7.9 $ — $ 7.9 Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income): State and municipal debt securities — 1,219.9 1,219.9 State and municipal variable-rate demand notes — 84.8 84.8 Corporate and other debt securities — 57.8 57.8 United States government agency mortgage-backed securities — 36.4 36.4 Other assets: Derivatives — 247.7 247.7 Total assets $ 7.9 $ 1,646.6 $ 1,654.5 Liabilities: Other liabilities: Derivatives $ — $ 183.8 $ 183.8 Total liabilities $ — $ 183.8 $ 183.8 Fair Value Measurement Using Total December 31, 2020 Level 1 Level 2 Fair Value Assets: Settlement assets: Measured at fair value through net income: Money market funds $ 13.1 $ — $ 13.1 Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income): State and municipal debt securities — 1,303.9 1,303.9 State and municipal variable-rate demand notes — 562.1 562.1 Corporate and other debt securities — 72.8 72.8 United States government agency mortgage-backed securities — 51.8 51.8 Other assets: Derivatives — 453.3 453.3 Total assets $ 13.1 $ 2,443.9 $ 2,457.0 Liabilities: Other liabilities: Derivatives $ — $ 430.3 $ 430.3 Total liabilities $ — $ 430.3 $ 430.3 |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets and Other Liabilities | |
Schedule of Components of Other Assets and Other Liabilities | The following table summarizes the components of Other assets and Other liabilities (in millions): December 31, 2021 2020 Other assets: Derivatives $ 247.7 $ 453.3 Other investments (Note 5) 166.3 7.7 ROU assets 164.5 189.1 Amounts advanced to agents 146.9 135.9 Prepaid expenses 85.5 81.0 Equity method investments 38.4 34.5 Prepaid pension costs (Note 12) — 39.9 Other 148.9 83.3 Total other assets (a) $ 998.2 $ 1,024.7 Other liabilities: Operating lease liabilities $ 203.0 $ 234.9 Derivatives 183.8 430.3 Accrued agent contract costs (b) 5.4 77.1 Other 71.5 60.1 Total other liabilities (a) $ 463.7 $ 802.4 (a) As of December 31, 2021, Other assets include $ 260.5 million classified as Assets held for sale, and Other liabilities include $ 194.3 million classified as Liabilities associated with assets held for sale (see Note 5). (b) Represents accrued and unpaid contract costs for new and renewed agent contracts. The majority of the balance as of December 31, 2020 was paid in January 2021. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Components of Pre-Tax Income | The components of pre-tax income, generally based on the jurisdiction of the legal entity, were as follows (in millions): Year Ended December 31, 2021 2020 2019 Domestic $ ( 59.9 ) $ — $ 434.7 Foreign 995.3 855.1 886.7 Total pre-tax income $ 935.4 $ 855.1 $ 1,321.4 |
Provision for Income Taxes | The provision for income taxes was as follows (in millions): Year Ended December 31, 2021 2020 2019 Federal $ 40.3 $ 50.1 $ 153.7 State and local 1.4 1.1 22.9 Foreign 87.9 59.6 86.5 Total provision for income taxes $ 129.6 $ 110.8 $ 263.1 |
Effective Tax Rates | The Company’s effective tax rates differed from statutory rates as follows: Year Ended December 31, 2021 2020 2019 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefits 0.2 % 0.5 % 1.4 % Foreign rate differential, net of United States tax paid on foreign earnings ( 3.3 %, 5.6 %, and 2.3 %, respectively) ( 9.5 )% ( 8.3 )% ( 5.5 )% Divestitures — % — % 2.4 % Change in Business Solutions permanent reinvestment assertion 1.9 % — % — % Lapse of statute of limitations ( 0.5 )% ( 0.7 )% ( 0.5 )% Valuation allowances — % 0.2 % 0.1 % Other 0.8 % 0.2 % 1.0 % Effective tax rate 13.9 % 12.9 % 19.9 % |
Components of Provision for Income Taxes | The Company’s provision for income taxes consisted of the following components (in millions): Year Ended December 31, 2021 2020 2019 Current: Federal $ 43.9 $ 35.7 $ 169.4 State and local 4.3 1.9 18.1 Foreign 84.0 59.3 100.1 Total current taxes 132.2 96.9 287.6 Deferred: Federal ( 3.6 ) 14.4 ( 15.7 ) State and local ( 2.9 ) ( 0.8 ) 4.8 Foreign 3.9 0.3 ( 13.6 ) Total deferred taxes ( 2.6 ) 13.9 ( 24.5 ) $ 129.6 $ 110.8 $ 263.1 |
Principal Components of Deferred Tax Items | Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the book and tax bases of the Company’s assets and liabilities. The following table outlines the principal components of deferred tax items (in millions): December 31, 2021 2020 Deferred tax assets related to: Reserves, accrued expenses and employee-related items $ 13.6 $ 22.9 Lease liabilities 21.2 23.8 Tax attribute carryovers 28.0 30.2 Intangibles, property and equipment 11.8 15.1 Other 8.9 8.6 Valuation allowance ( 17.8 ) ( 18.6 ) Total deferred tax assets 65.7 82.0 Deferred tax liabilities related to: Intangibles, property and equipment 218.6 218.0 Lease right-of-use assets 13.8 15.8 Prepaid pension costs — 7.8 Outside basis difference in Business Solutions 17.9 — Other 7.4 14.2 Total deferred tax liabilities 257.7 255.8 Net deferred tax liability (a) $ 192.0 $ 173.8 a) As of December 31, 2021 and 2020, deferred tax assets that cannot be fully offset by deferred tax liabilities in the respective tax jurisdictions of $ 11.8 million and $ 15.1 million, respectively, are reflected in Other assets in the Consolidated Balance Sheets. |
Reconciliation of Beginning and Ending of Unrecognized Tax Benefits | Unrecognized tax benefits represent the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s consolidated financial statements and are reflected in Income taxes payable in the Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties and before offset of related items, is as follows (in millions): 2021 2020 Balance as of January 1 $ 340.7 $ 293.9 Increase related to current period tax positions (a) 3.1 2.8 Increase related to prior period tax positions (b) 7.3 49.7 Decrease related to prior period tax positions ( 2.0 ) ( 1.9 ) Decrease due to settlements with taxing authorities ( 0.6 ) — Decrease due to lapse of applicable statute of limitations ( 3.4 ) ( 3.2 ) Decrease due to effects of foreign currency exchange rates ( 0.5 ) ( 0.6 ) Balance as of December 31 $ 344.6 $ 340.7 (a) Includes recurring accruals for issues which initially arose in previous periods. (b) Includes gross accrual for tax positions associated with current audits. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule of Weighted Average Lease Terms and Discount Rates | The following table summarizes the weighted-average lease terms and discount rates for operating lease liabilities: December 31, 2021 December 31, 2020 Weighted-average remaining lease term (in years) 6.8 7.2 Weighted-average discount rate 5.4 % 5.6 % |
Schedule of Maturities of Operating Lease Liabilities | The following table represents maturities of operating lease liabilities as of December 31, 2021 (in millions): December 31, 2021 Due within 1 year $ 45.9 Due after 1 year through 2 years 38.8 Due after 2 years through 3 years 33.8 Due after 3 years through 4 years 28.7 Due after 4 years through 5 years 23.8 Due after 5 years 69.9 Total lease payments 240.9 Less imputed interest ( 37.9 ) Total operating lease liabilities $ 203.0 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity/(Deficit) | |
Schedule of Amounts Reclassified from AOCL | The following table details reclassifications out of AOCL and into Net income. All amounts reclassified from AOCL affect the line items as indicated below, and the amounts in parentheses indicate decreases to Net income in the Consolidated Statements of Income. Amounts Reclassified from AOCL to Net Income Income Statement Year Ended December 31, Income for the period (in millions) Location 2021 2020 2019 Accumulated other comprehensive loss components: Gains/(losses) on investment securities: Available-for-sale securities Revenues $ 3.7 $ 0.6 $ 0.6 Income tax expense Provision for income taxes ( 0.8 ) ( 0.1 ) ( 0.1 ) Total reclassification adjustments related to investment securities, net of tax 2.9 0.5 0.5 Gains/(losses) on cash flow hedges: Foreign currency contracts Revenues ( 7.6 ) 1.2 14.2 Interest rate contracts Interest expense ( 0.6 ) ( 0.6 ) — Interest rate contracts Other income/(expense), net 0.7 — — Income tax benefit/(expense) Provision for income taxes — 0.1 ( 0.1 ) Total reclassification adjustments related to cash flow hedges, net of tax ( 7.5 ) 0.7 14.1 Effects of 2021 settlement and amortization of components of defined benefit plans: Settlement charges Pension settlement charges ( 109.8 ) — — Actuarial loss Other income/(expense), net ( 9.9 ) ( 12.1 ) ( 10.8 ) Income tax benefit Provision for income taxes 25.7 2.7 2.4 Total reclassification adjustments related to defined benefit plans, net of tax ( 94.0 ) ( 9.4 ) ( 8.4 ) Total reclassifications, net of tax $ ( 98.6 ) $ ( 8.2 ) $ 6.2 |
Schedule of Components of Accumulated Other Comprehensive Income/(Loss) | The following tables summarize the components of AOCL, net of tax in the accompanying Consolidated Balance Sheets (in millions): Investment Hedging Foreign Defined Securities Activities Translation Pension Plan Total As of December 31, 2020 $ 58.3 $ ( 30.5 ) $ ( 101.2 ) $ ( 86.1 ) $ ( 159.5 ) Unrealized gains/(losses) ( 31.0 ) 42.9 — ( 8.7 ) 3.2 Tax benefit/(expense) 6.0 ( 1.2 ) — 0.8 5.6 Amounts reclassified from AOCL into earnings, net of tax ( 2.9 ) 7.5 — 94.0 98.6 As of December 31, 2021 $ 30.4 $ 18.7 $ ( 101.2 ) $ — $ ( 52.1 ) Investment Hedging Foreign Defined Securities Activities Translation Pension Plan Total As of December 31, 2019 $ 24.7 $ ( 3.6 ) $ ( 101.2 ) $ ( 128.9 ) $ ( 209.0 ) Unrealized gains/(losses) 41.5 ( 26.4 ) — 43.5 58.6 Tax benefit/(expense) ( 7.4 ) 0.2 — ( 10.1 ) ( 17.3 ) Amounts reclassified from AOCL into earnings, net of tax ( 0.5 ) ( 0.7 ) — 9.4 8.2 As of December 31, 2020 $ 58.3 $ ( 30.5 ) $ ( 101.2 ) $ ( 86.1 ) $ ( 159.5 ) Investment Hedging Foreign Defined Securities Activities Translation Pension Plan Total As of December 31, 2018 $ ( 1.1 ) $ 7.4 $ ( 101.2 ) $ ( 136.1 ) $ ( 231.0 ) Unrealized gains/(losses) 33.6 2.0 — ( 2.0 ) 33.6 Tax benefit/(expense) ( 7.3 ) 1.1 — 0.8 ( 5.4 ) Amounts reclassified from AOCL into earnings, net of tax ( 0.5 ) ( 14.1 ) — 8.4 ( 6.2 ) As of December 31, 2019 $ 24.7 $ ( 3.6 ) $ ( 101.2 ) $ ( 128.9 ) $ ( 209.0 ) |
Schedule of Dividends Declared | Cash dividends paid for the years ended December 31, 2021, 2020, and 2019 were $ 380.5 million, $ 369.9 million, and $ 340.8 million, respectively. Dividends per share declared quarterly by the Company’s Board of Directors during the years ended 2021, 2020, and 2019 were as follows: Year Q1 Q2 Q3 Q4 2021 $ 0.235 $ 0.235 $ 0.235 $ 0.235 2020 $ 0.225 $ 0.225 $ 0.225 $ 0.225 2019 $ 0.20 $ 0.20 $ 0.20 $ 0.20 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivatives | |
Notional Amounts of Foreign Currency Forward Contracts | The aggregate equivalent United States dollar notional amounts of foreign currency forward contracts as of December 31, 2021 and 2020 were as follows (in millions): December 31, 2021 Contracts designated as hedges: Euro $ 399.9 Canadian dollar 134.0 Australian dollar 58.4 Swiss franc 45.9 British pound 43.8 Swedish krona 30.7 Japanese yen 30.4 Other (a) 0.9 Contracts not designated as hedges: Euro $ 755.7 British pound 148.1 Canadian dollar 144.2 Australian dollar 98.1 Mexican peso 96.3 Philippine peso 76.2 Indian rupee 63.4 Japanese yen 46.0 Russian ruble 44.4 Chinese yuan 31.6 New Zealand dollar 26.6 Swiss franc 25.1 Swedish krona 25.1 Other (a) 132.7 December 31, 2020 Contracts designated as hedges: Euro $ 428.9 Canadian dollar 131.9 British pound 71.9 Australian dollar 58.3 Swiss franc 41.1 Japanese yen 36.6 Other (a) 29.5 Contracts not designated as hedges: Euro $ 533.0 British pound 153.9 Mexican peso 105.0 Indian rupee 81.0 Canadian dollar 71.5 Australian dollar 68.1 Japanese yen 39.6 Philippine peso 35.2 Russian ruble 31.2 Indonesian rupiah 29.1 Swedish krona 26.0 Other (a) 151.5 (a) Comprised of exposures to various currencies; none of these individual currency exposures is greater than $ 25 million. |
Fair Value of Derivatives | The following table summarizes the fair value of derivatives reported in the Company’s Consolidated Balance Sheets as of December 31, 2021 and 2020 (in millions): Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet December 31, December 31, Balance Sheet December 31, December 31, Location 2021 2020 Location 2021 2020 Derivatives designated as hedges: Foreign currency cash flow hedges Other assets $ 30.6 $ 9.1 Other liabilities $ 2.6 $ 24.9 Interest rate cash flow hedges Other assets — — Other liabilities — 0.1 Total derivatives designated as hedges $ 30.6 $ 9.1 $ 2.6 $ 25.0 Derivatives not designated as hedges: Business Solutions operations - foreign currency (a) Other assets $ 213.1 $ 441.4 Other liabilities $ 174.1 $ 402.5 Foreign currency Other assets 4.0 2.8 Other liabilities 7.1 2.8 Total derivatives not designated as hedges $ 217.1 $ 444.2 $ 181.2 $ 405.3 Total derivatives $ 247.7 $ 453.3 $ 183.8 $ 430.3 (a) In many circumstances, the Company allows its Business Solutions customers to settle part or all of their derivative contracts prior to maturity. However, the offsetting positions originally entered into with financial institution counterparties do not allow for similar settlement. To mitigate this, additional foreign currency contracts are entered into with financial institution counterparties to offset the original economic hedge contracts. This frequently results in changes in the Company’s derivative assets and liabilities that may not directly align with the performance in the underlying derivatives business. |
Gross and Net Fair Value of Derivative Assets | The following tables summarize the gross and net fair value of derivative assets and liabilities as of December 31, 2021 and 2020 (in millions): Offsetting of Derivative Assets Gross Gross Net Amounts Derivatives Amounts of Amounts Offset Presented Not Offset Recognized in the Consolidated in the Consolidated in the Consolidated Net December 31, 2021 Assets Balance Sheets Balance Sheets Balance Sheets Amounts Derivatives subject to a master netting arrangement or similar agreement $ 163.9 $ — $ 163.9 $ ( 92.4 ) $ 71.5 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 83.8 Total $ 247.7 December 31, 2020 Derivatives subject to a master netting arrangement or similar agreement $ 165.1 $ — $ 165.1 $ ( 155.1 ) $ 10.0 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 288.2 Total $ 453.3 |
Gross and Net Fair Value of Derivative Liabilities | Offsetting of Derivative Liabilities Gross Gross Net Amounts Derivatives Amounts of Amounts Offset Presented Not Offset Recognized in the Consolidated in the Consolidated in the Consolidated Net December 31, 2021 Liabilities Balance Sheets Balance Sheets Balance Sheets Amounts Derivatives subject to a master netting arrangement or similar agreement $ 109.6 $ — $ 109.6 $ ( 92.4 ) $ 17.2 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 74.2 Total $ 183.8 December 31, 2020 Derivatives subject to a master netting arrangement or similar agreement $ 356.2 $ — $ 356.2 $ ( 155.1 ) $ 201.1 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 74.1 Total $ 430.3 |
Schedule of Amount and Location of Gains/(Losses) from Hedging Activities | The following table presents the pre-tax amount of unrealized gains/(losses) recognized in other comprehensive income from cash flow hedges for the years ended December 31, 2021, 2020, and 2019 (in millions): Year Ended December 31, 2021 2020 2019 Foreign currency derivatives (a) $ 39.5 $ ( 26.3 ) $ 2.0 Interest rate derivatives 3.4 ( 0.1 ) — (a) For the years ended December 31, 2021, 2020, and 2019 , gains/(losses) of ($ 2.4 ) million, $ 0.3 million, and $ 1.5 million, respectively, represent amounts excluded from the assessment of effectiveness and recognized in other comprehensive income, for which an amortization approach is applied. The following table presents the location and amounts of pre-tax net gains/(losses) from fair value and cash flow hedging relationships recognized in the Consolidated Statements of Income for the years ended December 31, 2021, 2020, and 2019 (in millions): Year Ended December 31, 2021 2020 2019 Interest Other Income/ Interest Interest Revenues Expense (Expense), net Revenues Expense Revenues Expense Total amounts presented in the Consolidated Statements of Income in which the effects of cash flow hedges are recorded $ 5,070.8 $ ( 105.5 ) $ ( 21.7 ) $ 4,835.0 $ ( 118.5 ) $ 5,292.1 $ ( 152.0 ) Gain/(loss) on fair value hedges: Interest rate derivatives: Hedged items — — — — — — ( 0.1 ) Derivatives designated as hedging instruments — — — — — — 1.0 Gain/(loss) on cash flow hedges: Foreign currency derivatives: Gains/(losses) reclassified from AOCL into earnings ( 7.6 ) — — 1.2 — 14.2 — Amount excluded from effectiveness testing recognized in earnings based on an amortization approach 6.1 — — 10.4 — 11.5 — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value — — — — — 2.9 — Interest rate derivatives: Gains/(losses) reclassified from AOCL into earnings — ( 0.6 ) 0.7 — ( 0.6 ) — — Undesignated Hedges The following table presents the location and amount of pre-tax net gains/(losses) from undesignated hedges in the Consolidated Statements of Income on derivatives for the years ended December 31, 2021, 2020, and 2019 (in millions): Year Ended December 31, Derivatives (a) Location 2021 2020 2019 Foreign currency derivatives (b) Selling, general, and administrative $ 52.0 $ 15.9 $ 23.9 Foreign currency derivatives Revenues — — 0.3 Total gain $ 52.0 $ 15.9 $ 24.2 (a) The Company uses foreign currency forward and option contracts as part of its Business Solutions payments operations. These derivative contracts are excluded from this table as they are managed as part of a broader currency portfolio that includes non-derivative currency exposures. The gains and losses on these derivatives are included as part of the broader disclosure of portfolio revenue for this business discussed above. (b) The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations, as well as certain foreign currency denominated positions. Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivative activity as displayed above, and included in Selling, general, and administrative in the Consolidated Statements of Income, were $( 56.1 ) million, $( 37.0 ) million, and $( 33.1 ) million for the years ended December 31, 2021, 2020, and 2019 , respectively. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings | |
Schedule of Outstanding Borrowings | The Company’s outstanding borrowings consisted of the following (in millions): December 31, 2021 December 31, 2020 Commercial paper $ 275.0 $ 80.0 Notes: 3.600 % notes due 2022 (a) — 500.0 4.250 % notes due 2023 (b) 300.0 300.0 2.850 % notes due 2025 (b) 500.0 500.0 1.350 % notes due 2026 (effective rate of 1.5 %) (a) 600.0 — 2.750 % notes due 2031 (effective rate of 2.9 %) (a) 300.0 — 6.200 % notes due 2036 (b) 500.0 500.0 6.200 % notes due 2040 (b) 250.0 250.0 Term loan facility borrowing (effective rate of 1.4 %) (a) 300.0 950.0 Total borrowings at par value 3,025.0 3,080.0 Debt issuance costs and unamortized discount, net ( 16.6 ) ( 12.8 ) Total borrowings at carrying value (c) $ 3,008.4 $ 3,067.2 (a) See the Term Loan Facility and Notes sections below for further discussion of the borrowings and repayments of the unsecured notes and term loan made in 2021 . (b) The difference between the stated interest rate and the effective interest rate is not significant. (c) As of December 31, 2021, the Company’s weighted-average effective rate on total borrowings was approximately 3.3 % . |
Schedule of Maturities of Borrowings | The following summarizes the Company’s maturities of notes and term loan at par value as of December 31, 2021 (in millions): Due within 1 year $ — Due after 1 year through 2 years 300.0 Due after 2 years through 3 years 300.0 Due after 3 years through 4 years 500.0 Due after 4 years through 5 years 600.0 Due after 5 years 1,050.0 Total $ 2,750.0 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation Plans | |
Schedule of Stock Option Activity | A summary of stock option activity for the year ended December 31, 2021 was as follows (options and aggregate intrinsic value in millions): Weighted- Weighted-Average Aggregate Options Price (Years) Value Outstanding as of January 1 4.9 $ 19.11 Granted 2.6 $ 18.87 Exercised ( 0.6 ) $ 19.59 Cancelled/forfeited — $ 21.00 Outstanding as of December 31 7.0 $ 18.98 6.9 $ 2.3 Options exercisable as of December 31 3.6 $ 18.48 4.5 $ 1.9 |
Schedule of Restricted Stock Units and Performance-based Restricted Stock Units Activity | A summary of activity for restricted stock units and performance-based restricted stock units for the year ended December 31, 2021 was as follows (units in millions): Weighted-Average Units Grant-Date Fair Value Non-vested as of January 1 6.9 $ 20.88 Granted 3.7 $ 22.63 Vested ( 2.1 ) $ 20.03 Forfeited ( 1.0 ) $ 21.52 Non-vested as of December 31 7.5 $ 21.91 |
Schedule of Impact on Earnings | The following table sets forth the total impact on earnings for stock-based compensation expense recognized in the Consolidated Statements of Income resulting from stock options, restricted stock units, performance-based restricted stock units and deferred stock units for the years ended December 31, 2021, 2020, and 2019 (in millions, except per share data): 2021 2020 2019 Stock-based compensation expense $ ( 44.3 ) $ ( 41.7 ) $ ( 48.9 ) Income tax benefit from stock-based compensation expense 7.5 6.9 8.5 Net income impact $ ( 36.8 ) $ ( 34.8 ) $ ( 40.4 ) Earnings per share impact: Basic and diluted $ ( 0.09 ) $ ( 0.08 ) $ ( 0.09 ) |
Schedule of Assumptions for Black-Scholes Option Pricing Model | The Company used the following assumptions for the Black-Scholes option pricing model to determine the value of Western Union options granted for the years ended December 31, 2021, 2020, and 2019: 2021 2020 2019 Stock options granted: Weighted-average risk-free interest rate 1.3 % 1.5 % 2.5 % Weighted-average dividend yield 4.2 % 4.0 % 4.2 % Volatility 29.1 % 25.2 % 22.8 % Expected term (in years) 7.03 7.12 7.05 Weighted-average grant date fair value $ 3.26 $ 3.96 $ 2.56 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segments | |
Segment Results | The following tables present the Company’s segment results for the years ended December 31, 2021, 2020, and 2019 (in millions): Year Ended December 31, 2021 2020 2019 Revenues: Consumer-to-Consumer $ 4,394.0 $ 4,220.0 $ 4,407.8 Business Solutions (a) 421.8 356.1 388.8 Other (b) 255.0 258.9 495.5 Total consolidated revenues $ 5,070.8 $ 4,835.0 $ 5,292.1 Operating income: Consumer-to-Consumer $ 977.6 $ 924.7 $ 975.4 Business Solutions (a) 95.5 24.4 46.8 Other (b) 50.0 55.0 27.3 Total segment operating income (c) 1,123.1 1,004.1 1,049.5 Restructuring-related expenses (Note 4) — ( 36.8 ) ( 115.5 ) Total consolidated operating income $ 1,123.1 $ 967.3 $ 934.0 (a) On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business, as further discussed in Note 5. (b) Other primarily consists of the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations. In May 2019, the Company sold a substantial majority of its United States based electronic bill payment services known as Speedpay and Paymap, as discussed in Note 5. Speedpay revenues included in the Company’s results were $ 125.4 million for the year ended December 31, 2019. Speedpay direct operating expenses were $ 98.2 million for the year ended December 31, 2019. Paymap revenues included in the Company’s results were $ 5.3 million for the year ended December 31, 2019. Paymap direct operating expenses were $ 2.2 million for the year ended December 31, 2019. (c) In the first quarter of 2020, the Company changed its expense allocation method so that its corporate data center and network engineering information technology expenses are allocated based on a percentage of relative revenue. In 2019, these costs had been allocated based in part on a percentage of relative transactions. The Company believes that an allocation method based fully on relative revenue presents a more representative view of segment profitability, as certain of the Company’s services, particularly some of its bill payment services and its money order services, have much lower revenues per transaction than the Company’s other services. Further, these technology expenses are becoming increasingly based on data storage utilized and less based on the number of transactions processed. For the year ended December 31, 2019, this change would have decreased Consumer-to-Consumer operating income and increased Other operating income by $ 49.6 million. Business Solutions was not materially impacted by the change in the allocation method. Year Ended December 31, 2021 2020 2019 Depreciation and amortization: Consumer-to-Consumer $ 181.6 $ 178.5 $ 194.5 Business Solutions 16.1 36.1 39.6 Other 10.5 11.0 23.6 Total consolidated depreciation and amortization $ 208.2 $ 225.6 $ 257.7 Capital expenditures: Consumer-to-Consumer $ 192.3 $ 133.5 $ 97.0 Business Solutions 5.2 10.3 7.7 Other 17.1 13.0 23.0 Total consolidated capital expenditures $ 214.6 $ 156.8 $ 127.7 |
Information Concerning Principal Geographic Areas | Information concerning principal geographic areas was as follows (in millions): Year Ended December 31, 2021 2020 2019 Revenue: United States $ 1,702.0 $ 1,678.4 $ 1,896.1 International 3,368.8 3,156.6 3,396.0 Total $ 5,070.8 $ 4,835.0 $ 5,292.1 Long-lived assets: United States (a) $ 82.0 $ 100.4 $ 173.7 International 53.7 50.0 62.5 Total (b) $ 135.7 $ 150.4 $ 236.2 (a) Assets held for sale of $ 49.3 million, which primarily consisted of the Company’s former headquarters, were included in Other assets as of December 31, 2019 in the Company’s Consolidated Balance Sheets. In 2020, the Company sold its former corporate headquarters and other property and recorded an immaterial gain on the sales. (b) As of December 31, 2021, Long-lived assets in United States and International include Assets held for sale of $ 1.4 million and $ 4.9 million, respectively, related to the Company's Business Solutions business, as further discussed in Note 5. |
Business and Basis of Present_3
Business and Basis of Presentation - Narrative (Details) $ in Millions | Dec. 31, 2021USD ($)Country |
Business and Basis of Presentation | |
Number of countries and territories where services are primarily available through a network of agent locations (more than) | Country | 200 |
Net assets subject to limitations | $ | $ 460 |
Business and Basis of Present_4
Business and Basis of Presentation - Summary of Effects of Changes in Presentation Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash provided by/(used in) Operating activities | $ 1,045.3 | $ 877.5 | $ 914.6 |
Net cash provided by/(used in) Investing activities | 192 | (373.5) | 167 |
Net cash provided by/(used in) Financing activities | (1,269.5) | (185.9) | (1,484.1) |
Net change in cash and cash equivalents, including settlement, and restricted cash | $ (32.2) | 318.1 | (402.5) |
As Revised | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash provided by/(used in) Operating activities | 877.5 | 914.6 | |
Net cash provided by/(used in) Investing activities | (113.4) | 632.3 | |
Net cash provided by/(used in) Financing activities | (773.5) | (1,069.8) | |
Net change in cash and cash equivalents, including settlement, and restricted cash | (9.4) | 477.1 | |
Revisions | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net cash provided by/(used in) Investing activities | (260.1) | (465.3) | |
Net cash provided by/(used in) Financing activities | 587.6 | (414.3) | |
Net change in cash and cash equivalents, including settlement, and restricted cash | $ 327.5 | $ (879.6) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Outstanding restricted stock and options to purchase shares of stock excluded from the diluted earnings per share calculation | 2.3 | 1.6 | 1.9 |
Depreciation | $ 49,600,000 | $ 61,300,000 | $ 79,600,000 |
Goodwill impairment charge | 0 | 0 | 0 |
Amortization expense | $ 158,600,000 | 164,300,000 | 178,100,000 |
Amortization period of intangible assets | 8 years | ||
Advertising costs | $ 177,800,000 | $ 177,000,000 | $ 209,100,000 |
ASU 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Change in accounting principle due to adopted accounting standards update | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | ||
New accounting pronouncement or change in accounting principle, description | cumulative effect of the new accounting standard | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Change in accounting principle due to adopted accounting standards update | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2019 | ||
Transition option elected | us-gaap:AccountingStandardsUpdate201602CumulativeEffectPeriodOfAdoptionMember | ||
Asset Held for Sale | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated future aggregate amortization expense, 2022 | $ 16,200,000 | ||
Estimated future aggregate amortization expense, 2023 | 10,100,000 | ||
Estimated future aggregate amortization expense, 2024 | 7,100,000 | ||
Estimated future aggregate amortization expense, 2025 | 6,300,000 | ||
Estimated future aggregate amortization expense, 2026 | 5,500,000 | ||
Estimated future aggregate amortization expense, thereafter | 2,900,000 | ||
Other Intangibles | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated future aggregate amortization expense, 2022 | 141,900,000 | ||
Estimated future aggregate amortization expense, 2023 | 106,100,000 | ||
Estimated future aggregate amortization expense, 2024 | 82,700,000 | ||
Estimated future aggregate amortization expense, 2025 | 48,600,000 | ||
Estimated future aggregate amortization expense, 2026 | 24,000,000 | ||
Estimated future aggregate amortization expense, thereafter | 28,500,000 | ||
Asset Held for Sale, Not Discontinued Operations | Business Solutions | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment, includes in assets held for sale | 6,300,000 | ||
Other intangible assets, includes in assets held for sale | 50,400,000 | ||
Asset Held for Sale, Not Discontinued Operations | Projects in Process | Business Solutions | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other intangible assets, includes in assets held for sale | $ 2,300,000 | ||
Minimum | Internal Use Software | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortization period of intangible assets | 3 years | ||
Minimum | Equipment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment useful life | 3 years | ||
Minimum | Furniture and Fixtures | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment useful life | 3 years | ||
Maximum | Uncollected Settlement Assets and Obligations | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Derivative contracts maturity range | 1 month | ||
Maximum | Foreign Currency Denominated Cash and Other Asset and Other Liability Positions | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Derivative contracts maturity range | 1 year | ||
Maximum | Internal Use Software | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortization period of intangible assets | 7 years | ||
Maximum | Equipment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment useful life | 7 years | ||
Maximum | Furniture and Fixtures | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property and equipment useful life | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Diluted Weighted-Average Shares Outstanding (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Calculation of diluted weighted-average shares outstanding | |||
Basic weighted-average shares outstanding | 406.8 | 412.3 | 427.6 |
Common stock equivalents | 2.1 | 2.9 | 3.3 |
Diluted weighted-average shares outstanding | 408.9 | 415.2 | 430.9 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property and Equipment | |||
Property and equipment, gross | $ 805.4 | $ 810.3 | |
Accumulated depreciation | (669.7) | (659.9) | |
Property and equipment, net | 135.7 | ||
Property and equipment, net | 129.4 | 150.4 | $ 236.2 |
Equipment | |||
Property and Equipment | |||
Property and equipment, gross | 607.7 | 608.9 | |
Leasehold Improvements and Other | |||
Property and Equipment | |||
Property and equipment, gross | 151.2 | 153.7 | |
Furniture and Fixtures | |||
Property and Equipment | |||
Property and equipment, gross | 46.2 | 45.4 | |
Projects In Process | |||
Property and Equipment | |||
Property and equipment, gross | $ 0.3 | $ 2.3 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Components of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Intangible Assets | ||
Amortization period of intangible assets | 8 years | |
Initial Cost | $ 1,559.5 | $ 1,549.6 |
Net of Accumulated Amortization | 467.5 | |
Net of Accumulated Amortization | 417.1 | 505 |
Capitalized Contract Costs | ||
Other Intangible Assets | ||
Initial Cost | 532.7 | 574.4 |
Net of Accumulated Amortization | 242 | |
Net of Accumulated Amortization | 308 | |
Acquired Contracts | ||
Other Intangible Assets | ||
Initial Cost | 552.9 | 561.7 |
Net of Accumulated Amortization | 50.2 | |
Net of Accumulated Amortization | 75.8 | |
Internal Use Software | ||
Other Intangible Assets | ||
Initial Cost | 388.7 | 310.3 |
Net of Accumulated Amortization | 128.8 | |
Net of Accumulated Amortization | 55.5 | |
Acquired Trademarks | ||
Other Intangible Assets | ||
Initial Cost | 30.1 | 30.1 |
Net of Accumulated Amortization | 10.8 | |
Net of Accumulated Amortization | 12 | |
Other Intangibles | ||
Other Intangible Assets | ||
Initial Cost | 19.4 | 19.4 |
Projects in Process | ||
Other Intangible Assets | ||
Initial Cost | 35.7 | 53.7 |
Net of Accumulated Amortization | $ 35.7 | |
Net of Accumulated Amortization | $ 53.7 | |
Weighted Average | Capitalized Contract Costs | ||
Other Intangible Assets | ||
Amortization period of intangible assets | 6 years 2 months 12 days | |
Weighted Average | Acquired Contracts | ||
Other Intangible Assets | ||
Amortization period of intangible assets | 11 years 7 months 6 days | |
Weighted Average | Internal Use Software | ||
Other Intangible Assets | ||
Amortization period of intangible assets | 4 years 3 months 18 days | |
Weighted Average | Acquired Trademarks | ||
Other Intangible Assets | ||
Amortization period of intangible assets | 25 years 4 months 24 days | |
Weighted Average | Other Intangibles | ||
Other Intangible Assets | ||
Amortization period of intangible assets | 4 years 3 months 18 days |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)Item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Revenue | |||
Revenues from contracts with customers | $ 4,865.5 | $ 4,625.1 | $ 5,033.2 |
Consumer money transfers | |||
Revenue | |||
Revenues from contracts with customers | $ 4,320.9 | 4,133 | 4,304.3 |
Number of performance obligations | Item | 1 | ||
Number of integrated services involved in a transaction | Item | 1 | ||
Consumer bill payments | |||
Revenue | |||
Revenues from contracts with customers | $ 156.6 | $ 156.3 | $ 357.5 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue Earned from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | |||
Revenues from contracts with customers | $ 4,865.5 | $ 4,625.1 | $ 5,033.2 |
Other revenues | 205.3 | 209.9 | 258.9 |
Revenues | 5,070.8 | 4,835 | 5,292.1 |
Consumer money transfers | |||
Revenue | |||
Revenues from contracts with customers | 4,320.9 | 4,133 | 4,304.3 |
Other revenues | 73.1 | 87 | 103.5 |
Revenues | 4,394 | 4,220 | 4,407.8 |
Foreign exchange and payment services | |||
Revenue | |||
Revenues from contracts with customers | 322.5 | 269.1 | 296.1 |
Other revenues | 99.3 | 87 | 92.7 |
Revenues | 421.8 | 356.1 | 388.8 |
Consumer bill payments | |||
Revenue | |||
Revenues from contracts with customers | 156.6 | 156.3 | 357.5 |
Other revenues | 13.3 | 14 | 37.3 |
Revenues | 169.9 | 170.3 | 394.8 |
Other services | |||
Revenue | |||
Revenues from contracts with customers | 65.5 | 66.7 | 75.3 |
Other revenues | 19.6 | 21.9 | 25.4 |
Revenues | 85.1 | 88.6 | 100.7 |
Other services | Speedpay | Divestitures | |||
Revenue | |||
Revenues | 125.4 | ||
North America | |||
Revenue | |||
Revenues from contracts with customers | 1,857.9 | 1,821.2 | 2,027.8 |
North America | Consumer money transfers | |||
Revenue | |||
Revenues from contracts with customers | 1,625.7 | 1,605.5 | 1,653.5 |
North America | Foreign exchange and payment services | |||
Revenue | |||
Revenues from contracts with customers | 101.8 | 83.6 | 95.4 |
North America | Consumer bill payments | |||
Revenue | |||
Revenues from contracts with customers | 73.3 | 75.1 | 223 |
North America | Other services | |||
Revenue | |||
Revenues from contracts with customers | 57.1 | 57 | 55.9 |
Europe and Russia/CIS | |||
Revenue | |||
Revenues from contracts with customers | 1,533.7 | 1,456.5 | 1,484.5 |
Europe and Russia/CIS | Consumer money transfers | |||
Revenue | |||
Revenues from contracts with customers | 1,381.3 | 1,330 | 1,350.1 |
Europe and Russia/CIS | Foreign exchange and payment services | |||
Revenue | |||
Revenues from contracts with customers | 145.5 | 121.1 | 127.1 |
Europe and Russia/CIS | Consumer bill payments | |||
Revenue | |||
Revenues from contracts with customers | 5.8 | 3.6 | 3.2 |
Europe and Russia/CIS | Other services | |||
Revenue | |||
Revenues from contracts with customers | 1.1 | 1.8 | 4.1 |
Middle East, Africa, and South Asia | |||
Revenue | |||
Revenues from contracts with customers | 663.6 | 631.9 | 644.2 |
Middle East, Africa, and South Asia | Consumer money transfers | |||
Revenue | |||
Revenues from contracts with customers | 660.8 | 630 | 642 |
Middle East, Africa, and South Asia | Foreign exchange and payment services | |||
Revenue | |||
Revenues from contracts with customers | 2.2 | 1.5 | 1.8 |
Middle East, Africa, and South Asia | Consumer bill payments | |||
Revenue | |||
Revenues from contracts with customers | 0.6 | 0.4 | 0.4 |
Latin America and the Caribbean | |||
Revenue | |||
Revenues from contracts with customers | 463.1 | 396.2 | 543.3 |
Latin America and the Caribbean | Consumer money transfers | |||
Revenue | |||
Revenues from contracts with customers | 376.6 | 310.1 | 395.2 |
Latin America and the Caribbean | Foreign exchange and payment services | |||
Revenue | |||
Revenues from contracts with customers | 3.4 | 2.4 | 3.4 |
Latin America and the Caribbean | Consumer bill payments | |||
Revenue | |||
Revenues from contracts with customers | 75.8 | 75.8 | 129.4 |
Latin America and the Caribbean | Other services | |||
Revenue | |||
Revenues from contracts with customers | 7.3 | 7.9 | 15.3 |
East Asia and Oceania | |||
Revenue | |||
Revenues from contracts with customers | 347.2 | 319.3 | 333.4 |
East Asia and Oceania | Consumer money transfers | |||
Revenue | |||
Revenues from contracts with customers | 276.5 | 257.4 | 263.5 |
East Asia and Oceania | Foreign exchange and payment services | |||
Revenue | |||
Revenues from contracts with customers | 69.6 | 60.5 | 68.4 |
East Asia and Oceania | Consumer bill payments | |||
Revenue | |||
Revenues from contracts with customers | $ 1.1 | $ 1.4 | $ 1.5 |
Revenue - Disaggregation of R_2
Revenue - Disaggregation of Revenue Earned from Contracts with Customers (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Other services | Speedpay | Divestitures | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 125.4 |
Restructuring-Related Expense_2
Restructuring-Related Expenses - Schedule of Restructuring Accruals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of activity for expenses related to the restructuring accruals | |||
Beginning balance | $ 26.2 | $ 73.3 | |
Expenses | 152.3 | 36.8 | $ 115.5 |
Cash payments | (82.7) | ||
Non-cash benefits/(charges) | (1.2) | ||
Ending balance | 26.2 | 73.3 | |
Severance and Related Employee Benefits | |||
Summary of activity for expenses related to the restructuring accruals | |||
Beginning balance | 24.9 | 71.2 | |
Expenses | 109.8 | 11.8 | |
Cash payments | (58.7) | ||
Non-cash benefits/(charges) | 0.6 | ||
Ending balance | 24.9 | 71.2 | |
Facility Relocations and Closures, Consulting, and Other | |||
Summary of activity for expenses related to the restructuring accruals | |||
Beginning balance | 1.3 | 2.1 | |
Expenses | $ 42.5 | 25 | |
Cash payments | (24) | ||
Non-cash benefits/(charges) | (1.8) | ||
Ending balance | $ 1.3 | $ 2.1 |
Restructuring-Related Expense_3
Restructuring-Related Expenses - Schedule of Restructuring-Related Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring-related expenses | |||
Expenses | $ 152.3 | $ 36.8 | $ 115.5 |
Total expenses, net of tax | 31.5 | 90 | |
Cost of Services | |||
Restructuring-related expenses | |||
Expenses | 4.5 | 39.8 | |
Selling, General and Administrative | |||
Restructuring-related expenses | |||
Expenses | $ 32.3 | $ 75.7 |
Divestitures, Investment Acti_3
Divestitures, Investment Activities, and Goodwill - Narrative (Details) | Aug. 04, 2021USD ($)Item | May 09, 2019USD ($) | Oct. 31, 2021USD ($) | Apr. 30, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain on sale | $ 524,600,000 | ||||||
Proceeds from shares sold | $ 50,900,000 | ||||||
Gain on sale of minority investment | 47,900,000 | ||||||
Goodwill | 2,034,600,000 | $ 2,566,600,000 | 2,566,600,000 | ||||
Goodwill impairment | 0 | 0 | 0 | ||||
Commercial Agreement | Certain Rights | Other Assets | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Investment value | 36,000,000 | ||||||
Private Company | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from shares sold | $ 50,900,000 | ||||||
Gain on sale of minority investment | 47,900,000 | ||||||
Saudi Digital Payments Company | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Investment in Saudi Digital Payments Company | $ 200,000,000 | ||||||
Ownership (as a percent) | 15.00% | ||||||
Divestitures | Speedpay | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Consideration from sale of business | $ 750,000,000 | ||||||
Divestitures | Speedpay | Other services | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Revenues | 125,400,000 | ||||||
Operating expenses | 98,200,000 | ||||||
Gain on sale | $ 523,000,000 | ||||||
Business Solutions | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Goodwill | 532,000,000 | 532,000,000 | |||||
Business Solutions | Asset Held for Sale, Not Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Consideration from sale of business | $ 910,000,000 | ||||||
Number of closings | Item | 2 | ||||||
Termination fee | $ 63,700,000 | ||||||
Revenues | 421,800,000 | 356,100,000 | 388,800,000 | ||||
Operating expenses | 317,700,000 | $ 319,500,000 | $ 334,100,000 | ||||
Operating costs directly associated with divestiture | 14,400,000 | ||||||
Unrealized currency translation gains | $ 17,800,000 |
Divestitures, Investment Acti_4
Divestitures, Investment Activities, and Goodwill - Schedule of Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | $ 37.7 | ||
Total assets | 1,452.9 | ||
Total liabilities | 821.9 | ||
Business Solutions | Asset Held for Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | 37.7 | ||
Settlement assets | 566 | ||
Property and equipment, net of accumulated depreciation of $19.3 | 6.3 | ||
Goodwill | 532 | ||
Other intangible assets, net of accumulated amortization of $360.2 | 50.4 | ||
Other assets | 260.5 | ||
Total assets | 1,452.9 | ||
Accounts payable and accrued liabilities | 61.6 | ||
Settlement obligations | 566 | ||
Other liabilities | 194.3 | ||
Total liabilities | $ 821.9 |
Divestitures, Investment Acti_5
Divestitures, Investment Activities, and Goodwill - Schedule of Assets and Liabilities Held for Sale (Parenthesis) (Details) - Business Solutions - Asset Held for Sale, Not Discontinued Operations $ in Millions | Dec. 31, 2021USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Accumulated depreciation on property and equipment | $ 19.3 |
Accumulated amortization on other intangible assets | $ 360.2 |
Divestitures, Investment Acti_6
Divestitures, Investment Activities, and Goodwill - Schedule of Changes to Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes to goodwill | ||
Goodwill, beginning balance | $ 2,566.6 | $ 2,566.6 |
Additions | 0 | 0 |
Goodwill, ending balance | 2,566.6 | |
Goodwill, ending balance | 2,034.6 | 2,566.6 |
Consumer-to-Consumer | ||
Changes to goodwill | ||
Goodwill, beginning balance | 1,980.7 | 1,980.7 |
Additions | 0 | 0 |
Goodwill, ending balance | 1,980.7 | |
Goodwill, ending balance | 1,980.7 | |
Business Solutions | ||
Changes to goodwill | ||
Goodwill, beginning balance | 532 | 532 |
Additions | 0 | 0 |
Goodwill, ending balance | 532 | |
Goodwill, ending balance | 532 | |
Other | ||
Changes to goodwill | ||
Goodwill, beginning balance | 53.9 | 53.9 |
Additions | 0 | 0 |
Goodwill, ending balance | $ 53.9 | |
Goodwill, ending balance | $ 53.9 |
Divestitures, Investment Acti_7
Divestitures, Investment Activities, and Goodwill - Schedule of Accumulated Impairment Losses of Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Divestitures, Acquisitions, and Goodwill | |||
Goodwill, gross | $ 3,030.6 | $ 3,030.6 | $ 3,030.6 |
Accumulated impairment losses | (464) | (464) | (464) |
Goodwill, net | 2,566.6 | ||
Goodwill, net | $ 2,034.6 | $ 2,566.6 | $ 2,566.6 |
Divestitures, Investment Acti_8
Divestitures, Investment Activities, and Goodwill - Schedule of Accumulated Impairment Losses of Goodwill (Parenthetical) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Business Solutions [Member] | Asset Held for Sale, Not Discontinued Operations | |
Goodwill [Line Items] | |
Goodwill included in assets held for sale | $ 532 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Dec. 31, 2021USD ($) |
Commitments and Contingencies | |
Letters of credit outstanding and bank guarantees | $ 450 |
Pending Litigation | |
Commitments and Contingencies | |
Range of possible loss, portion not accrued | $ 30 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions | |||
Commission expense | $ 54.7 | $ 54.6 | $ 57.1 |
Equity Method Investee | |||
Related Party Transactions | |||
Commission expense | $ 54.7 | $ 54.6 | $ 57.1 |
Settlement Assets and Obligat_3
Settlement Assets and Obligations - Schedule of Settlement Assets and Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Settlement assets: | |||
Cash and cash equivalents | $ 835.5 | $ 695.7 | $ 368.2 |
Receivables from agents, Business Solutions customers, and others | 1,198.8 | 1,188.3 | |
Less: Allowance for credit losses | (23.7) | (53.2) | |
Receivables from agents, Business Solutions customers, and others, net | 1,175.1 | 1,135.1 | |
Investment securities | 1,398.9 | 1,990.6 | |
Total settlement assets | 3,409.5 | ||
Total settlement assets | 2,843.5 | 3,821.4 | |
Settlement obligations: | |||
Money transfer, money order, and payment service payables | 2,838.9 | 2,902.9 | |
Payables to agents | 570.6 | 918.5 | |
Total settlement obligations | 3,409.5 | ||
Total settlement obligations | $ 2,843.5 | $ 3,821.4 |
Settlement Assets and Obligat_4
Settlement Assets and Obligations - Schedule of Settlement Assets and Obligations (Parenthetical) (Details) - Business Solutions [Member] - Asset Held for Sale, Not Discontinued Operations $ in Millions | Dec. 31, 2021USD ($) |
Settlement assets: | |
Settlement assets held for sale | $ 566 |
Settlement obligations: | |
Settlement obligations associated with assets held for sale | $ 566 |
Settlement Assets and Obligat_5
Settlement Assets and Obligations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables from agents, business solutions customers, and others, net | $ 1,175.1 | $ 1,135.1 | |
Provision for doubtful accounts | $ 47.1 | ||
Advances to agents | $ 146.9 | 135.9 | |
Variable rate demand notes, maximum maturity year | 2050 | ||
Due after 10 years | $ 157.3 | ||
Receivables from agents and others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables from agents, business solutions customers, and others, net | 1,125.9 | 1,081.2 | |
Receivables from Business Solutions customers | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables from agents, business solutions customers, and others, net | 49.2 | $ 53.9 | |
State and municipal variable rate demand notes | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Due after 10 years | $ 84.8 |
Settlement Assets and Obligat_6
Settlement Assets and Obligations - Summary of Activity in the Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of activity in allowance for credit losses | ||
Allowance for credit losses, Beginning Balance | $ 53.2 | |
Allowance for credit losses, Ending Balance | 23.7 | $ 53.2 |
Receivables from agents and others | ||
Summary of activity in allowance for credit losses | ||
Allowance for credit losses, Beginning Balance | 49.3 | 20.4 |
Current period provision for expected credit losses | 8.9 | 39.9 |
Write-offs charged against the allowance | (44.8) | (11.9) |
Recoveries of amounts previously written off | 6.8 | 2.3 |
Impacts of foreign currency exchange rates and other | (2.2) | (1.4) |
Allowance for credit losses, Ending Balance | 18 | 49.3 |
Receivables from Business Solutions customers | ||
Summary of activity in allowance for credit losses | ||
Allowance for credit losses, Beginning Balance | 3.9 | 4.5 |
Current period provision for expected credit losses | 4.2 | 2 |
Write-offs charged against the allowance | (2.1) | (3.1) |
Impacts of foreign currency exchange rates and other | (0.3) | 0.5 |
Allowance for credit losses, Ending Balance | $ 5.7 | $ 3.9 |
Settlement Assets and Obligat_7
Settlement Assets and Obligations - Summary of Activity in the Allowance for Credit Losses (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Settlement Assets and Obligations | ||
Losses from chargebacks or fraud that are not credit-related | $ 51.4 | $ 41.3 |
Settlement Assets and Obligat_8
Settlement Assets and Obligations - Components of Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | |||
Amortized Cost | $ 1,208.3 | $ 1,428.2 | $ 1,450.5 |
Available-for-sale securities: | |||
Amortized Cost | 1,361.1 | 1,918.1 | |
Fair Value | 1,398.9 | 1,990.6 | |
Gross Unrealized Gains | 40.8 | 72.5 | |
Gross Unrealized Losses | (3) | ||
Net Unrealized Gains/ (Losses) | 37.8 | 72.5 | |
Amortized Cost | 1,369 | 1,931.2 | |
Fair Value | 1,406.8 | 2,003.7 | |
Gross Unrealized Gains | 40.8 | 72.5 | |
Gross Unrealized Losses | (3) | ||
Net Unrealized Gains/ (Losses) | 37.8 | 72.5 | |
Money market funds | Settlement Assets | |||
Cash and cash equivalents | |||
Amortized Cost | 7.9 | 13.1 | |
Fair Value | 7.9 | 13.1 | |
State and municipal debt securities | |||
Available-for-sale securities: | |||
Amortized Cost | 1,182.6 | 1,234.1 | |
Fair Value | 1,219.9 | 1,303.9 | |
Gross Unrealized Gains | 39.8 | 69.8 | |
Gross Unrealized Losses | (2.5) | ||
Net Unrealized Gains/ (Losses) | 37.3 | 69.8 | |
State and municipal variable rate demand notes | |||
Available-for-sale securities: | |||
Amortized Cost | 84.8 | 562.1 | |
Fair Value | 84.8 | 562.1 | |
Corporate and other debt securities | |||
Available-for-sale securities: | |||
Amortized Cost | 58.1 | 71.6 | |
Fair Value | 57.8 | 72.8 | |
Gross Unrealized Gains | 0.2 | 1.2 | |
Gross Unrealized Losses | (0.5) | ||
Net Unrealized Gains/ (Losses) | (0.3) | 1.2 | |
United States government agency mortgage-backed securities | |||
Available-for-sale securities: | |||
Amortized Cost | 35.6 | 50.3 | |
Fair Value | 36.4 | 51.8 | |
Gross Unrealized Gains | 0.8 | 1.5 | |
Net Unrealized Gains/ (Losses) | $ 0.8 | $ 1.5 |
Settlement Assets and Obligat_9
Settlement Assets and Obligations - Contractual Maturities of Debt Securities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value | ||
Due within 1 year | $ 162.5 | |
Due after 1 year through 5 years | 575.6 | |
Due after 5 years through 10 years | 503.5 | |
Due after 10 years | 157.3 | |
Total | $ 1,398.9 | $ 1,990.6 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Settlement assets | $ 2,843.5 | $ 3,821.4 |
Derivatives | 247.7 | 453.3 |
Liabilities: | ||
Derivatives | 183.8 | 430.3 |
Recurring | ||
Assets: | ||
Derivatives | 247.7 | 453.3 |
Total assets | 1,654.5 | 2,457 |
Liabilities: | ||
Derivatives | 183.8 | 430.3 |
Total liabilities | 183.8 | 430.3 |
Recurring | Money market funds | ||
Assets: | ||
Settlement assets | 7.9 | 13.1 |
Recurring | State and municipal debt securities | ||
Assets: | ||
Settlement assets | 1,219.9 | 1,303.9 |
Recurring | State and municipal variable rate demand notes | ||
Assets: | ||
Settlement assets | 84.8 | 562.1 |
Recurring | United States government agency mortgage-backed securities | ||
Assets: | ||
Settlement assets | 36.4 | 51.8 |
Recurring | Corporate and other debt securities | ||
Assets: | ||
Settlement assets | 57.8 | 72.8 |
Recurring | Level 1 | ||
Assets: | ||
Total assets | 7.9 | 13.1 |
Recurring | Level 1 | Money market funds | ||
Assets: | ||
Settlement assets | 7.9 | 13.1 |
Recurring | Level 2 | ||
Assets: | ||
Derivatives | 247.7 | 453.3 |
Total assets | 1,646.6 | 2,443.9 |
Liabilities: | ||
Derivatives | 183.8 | 430.3 |
Total liabilities | 183.8 | 430.3 |
Recurring | Level 2 | State and municipal debt securities | ||
Assets: | ||
Settlement assets | 1,219.9 | 1,303.9 |
Recurring | Level 2 | State and municipal variable rate demand notes | ||
Assets: | ||
Settlement assets | 84.8 | 562.1 |
Recurring | Level 2 | United States government agency mortgage-backed securities | ||
Assets: | ||
Settlement assets | 36.4 | 51.8 |
Recurring | Level 2 | Corporate and other debt securities | ||
Assets: | ||
Settlement assets | $ 57.8 | $ 72.8 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amount of assets transferred from Level 1 to Level 2 within Fair Value Measurements | $ 0 | $ 0 |
Amount of assets transferred from Level 2 to Level 1 within Fair Value Measurements | 0 | 0 |
Amount of liabilities transferred from Level 1 to Level 2 within Fair Value Measurements | 0 | 0 |
Amount of liabilities transferred from Level 2 to Level 1 within Fair Value Measurements | 0 | 0 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Borrowings | 3,008,400,000 | 3,067,200,000 |
Level 2 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Borrowings | 3,217,200,000 | 3,348,000,000 |
Non-recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-recurring asset fair value adjustments | 0 | 0 |
Non-recurring liability fair value adjustments | $ 0 | $ 0 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities - Schedule of Components of Other Assets and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other assets: | ||
Derivatives | $ 247.7 | $ 453.3 |
Other Investments (Note 5) | 166.3 | 7.7 |
ROU asset | 164.5 | 189.1 |
Amounts advanced to agents | 146.9 | 135.9 |
Prepaid expenses | 85.5 | 81 |
Equity method investments | 38.4 | 34.5 |
Prepaid pension costs (Note 12) | 39.9 | |
Other | 148.9 | 83.3 |
Total other assets | 998.2 | |
Total other assets | 737.7 | 1,024.7 |
Other liabilities: | ||
Operating lease liabilities | 203 | 234.9 |
Derivatives | 183.8 | 430.3 |
Accrued agent contact costs | 5.4 | 77.1 |
Other | 71.5 | 60.1 |
Total other liabilities | 463.7 | |
Total other liabilities | $ 269.4 | $ 802.4 |
Other Assets and Other Liabil_4
Other Assets and Other Liabilities - Schedule of Components of Other Assets and Other Liabilities (Parentheticals) (Details) - Business Solutions - Asset Held for Sale, Not Discontinued Operations $ in Millions | Dec. 31, 2021USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Other assets | $ 260.5 |
Other liabilities | $ 194.3 |
Income Taxes - Components of Pr
Income Taxes - Components of Pre-Tax Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components of pre-tax income | |||
Domestic | $ (59.9) | $ 434.7 | |
Foreign | 995.3 | $ 855.1 | 886.7 |
Income before income taxes | $ 935.4 | $ 855.1 | $ 1,321.4 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Income Taxes | ||||
Percent of pre-tax income derived from foreign sources | 106.00% | 100.00% | 67.00% | |
Undistributed foreign earnings | $ 642 | |||
Deferred tax liabilities, undistributed foreign earnings | 541 | $ 800 | ||
Payment of deferred tax liabilities undistributed foreign earnings | 63.4 | $ 64 | $ 64 | |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 333.2 | 329.2 | ||
Total tax contingency reserve | 318.6 | |||
Interest and penalties, recognized | 4.4 | 1.9 | $ 6 | |
Interest and penalties, accrued | 32.8 | $ 28.6 | ||
Reasonably possible decrease to the Company's total unrecognized tax benefits during the next 12 months | $ 55 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Provision for income taxes | |||
Federal | $ 40.3 | $ 50.1 | $ 153.7 |
State and local | 1.4 | 1.1 | 22.9 |
Foreign | 87.9 | 59.6 | 86.5 |
Provision for income taxes | $ 129.6 | $ 110.8 | $ 263.1 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rates (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective tax rate reconciliation | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal income tax benefits | 0.20% | 0.50% | 1.40% |
Foreign rate differential, net of United States tax paid on foreign earnings (3.3%, 5.6%, and 2.3%, respectively) | (9.50%) | (8.30%) | (5.50%) |
Divestitures | 2.40% | ||
Change in Business Solutions permanent reinvestment assertion | 1.90% | ||
Lapse of statute of limitations | (0.50%) | (0.70%) | (0.50%) |
Valuation allowances | 0.20% | 0.10% | |
Other | 0.80% | 0.20% | 1.00% |
Effective tax rate | 13.90% | 12.90% | 19.90% |
US tax paid on foreign earnings | 3.30% | 5.60% | 2.30% |
Income Taxes - Components of _2
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 43.9 | $ 35.7 | $ 169.4 |
State and local | 4.3 | 1.9 | 18.1 |
Foreign | 84 | 59.3 | 100.1 |
Total current taxes | 132.2 | 96.9 | 287.6 |
Deferred: | |||
Federal | (3.6) | 14.4 | (15.7) |
State and local | (2.9) | (0.8) | 4.8 |
Foreign | 3.9 | 0.3 | (13.6) |
Total deferred taxes | (2.6) | 13.9 | (24.5) |
Provision for income taxes | $ 129.6 | $ 110.8 | $ 263.1 |
Income Taxes - Principal Compon
Income Taxes - Principal Components of Deferred Tax Items (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets related to: | ||
Reserves, accrued expenses and employee-related items | $ 13.6 | $ 22.9 |
Lease liabilities | 21.2 | 23.8 |
Tax attribute carryovers | 28 | 30.2 |
Intangibles, property and equipment | 11.8 | 15.1 |
Other | 8.9 | 8.6 |
Valuation allowance | (17.8) | (18.6) |
Total deferred tax assets | 65.7 | 82 |
Deferred tax liabilities related to: | ||
Intangibles, property and equipment | 218.6 | 218 |
Lease right-of-use assets | 13.8 | 15.8 |
Prepaid pension costs | 7.8 | |
Outside basis difference in Business Solutions | 17.9 | |
Other | 7.4 | 14.2 |
Total deferred tax liabilities | 257.7 | 255.8 |
Net deferred tax liability | $ 192 | $ 173.8 |
Income Taxes - Principal Comp_2
Income Taxes - Principal Components of Deferred Tax Items (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets | $ 65.7 | $ 82 |
Deferred tax liabilities | 257.7 | 255.8 |
Other assets | ||
Operating Loss Carryforwards [Line Items] | ||
Gross deferred tax assets | $ 11.8 | $ 15.1 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits | ||
Balance at beginning of period | $ 340.7 | $ 293.9 |
Increase related to current period tax positions | 3.1 | 2.8 |
Increase related to prior period tax positions | 7.3 | 49.7 |
Decrease related to prior period tax positions | (2) | (1.9) |
Decrease due to settlements with taxing authorities | (0.6) | |
Decrease due to lapse of applicable statute of limitations | (3.4) | (3.2) |
Decrease due to effects of foreign currency exchange rates | (0.5) | (0.6) |
Balance at end of period | $ 344.6 | $ 340.7 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plans | ||||
Total expenses | $ 17.8 | $ 18.4 | $ 20 | |
Defined Benefit Plan | ||||
Fair value of plan assets | 280.6 | |||
Defined benefit pension plan settlement charges | $ 109.8 | 109.8 | ||
Restricted cash | 29.4 | 29.4 | 19.2 | 6.3 |
Benefit obligation | $ 240.7 | |||
Discount rate assumption | 1.66% | |||
Prepaid pension costs | $ 39.9 | |||
Net Periodic Benefit Cost | ||||
Net periodic benefit cost | 9.4 | $ 4.4 | $ 4.1 | |
Other Assets | ||||
Defined Benefit Plan | ||||
Restricted cash | 18.4 | 18.4 | ||
Investments | $ 11.9 | $ 11.9 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | |||
ROU asset | $ 164.5 | $ 189.1 | |
Balance sheet location of ROU asset | Other assets | Other assets | |
Lease liability | $ 203 | $ 234.9 | |
Balance sheet location of lease liability | Other liabilities | Other liabilities | |
Operating lease costs | $ 50.6 | $ 59.8 | $ 56.7 |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Minimum | |||
Leases | |||
Lease terms | 1 year | ||
Maximum | |||
Leases | |||
Lease terms | 10 years | ||
Lease extension terms | 10 years |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Lease Terms and Discount Rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted Average Lease Terms and Discount Rates | ||
Weighted-average remaining lease term | 6 years 9 months 18 days | 7 years 2 months 12 days |
Weighted-average discount rate | 5.40% | 5.60% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Maturities of Operating Lease Liabilities | ||
Due within 1 year | $ 45.9 | |
Due after 1 year through 2 years | 38.8 | |
Due after 2 years through 3 years | 33.8 | |
Due after 3 years through 4 years | 28.7 | |
Due after 4 years through 5 years | 23.8 | |
Due after 5 years | 69.9 | |
Total lease payments | 240.9 | |
Less imputed interest | (37.9) | |
Total operating lease liabilities | $ 203 | $ 234.9 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 10, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||
Defined benefit pension plan settlement charges | $ 109.8 | $ 109.8 | ||||||||||||||
Cash dividends paid | $ 380.5 | $ 369.9 | $ 340.8 | |||||||||||||
Common stock dividends (USD per share) | $ 0.235 | $ 0.235 | $ 0.235 | $ 0.235 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.94 | $ 0.90 | $ 0.80 | |
Stock repurchased and retired, publicly announced authorizations (shares) | 19.5 | 8.5 | 26.9 | |||||||||||||
Stock repurchased and retired, publicly announced authorizations, value excluding commissions | $ 400 | $ 217.4 | $ 540 | |||||||||||||
Stock repurchased and retired, publicly announced authorizations, average cost per share excluding commissions (USD per share) | $ 20.56 | $ 25.45 | $ 20.07 | |||||||||||||
Stock repurchase program expiration date | Dec. 31, 2021 | |||||||||||||||
Subsequent Event | ||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||
Common stock dividends (USD per share) | $ 0.235 | |||||||||||||||
Dividends payable, date declared | Feb. 10, 2022 | |||||||||||||||
Dividends payable, date to be paid | Mar. 31, 2022 | |||||||||||||||
Authorized through December 31, 2024 | Subsequent Event | ||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||||
Stock repurchases authorized amount | $ 1,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Amounts Reclassified from AOCL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated other comprehensive income (loss) | |||
Reclassification from AOCL, net of tax | $ (98.6) | $ (8.2) | $ 6.2 |
Investment Securities | |||
Accumulated other comprehensive income (loss) | |||
Reclassification from AOCL, Provision for income taxes | (0.8) | (0.1) | (0.1) |
Reclassification from AOCL, net of tax | 2.9 | 0.5 | 0.5 |
Investment Securities | Revenues | |||
Accumulated other comprehensive income (loss) | |||
Reclassification from AOCL, before tax | 3.7 | 0.6 | 0.6 |
Hedging Activities | |||
Accumulated other comprehensive income (loss) | |||
Reclassification from AOCL, Provision for income taxes | 0.1 | (0.1) | |
Reclassification from AOCL, net of tax | (7.5) | 0.7 | 14.1 |
Hedging Activities | Foreign currency contracts | Revenues | |||
Accumulated other comprehensive income (loss) | |||
Reclassification from AOCL, before tax | 7.6 | 1.2 | 14.2 |
Hedging Activities | Interest rate contracts | Interest Expense | |||
Accumulated other comprehensive income (loss) | |||
Reclassification from AOCL, before tax | (0.6) | (0.6) | |
Hedging Activities | Interest rate contracts | Other Income/(Expense), net | |||
Accumulated other comprehensive income (loss) | |||
Reclassification from AOCL, before tax | 0.7 | ||
Defined benefit plans | |||
Accumulated other comprehensive income (loss) | |||
Reclassification from AOCL, Provision for income taxes | 25.7 | 2.7 | 2.4 |
Reclassification from AOCL, net of tax | (94) | (9.4) | (8.4) |
Defined benefit plans | Other Income/(Expense), net | |||
Accumulated other comprehensive income (loss) | |||
Reclassification from AOCL, before tax | (9.9) | $ (12.1) | $ (10.8) |
Defined benefit plans | Pension Settlement Charges | |||
Accumulated other comprehensive income (loss) | |||
Reclassification from AOCL, before tax | $ (109.8) |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Components of Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning balance | $ 186.6 | $ (39.5) | $ (309.8) |
Amounts reclassified from AOCL into earnings, net of tax | 98.6 | 8.2 | (6.2) |
Ending balance | 355.6 | 186.6 | (39.5) |
Investment Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning balance | 58.3 | 24.7 | (1.1) |
Unrealized gains/(losses) | (31) | 41.5 | 33.6 |
Tax benefit/(expense) | 6 | (7.4) | (7.3) |
Amounts reclassified from AOCL into earnings, net of tax | (2.9) | (0.5) | (0.5) |
Ending balance | 30.4 | 58.3 | 24.7 |
Hedging Activities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning balance | (30.5) | (3.6) | 7.4 |
Unrealized gains/(losses) | 42.9 | (26.4) | 2 |
Tax benefit/(expense) | (1.2) | 0.2 | 1.1 |
Amounts reclassified from AOCL into earnings, net of tax | 7.5 | (0.7) | (14.1) |
Ending balance | 18.7 | (30.5) | (3.6) |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning balance | (101.2) | (101.2) | (101.2) |
Ending balance | (101.2) | (101.2) | (101.2) |
Defined benefit plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning balance | (86.1) | (128.9) | (136.1) |
Unrealized gains/(losses) | (8.7) | 43.5 | (2) |
Tax benefit/(expense) | 0.8 | (10.1) | 0.8 |
Amounts reclassified from AOCL into earnings, net of tax | 94 | 9.4 | 8.4 |
Ending balance | (86.1) | (128.9) | |
Total AOCL | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning balance | (159.5) | (209) | (231) |
Unrealized gains/(losses) | 3.2 | 58.6 | 33.6 |
Tax benefit/(expense) | 5.6 | (17.3) | (5.4) |
Amounts reclassified from AOCL into earnings, net of tax | 98.6 | 8.2 | (6.2) |
Ending balance | $ (52.1) | $ (159.5) | $ (209) |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Dividends Declared (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Dividends Paid | |||||||||||||||
Common stock dividends (USD per share) | $ 0.235 | $ 0.235 | $ 0.235 | $ 0.235 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.94 | $ 0.90 | $ 0.80 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions | Dec. 27, 2019USD ($) | Nov. 25, 2019USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)Derivative | Dec. 31, 2019USD ($) | Mar. 09, 2021USD ($) | Aug. 22, 2017USD ($) | Mar. 15, 2017USD ($) | Mar. 30, 2010 | ||
Derivatives | ||||||||||||
Total borrowings at par value | $ 3,025 | $ 3,080 | ||||||||||
Accumulated other comprehensive pre-tax gain (loss) to be reclassified into revenue within the next 12 months | 16.5 | |||||||||||
Notes Due 2020 | ||||||||||||
Derivatives | ||||||||||||
Stated interest rate (as a percent) | 5.253% | |||||||||||
Repayment of unsecured notes | $ 268.8 | $ 56.1 | ||||||||||
3.600% Notes Due 2022 | ||||||||||||
Derivatives | ||||||||||||
Total borrowings at par value | $ 500 | $ 500 | [1] | $ 100 | $ 400 | |||||||
Stated interest rate (as a percent) | 3.60% | 3.60% | ||||||||||
1.350% Notes Due 2026 | ||||||||||||
Derivatives | ||||||||||||
Total borrowings at par value | $ 600 | $ 600 | [1] | $ 600 | ||||||||
Stated interest rate (as a percent) | 1.35% | 1.35% | ||||||||||
Business Solutions | ||||||||||||
Derivatives | ||||||||||||
Foreign exchange revenues | $ 366.8 | $ 311.9 | $ 343.1 | |||||||||
Cash Flow Hedges | Interest rate contracts | 3.600% Notes Due 2022 | ||||||||||||
Derivatives | ||||||||||||
Number of derivative instruments held | Derivative | 2 | |||||||||||
Deferred gain on termination of treasury locks | $ 2.6 | |||||||||||
Cash payment received for terminated swap agreement | 3.3 | |||||||||||
Gain on derivative recognized in Other income/(expense), net | $ 0.7 | |||||||||||
Cash Flow Hedges | Interest rate contracts | 3.600% Notes Due 2022 | Interest Rate Swap Contract 1 | ||||||||||||
Derivatives | ||||||||||||
Notional amounts | $ 100 | |||||||||||
Cash Flow Hedges | Interest rate contracts | 3.600% Notes Due 2022 | Interest Rate Swap Contract 2 | ||||||||||||
Derivatives | ||||||||||||
Notional amounts | 150 | |||||||||||
Designated as hedges | Foreign currency contracts | ||||||||||||
Derivatives | ||||||||||||
Derivative policy - contract maturity period maximum | 36 months | |||||||||||
Derivative policy - targeted weighted-average maturity | 1 year | |||||||||||
Maximum remaining maturity of foreign currency derivatives | 24 months | |||||||||||
Derivative weighted-average maturity | 1 year | |||||||||||
Not designated as hedges | Foreign currency contracts | Business Solutions | ||||||||||||
Derivatives | ||||||||||||
Notional amounts | $ 8 | $ 8 | ||||||||||
Minimum | Not designated as hedges | Uncollected Settlement Assets and Obligations | ||||||||||||
Derivatives | ||||||||||||
Foreign currency forward contracts maturity range | 2 days | |||||||||||
Maximum | Uncollected Settlement Assets and Obligations | ||||||||||||
Derivatives | ||||||||||||
Foreign currency forward contracts maturity range | 1 month | |||||||||||
Maximum | Foreign Currency Denominated Cash and Other Asset and Other Liability Positions | ||||||||||||
Derivatives | ||||||||||||
Foreign currency forward contracts maturity range | 1 year | |||||||||||
Maximum | Not designated as hedges | Uncollected Settlement Assets and Obligations | ||||||||||||
Derivatives | ||||||||||||
Foreign currency forward contracts maturity range | 1 month | |||||||||||
Maximum | Not designated as hedges | Foreign currency contracts | Business Solutions | ||||||||||||
Derivatives | ||||||||||||
Foreign currency forward contracts maturity range | 1 year | |||||||||||
Maximum | Not designated as hedges | Foreign Currency Denominated Cash and Other Asset and Other Liability Positions | ||||||||||||
Derivatives | ||||||||||||
Foreign currency forward contracts maturity range | 1 year | |||||||||||
[1] | See the Term Loan Facility and Notes sections below for further discussion of the borrowings and repayments of the unsecured notes and term loan made in 2021 . |
Derivatives - Notional Amounts
Derivatives - Notional Amounts of Foreign Currency Forward Contracts (Details) - Foreign currency contracts - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Designated as hedges | Euro | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | $ 399.9 | $ 428.9 |
Designated as hedges | Canadian dollar | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 134 | 131.9 |
Designated as hedges | British pound | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 43.8 | 71.9 |
Designated as hedges | Australian dollar | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 58.4 | 58.3 |
Designated as hedges | Swiss franc | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 45.9 | 41.1 |
Designated as hedges | Japanese yen | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 30.4 | 36.6 |
Designated as hedges | Swedish krona | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 30.7 | |
Designated as hedges | Other Currencies | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 0.9 | 29.5 |
Not designated as hedges | Euro | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 755.7 | 533 |
Not designated as hedges | Canadian dollar | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 144.2 | 71.5 |
Not designated as hedges | British pound | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 148.1 | 153.9 |
Not designated as hedges | Mexican peso | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 96.3 | 105 |
Not designated as hedges | Indian rupee | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 63.4 | 81 |
Not designated as hedges | Australian dollar | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 98.1 | 68.1 |
Not designated as hedges | Swiss franc | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 25.1 | |
Not designated as hedges | Japanese yen | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 46 | 39.6 |
Not designated as hedges | Philippine peso | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 76.2 | 35.2 |
Not designated as hedges | Russian ruble | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 44.4 | 31.2 |
Not designated as hedges | Chinese yuan | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 31.6 | |
Not designated as hedges | New Zealand dollar | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 26.6 | |
Not designated as hedges | Indonesian rupiah | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 29.1 | |
Not designated as hedges | Swedish krona | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | 25.1 | 26 |
Not designated as hedges | Other Currencies | ||
Notional amounts of foreign currency forward contracts | ||
Notional amounts | $ 132.7 | $ 151.5 |
Derivatives - Notional Amount_2
Derivatives - Notional Amounts of Foreign Currency Forward Contracts (Parenthetical) (Details) - Other Currencies - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Designated as hedges | ||
Derivative [Line Items] | ||
Maximum individual currency exposure within various other currencies | $ 25 | $ 25 |
Not designated as hedges | ||
Derivative [Line Items] | ||
Maximum individual currency exposure within various other currencies | $ 25 | $ 25 |
Derivatives - Fair Value of Der
Derivatives - Fair Value of Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value of Derivatives | ||
Derivative Assets | $ 247.7 | $ 453.3 |
Derivative Liabilities | 183.8 | 430.3 |
Designated as hedges | ||
Fair Value of Derivatives | ||
Derivative Assets | 30.6 | 9.1 |
Derivative Liabilities | 2.6 | 25 |
Designated as hedges | Other assets | Foreign currency contracts | ||
Fair Value of Derivatives | ||
Derivative Assets | 30.6 | 9.1 |
Designated as hedges | Other liabilities | Foreign currency contracts | ||
Fair Value of Derivatives | ||
Derivative Liabilities | 2.6 | 24.9 |
Designated as hedges | Other liabilities | Interest rate contracts | ||
Fair Value of Derivatives | ||
Derivative Liabilities | 0.1 | |
Not designated as hedges | ||
Fair Value of Derivatives | ||
Derivative Assets | 217.1 | 444.2 |
Derivative Liabilities | 181.2 | 405.3 |
Not designated as hedges | Other assets | Foreign currency contracts | ||
Fair Value of Derivatives | ||
Derivative Assets | 4 | 2.8 |
Not designated as hedges | Other liabilities | Foreign currency contracts | ||
Fair Value of Derivatives | ||
Derivative Liabilities | 7.1 | 2.8 |
Not designated as hedges | Business Solutions | Other assets | Foreign currency contracts | ||
Fair Value of Derivatives | ||
Derivative Assets | 213.1 | 441.4 |
Not designated as hedges | Business Solutions | Other liabilities | Foreign currency contracts | ||
Fair Value of Derivatives | ||
Derivative Liabilities | $ 174.1 | $ 402.5 |
Derivatives - Gross and Net Fai
Derivatives - Gross and Net Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 163.9 | $ 165.1 |
Net Amounts Presented in the Consolidated Balance Sheets | 163.9 | 165.1 |
Derivatives Not Offset in the Consolidated Balance Sheets | (92.4) | (155.1) |
Net Amounts | 71.5 | 10 |
Derivatives that are not or may not be subject to master netting arrangement or similar agreement | 83.8 | 288.2 |
Total | 247.7 | 453.3 |
Offsetting of Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 109.6 | 356.2 |
Net Amounts Presented in the Consolidated Balance Sheets | 109.6 | 356.2 |
Derivatives Not Offset in the Consolidated Balance Sheets | (92.4) | (155.1) |
Net Amounts | 17.2 | 201.1 |
Derivatives that are not or may not be subject to master netting arrangement or similar agreement | 74.2 | 74.1 |
Total | $ 183.8 | $ 430.3 |
Derivatives - Unrealized Gains_
Derivatives - Unrealized Gains/(Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign currency contracts | |||
Derivatives | |||
Gain/(Loss) recognized in OCI | $ 39.5 | $ (26.3) | $ 2 |
Interest rate contracts | |||
Derivatives | |||
Gain/(Loss) recognized in OCI | $ 3.4 | $ (0.1) |
Derivatives - Unrealized Gain_2
Derivatives - Unrealized Gains/(Losses) (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Gains/(losses) excluded from effectiveness testing recognized in other comprehensive income | $ (2.4) | $ 0.3 | $ 1.5 |
Derivatives - Gains_(Losses) fr
Derivatives - Gains/(Losses) from Hedging Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gains/(Losses) from Derivatives | |||
Revenues | $ 5,070.8 | $ 4,835 | $ 5,292.1 |
Interest expense | (105.5) | (118.5) | (152) |
Other income/(expense), net | (21.7) | 3.1 | 8.5 |
Fair Value Hedges | Interest rate contracts | Interest Expense | |||
Cash Flow and Fair Value Hedges | |||
Derivatives designated as hedging instruments | (0.1) | ||
Fair Value Hedges | Designated as hedges | Interest rate contracts | Interest Expense | |||
Cash Flow and Fair Value Hedges | |||
Derivatives designated as hedging instruments | 1 | ||
Cash Flow Hedges | Foreign currency contracts | Revenues | |||
Cash Flow and Fair Value Hedges | |||
Gains/(losses) reclassified from AOCL into earnings | (7.6) | 1.2 | 14.2 |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | 6.1 | 10.4 | 11.5 |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | $ 2.9 | ||
Cash Flow Hedges | Interest rate contracts | Interest Expense | |||
Cash Flow and Fair Value Hedges | |||
Gains/(losses) reclassified from AOCL into earnings | (0.6) | $ (0.6) | |
Cash Flow Hedges | Interest rate contracts | Other Operating Income (Expense) [Member] | |||
Cash Flow and Fair Value Hedges | |||
Gains/(losses) reclassified from AOCL into earnings | $ 0.7 |
Derivatives - Undesignated Hedg
Derivatives - Undesignated Hedges (Details) - Not designated as hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flow and Fair Value Hedges | |||
Gain recognized in Income on Foreign currency derivatives | $ 52 | $ 15.9 | $ 24.2 |
Selling, General and Administrative | |||
Cash Flow and Fair Value Hedges | |||
Gain recognized in Income on Foreign currency derivatives | $ 52 | $ 15.9 | 23.9 |
Revenues | |||
Cash Flow and Fair Value Hedges | |||
Gain recognized in Income on Foreign currency derivatives | $ 0.3 |
Derivatives - Undesignated He_2
Derivatives - Undesignated Hedges (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flow and Fair Value Hedges | |||
Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities | $ (56.1) | $ (37) | $ (33.1) |
Borrowings - Schedule of Outsta
Borrowings - Schedule of Outstanding Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 09, 2021 | Dec. 31, 2020 | Nov. 25, 2019 | Dec. 18, 2018 | Jun. 18, 2018 | Aug. 22, 2017 | Mar. 15, 2017 | Nov. 22, 2013 | Jun. 21, 2010 | Nov. 17, 2006 | |||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | $ 3,025 | $ 3,080 | |||||||||||||
Debt issuance costs and unamortized discount, net | (16.6) | (12.8) | |||||||||||||
Total borrowings at carrying value | [1] | 3,008.4 | 3,067.2 | ||||||||||||
Commercial Paper | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | 275 | 80 | |||||||||||||
3.350% Notes Due 2019 | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | $ 250 | ||||||||||||||
Floating Rate Notes Due 2019 | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | $ 250 | ||||||||||||||
3.600% Notes Due 2022 | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | 500 | 500 | [2] | $ 100 | $ 400 | ||||||||||
4.250% Notes Due 2023 | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | 300 | [3] | 300 | [3] | $ 300 | ||||||||||
2.850% Notes Due 2025 | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | 500 | [3] | 500 | [3] | $ 500 | ||||||||||
1.350% Notes Due 2026 | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | 600 | [2] | $ 600 | $ 600 | |||||||||||
2.750% Notes Due 2031 | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | 300 | [2] | $ 300 | ||||||||||||
6.200% Notes Due 2036 | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | 500 | [3] | 500 | [3] | $ 500 | ||||||||||
6.200% Notes Due 2040 | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | 250 | [3] | 250 | [3] | $ 250 | ||||||||||
Term Loan Facility Borrowing (Effective Rate of 1.4%) | |||||||||||||||
Outstanding Borrowings | |||||||||||||||
Total borrowings at par value | $ 300 | [2] | $ 950 | [2] | $ 950 | ||||||||||
[1] | As of December 31, 2021, the Company’s weighted-average effective rate on total borrowings was approximately 3.3 % . | ||||||||||||||
[2] | See the Term Loan Facility and Notes sections below for further discussion of the borrowings and repayments of the unsecured notes and term loan made in 2021 . | ||||||||||||||
[3] | The difference between the stated interest rate and the effective interest rate is not significant. |
Borrowings - Schedule of Outs_2
Borrowings - Schedule of Outstanding Borrowings (Parenthetical) (Details) | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 09, 2021 | Dec. 31, 2020 | Nov. 25, 2019 | Jun. 18, 2018 | Jun. 21, 2010 | Nov. 17, 2006 |
Outstanding Borrowings | ||||||||
Weighted-average effective interest rate (as a percent) | 3.30% | |||||||
3.600% Notes Due 2022 | ||||||||
Outstanding Borrowings | ||||||||
Stated interest rate (as a percent) | 3.60% | 3.60% | ||||||
4.250% Notes Due 2023 | ||||||||
Outstanding Borrowings | ||||||||
Stated interest rate (as a percent) | 4.25% | 4.25% | 4.25% | |||||
2.850% Notes Due 2025 | ||||||||
Outstanding Borrowings | ||||||||
Stated interest rate (as a percent) | 2.85% | 2.85% | 2.85% | |||||
1.350% Notes Due 2026 | ||||||||
Outstanding Borrowings | ||||||||
Stated interest rate (as a percent) | 1.35% | 1.35% | ||||||
Effective interest rate (as a percent) | 1.50% | |||||||
2.750% Notes Due 2031 | ||||||||
Outstanding Borrowings | ||||||||
Stated interest rate (as a percent) | 2.75% | 2.75% | ||||||
Effective interest rate (as a percent) | 2.90% | |||||||
6.200% Notes Due 2036 | ||||||||
Outstanding Borrowings | ||||||||
Stated interest rate (as a percent) | 6.20% | 6.20% | 6.20% | |||||
6.200% Notes Due 2040 | ||||||||
Outstanding Borrowings | ||||||||
Stated interest rate (as a percent) | 6.20% | 6.20% | 6.20% | |||||
Term Loan Facility Borrowing (Effective Rate of 1.4%) | ||||||||
Outstanding Borrowings | ||||||||
Effective interest rate (as a percent) | 1.40% | 1.40% |
Borrowings - Schedule of Maturi
Borrowings - Schedule of Maturities of Borrowings (Details) $ in Millions | Dec. 31, 2021USD ($) |
Borrowings maturities at par value | |
Due after 1 year through 2 years | $ 300 |
Due after 2 years through 3 years | 300 |
Due after 3 years through 4 years | 500 |
Due after 4 years through 5 years | 600 |
Due after 5 years | 1,050 |
Total | $ 2,750 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Millions | Jan. 04, 2022 | Mar. 09, 2021 | Dec. 27, 2019 | Nov. 25, 2019 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 18, 2018 | Jun. 18, 2018 | Aug. 22, 2017 | Mar. 15, 2017 | Oct. 31, 2016 | Nov. 22, 2013 | Jun. 21, 2010 | Mar. 30, 2010 | Nov. 17, 2006 | ||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Weighted-average effective interest rate (as a percent) | 3.30% | ||||||||||||||||||
Total borrowings at par value | $ 3,025 | $ 3,080 | |||||||||||||||||
Repayment of long-term debt | 1,150 | $ 824.9 | |||||||||||||||||
Total premium paid to redeem | 14.3 | ||||||||||||||||||
Commercial Paper | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Threshold over which Commercial Paper Program limit will be reduced for borrowings on Revolving Credit Facility | $ 1,500 | ||||||||||||||||||
Maximum days to maturity | 397 days | ||||||||||||||||||
Weighted-average effective interest rate (as a percent) | 0.20% | ||||||||||||||||||
Weighted-average term | 5 days | ||||||||||||||||||
Total borrowings at par value | $ 275 | 80 | |||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Maximum borrowing capacity | $ 1,500 | ||||||||||||||||||
EBITDA interest coverage ratio | 300 | ||||||||||||||||||
Interest rate margin on revolving credit facility (as a percent) | 1.10% | ||||||||||||||||||
Facility fee (as a percent) | 0.15% | ||||||||||||||||||
Revolver balance outstanding at the end of period | $ 0 | 0 | |||||||||||||||||
Letter of Credit Sub-Facility | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Maximum borrowing capacity | 250 | ||||||||||||||||||
Term Loan Facility Borrowing (Effective Rate of 1.4%) | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Total borrowings at par value | $ 300 | [1] | $ 950 | [1] | $ 950 | ||||||||||||||
Outstanding borrowings under term loan facility | $ 575 | ||||||||||||||||||
Repayment of long-term debt | $ 650 | ||||||||||||||||||
Effective interest rate (as a percent) | 1.40% | 1.40% | |||||||||||||||||
Term Loan Facility Borrowing (Effective Rate of 1.4%) | Subsequent Event | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Repayment of long-term debt | $ 300 | ||||||||||||||||||
1.350% Notes Due 2026 | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Total borrowings at par value | $ 600 | $ 600 | $ 600 | [1] | |||||||||||||||
Stated interest rate (as a percent) | 1.35% | 1.35% | |||||||||||||||||
Redemption price (as a percent) | 101.00% | ||||||||||||||||||
Repurchase provisions, percentage of principal | 101.00% | ||||||||||||||||||
Effective interest rate (as a percent) | 1.50% | ||||||||||||||||||
1.350% Notes Due 2026 | Base Rate [Member] | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Basis spread on applicable treasury rate (as a percent) | 0.15% | ||||||||||||||||||
2.750% Notes Due 2031 | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Total borrowings at par value | $ 300 | $ 300 | [1] | ||||||||||||||||
Stated interest rate (as a percent) | 2.75% | 2.75% | |||||||||||||||||
Repurchase provisions, percentage of principal | 101.00% | ||||||||||||||||||
Effective interest rate (as a percent) | 2.90% | ||||||||||||||||||
2.750% Notes Due 2031 | Base Rate [Member] | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Basis spread on applicable treasury rate (as a percent) | 0.25% | ||||||||||||||||||
2.850% Notes Due 2025 | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Total borrowings at par value | $ 500 | $ 500 | [2] | $ 500 | [2] | ||||||||||||||
Stated interest rate (as a percent) | 2.85% | 2.85% | 2.85% | ||||||||||||||||
Premium on early redemptions (as a percent) | 0.20% | ||||||||||||||||||
Repurchase provisions, percentage of principal | 101.00% | ||||||||||||||||||
2.850% Notes Due 2025 | Maximum | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Effective interest rate (as a percent) | 4.85% | ||||||||||||||||||
2.850% Notes Due 2025 | Minimum | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Effective interest rate (as a percent) | 2.85% | ||||||||||||||||||
4.250% Notes Due 2023 | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Total borrowings at par value | $ 300 | [2] | $ 300 | [2] | $ 300 | ||||||||||||||
Stated interest rate (as a percent) | 4.25% | 4.25% | 4.25% | ||||||||||||||||
Premium on early redemptions (as a percent) | 0.25% | ||||||||||||||||||
Repurchase provisions, percentage of principal | 101.00% | ||||||||||||||||||
4.250% Notes Due 2023 | Maximum | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Effective interest rate (as a percent) | 6.25% | ||||||||||||||||||
4.250% Notes Due 2023 | Minimum | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Effective interest rate (as a percent) | 4.25% | ||||||||||||||||||
Floating Rate Notes Due 2019 | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Total borrowings at par value | $ 250 | ||||||||||||||||||
3.600% Notes Due 2022 | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Total borrowings at par value | $ 500 | $ 500 | [1] | $ 100 | $ 400 | ||||||||||||||
Stated interest rate (as a percent) | 3.60% | 3.60% | |||||||||||||||||
Total premium paid to redeem | $ 14.3 | ||||||||||||||||||
3.350% Notes Due 2019 | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Total borrowings at par value | $ 250 | ||||||||||||||||||
6.200% Notes Due 2040 | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Total borrowings at par value | $ 250 | [2] | $ 250 | [2] | $ 250 | ||||||||||||||
Stated interest rate (as a percent) | 6.20% | 6.20% | 6.20% | ||||||||||||||||
Premium on early redemptions (as a percent) | 0.30% | ||||||||||||||||||
Repurchase provisions, percentage of principal | 101.00% | ||||||||||||||||||
Notes Due 2020 | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Stated interest rate (as a percent) | 5.253% | ||||||||||||||||||
Repayment of unsecured notes | $ 268.8 | $ 56.1 | |||||||||||||||||
Debt instrument, original face amount | $ 303.7 | ||||||||||||||||||
Unamortized premium of debt instrument | $ 21.2 | ||||||||||||||||||
Premium given to note holders (as a percent) | 7.00% | ||||||||||||||||||
Total premium paid to redeem | $ 3.1 | ||||||||||||||||||
6.200% Notes Due 2036 | |||||||||||||||||||
Long-term and Short-term Debt Instruments | |||||||||||||||||||
Total borrowings at par value | $ 500 | [2] | $ 500 | [2] | $ 500 | ||||||||||||||
Stated interest rate (as a percent) | 6.20% | 6.20% | 6.20% | ||||||||||||||||
[1] | See the Term Loan Facility and Notes sections below for further discussion of the borrowings and repayments of the unsecured notes and term loan made in 2021 . | ||||||||||||||||||
[2] | The difference between the stated interest rate and the effective interest rate is not significant. |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Long-Term Incentive Plan | |||
Cash received from exercise of stock options | $ 11.6 | $ 2.2 | $ 36.7 |
Tax benefit from exercise of stock options | 0.6 | 0.2 | 2.4 |
Intrinsic value of stock options exercised | $ 2.8 | $ 0.8 | $ 11.6 |
Volatility (as a percent) | 29.10% | 25.20% | 22.80% |
Options granted (shares) | 2,600,000 | ||
Expected term (in years) | 7 years 10 days | 7 years 1 month 13 days | 7 years 18 days |
Chief Executive Officer | |||
Long-Term Incentive Plan | |||
Expected term (in years) | 7 years | 7 years | 7 years |
Non-executive employees | |||
Long-Term Incentive Plan | |||
Options granted (shares) | 0 | ||
Director | |||
Long-Term Incentive Plan | |||
Expected term (in years) | 8 years | 8 years | 8 years |
Employee Stock Option | |||
Long-Term Incentive Plan | |||
Unrecognized compensation cost | $ 8.1 | ||
Weighted average recognition period | 3 years 8 months 12 days | ||
Expected term (in years) | 10 years | ||
Employee Stock Option | Employees | |||
Long-Term Incentive Plan | |||
Award expiration period | 10 years | ||
Award vesting period | 4 years | ||
Award vesting (as a percent) | 25.00% | ||
Restricted Stock Units | Chief Executive Officer | |||
Long-Term Incentive Plan | |||
Award vesting period | 2 years | ||
Award vesting (as a percent) | 50.00% | ||
Restricted Stock Units | Employees | |||
Long-Term Incentive Plan | |||
Award expiration period | 3 years | ||
Restricted Stock Units | Employees | Tranche One | |||
Long-Term Incentive Plan | |||
Award vesting period | 3 years | ||
Award vesting (as a percent) | 33.30% | ||
Restricted Stock Units | Employees | Tranche Two | |||
Long-Term Incentive Plan | |||
Award vesting period | 4 years | ||
Award vesting (as a percent) | 25.00% | ||
Financial PSUs | |||
Long-Term Incentive Plan | |||
Award vesting (as a percent) | 100.00% | ||
Financial PSUs | Minimum | |||
Long-Term Incentive Plan | |||
Stock units granted that recipients receive as performance based restricted stock units (as a percent) | 0.00% | 0.00% | |
Financial PSUs | Maximum | |||
Long-Term Incentive Plan | |||
Stock units granted that recipients receive as performance based restricted stock units (as a percent) | 200.00% | 200.00% | |
TSR PSUs | |||
Long-Term Incentive Plan | |||
Award vesting period | 3 years | ||
Award vesting (as a percent) | 100.00% | ||
RSUs and PSUs | |||
Long-Term Incentive Plan | |||
Unrecognized compensation cost | $ 71.1 | ||
Weighted average recognition period | 1 year 10 months 24 days | ||
2015 LTIP | |||
Long-Term Incentive Plan | |||
Shares available for grant (shares) | 15,700,000 | ||
2015 LTIP | Non-employee Director | |||
Long-Term Incentive Plan | |||
Award vesting period | 1 year | ||
2015 LTIP | Employee Stock Option | Former CEO | |||
Long-Term Incentive Plan | |||
Long-term incentive award stock option awards (as a percent) | 20.00% | 20.00% | |
2015 LTIP | Employee Stock Option | Non-employee Director | |||
Long-Term Incentive Plan | |||
Award expiration period | 10 years | ||
2015 LTIP | Restricted Stock Units | Executives Officers excluding CEO | |||
Long-Term Incentive Plan | |||
Long-term incentive award restricted stock units (as a percent) | 30.00% | 30.00% | |
2015 LTIP | Restricted Stock Units | Former CEO | |||
Long-Term Incentive Plan | |||
Long-term incentive award restricted stock units (as a percent) | 10.00% | 10.00% | |
2015 LTIP | Restricted Stock Units | Senior Vice Presidents | |||
Long-Term Incentive Plan | |||
Long-term incentive award restricted stock units (as a percent) | 50.00% | 50.00% | |
2015 LTIP | Financial PSUs | |||
Long-Term Incentive Plan | |||
Award vesting period | 3 years | ||
2015 LTIP | Financial PSUs | Executives Officers excluding CEO | |||
Long-Term Incentive Plan | |||
Long-term incentive award performance based restricted stock units (as a percent) | 50.00% | 50.00% | |
2015 LTIP | Financial PSUs | Former CEO | |||
Long-Term Incentive Plan | |||
Long-term incentive award performance based restricted stock units (as a percent) | 50.00% | 50.00% | |
2015 LTIP | Financial PSUs | Senior Vice Presidents | |||
Long-Term Incentive Plan | |||
Long-term incentive award performance based restricted stock units (as a percent) | 50.00% | 50.00% | |
2015 LTIP | TSR PSUs | Executives Officers excluding CEO | |||
Long-Term Incentive Plan | |||
Long-term incentive award performance based restricted stock units (as a percent) | 20.00% | 20.00% | |
2015 LTIP | TSR PSUs | Former CEO | |||
Long-Term Incentive Plan | |||
Long-term incentive award performance based restricted stock units (as a percent) | 20.00% | 20.00% |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Schedule of Stock Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Stock Option Activity | |
Outstanding at beginning of period | shares | 4.9 |
Granted | shares | 2.6 |
Exercised | shares | (0.6) |
Cancelled/forfeited | shares | 0 |
Outstanding at end of period | shares | 7 |
Options exercisable at end of period | shares | 3.6 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period | $ / shares | $ 19.11 |
Granted | $ / shares | 18.87 |
Exercised | $ / shares | 19.59 |
Cancelled/forfeited | $ / shares | 21 |
Outstanding at end of period | $ / shares | 18.98 |
Options exercisable at end of period | $ / shares | $ 18.48 |
Stock Options, Additional Disclosures | |
Weighted-average remaining contractual term, outstanding at end of period (years) | 6 years 10 months 24 days |
Weighted-average remaining contractual term, options exercisable at end of period (years) | 4 years 6 months |
Aggregate intrinsic value, outstanding at end of period | $ | $ 2.3 |
Aggregate intrinsic value, options exercisable at end of period | $ | $ 1.9 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Schedule of Restricted Stock Units and Performance-based Restricted Stock Units Activity (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Restricted Stock Activity | |
Non-vested at beginning of period | shares | 6.9 |
Granted | shares | 3.7 |
Vested | shares | (2.1) |
Forfeited | shares | (1) |
Non-vested at end of period | shares | 7.5 |
Restricted Stock Weighted-Average Grant-Date Fair Value | |
Non-vested at beginning of period | $ / shares | $ 20.88 |
Granted | $ / shares | 22.63 |
Vested | $ / shares | 20.03 |
Forfeited | $ / shares | 21.52 |
Non-vested at end of period | $ / shares | $ 21.91 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Schedule of Impact on Earnings (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation | |||
Stock-based compensation expense | $ (44.3) | $ (41.7) | $ (48.9) |
Income tax benefit from stock-based compensation expense | 7.5 | 6.9 | 8.5 |
Net income impact | $ (36.8) | $ (34.8) | $ (40.4) |
Earnings per share: | |||
Basic and diluted (USD per share) | $ (0.09) | $ (0.08) | $ (0.09) |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Schedule of Assumptions for the Black-Scholes Option Pricing Model (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options granted: | |||
Weighted-average risk-free interest rate (as a percent) | 1.30% | 1.50% | 2.50% |
Weighted-average dividend yield (as a percent) | 4.20% | 4.00% | 4.20% |
Volatility (as a percent) | 29.10% | 25.20% | 22.80% |
Expected term (in years) | 7 years 10 days | 7 years 1 month 13 days | 7 years 18 days |
Weighted-average grant date fair value (USD per share) | $ 3.26 | $ 3.96 | $ 2.56 |
Segments - Narrative (Details)
Segments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)CustomerSegmentRegion | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segments | |||
Restructuring-related expenses and business transformation expenses | $ 152.3 | $ 36.8 | $ 115.5 |
Utilized to allocate revenue to the country where the transaction is initiated (as a percent) | 100.00% | ||
Operating Segments | |||
Segments | |||
Number of operating segments | Segment | 2 | ||
Operating Segments | Consumer-to-Consumer | |||
Segments | |||
Number of consumers in money transfer | Customer | 2 | ||
Number of geographic regions in segment | Region | 5 | ||
Not Allocated To Segments | |||
Segments | |||
Restructuring-related expenses and business transformation expenses | $ 36.8 | $ 115.5 |
Segments - Segments Results (De
Segments - Segments Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Total consolidated revenues | $ 5,070.8 | $ 4,835 | $ 5,292.1 |
Operating income: | |||
Total operating income | 1,123.1 | 967.3 | 934 |
Restructuring-related expenses | 152.3 | 36.8 | 115.5 |
Operating Segments | |||
Operating income: | |||
Total operating income | 1,123.1 | 1,004.1 | 1,049.5 |
Depreciation and amortization: | |||
Total consolidated depreciation and amortization | 208.2 | 225.6 | 257.7 |
Capital expenditures: | |||
Total consolidated capital expenditures | 214.6 | 156.8 | 127.7 |
Operating Segments | Consumer-to-Consumer | |||
Revenues: | |||
Total consolidated revenues | 4,394 | 4,220 | 4,407.8 |
Operating income: | |||
Total operating income | 977.6 | 924.7 | 975.4 |
Depreciation and amortization: | |||
Total consolidated depreciation and amortization | 181.6 | 178.5 | 194.5 |
Capital expenditures: | |||
Total consolidated capital expenditures | 192.3 | 133.5 | 97 |
Operating Segments | Business Solutions | |||
Revenues: | |||
Total consolidated revenues | 421.8 | 356.1 | 388.8 |
Operating income: | |||
Total operating income | 95.5 | 24.4 | 46.8 |
Depreciation and amortization: | |||
Total consolidated depreciation and amortization | 16.1 | 36.1 | 39.6 |
Capital expenditures: | |||
Total consolidated capital expenditures | 5.2 | 10.3 | 7.7 |
Operating Segments | Other | |||
Revenues: | |||
Total consolidated revenues | 255 | 258.9 | 495.5 |
Operating income: | |||
Total operating income | 50 | 55 | 27.3 |
Depreciation and amortization: | |||
Total consolidated depreciation and amortization | 10.5 | 11 | 23.6 |
Capital expenditures: | |||
Total consolidated capital expenditures | $ 17.1 | 13 | 23 |
Not Allocated To Segments | |||
Operating income: | |||
Restructuring-related expenses | $ 36.8 | $ 115.5 |
Segments - Segments Results (Pa
Segments - Segments Results (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating income: | |||
Total operating income | $ 1,123.1 | $ 967.3 | $ 934 |
Consumer-to-Consumer | Change in Accounting Method | |||
Operating income: | |||
Total operating income | (49.6) | ||
Other | Change in Accounting Method | |||
Operating income: | |||
Total operating income | 49.6 | ||
Operating Segments | |||
Operating income: | |||
Total operating income | 1,123.1 | 1,004.1 | 1,049.5 |
Operating Segments | Consumer-to-Consumer | |||
Operating income: | |||
Total operating income | 977.6 | 924.7 | 975.4 |
Operating Segments | Other | |||
Operating income: | |||
Total operating income | $ 50 | $ 55 | 27.3 |
Operating Segments | Other | Speedpay | Divestitures | |||
Revenues: | |||
Revenues | 125.4 | ||
Operating income: | |||
Operating expenses | 98.2 | ||
Operating Segments | Other | Paymap | Divestitures | |||
Revenues: | |||
Revenues | 5.3 | ||
Operating income: | |||
Operating expenses | $ 2.2 |
Segments - Information Concerni
Segments - Information Concerning Principal Geographic Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | |||
Revenues | $ 5,070.8 | $ 4,835 | $ 5,292.1 |
Long-lived assets: | |||
Property, Plant and Equipment, Net | 135.7 | ||
Property, Plant and Equipment, Net | 129.4 | 150.4 | 236.2 |
Assets held for sale | 49.3 | ||
Operating Segments | Business Solutions | |||
Revenue: | |||
Revenues | 421.8 | 356.1 | 388.8 |
United States | |||
Revenue: | |||
Revenues | 1,702 | 1,678.4 | 1,896.1 |
Long-lived assets: | |||
Property, Plant and Equipment, Net | 82 | ||
Property, Plant and Equipment, Net | 100.4 | 173.7 | |
United States | Business Solutions | Asset Held for Sale, Not Discontinued Operations | |||
Long-lived assets: | |||
Assets held for sale | 1.4 | ||
International | |||
Revenue: | |||
Revenues | 3,368.8 | 3,156.6 | 3,396 |
Long-lived assets: | |||
Property, Plant and Equipment, Net | 53.7 | ||
Property, Plant and Equipment, Net | $ 50 | $ 62.5 | |
International | Business Solutions | Asset Held for Sale, Not Discontinued Operations | |||
Long-lived assets: | |||
Assets held for sale | $ 4.9 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of the Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | |||||
Cash and cash equivalents | $ 1,208.3 | $ 1,428.2 | $ 1,450.5 | ||
Property and equipment, net of accumulated depreciation of $50.1 and $37.0, respectively | 129.4 | 150.4 | 236.2 | ||
Other assets | 737.7 | 1,024.7 | |||
Total assets | 8,823.5 | 9,496.3 | |||
Liabilities: | |||||
Accounts payable and accrued liabilities | 450.2 | 500.9 | |||
Income taxes payable | 870.7 | 928.9 | |||
Borrowings | [1] | 3,008.4 | 3,067.2 | ||
Other liabilities | 269.4 | 802.4 | |||
Total liabilities | 8,467.9 | 9,309.7 | |||
Stockholders' equity: | |||||
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued | |||||
Common stock, $0.01 par value; 2,000 shares authorized; 398.8 shares and 411.2 shares issued and outstanding as of December 31, 2021 and December31, 2020, respectively | 3.9 | 4.1 | |||
Capital surplus | 941 | 885.1 | |||
Accumulated deficit | (537.2) | (543.1) | |||
Accumulated other comprehensive loss | (52.1) | (159.5) | |||
Total stockholders' equity | 355.6 | 186.6 | $ (39.5) | $ (309.8) | |
Total liabilities and stockholders' equity | 8,823.5 | 9,496.3 | |||
Parent Company | Reportable Legal Entities | |||||
Assets: | |||||
Cash and cash equivalents | 2.1 | 2.1 | |||
Property and equipment, net of accumulated depreciation of $50.1 and $37.0, respectively | 41.4 | 54 | |||
Other assets | 90 | 96.2 | |||
Investment in subsidiaries | 5,450 | 5,661.3 | |||
Total assets | 5,583.5 | 5,813.6 | |||
Liabilities: | |||||
Accounts payable and accrued liabilities | 58 | 53 | |||
Income taxes payable | 477.4 | 551.5 | |||
Payable to subsidiaries, net | 1,590.3 | 1,852.6 | |||
Borrowings | 3,008.4 | 3,067.2 | |||
Other liabilities | 93.8 | 102.7 | |||
Total liabilities | 5,227.9 | 5,627 | |||
Stockholders' equity: | |||||
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued | |||||
Common stock, $0.01 par value; 2,000 shares authorized; 398.8 shares and 411.2 shares issued and outstanding as of December 31, 2021 and December31, 2020, respectively | 3.9 | 4.1 | |||
Capital surplus | 941 | 885.1 | |||
Accumulated deficit | (537.2) | (543.1) | |||
Accumulated other comprehensive loss | (52.1) | (159.5) | |||
Total stockholders' equity | 355.6 | 186.6 | |||
Total liabilities and stockholders' equity | $ 5,583.5 | $ 5,813.6 | |||
[1] | As of December 31, 2021, the Company’s weighted-average effective rate on total borrowings was approximately 3.3 % . |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of the Registrant - Condensed Balance Sheets (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
CONDENSED BALANCE SHEETS | ||
Accumulated depreciation | $ 650.4 | $ 659.9 |
Preferred stock, par value (USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 393,800,000 | 411,200,000 |
Common stock, shares outstanding | 393,800,000 | 411,200,000 |
Parent Company | Reportable Legal Entities | ||
CONDENSED BALANCE SHEETS | ||
Accumulated depreciation | $ 50.1 | $ 37 |
Preferred stock, par value (USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 393,800,000 | 411,200,000 |
Common stock, shares outstanding | 393,800,000 | 411,200,000 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of the Registrant - Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
CONDENSED STATEMENTS OF INCOME/(LOSS) AND COMPREHENSIVE INCOME/(LOSS) | ||||
Revenues | $ 5,070.8 | $ 4,835 | $ 5,292.1 | |
Expenses | [1] | 3,947.7 | 3,867.7 | 4,358.1 |
Operating income | 1,123.1 | 967.3 | 934 | |
Gain on divestitures of businesses (Note 5) | 524.6 | |||
Gain on sale of noncontrolling interest in private company | 47.9 | |||
Interest income | 1.4 | 3.2 | 6.3 | |
Interest expense | (105.5) | (118.5) | (152) | |
Other income/(expense), net | (21.7) | 3.1 | 8.5 | |
Income tax (expense)/benefit | (129.6) | (110.8) | (263.1) | |
Net income | 805.8 | 744.3 | 1,058.3 | |
Other comprehensive income, net of tax | 107.4 | 49.5 | 22 | |
Comprehensive income | 913.2 | 793.8 | 1,080.3 | |
Parent Company | Reportable Legal Entities | ||||
CONDENSED STATEMENTS OF INCOME/(LOSS) AND COMPREHENSIVE INCOME/(LOSS) | ||||
Gain on divestitures of businesses (Note 5) | 524.6 | |||
Gain on sale of noncontrolling interest in private company | 47.9 | |||
Interest expense | (115.9) | (158.5) | (181.5) | |
Other income/(expense), net | (14.7) | 3.6 | 2.7 | |
Income/(loss) before equity earnings/(losses) of affiliates and income taxes | (82.7) | (154.9) | 345.8 | |
Equity in earnings of affiliates, net of tax | 869.1 | 861.7 | 827.3 | |
Income tax (expense)/benefit | 19.4 | 37.5 | (114.8) | |
Net income | 805.8 | 744.3 | 1,058.3 | |
Other comprehensive income, net of tax | 2.5 | 0.4 | 0.2 | |
Other comprehensive income of affiliates, net of tax | 104.9 | 49.1 | 21.8 | |
Comprehensive income | $ 913.2 | $ 793.8 | $ 1,080.3 | |
[1] | As further described in Note 7, total expenses include amounts incurred with related parties of $ 54.7 million, $ 54.6 million, and $ 57.1 million for the years ended December 31, 2021, 2020, and 2019 , respectively. |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of the Registrant - Condensed Statements of Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net cash provided by/(used in) operating activities | $ 1,045.3 | $ 877.5 | $ 914.6 |
Cash flows from investing activities | |||
Purchases of property and equipment and other | (37.7) | (36.5) | (48.1) |
Proceeds from the sale of former corporate headquarters (Note 4) | 49.4 | ||
Proceeds from the sale of noncontrolling interest in a private company (Note 4) | 50.9 | ||
Proceeds from divestitures of businesses, net of cash divested (Note 4) | 711.7 | ||
Other investing activities | 3.7 | (6) | 48.3 |
Net cash (used in)/provided by investing activities | 192 | (373.5) | 167 |
Cash flows from financing activities | |||
Net proceeds from/(repayments of) commercial paper | 195 | (165) | 120 |
Net proceeds from issuance of borrowings | 891.7 | 495.9 | |
Principal payments on borrowings | (1,150) | (824.9) | |
Proceeds from exercise of options and other | 11.6 | 2.2 | 36.7 |
Cash dividends and dividend equivalents paid | (381.6) | (370.3) | (340.8) |
Common stock repurchased | (409.9) | (239.7) | (552.6) |
Make-whole premium on early extinguishment of debt | (14.3) | ||
Other financing activities | 0.2 | (0.7) | (4.1) |
Net cash used in financing activities | (1,269.5) | (185.9) | (1,484.1) |
Net change in cash and cash equivalents, including settlement, and restricted cash | (32.2) | 318.1 | (402.5) |
Supplemental cash flow information: | |||
Cash paid for lease liabilities | 46.5 | 65.9 | 53.8 |
Non-cash lease liabilities arising from obtaining right-of-use assets (Note 6) | 18.5 | 38.6 | 269.1 |
Parent Company | Reportable Legal Entities | |||
Cash flows from operating activities | |||
Net cash provided by/(used in) operating activities | 510.4 | (79) | 103.1 |
Cash flows from investing activities | |||
Purchases of property and equipment and other | (0.5) | (1) | (9.9) |
Proceeds from the sale of former corporate headquarters (Note 4) | 43.6 | ||
Proceeds from the sale of noncontrolling interest in a private company (Note 4) | 50.9 | ||
Proceeds from divestitures of businesses, net of cash divested (Note 4) | 711.7 | ||
Distributions received from/(capital contributed to) subsidiaries, net | 6.5 | (329.4) | 74 |
Other investing activities | 0.5 | (2.1) | |
Net cash (used in)/provided by investing activities | 57.4 | (288.9) | 775.8 |
Cash flows from financing activities | |||
Advances from subsidiaries, net | 289.5 | 1,139.5 | 194 |
Net proceeds from/(repayments of) commercial paper | 195 | (165) | 120 |
Net proceeds from issuance of borrowings | 891.7 | 495.9 | |
Principal payments on borrowings | (1,150) | (824.9) | |
Proceeds from exercise of options and other | 11.6 | 2.2 | 33.3 |
Cash dividends and dividend equivalents paid | (381.6) | (370.3) | (340.8) |
Common stock repurchased | (409.9) | (239.7) | (552.6) |
Make-whole premium on early extinguishment of debt | (14.3) | ||
Other financing activities | 0.2 | (0.7) | |
Net cash used in financing activities | (567.8) | 366 | (875.1) |
Net change in cash and cash equivalents, including settlement, and restricted cash | (1.9) | 3.8 | |
Cash and cash equivalents, including settlement, and restricted cash at beginning of period | 2.1 | 4 | 0.2 |
Cash and cash equivalents, including settlement, and restricted cash at end of period | 2.1 | 2.1 | 4 |
Supplemental cash flow information: | |||
Non-cash financing activity, distribution of note from subsidiary (Note 3) | 556.1 | 1,364.4 | |
Cash paid for lease liabilities | 14.6 | 20.7 | 17 |
Non-cash lease liabilities arising from obtaining right-of-use assets (Note 6) | $ 0.9 | $ 1.5 | $ 124.8 |
Schedule I - Condensed Financ_6
Schedule I - Condensed Financial Information of the Registrant - Narrative (Details) - USD ($) $ in Millions | May 09, 2019 | Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 01, 2021 | Jan. 01, 2021 | Dec. 01, 2020 | Dec. 01, 2019 | Oct. 01, 2019 | Nov. 08, 2015 |
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Net assets subject to limitations | $ 460 | ||||||||||
Gain on sale | $ 524.6 | ||||||||||
Proceeds from the sale of noncontrolling interest in a private company | 50.9 | ||||||||||
Gain on sale of noncontrolling interest in private company | 47.9 | ||||||||||
Letters of credit outstanding and bank guarantees | 450 | ||||||||||
ROU asset | $ 164.5 | $ 189.1 | |||||||||
Balance sheet location of ROU asset | Other assets | Other assets | |||||||||
Lease liability | $ 203 | $ 234.9 | |||||||||
Balance sheet location of lease liability | Other liabilities | Other liabilities | |||||||||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||||||||||
Private Company | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Proceeds from the sale of noncontrolling interest in a private company | $ 50.9 | ||||||||||
Gain on sale of noncontrolling interest in private company | $ 47.9 | ||||||||||
Speedpay | Divestitures | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Consideration from sale of business | $ 750 | ||||||||||
Speedpay | Divestitures | Other services | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Gain on sale | 523 | ||||||||||
Minimum | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Lease terms | 1 year | ||||||||||
Maximum | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Lease terms | 10 years | ||||||||||
Lease extension terms | 10 years | ||||||||||
Reportable Legal Entities | Parent Company | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Net assets subject to limitations | $ 460 | ||||||||||
Stated interest rate (as a percent) | 0.12% | 0.14% | 0.15% | 1.61% | 1.69% | ||||||
Gain on sale | $ 524.6 | ||||||||||
Proceeds from the sale of noncontrolling interest in a private company | 50.9 | ||||||||||
Gain on sale of noncontrolling interest in private company | 47.9 | ||||||||||
Letters of credit outstanding and bank guarantees | 250 | ||||||||||
ROU asset | $ 56.9 | $ 63.1 | |||||||||
Balance sheet location of ROU asset | Other assets | Other assets | |||||||||
Lease liability | $ 91.3 | $ 100.1 | |||||||||
Balance sheet location of lease liability | Other liabilities | Other liabilities | |||||||||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | true | |||||||||
Reportable Legal Entities | Parent Company | Revolver - Parent Company | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Stated interest rate (as a percent) | 0.34% | 0.26% | |||||||||
Maximum borrowing capacity on unsecured borrowing facilities | $ 3,000 | ||||||||||
Outstanding borrowings on unsecured financing facilities | $ 370 | $ 620.3 | |||||||||
Reportable Legal Entities | Parent Company | Private Company | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Proceeds from the sale of noncontrolling interest in a private company | $ 50.9 | ||||||||||
Gain on sale of noncontrolling interest in private company | $ 47.9 | ||||||||||
Reportable Legal Entities | Parent Company | Speedpay | Divestitures | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Consideration from sale of business | 750 | ||||||||||
Reportable Legal Entities | Parent Company | Speedpay | Divestitures | Other services | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Gain on sale | $ 523 | ||||||||||
Reportable Legal Entities | Parent Company | Minimum | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Lease terms | 2 years | ||||||||||
Reportable Legal Entities | Parent Company | Maximum | |||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||||||||
Lease terms | 10 years | ||||||||||
Lease extension terms | 10 years |
Schedule I - Condensed Financ_7
Schedule I - Condensed Financial Information of the Registrant - Promissory Notes (Details) - Parent Company - Reportable Legal Entities - USD ($) $ in Millions | Mar. 01, 2021 | Jan. 01, 2021 | Dec. 01, 2020 | Dec. 01, 2019 | Oct. 01, 2019 |
NOTES TO CONDENSED FINANCIAL STATEMENTS | |||||
Notes payable to subsidiary | $ 244.3 | $ 289 | $ 93.3 | $ 67.4 | $ 162.8 |
Stated interest rate (as a percent) | 0.12% | 0.14% | 0.15% | 1.61% | 1.69% |
Schedule I - Condensed Financ_8
Schedule I - Condensed Financial Information of the Registrant - Summary of Weighted-Average Lease Term and Discount Rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Financial Statements, Captions [Line Items] | ||
Weighted-average remaining lease term | 6 years 9 months 18 days | 7 years 2 months 12 days |
Weighted-average discount rate | 5.40% | 5.60% |
Reportable Legal Entities | Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Weighted-average remaining lease term | 8 years 7 months 6 days | 9 years 6 months |
Weighted-average discount rate | 5.30% | 5.50% |
Schedule I - Condensed Financ_9
Schedule I - Condensed Financial Information of the Registrant - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Maturities of Operating Lease Liabilities | ||
Due within 1 year | $ 45.9 | |
Due after 1 year through 2 years | 38.8 | |
Due after 2 years through 3 years | 33.8 | |
Due after 3 years through 4 years | 28.7 | |
Due after 4 years through 5 years | 23.8 | |
Due after 5 years | 69.9 | |
Total lease payments | 240.9 | |
Less imputed interest | (37.9) | |
Total operating lease liabilities | 203 | $ 234.9 |
Reportable Legal Entities | Parent Company | ||
Maturities of Operating Lease Liabilities | ||
Due within 1 year | 14.9 | |
Due after 1 year through 2 years | 14.2 | |
Due after 2 years through 3 years | 13 | |
Due after 3 years through 4 years | 12.5 | |
Due after 4 years through 5 years | 10.9 | |
Due after 5 years | 50.2 | |
Total lease payments | 115.7 | |
Less imputed interest | (24.4) | |
Total operating lease liabilities | $ 91.3 | $ 100.1 |