Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Securities Act File Number | 001-32903 | |
Entity Registrant Name | THE WESTERN UNION COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-4531180 | |
Entity Address, Address Line One | 7001 EAST BELLEVIEW AVENUE | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80237 | |
City Area Code | 866 | |
Local Phone Number | 405-5012 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | WU | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 374,534,805 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001365135 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,170 | $ 1,138.3 | $ 2,206.9 | $ 2,294 |
Type of Revenue | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Expenses: | ||||
Cost of services | $ 698.9 | $ 653 | $ 1,328.4 | $ 1,308.1 |
Type of Cost of Service | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Selling, general, and administrative | $ 228.5 | $ 221.3 | $ 431.2 | $ 484.4 |
Total expenses | 927.4 | 874.3 | 1,759.6 | 1,792.5 |
Operating income | 242.6 | 264 | 447.3 | 501.5 |
Other income/(expense): | ||||
Gain on divestiture of business (Note 4) | 151.4 | |||
Interest income | 4.2 | 1.8 | 7.4 | 2.4 |
Interest expense | (27) | (24.8) | (52) | (49.6) |
Other expense, net | (3.4) | (4.8) | (5.3) | (7.3) |
Total other income/(expense), net | (26.2) | (27.8) | (49.9) | 96.9 |
Income before income taxes | 216.4 | 236.2 | 397.4 | 598.4 |
Provision for income taxes | 40.2 | 42.2 | 69.4 | 111.1 |
Net income | $ 176.2 | $ 194 | $ 328 | $ 487.3 |
Earnings per share: | ||||
Basic (USD per share) | $ 0.47 | $ 0.5 | $ 0.88 | $ 1.25 |
Diluted (USD per share) | $ 0.47 | $ 0.5 | $ 0.87 | $ 1.25 |
Weighted-average shares outstanding: | ||||
Basic (shares) | 375 | 386.7 | 374.7 | 389.9 |
Diluted (shares) | 375.6 | 387.6 | 375.6 | 391 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 176.2 | $ 194 | $ 328 | $ 487.3 |
Other comprehensive income, net of reclassifications and tax (Note 9): | ||||
Unrealized gains/(losses) on investment securities | (11.4) | (23.7) | 8.6 | (75.3) |
Unrealized gains/(losses) on hedging activities | (10.8) | 23.1 | (21.1) | 28.4 |
Foreign currency translation adjustments | (17.8) | |||
Total other comprehensive loss | (22.2) | (0.6) | (12.5) | (64.7) |
Comprehensive income | $ 154 | $ 193.4 | $ 315.5 | $ 422.6 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and cash equivalents | $ 1,585.9 | $ 1,285.9 | |
Settlement assets | 3,328.1 | 3,486.8 | |
Property and equipment, net of accumulated depreciation of $449.7 and $512.8, respectively | 96.3 | 109.6 | |
Goodwill | 2,034.6 | 2,034.6 | |
Other intangible assets, net of accumulated amortization of $655.7 and $616.3, respectively | 430.3 | 457.9 | |
Other assets (Note 5) | 771.6 | 859.9 | |
Assets held for sale (Note 4) | 240.6 | 261.6 | |
Total assets | 8,487.4 | 8,496.3 | |
Liabilities: | |||
Accounts payable and accrued liabilities | 418.2 | 464 | |
Settlement obligations | 3,328.1 | 3,486.8 | |
Income taxes payable | 635.4 | 725.3 | |
Deferred tax liability, net | 153.9 | 158.5 | |
Borrowings | [1] | 2,813 | 2,616.8 |
Other liabilities | 350.8 | 384.6 | |
Liabilities associated with assets held for sale (Note 4) | 161.5 | 182.5 | |
Total liabilities | 7,860.9 | 8,018.5 | |
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; 374.5 shares and 373.5 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 3.7 | 3.7 | |
Capital surplus | 1,013.6 | 995.9 | |
Accumulated deficit | (210.4) | (353.9) | |
Accumulated other comprehensive loss | (180.4) | (167.9) | |
Total stockholders' equity | 626.5 | 477.8 | |
Total liabilities and stockholders' equity | $ 8,487.4 | $ 8,496.3 | |
[1] As of June 30, 2023, the Company’s weighted-average effective rate on total borrowings was approximately 4.1 % . |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Accumulated Depreciation on Property Plant and Equipment | $ 449.7 | $ 512.8 |
Accumulated Amortization on Other Intangible Assets | $ 655.7 | $ 616.3 |
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 | 374.5 | 373.5 |
Common stock, shares outstanding | 374.5 | 373.5 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 328 | $ 487.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 20.1 | 22.6 |
Amortization | 72.4 | 70.1 |
Gain on divestiture of business, excluding transaction costs (Note 4) | (155.8) | |
Other non-cash items, net | 35.6 | 32.8 |
Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in: | ||
Other assets | (52.7) | (131.2) |
Accounts payable and accrued liabilities | (52) | 19.6 |
Income taxes payable | (86.4) | (20.5) |
Other liabilities | (1) | (18.1) |
Net cash provided by operating activities | 264 | 306.8 |
Cash flows from investing activities | ||
Payments for capitalized contract costs | (32.9) | (26.3) |
Payments for internal use software | (46) | (42.7) |
Purchases of property and equipment | (11.2) | (15.3) |
Proceeds from divestiture, net of cash divested (Note 4) | 896.4 | |
Other investing activities | 2.2 | 0.9 |
Net cash (used in)/provided by investing activities | (65.1) | 292.3 |
Cash flows from financing activities | ||
Cash dividends and dividend equivalents paid (Note 9) | (178.7) | (184.8) |
Common stock repurchased (Note 9) | (6) | (185.5) |
Net proceeds from/(repayments of) commercial paper | 494.6 | (15) |
Principal payments on borrowings | (300) | (300) |
Proceeds from exercise of options | 0.3 | 9.4 |
Net change in settlement obligations | (619.8) | (112.1) |
Other financing activities | 0.1 | |
Net cash used in financing activities | (609.5) | (788) |
Net change in cash and cash equivalents, including settlement, and restricted cash | (410.6) | (188.9) |
Cash and cash equivalents, including settlement, and restricted cash at beginning of period | 2,040.7 | 2,110.9 |
Cash and cash equivalents, including settlement, and restricted cash at end of period | 1,630.1 | 1,922 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents on balance sheet | 1,585.9 | 1,201.9 |
Settlement cash and cash equivalents (Note 8) | 11.1 | 602.7 |
Restricted cash in Other assets | 33.1 | 40.4 |
Cash and cash equivalents included in Assets held for sale (Note 4) | 77 | |
Cash and cash equivalents, including settlement, and restricted cash | 1,630.1 | 1,922 |
Supplemental cash flow information: | ||
Interest paid | 50.9 | 47.6 |
Income taxes paid | 162.3 | 148.9 |
Accrued and unpaid capitalized contract costs | 39.8 | |
Settlement Investments | ||
Cash flows from investing activities | ||
Purchases of investments | (198.3) | (495.3) |
Proceeds from the sale of investments | 66.8 | 290.2 |
Maturities of settlement investments | 54.3 | 84.4 |
Non Settlement Investment | ||
Cash flows from investing activities | ||
Purchases of investments | $ (400) | |
Proceeds from the sale of investments | $ 100 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital Surplus | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2021 | $ 355.6 | $ 3.9 | $ 941 | $ (537.2) | $ (52.1) |
Beginning balance (shares) at Dec. 31, 2021 | 393.8 | ||||
Increase/(Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 293.3 | 293.3 | |||
Stock-based compensation | 10.7 | 10.7 | |||
Common stock dividends and dividend equivalents declared | (92.6) | (92.6) | |||
Repurchase and retirement of common shares | (159) | $ (0.1) | (158.9) | ||
Repurchase and retirement of common shares (shares) | (8.6) | ||||
Shares issued under stock-based compensation plans | 8.9 | $ 0.1 | 8.8 | ||
Shares issued under stock-based compensation plans (shares) | 1.9 | ||||
Other comprehensive income/(loss) (Note 9) | (64.1) | (64.1) | |||
Ending balance at Mar. 31, 2022 | 352.8 | $ 3.9 | 960.5 | (495.4) | (116.2) |
Ending balance (shares) at Mar. 31, 2022 | 387.1 | ||||
Beginning balance at Dec. 31, 2021 | 355.6 | $ 3.9 | 941 | (537.2) | (52.1) |
Beginning balance (shares) at Dec. 31, 2021 | 393.8 | ||||
Increase/(Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 487.3 | ||||
Other comprehensive income/(loss) (Note 9) | (64.7) | ||||
Ending balance at Jun. 30, 2022 | 448.3 | $ 3.9 | 973.3 | (412.1) | (116.8) |
Ending balance (shares) at Jun. 30, 2022 | 386.1 | ||||
Beginning balance at Mar. 31, 2022 | 352.8 | $ 3.9 | 960.5 | (495.4) | (116.2) |
Beginning balance (shares) at Mar. 31, 2022 | 387.1 | ||||
Increase/(Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 194 | 194 | |||
Stock-based compensation | 12.3 | 12.3 | |||
Common stock dividends and dividend equivalents declared | (89.6) | (89.6) | |||
Repurchase and retirement of common shares | (21.1) | (21.1) | |||
Repurchase and retirement of common shares (shares) | (1.1) | ||||
Shares issued under stock-based compensation plans | 0.5 | 0.5 | |||
Shares issued under stock-based compensation plans (shares) | 0.1 | ||||
Other comprehensive income/(loss) (Note 9) | (0.6) | (0.6) | |||
Ending balance at Jun. 30, 2022 | 448.3 | $ 3.9 | 973.3 | (412.1) | (116.8) |
Ending balance (shares) at Jun. 30, 2022 | 386.1 | ||||
Beginning balance at Dec. 31, 2022 | $ 477.8 | $ 3.7 | 995.9 | (353.9) | (167.9) |
Beginning balance (shares) at Dec. 31, 2022 | 373.5 | 373.5 | |||
Increase/(Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 151.8 | 151.8 | |||
Stock-based compensation | 8 | 8 | |||
Common stock dividends and dividend equivalents declared | (88.6) | (88.6) | |||
Repurchase and retirement of common shares | (6.2) | $ (0.1) | (6.1) | ||
Repurchase and retirement of common shares (shares) | (0.5) | ||||
Shares issued under stock-based compensation plans | 0.3 | $ 0.1 | 0.2 | ||
Shares issued under stock-based compensation plans (shares) | 1.4 | ||||
Other comprehensive income/(loss) (Note 9) | 9.7 | 9.7 | |||
Ending balance at Mar. 31, 2023 | 552.8 | $ 3.7 | 1,004.1 | (296.8) | (158.2) |
Ending balance (shares) at Mar. 31, 2023 | 374.4 | ||||
Beginning balance at Dec. 31, 2022 | $ 477.8 | $ 3.7 | 995.9 | (353.9) | (167.9) |
Beginning balance (shares) at Dec. 31, 2022 | 373.5 | 373.5 | |||
Increase/(Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 328 | ||||
Other comprehensive income/(loss) (Note 9) | (12.5) | ||||
Ending balance at Jun. 30, 2023 | $ 626.5 | $ 3.7 | 1,013.6 | (210.4) | (180.4) |
Ending balance (shares) at Jun. 30, 2023 | 374.5 | 374.5 | |||
Beginning balance at Mar. 31, 2023 | $ 552.8 | $ 3.7 | 1,004.1 | (296.8) | (158.2) |
Beginning balance (shares) at Mar. 31, 2023 | 374.4 | ||||
Increase/(Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 176.2 | 176.2 | |||
Stock-based compensation | 9.5 | 9.5 | |||
Common stock dividends and dividend equivalents declared | (89.5) | (89.5) | |||
Repurchase and retirement of common shares | (0.3) | (0.3) | |||
Shares issued under stock-based compensation plans (shares) | 0.1 | ||||
Other comprehensive income/(loss) (Note 9) | (22.2) | (22.2) | |||
Ending balance at Jun. 30, 2023 | $ 626.5 | $ 3.7 | $ 1,013.6 | $ (210.4) | $ (180.4) |
Ending balance (shares) at Jun. 30, 2023 | 374.5 | 374.5 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (USD per share) | $ 0.235 | $ 0.235 | $ 0.235 | $ 0.235 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 176.2 | $ 194 | $ 328 | $ 487.3 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 (“Branded Digital”) and transactions initiated on internet and mobile applications hosted by the Company’s third-party white label or co-branded digital partners. 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 primarily sent from retail agent locations worldwide or through websites and mobile devices. 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 - 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"), and the final closing for this transaction occurred on July 1, 2023. Accordingly, the Company will no longer report Business Solutions revenues and operating expenses in future periods. See Note 4 for further information regarding this transaction. The Buyer has rebranded the sold operations within a new standalone company (now referred to as "Convera"). The Business Solutions operating segment facilitated payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals. The Business Solutions business related to exchanges of currency at spot rates, which enabled customers to make cross-currency payments, and in limited countries, the Company wrote foreign currency forward and option contracts for customers to facilitate future payments. All businesses and other services that have not been classified in the above segments are reported as Other, which primarily includes the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services. Certain of the Company's corporate costs such as costs related to strategic initiatives, including costs for the review and closing of mergers, acquisitions, and divestitures, are also included in Other. See Note 14 for further information regarding the Company’s segments. There are legal or regulatory limitations on transferring certain assets of the Company outside of the countries where these assets are located. However, there are generally no limitations on the use of these assets within those countries. Additionally, the Company must meet minimum capital requirements in some countries in order to maintain operating licenses. As of December 31, 2022, the Company's restricted net assets associated with these asset limitations and minimum capital requirements totaled approximately $ 710 million . Various aspects of the Company’s services and businesses are subject to United States federal, state, and local regulation, as well as regulation by foreign jurisdictions, including certain banking and other financial services regulations. Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and were prepared in accordance with the instructions for Form 10‑Q and Article 10 of Regulation S-X. In compliance with those instructions, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") have been condensed or omitted. The unaudited condensed consolidated financial statements in this quarterly report are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. Results of operations and cash flows for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All significant intercompany transactions and accounts have been eliminated as of June 30, 2023 and December 31, 2022 and for all periods presented. In the opinion of management, these condensed consolidated financial statements include all the normal recurring adjustments necessary to fairly present the Company’s condensed consolidated results of operations, financial position, and cash flows as of June 30, 2023 and for all periods presented. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements within the Company’s Annual Report on Form 10‑K for the year ended December 31, 2022. Consistent with industry practice, the accompanying Condensed Consolidated Balance Sheets are unclassified due to the short-term nature of the Company’s settlement obligations contrasted with the Company’s ability to invest cash awaiting settlement in long-term investment securities. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 2. Revenue The Company’s revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the principal amount sent, and the difference between the exchange rate we set to the customer and the rate available in the wholesale foreign exchange market, when the money transfer involves different send and receive currencies. The Company also offers other services, which includes bill payment services, for which revenue is impacted by similar factors. The Company analyzes its different services individually to determine the appropriate basis for revenue recognition. For additional information on the Company's different services, refer to the Company’s consolidated financial statements within the Company’s Annual Report on Form 10‑K for the year ended December 31, 2022. 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 other services are not included in the Company’s segments and are reported as Other. See Note 14 for further information on the Company’s segments. The substantial majority of the Company’s revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the three and six months ended June 30, 2023 and 2022 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated. Three Months Ended June 30, 2023 Foreign Consumer Exchange Money and Payment Other Transfers Services (b) Services Total Regions: North America $ 372.3 $ — $ 33.8 $ 406.1 Europe and CIS 246.0 6.5 4.7 257.2 Middle East, Africa, and South Asia 264.8 — 0.1 264.9 Latin America and the Caribbean 99.8 — 27.3 127.1 East Asia and Oceania 54.8 — — 54.8 Revenues from contracts with customers $ 1,037.7 $ 6.5 $ 65.9 $ 1,110.1 Other revenues (a) 34.5 7.8 17.6 59.9 Total revenues $ 1,072.2 $ 14.3 $ 83.5 $ 1,170.0 Three Months Ended June 30, 2022 Foreign Consumer Exchange Money and Payment Other Transfers Services (b) Services Total Regions: North America $ 406.5 $ — $ 32.4 $ 438.9 Europe and CIS 273.1 20.7 5.6 299.4 Middle East, Africa, and South Asia 158.9 — 0.1 159.0 Latin America and the Caribbean 94.1 — 29.7 123.8 East Asia and Oceania 59.2 — 0.2 59.4 Revenues from contracts with customers $ 991.8 $ 20.7 $ 68.0 $ 1,080.5 Other revenues (a) 35.1 15.0 7.7 57.8 Total revenues $ 1,026.9 $ 35.7 $ 75.7 $ 1,138.3 Six Months Ended June 30, 2023 Foreign Consumer Exchange Money and Payment Other Transfers Services (b) Services Total Regions: North America $ 719.6 $ — $ 67.2 $ 786.8 Europe and CIS 479.7 13.0 10.2 502.9 Middle East, Africa, and South Asia 434.1 — 0.2 434.3 Latin America and the Caribbean 199.5 — 55.5 255.0 East Asia and Oceania 110.1 — — 110.1 Revenues from contracts with customers $ 1,943.0 $ 13.0 $ 133.1 $ 2,089.1 Other revenues (a) 67.5 16.7 33.6 117.8 Total revenues $ 2,010.5 $ 29.7 $ 166.7 $ 2,206.9 Six Months Ended June 30, 2022 Foreign Consumer Exchange Money and Payment Other Transfers Services (b) Services Total Regions: North America $ 787.7 $ 17.9 $ 64.1 $ 869.7 Europe and CIS 556.9 54.4 9.2 620.5 Middle East, Africa, and South Asia 321.2 0.4 0.2 321.8 Latin America and the Caribbean 182.2 0.5 55.8 238.5 East Asia and Oceania 120.6 12.5 0.5 133.6 Revenues from contracts with customers $ 1,968.6 $ 85.7 $ 129.8 $ 2,184.1 Other revenues (a) 57.3 39.1 13.5 109.9 Total revenues $ 2,025.9 $ 124.8 $ 143.3 $ 2,294.0 (a) Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources. (b) On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. The first closing occurred on March 1, 2022, the second occurred on December 31, 2022, and the final closing occurred on July 1, 2023 . See Note 4 for further information regarding this transaction. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share The calculation of basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Outstanding options to purchase Western Union stock and unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested, using the treasury stock method. The treasury stock method assumes proceeds from the exercise price of stock options and the unamortized compensation expense of options and restricted stock are available to acquire shares at an average market price throughout the period, and therefore, reduce the dilutive effect. Shares excluded from the diluted earnings per share calculation under the treasury stock method, primarily due to outstanding options to purchase shares of Western Union stock and restricted stock units, as the assumed proceeds of the options and restricted stock per unit were above the Company’s average share price during the periods and their effect was anti-dilutive, were 10.1 million and 8.6 million for the three months ended June 30, 2023 and 2022, respectively, and 9.7 million and 7.9 million for the six months ended June 30, 2023 and 2022, respectively. The following table provides the calculation of diluted weighted-average shares outstanding (in millions): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Basic weighted-average shares outstanding 375.0 386.7 374.7 389.9 Common stock equivalents 0.6 0.9 0.9 1.1 Diluted weighted-average shares outstanding 375.6 387.6 375.6 391.0 |
Assets Held for Sale and Relate
Assets Held for Sale and Related Divestiture | 6 Months Ended |
Jun. 30, 2023 | |
Assets Held for Sale and Related Divestiture [Abstract] | |
Assets Held for Sale and Related Divestiture | 4. Assets Held for Sale and Related Divestiture On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC for cash consideration of $ 910.0 million. The sale was completed in three closings, with the entire cash consideration collected at the first closing and allocated to the closings on a relative fair value basis. The first closing occurred on March 1, 2022, excluded the operations in the European Union and the United Kingdom, and resulted in a gain of $ 151.4 million. In connection with the first closing, the Company reclassified $ 17.8 million of currency translation gains previously included within Accumulated other comprehensive loss ("AOCL") as a component of Gain on divestiture of business in the Condensed Consolidated Statements of Income. The second closing, which occurred on December 31, 2022 and included the United Kingdom operations, resulted in a gain of $ 96.9 million. As of June 30, 2023 and December 31, 2022, the Company has classified the proceeds allocated to the European Union operations of approximately $ 104 million within Other liabilities in the Condensed Consolidated Balance She ets. The final closing occurred on July 1, 2023 and included the European Union operations. The gain associated with the final closing that will be recognized in the third quarter of 2023 will be subject to regulatory capital adjustments. During the period between the first and final closings, the Company was required to pay the Buyer a measure of profit of the European Union and United Kingdom operations, while owned by the Company, adjusted for the occupancy charges for employees of the Buyer using Company facilities and other items, as contractually agreed, which was $ 1.5 million and $ 8.1 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 2.9 million and $ 10.9 million for the six months ended June 30, 2023 and 2022, respectively, and was included in Other expense, net in the Condensed Consolidated Statements of Income. The related income tax expense on this income was also passed to the Buyer. The Company has presented the remaining assets of its Business Solutions business as held for sale, along with the associated liabilities, as the final closing was completed on July 1, 2023. Business Solutions revenues included in the Condensed Consolidated Statements of Income were $ 14.3 million and $ 35.7 million and direct operating expenses, excluding corporate allocations, were $ 12.6 million and $ 27.8 million for the three months ended June 30, 2023 and 2022, respectively. For the six months ended June 30, 2023 and 2022, Business Solutions revenues were $ 29.7 million and $ 124.8 million, respectively, and direct operating expenses, excluding corporate allocations, were $ 26.1 million and $ 90.4 million, respectively. For both the three and six months ended June 30, 2023 , divestiture costs directly associated with this transaction were $ 1.0 million. For the three and six months ended June 30, 2022 , divestiture costs directly associated with this transaction were $ 0.8 million and $ 4.0 million, respectively. The following table reflects the assets held for sale and associated liabilities of the Business Solutions business in the accompanying Condensed Consolidated Balance Sheets (in millions). These balances are subject to regulatory capital adjustments. June 30, December 31, 2023 2022 Cash and cash equivalents $ — $ 5.2 Settlement assets 91.6 74.9 Property and equipment, net of accumulated depreciation of $ 0.3 and $ 1.0 , respectively 0.7 0.7 Goodwill 61.4 61.4 Other intangible assets, net of accumulated amortization of $ 9.8 and $ 9.8 , respectively 1.4 1.4 Other assets 85.5 118.0 Total assets $ 240.6 $ 261.6 Accounts payable and accrued liabilities $ 9.6 $ 18.2 Settlement obligations 91.6 74.9 Other liabilities 60.3 89.4 Total liabilities $ 161.5 $ 182.5 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Fair value, as defined by the relevant accounting standards, represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For additional information on how the Company measures fair value, refer to the Company’s consolidated financial statements within the Company’s Annual Report on Form 10‑K for the year ended December 31, 2022. The following tables present the Company’s assets and liabilities, which are measured at fair value on a recurring basis, by category (in millions): Fair Value Measurement Using Total June 30, 2023 Level 1 Level 2 Fair Value Assets: Settlement assets: Measured at fair value through net income: Money market funds $ 7.6 — $ 7.6 Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income): State and municipal debt securities — 1,019.3 1,019.3 Asset-backed securities — 190.9 190.9 Corporate debt securities — 147.5 147.5 State and municipal variable-rate demand notes — 46.3 46.3 United States government agency mortgage-backed securities — 16.0 16.0 Other assets: Derivatives — 80.8 80.8 Total assets $ 7.6 $ 1,500.8 $ 1,508.4 Liabilities: Other liabilities: Derivatives $ — $ 70.3 $ 70.3 Total liabilities $ — $ 70.3 $ 70.3 Fair Value Measurement Using Total December 31, 2022 Level 1 Level 2 Fair Value Assets: Settlement assets: Measured at fair value through net income: Money market funds $ 11.7 $ — $ 11.7 Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income): State and municipal debt securities — 933.3 933.3 Asset-backed securities — 184.1 184.1 Corporate debt securities — 146.9 146.9 State and municipal variable-rate demand notes — 48.9 48.9 United States government agency mortgage-backed securities — 20.5 20.5 Other assets: Derivatives — 126.1 126.1 Total assets $ 11.7 $ 1,459.8 $ 1,471.5 Liabilities: Other liabilities: Derivatives $ — $ 98.9 $ 98.9 Total liabilities $ — $ 98.9 $ 98.9 There were no material, non-recurring fair value adjustments in the three and six months ended June 30, 2023, and there were no material, non-recurring fair value adjustments in the three and six months ended June 30, 2022 other than approximately $ 9 million of property and equipment, operating lease right-of-use asset, and other intangible asset impairments associated with the Company's suspension of its operations in Russia and Belarus and the first closing of its Business Solutions divestiture in the six months ended June 30, 2022, as discussed further in Note 14. There were no transfers between Level 1 and Level 2 measurements during the three and six months ended June 30, 2023 and 2022. Other Fair Value Measurements The carrying amounts for many of the Company’s financial instruments, including certain cash and cash equivalents, settlement cash and cash equivalents, and settlement receivables and obligations approximate fair value due to their short maturities. The Company’s borrowings are classified as Level 2 within the valuation hierarchy, and the aggregate fair value of these borrowings was based on quotes from multiple banks. Fixed-rate notes are carried in the Company’s Condensed Consolidated Balance Sheets at their original issuance values as adjusted over time to accrete that value to par. As of June 30, 2023, the carrying value and fair value of the Company’s borrowings were $ 2,813.0 million and $ 2,668.1 million, respectively (see Note 11). As of December 31, 2022, the carrying value and fair value of the Company’s borrowings were $ 2,616.8 million and $ 2,442.5 million, respectively. In 2022, the Company entered into reverse repurchase agreements, a form of secured lending, with broker-dealer affiliates of large U.S. banks, using a portion of the proceeds from the sale of the Company's Business Solutions business. These agreements required the counterparties to pledge marketable securities with a value greater than the amount of cash transferred as collateral, which was held and valued by a third-party custodial bank. These investments generated interest income through the date of repurchase, at which point the purchase price together with the interest due was paid back to the Company. The Company has fully redeemed these investments as of June 30, 2023. As of December 31, 2022 , the carrying value of these investments, as reported in Other assets in the Company's Condensed Consolidated Balance Sheets, was $ 100.0 million, which approximated fair value due to the creditworthiness of the counterparty, the value of the collateral, and the investments' short-term nature and variable interest rate. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Letters of Credit and Bank Guarantees The Company had approximately $ 160 million in outstanding letters of credit and bank guarantees as of June 30, 2023, which were primarily held in connection with regulatory requirements, lease arrangements, and certain agent agreements. The Company expects to renew many of its letters of credit and bank guarantees prior to expiration. Litigation and Related Contingencies The Company is subject to certain claims and litigation that could result in losses, including damages, fines, and/or civil penalties, which could be significant, and in some cases, criminal charges. The Company regularly evaluates the status of legal matters to assess whether a loss is probable and reasonably estimable in determining whether an accrual is appropriate. Furthermore, in determining whether disclosure is appropriate, the Company evaluates each legal matter to assess if there is at least a reasonable possibility that a material loss or additional material losses may have been incurred. The Company also evaluates whether an estimate of possible loss or range of loss can be made. Unless otherwise specified below, the Company believes that there is at least a reasonable possibility that a loss or additional loss may have been incurred for each of the matters described below. For those matters that the Company believes there is at least a reasonable possibility that a loss or additional loss may have been incurred and can reasonably estimate the loss or potential loss, the reasonably possible potential litigation losses in excess of the Company’s recorded liability for probable and estimable losses was approximately $ 30 million as of June 30, 2023. 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 is in the evidentiary stage. 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 December 2022, a purported class action complaint was filed against several money transfer business defendants, including the Company, in the United States District Court for the Northern District of California, alleging that these defendants violated the federal Right to Financial Privacy Act and California’s Financial Information Privacy Act. The United States Department of Homeland Security and Immigration and Customs Enforcement are also named as defendants. The operative complaint alleges that the defendants violated plaintiffs’ financial privacy rights by sharing private financial information with law enforcement agencies through a program coordinated by the Transaction Record Analysis Center. On January 24, 2023, an amended complaint was filed naming the Company's subsidiary Western Union Financial Services, Inc. ("WUFSI") as a defendant in place of The Western Union Company. 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. WUFSI intends to defend itself vigorously in this matter. In late 2017, three individuals filed a lawsuit against certain alleged Western Union entities (collectively, the “Defendants”) in the Commercial Court in Kinshasa-Gombe in the Democratic Republic of the Congo ("DRC"), which was later joined by three additional individuals. These six individuals (the "Plaintiffs"), including current and/or former DRC government officials, claim that their privacy rights were violated and sought € 22.4 million in damages. In 2018, the Commercial Court in Kinshasa-Gombe entered a judgme nt against the Defendants in the amount of € 10.5 million ($ 11.4 million as of June 30, 2023 ). In 2019, the Commercial Court in Kinshasa-Gombe entered a judgment against The Western Union Company ("TWUC") in the amount of € 9 million ($ 9.8 million as of June 30, 2023) The business in the DRC is operated through independent agents. No Western Union entity has a presence in the country. The Plaintiffs have previously sought and may continue to attempt to seize funds from the Company's independent agents in the DRC to satisfy the judgments. The Defendants have learned that certain challenges to the judgments have been denied. The Defendants and TWUC intend to continue to challenge both judgments and defend themselves vigorously in these matters. 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 | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions The Company has ownership interests in certain of its agents accounted for under the equity method of accounting. The Company pays these agents commissions for money transfer and other services provided on the Company’s behalf. Commission expense recognized for these agents for the three months ended June 30, 2023 and 2022 totaled $ 11.5 million and $ 12.8 million, respectively, and $ 22.3 million and $ 24.3 million for the six months ended June 30, 2023 and 2022, respectively. |
Settlement Assets and Obligatio
Settlement Assets and Obligations | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
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): June 30, 2023 Settlement assets: Cash and cash equivalents $ 11.1 Receivables from agents, Business Solutions customers, and others 2,000.6 Less: Allowance for credit losses ( 11.7 ) Receivables from agents, Business Solutions customers, and others, net 1,988.9 Investment securities 1,420.0 Less: Allowance for credit losses ( 0.3 ) Investment securities, net 1,419.7 Total settlement assets (a) $ 3,419.7 Settlement obligations: Money transfer, money order, and payment service payables $ 2,759.5 Payables to agents 660.2 Total settlement obligations (a) $ 3,419.7 December 31, 2022 Settlement assets: Cash and cash equivalents $ 708.1 Receivables from agents, Business Solutions customers, and others 1,533.2 Less: Allowance for credit losses ( 13.0 ) Receivables from agents, Business Solutions customers, and others, net 1,520.2 Investment securities 1,333.7 Less: Allowance for credit losses ( 0.3 ) Investment securities, net 1,333.4 Total settlement assets (a) $ 3,561.7 Settlement obligations: Money transfer, money order, and payment service payables $ 2,843.3 Payables to agents 718.4 Total settlement obligations (a) $ 3,561.7 (a) Settlement assets and Settlement obligations include Assets held for sale and Liabilities associated with assets held for sale of $ 91.6 million and $ 74.9 million as of June 30, 2023 and December 31, 2022 , respectively (see Note 4). Allowance for Credit Losses Receivables from agents and others primarily represent funds collected by such agents, but in transit to the Company, and were $ 1,980.0 million and $ 1,508.5 million as of June 30, 2023 and December 31, 2022, 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 arose from cross-currency payment transactions in the Business Solutions segment. Business Solutions receivables totaled $ 8.9 million and $ 11.7 million as of June 30, 2023 and December 31, 2022, respectively. Receivables occurred when funds were paid out to a beneficiary but not yet received. The Company establishes and monitors an allowance for credit losses related to receivables from agents and others, and Business Solutions customers. The Company has estimated the allowance based on its historical collections experience, adjusted for current conditions and forecasts of future economic conditions based on information known as of June 30, 2023. 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, 2023 $ 11.4 $ 1.6 Current period provision for expected credit losses (a) ( 0.4 ) 0.4 Write-offs charged against the allowance ( 4.2 ) ( 0.7 ) Recoveries of amounts previously written off 1.8 — Impacts of foreign currency exchange rates and other 0.1 0.7 Allowance for credit losses as of March 31, 2023 8.7 2.0 Current period provision for expected credit losses (a) 5.3 1.0 Write-offs charged against the allowance ( 4.1 ) ( 2.4 ) Recoveries of amounts previously written off 1.4 — Impacts of foreign currency exchange rates and other 0.4 ( 0.6 ) Allowance for credit losses as of June 30, 2023 $ 11.7 $ — Agents and Business Solutions Others Customers Allowance for credit losses as of January 1, 2022 $ 18.0 $ 5.7 Current period provision for expected credit losses (a) 1.9 0.4 Write-offs charged against the allowance ( 3.1 ) ( 0.4 ) Recoveries of amounts previously written off 1.7 — Impacts of foreign currency exchange rates, divestitures, and other ( 0.1 ) ( 4.2 ) Allowance for credit losses as of March 31, 2022 18.4 1.5 Current period provision for expected credit losses (a) 1.8 2.1 Write-offs charged against the allowance ( 1.3 ) ( 1.4 ) Recoveries of amounts previously written off 1.0 — Impacts of foreign currency exchange rates and other ( 3.0 ) ( 0.5 ) Allowance for credit losses as of June 30, 2022 $ 16.9 $ 1.7 (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 $ 9.1 million and $ 6.1 million for the three months ended March 31, 2023 and June 30, 2023, respectively, and $ 10.0 million and $ 7.7 million for the three months ended March 31, 2022 and June 30, 2022, respectively. In addition, from time to time, the Company makes advances to its agents. The Company generally owes settlement funds payable to these agents that offset these advances. These amounts advanced to agents are included within Other assets in the accompanying Condensed Consolidated Balance Sheets. As of June 30, 2023 and December 31, 2022 , amounts advanced to agents were $ 184.1 million and $ 154.9 million, respectively, and the related allowances for credit losses were immaterial. Investment Securities Investment securities included in Settlement assets in the Company’s Condensed Consolidated Balance Sheets consist primarily of highly-rated state and municipal debt securities, including fixed-rate term notes and variable-rate demand notes. Variable-rate demand note securities can be put (sold at par) typically on a daily basis with settlement periods ranging from the same day to one week but have varying maturities through 2052 . These securities may be used by the Company for short-term liquidity needs and held for short periods of time. Investment securities are exposed to market risk due to changes in interest rates and credit risk. The Company is required to hold highly-rated, investment grade securities and such investments are restricted to satisfy outstanding settlement obligations in accordance with applicable regulatory requirements. The Company’s investment securities are classified as available-for-sale and recorded at fair value. Western Union regularly monitors credit risk and attempts to mitigate its exposure by investing in highly-rated securities and through investment diversification. Unrealized gains on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes. Available-for-sale securities with a fair value below the amortized cost basis are evaluated on an individual basis to determine whether the impairment is due to credit-related factors or noncredit-related factors. Factors that could indicate a credit loss exists include but are not limited to: (i) negative earnings performance, (ii) credit rating downgrades, or (iii) adverse changes in the regulatory or economic environment of the asset. Any impairment that is not credit-related is excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes, unless the Company intends to sell the impaired security, or it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. Credit-related impairments are recognized immediately as an adjustment to earnings, regardless of whether the Company has the ability or intent to hold the security to maturity and are limited to the difference between fair value and the amortized cost basis. The Company’s provision for credit losses on its available-for-sale securities during the three and six months ended June 30, 2023 and 2022 and the related allowance for credit losses as of June 30, 2023 and December 31, 2022 were immaterial. The components of investment securities are as follows (in millions): Gross Gross Net Amortized Fair Unrealized Unrealized Unrealized June 30, 2023 Cost Value Gains Losses Losses Settlement assets: Cash and cash equivalents: Money market funds $ 7.6 $ 7.6 $ — $ — $ — Available-for-sale securities: State and municipal debt securities (a) 1,085.6 1,019.3 1.8 ( 68.1 ) ( 66.3 ) Asset-backed securities 191.3 190.9 0.4 ( 0.8 ) ( 0.4 ) Corporate debt securities 153.7 147.5 0.3 ( 6.5 ) ( 6.2 ) State and municipal variable-rate demand notes 46.3 46.3 — — — United States government agency mortgage-backed securities 16.8 16.0 — ( 0.8 ) ( 0.8 ) Total available-for-sale securities 1,493.7 1,420.0 2.5 ( 76.2 ) ( 73.7 ) Total investment securities $ 1,501.3 $ 1,427.6 $ 2.5 $ ( 76.2 ) $ ( 73.7 ) Gross Gross Net Amortized Fair Unrealized Unrealized Unrealized December 31, 2022 Cost Value Gains Losses Gains/(Losses) Settlement assets: Cash and cash equivalents: Money market funds $ 11.7 $ 11.7 $ — $ — $ — Available-for-sale securities: State and municipal debt securities (a) 1,010.5 933.3 0.3 ( 77.5 ) ( 77.2 ) Asset-backed securities 183.4 184.1 0.8 ( 0.1 ) 0.7 Corporate debt securities 153.5 146.9 0.3 ( 6.9 ) ( 6.6 ) State and municipal variable-rate demand notes 48.9 48.9 — — — United States government agency mortgage-backed securities 21.5 20.5 — ( 1.0 ) ( 1.0 ) Total available-for-sale securities 1,417.8 1,333.7 1.4 ( 85.5 ) ( 84.1 ) Total investment securities $ 1,429.5 $ 1,345.4 $ 1.4 $ ( 85.5 ) $ ( 84.1 ) (a) The majority of these securities are fixed-rate instruments. The following summarizes investment securities that were in an unrealized loss position as of June 30, 2023, by the length of time the securities were in a continuous loss position (in millions): Less Than One Year Number of Securities Fair Value Unrealized Losses State and municipal debt securities 111 $ 296.5 $ ( 5.6 ) Asset-backed securities 28 163.8 ( 0.8 ) Corporate debt securities 28 84.3 ( 1.3 ) United States government agency mortgage-backed securities 6 5.2 ( 0.2 ) One Year or Greater Number of Securities Fair Value Unrealized Losses State and municipal debt securities 267 $ 609.4 $ ( 62.5 ) Corporate debt securities 11 40.5 ( 5.2 ) United States government agency mortgage-backed securities 7 10.7 ( 0.6 ) As noted above, the Company's provision for credit losses on its investment securities during the three and six months ended June 30, 2023 and the related allowance for credit losses as of June 30, 2023 were immaterial, as the unrealized losses were driven by a rise in U.S. Treasury interest rates. As of June 30, 2023, the Company did not intend to sell its securities in an unrealized loss position and did not expect it would be required to sell these securities prior to recovering their amortized cost basis. The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of June 30, 2023 (in millions): Fair Value Due within 1 year $ 115.9 Due after 1 year through 5 years 676.8 Due after 5 years through 10 years 437.6 Due after 10 years 189.7 Total $ 1,420.0 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay the obligations or the Company may have the right to put the obligation prior to its contractual maturity, as with variable-rate demand notes. Variable-rate demand notes, having a fair value of $ 46.3 million, are included in the "Due after 10 years" category, respectively, in the table above. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Accumulated Other Comprehensive Loss The following table details reclassifications out of AOCL and into Net income. All amounts reclassified from AOCL affect the line items as indicated below and the amounts in parentheses indicate decreases to Net income in the Condensed Consolidated Statements of Income. Amounts Reclassified from AOCL to Net Income Three Months Ended Six Months Ended Income Statement June 30, June 30, Income for the period (in millions) Location 2023 2022 2023 2022 Accumulated other comprehensive loss components: Losses on investment securities: Available-for-sale securities Revenues $ — $ — $ ( 0.1 ) $ ( 0.1 ) Total reclassification adjustments related to investment securities, net of tax — — ( 0.1 ) ( 0.1 ) Gains/(losses) on cash flow hedges: Foreign currency contracts Revenues 7.8 13.9 16.0 14.9 Interest rate contracts Interest expense — — — ( 0.1 ) Income tax expense Provision for income taxes ( 0.2 ) — ( 0.2 ) — Total reclassification adjustments related to cash flow hedges, net of tax 7.6 13.9 15.8 14.8 Foreign currency translation adjustments: Foreign currency translation Gain on divestiture of business — — — 17.8 Total reclassification adjustments related to foreign currency translation adjustments, net of tax — — — 17.8 Total reclassifications, net of tax $ 7.6 $ 13.9 $ 15.7 $ 32.5 The following tables summarize the components of AOCL, net of tax in the accompanying Condensed Consolidated Balance Sheets (in millions): Investment Hedging Foreign Currency Securities Activities Translation Total As of December 31, 2022 $ ( 69.4 ) $ 20.5 $ ( 119.0 ) $ ( 167.9 ) Unrealized gains/(losses) 24.1 ( 2.2 ) — 21.9 Tax benefit/(expense) ( 4.2 ) 0.1 — ( 4.1 ) Amounts reclassified from AOCL into earnings, net of tax 0.1 ( 8.2 ) — ( 8.1 ) As of March 31, 2023 ( 49.4 ) 10.2 ( 119.0 ) ( 158.2 ) Unrealized losses ( 13.8 ) ( 3.1 ) — ( 16.9 ) Tax benefit/(expense) 2.4 ( 0.1 ) — 2.3 Amounts reclassified from AOCL into earnings, net of tax — ( 7.6 ) — ( 7.6 ) As of June 30, 2023 $ ( 60.8 ) $ ( 0.6 ) $ ( 119.0 ) $ ( 180.4 ) Investment Hedging Foreign Currency Securities Activities Translation Total As of December 31, 2021 $ 30.4 $ 18.7 $ ( 101.2 ) $ ( 52.1 ) Unrealized gains/(losses) ( 63.6 ) 6.2 — ( 57.4 ) Tax benefit 11.9 — — 11.9 Amounts reclassified from AOCL into earnings, net of tax 0.1 ( 0.9 ) ( 17.8 ) ( 18.6 ) As of March 31, 2022 ( 21.2 ) 24.0 ( 119.0 ) ( 116.2 ) Unrealized gains/(losses) ( 28.7 ) 37.3 — 8.6 Tax benefit/(expense) 5.0 ( 0.3 ) — 4.7 Amounts reclassified from AOCL into earnings, net of tax — ( 13.9 ) — ( 13.9 ) As of June 30, 2022 $ ( 44.9 ) $ 47.1 $ ( 119.0 ) $ ( 116.8 ) Cash Dividends Paid In both the first and second quarters of 2023 and 2022, the Company's Board of Directors declared quarterly cash dividends of $ 0.235 per common share, representing $ 176.0 million and $ 182.5 million in total dividends, respectively. $ 88.0 million was paid on June 30, 2023, $ 88.0 million was paid on March 31, 2023, $ 90.8 million was paid on June 30, 2022, and $ 91.7 million was paid on March 31, 2022. On July 19, 2023 , the Company's Board of Directors declared a quarterly cash dividend of $ 0.235 per common share, payable on September 29, 2023 . Share Repurchases On February 10, 2022, the Company's Board of Directors authorized $ 1.0 billion of common stock repurchases through December 31, 2024. No shares were repurchased during the six months ended June 30, 2023 under this share repurchase authorization. During the six months ended June 30, 2022, 9.2 million shares were repurchased under this authorization for $ 171.0 million, excluding commissions, at an average cost of $ 18.52 . As of June 30, 2023, $ 648.2 million remained available under this share repurchase authorization. The amounts included in the Common stock repurchased line in the Company’s Condensed Consolidated Statements of Cash Flows represent both shares authorized by the Board of Directors for repurchase under publicly announced authorizations and shares withheld from employees to cover tax withholding obligations on restricted stock units that have vested. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 10. Derivatives The Company is exposed to foreign currency exchange risk resulting from fluctuations in exchange rates, primarily the euro, and, to a lesser degree, the Mexican peso, 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 was 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 have included 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 June 30, 2023 , these foreign currency forward contracts had maturities of a maximum of 24 months with a weighted-average maturity of approximately one year . These contracts are accounted for as cash flow hedges of forecasted revenue, with effectiveness assessed based on changes in the spot rate of the affected currencies during the period of designation and thus time value is excluded from the assessment of effectiveness. The initial value of the excluded components is amortized into Revenues within the Company’s Condensed Consolidated Statements of Income. The Company also uses short duration foreign currency forward contracts, generally with maturities ranging from a few days to one month , to offset foreign exchange rate fluctuations on settlement assets and obligations between initiation and settlement. In addition, forward contracts, typically with maturities of less than one year at inception, are utilized to offset foreign exchange rate fluctuations on certain foreign currency denominated cash and other asset and liability positions. None of these contracts are designated as accounting hedges. The aggregate equivalent United States dollar notional amounts of foreign currency forward contracts as of June 30, 2023 and December 31, 2022 were as follows (in millions): June 30, 2023 Contracts designated as hedges: Euro $ 260.0 Canadian dollar 104.6 British pound 50.9 Australian dollar 50.4 Swiss franc 37.4 Other (a) 43.7 Contracts not designated as hedges: Euro $ 521.0 Mexican peso 176.3 British pound 120.1 United Arab Emirates dirham 68.6 Indian rupee 53.8 Philippine peso 44.0 Australian dollar 41.4 Canadian dollar 36.2 Indonesian rupiah 31.6 Brazilian real 31.0 Singapore dollar 28.1 Other (a) 175.5 December 31, 2022 Contracts designated as hedges: Euro $ 321.6 Canadian dollar 117.3 Australian dollar 53.2 Swiss franc 40.4 British pound 40.4 Swedish krona 25.8 Other (a) 22.1 Contracts not designated as hedges: Euro $ 603.2 Mexican peso 132.9 British pound 115.1 Indian rupee 52.6 Australian dollar 48.7 Canadian dollar 32.2 Japanese yen 30.5 Chinese yuan 30.1 Swiss franc 28.3 Swedish krona 26.7 Philippine peso 26.2 Other (a) 137.0 (a) Comprised of exposures to various currencies; none of these individual currency exposures is greater than $ 25 million. Business Solutions Operations On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC, and the final closing for this transaction occurred on July 1, 2023. See Note 4 for further information regarding this transaction. Prior to the final closing, t he Company wrote derivatives, primarily foreign currency forward contracts and option contracts, mostly with small and medium size enterprises and derived a currency spread from this activity as part of its Business Solutions operations. The Company aggregated its Business Solutions foreign currency exposures arising from customer contracts, including the derivative contracts described above, and hedged the resulting net currency risks by entering into offsetting contracts with Convera through the end of the final closing of the Business Solutions divestiture. The derivatives written were part of the broader portfolio of foreign currency positions arising from the Company’s cross-currency payments operations, which primarily included spot exchanges of currency in addition to forwards and options. Foreign exchange revenues from the total portfolio of positions included in Revenues in the Company’s Condensed Consolidated Statements of Income were $ 13.5 million and $ 33.6 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 27.8 million and $ 112.2 million for the six months ended June 30, 2023 and 2022, respectively. None of the derivative contracts used in Business Solutions operations were designated as accounting hedges and the majority of these derivative contracts have a duration at inception of greater 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 $ 1.5 billion and $ 3.0 billion as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, the significant majority of customer contracts are written in the following currencies: the United States dollar and euro. Balance Sheet The following table summarizes the fair value of derivatives reported in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Location 2023 2022 Location 2023 2022 Derivatives designated as hedges: Foreign currency cash flow hedges Other assets $ 18.5 $ 35.2 Other liabilities $ 9.1 $ 4.7 Total derivatives designated as hedges $ 18.5 $ 35.2 $ 9.1 $ 4.7 Derivatives not designated as hedges: Business Solutions operations - foreign currency (a) Assets held for sale $ 58.6 $ 88.6 Liabilities associated with assets held for sale $ 59.5 $ 89.5 Foreign currency Other assets 3.7 2.3 Other liabilities 1.7 4.7 Total derivatives not designated as hedges $ 62.3 $ 90.9 $ 61.2 $ 94.2 Total derivatives $ 80.8 $ 126.1 $ 70.3 $ 98.9 (a) In many circumstances, the Company allowed its Business Solutions customers to settle part or all of their derivative contracts prior to maturity. However, the offsetting positions entered into with Convera did not allow for similar settlement. To mitigate this, additional foreign currency contracts were entered into with Convera to offset the original economic hedge contracts. This frequently resulted in changes in the Company’s derivative assets and liabilities that did 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 has required 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 June 30, 2023 and December 31, 2022 (in millions): Offsetting of Derivative Assets Gross Net Amounts Derivatives Gross Amounts Offset in Presented in Not Offset in Amounts of the Condensed the Condensed the Condensed Recognized Consolidated Consolidated Consolidated Net June 30, 2023 Assets Balance Sheets Balance Sheets Balance Sheets Amounts Derivatives subject to a master netting arrangement or similar agreement $ 32.4 $ — $ 32.4 $ ( 20.3 ) $ 12.1 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 48.4 Total $ 80.8 December 31, 2022 Derivatives subject to a master netting arrangement or similar agreement $ 55.8 $ — $ 55.8 $ ( 26.3 ) $ 29.5 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 70.3 Total $ 126.1 Offsetting of Derivative Liabilities Gross Net Amounts Derivatives Gross Amounts Offset in Presented in Not Offset in Amounts of the Condensed the Condensed the Condensed Recognized Consolidated Consolidated Consolidated Net June 30, 2023 Liabilities Balance Sheets Balance Sheets Balance Sheets Amounts Derivatives subject to a master netting arrangement or similar agreement $ 54.3 $ — $ 54.3 $ ( 20.3 ) $ 34.0 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 16.0 Total $ 70.3 December 31, 2022 Derivatives subject to a master netting arrangement or similar agreement $ 77.8 $ — $ 77.8 $ ( 26.3 ) $ 51.5 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 21.1 Total $ 98.9 Income Statement Cash Flow Hedges The effective portion of the change in fair value of derivatives that qualify as cash flow hedges is recorded in AOCL in the Company’s Condensed Consolidated Balance Sheets. Generally, amounts are recognized in income when the related forecasted transaction affects earnings. The following table presents the pre-tax amount of unrealized gains/(losses) recognized in other comprehensive income from cash flow hedges for the three and six months ended June 30, 2023 and 2022 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Foreign currency derivatives (a) $ ( 3.5 ) $ 37.3 $ ( 5.7 ) $ 43.5 (a) Gains/(losses) of $ 0.1 million and $( 0.7 ) million for the three months ended June 30, 2023 and 2022 , respectively, and $ 1.9 million and ($ 4.9 million) for the six months ended June 30, 2023 and 2022, respectively, represent amounts excluded from the assessment of effectiveness and recognized in other comprehensive income, for which an amortization approach is applied. The following table presents the location and amounts of pre-tax net gains/(losses) from cash flow hedging relationships recognized in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022 (in millions): Three Months Ended June 30, 2023 2022 Revenues Interest Expense Revenues Interest Expense Total amounts presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded $ 1,170.0 $ ( 27.0 ) $ 1,138.3 $ ( 24.8 ) Gain/(loss) on cash flow hedges: Foreign currency derivatives: Gains reclassified from AOCL into earnings 7.8 — 13.9 — Amount excluded from effectiveness testing recognized in earnings based on an amortization approach 1.7 — 1.4 — Interest rate derivatives: Losses reclassified from AOCL into earnings — — — — Six Months Ended June 30, 2023 2022 Revenues Interest Expense Revenues Interest Expense Total amounts presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded $ 2,206.9 $ ( 52.0 ) $ 2,294.0 $ ( 49.6 ) Gain/(loss) on cash flow hedges: Foreign currency derivatives: Gains reclassified from AOCL into earnings 16.0 — 14.9 — Amount excluded from effectiveness testing recognized in earnings based on an amortization approach 3.3 — 2.5 — Interest rate derivatives: Losses reclassified from AOCL into earnings — — — ( 0.1 ) Undesignated Hedges The following table presents the location and amount of pre-tax net gains from undesignated hedges in the Condensed Consolidated Statements of Income on derivatives for the three and six months ended June 30, 2023 and 2022 (in millions): Three Months Ended Six Months Ended June 30, June 30, Derivatives (a) Location 2023 2022 2023 2022 Foreign currency derivatives (b) Selling, general, and administrative $ 3.3 $ 43.3 $ 8.0 $ 55.0 (a) The Company uses foreign currency forward and option contracts as part of its Business Solutions payments operations. These derivative contracts are excluded from this table as they are managed as part of a broader currency portfolio that includes non-derivative currency exposures. The gains and losses on these derivatives are included as part of the broader disclosure of portfolio revenue for this business discussed above. (b) The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations as well as certain foreign currency denominated positions. Foreign exchange losses on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivative activity as displayed above and included in Selling, general, and administrative in the Condensed Consolidated Statements of Income, were $ 3.1 million and $ 39.9 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 2.9 million and $ 49.8 million for the six months ended June 30, 2023 and 2022 , respectively. All cash flows associated with derivatives are included in Cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. Based on June 30, 2023 foreign exchange rates, an accumulated other comprehensive pre-tax gain of $ 7.5 million related to the foreign currency forward contracts is expected to be reclassified into Revenues within the next 12 months. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | 11. Borrowings The Company’s outstanding borrowings consisted of the following (in millions): June 30, 2023 December 31, 2022 Commercial paper (a) $ 674.6 $ 180.0 Notes: 4.250 % notes due 2023 (b) — 300.0 2.850 % notes due 2025 (c) 500.0 500.0 1.350 % notes due 2026 (c) 600.0 600.0 2.750 % notes due 2031 (c) 300.0 300.0 6.200 % notes due 2036 (c) 500.0 500.0 6.200 % notes due 2040 (c) 250.0 250.0 Total borrowings at par value 2,824.6 2,630.0 Debt issuance costs and unamortized discount, net ( 11.6 ) ( 13.2 ) Total borrowings at carrying value (d) $ 2,813.0 $ 2,616.8 (a) Pursuant to the Company’s commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $ 1.5 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Company’s revolving credit facility. The commercial paper notes may have maturities of up to 397 days from date of issuance. The Company’s commercial paper borrowings as of June 30, 2023 had a weighted-average annual interest rate of approximately 5.3 % and a weighted-average term of approximately 5 days. (b) Commercial paper and cash, including cash generated from operations, were used to repay $ 300.0 million of the aggregate principal amount of 4.250 % unsecured notes due in June 2023. (c) The difference between the stated interest rate and the effective interest rate is not significant. (d) As of June 30, 2023, the Company’s weighted-average effective rate on total borrowings was approximately 4.1 % . The following summarizes the Company’s maturities of its notes at par value as of June 30, 2023 (in millions): Due within 1 year $ — Due after 1 year through 2 years 500.0 Due after 2 years through 3 years 600.0 Due after 3 years through 4 years — Due after 4 years through 5 years — Due after 5 years 1,050.0 Total $ 2,150.0 The Company’s obligations with respect to its outstanding borrowings, as described above, rank equally. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The Company’s effective tax rates on pre-tax income were 18.6 % and 17.9 % for the three months ended June 30, 2023 and 2022 , respectively, and 17.4 % and 18.6 % for the six months ended June 30, 2023 and 2022, respectively. The increase in the Company's effective tax rate for the three months ended June 30, 2023 compared to the corresponding period in the prior year was primarily due to discrete tax effects in the current period, partially offset by the effects of the sale of the Company's Business Solutions business and lower amounts of research and development expenses required to be capitalized in the current year. The decrease in the Company's effective tax rate for the six months ended June 30, 2023 compared to the corresponding period in the prior year was primarily due to the effects of the sale of the Company's Business Solutions business and lower amounts of research and development expenses required to be capitalized in the current year, partially offset by discrete tax effects in the current period. The sale of the Business Solutions business has been and will continue to be included in the Company's estimated annual effective rate in accordance with the gains related to each closing. Unrecognized tax benefits are reflected in Income taxes payable in the Condensed Consolidated Balance Sheets. The total amount of unrecognized tax benefits as of June 30, 2023 and December 31, 2022 was $ 297.5 million and $ 290.7 million, respectively, including interest and penalties. The Company’s tax filings are subject to examination by U.S. federal, state, and various non-United States jurisdictions. The conclusion of the examination of the Company’s consolidated federal income tax returns for 2017 and 2018 resulted in both agreed and unagreed adjustments. The agreed adjustments have been reflected in the Company’s financial statements. The Company is contesting the unagreed adjustments at the IRS Appeals level and believes its reserves for these unagreed adjustments are adequate. The statute of limitations for the U.S. federal returns for 2017 and 2018 has been extended to March 31, 2024. The Company’s U.S. federal income tax returns since 2019 are also eligible to be examined. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | 13. Stock-Based Compensation Plans For the three months ended June 30, 2023 and 2022, the Company recognized stock-based compensation expense of $ 9.5 million and $ 12.3 million, respectively, resulting primarily from stock options, restricted stock units, and performance-based restricted stock units in the Condensed Consolidated Statements of Income. For the six months ended June 30, 2023 and 2022, the Company recognized stock-based compensation expense of $ 17.5 million and $ 23.0 million, respectively. During the six months ended June 30, 2023 , the Company granted 1.0 million options at a weighted-average exercise price of $ 13.27 and 4.1 million performance-based restricted stock units and restricted stock units at a weighted-average grant date fair value of $ 13.11 . As of June 30, 2023 , the Company had 7.1 million outstanding options at a weighted-average exercise price of $ 18.09 , of which 4.2 million options were exercisable at a weighted-average exercise price of $ 19.28 . The Company had 8.0 million outstanding performance-based restricted stock units (based on target performance) and restricted stock units at a weighted-average grant date fair value of $ 16.72 as of June 30, 2023 . |
Segments
Segments | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segments | 14. Segments As further described in Note 1, the Company classifies its business into two segments: Consumer-to-Consumer and Business Solutions. Operating segments are defined as components of an enterprise that engage in business activities, about which separate financial information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker ("CODM") in allocating resources and assessing performance. The Consumer-to-Consumer operating segment facilitates money transfers between two consumers. The segment includes five geographic regions whose functions are primarily related to generating, managing, and maintaining agent relationships and localized marketing activities. The Company includes Branded Digital transactions in its regions. By means of common processes and systems, these regions, including Branded Digital, 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 facilitated 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 the Buyer, and the final closing for this transaction occurred on July 1, 2023. Accordingly, the Company will no longer report Business Solutions revenues and operating expenses in future periods. See Note 4 for further information regarding this transaction. All businesses and other services that have not been classified in the above segments are reported as Other, which primarily includes the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services. Corporate costs, including overhead expenses, are allocated to the segments primarily based on a percentage of the segments’ revenue compared to total revenue. Effective January 1, 2022, the Company stopped allocating corporate costs to its Business Solutions segment, given its agreement to sell this business, as discussed further in Note 4. The following table presents the Company’s segment results for the three and six months ended June 30, 2023 and 2022 (in millions): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues: Consumer-to-Consumer $ 1,072.2 $ 1,026.9 $ 2,010.5 $ 2,025.9 Business Solutions (a) 14.3 35.7 29.7 124.8 Other 83.5 75.7 166.7 143.3 Total consolidated revenues $ 1,170.0 $ 1,138.3 $ 2,206.9 $ 2,294.0 Operating income: Consumer-to-Consumer $ 230.7 $ 225.6 $ 408.5 $ 432.8 Business Solutions (a) 1.8 8.3 3.7 35.8 Other 18.4 30.3 50.5 51.8 Total segment operating income 250.9 264.2 462.7 520.4 Russia/Belarus exit costs (b) — ( 0.2 ) — ( 11.2 ) Business Solutions exit costs (b) — — — ( 7.7 ) Operating expense redeployment program costs (c) ( 8.3 ) — ( 15.4 ) — Total consolidated operating income $ 242.6 $ 264.0 $ 447.3 $ 501.5 (a) On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to the Buyer. The sale was completed in three closings, the first of which occurred on March 1, 2022. The second occurred on December 31, 2022, and the final occurred on July 1, 2023. See Note 4 for further information regarding this transaction. (b) Represents the exit costs incurred in connection with the Company's suspension of its operations in Russia and Belarus and the divestiture of the Business Solutions business, primarily related to severance and non-cash impairments of property and equipment, an operating lease right-of-use asset, and other intangible assets. While certain of the expenses are identifiable to the Company's segments, the expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results. (c) Represents severance, expenses associated with streamlining the Company's organizational and legal structure, and other expenses associated with the Company's program to redeploy expenses in its cost base through optimizations in vendor management, real estate, marketing, and people strategy, as previously announced in October 2022. In the fourth quarter of 2022, expenses incurred under the program included non-cash impairments of operating lease right-of-use assets and property and equipment. The expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results. |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and were prepared in accordance with the instructions for Form 10‑Q and Article 10 of Regulation S-X. In compliance with those instructions, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") have been condensed or omitted. The unaudited condensed consolidated financial statements in this quarterly report are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. Results of operations and cash flows for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All significant intercompany transactions and accounts have been eliminated as of June 30, 2023 and December 31, 2022 and for all periods presented. In the opinion of management, these condensed consolidated financial statements include all the normal recurring adjustments necessary to fairly present the Company’s condensed consolidated results of operations, financial position, and cash flows as of June 30, 2023 and for all periods presented. These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements within the Company’s Annual Report on Form 10‑K for the year ended December 31, 2022. Consistent with industry practice, the accompanying Condensed Consolidated Balance Sheets are unclassified due to the short-term nature of the Company’s settlement obligations contrasted with the Company’s ability to invest cash awaiting settlement in long-term investment securities. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. |
Earnings Per Share | The calculation of basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Outstanding options to purchase Western Union stock and unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested, using the treasury stock method. The treasury stock method assumes proceeds from the exercise price of stock options and the unamortized compensation expense of options and restricted stock are available to acquire shares at an average market price throughout the period, and therefore, reduce the dilutive effect. |
Investment Securities | Investment securities included in Settlement assets in the Company’s Condensed Consolidated Balance Sheets consist primarily of highly-rated state and municipal debt securities, including fixed-rate term notes and variable-rate demand notes. Variable-rate demand note securities can be put (sold at par) typically on a daily basis with settlement periods ranging from the same day to one week but have varying maturities through 2052 . These securities may be used by the Company for short-term liquidity needs and held for short periods of time. Investment securities are exposed to market risk due to changes in interest rates and credit risk. The Company is required to hold highly-rated, investment grade securities and such investments are restricted to satisfy outstanding settlement obligations in accordance with applicable regulatory requirements. The Company’s investment securities are classified as available-for-sale and recorded at fair value. Western Union regularly monitors credit risk and attempts to mitigate its exposure by investing in highly-rated securities and through investment diversification. Unrealized gains on available-for-sale securities are excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes. Available-for-sale securities with a fair value below the amortized cost basis are evaluated on an individual basis to determine whether the impairment is due to credit-related factors or noncredit-related factors. Factors that could indicate a credit loss exists include but are not limited to: (i) negative earnings performance, (ii) credit rating downgrades, or (iii) adverse changes in the regulatory or economic environment of the asset. Any impairment that is not credit-related is excluded from earnings and presented as a component of accumulated other comprehensive loss, net of related deferred taxes, unless the Company intends to sell the impaired security, or it is more likely than not that the Company will be required to sell the security before recovering its amortized cost basis. Credit-related impairments are recognized immediately as an adjustment to earnings, regardless of whether the Company has the ability or intent to hold the security to maturity and are limited to the difference between fair value and the amortized cost basis. The Company’s provision for credit losses on its available-for-sale securities during the three and six months ended June 30, 2023 and 2022 and the related allowance for credit losses as of June 30, 2023 and December 31, 2022 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 June 30, 2023 , these foreign currency forward contracts had maturities of a maximum of 24 months with a weighted-average maturity of approximately one year . These contracts are accounted for as cash flow hedges of forecasted revenue, with effectiveness assessed based on changes in the spot rate of the affected currencies during the period of designation and thus time value is excluded from the assessment of effectiveness. The initial value of the excluded components is amortized into Revenues within the Company’s Condensed Consolidated Statements of Income. The Company also uses short duration foreign currency forward contracts, generally with maturities ranging from a few days to one month , to offset foreign exchange rate fluctuations on settlement assets and obligations between initiation and settlement. In addition, forward contracts, typically with maturities of less than one year at inception, are utilized to offset foreign exchange rate fluctuations on certain foreign currency denominated cash and other asset and liability positions. None of these contracts are designated as accounting hedges. |
Foreign Currency - Business Solutions | Business Solutions Operations On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC, and the final closing for this transaction occurred on July 1, 2023. See Note 4 for further information regarding this transaction. Prior to the final closing, t he Company wrote derivatives, primarily foreign currency forward contracts and option contracts, mostly with small and medium size enterprises and derived a currency spread from this activity as part of its Business Solutions operations. The Company aggregated its Business Solutions foreign currency exposures arising from customer contracts, including the derivative contracts described above, and hedged the resulting net currency risks by entering into offsetting contracts with Convera through the end of the final closing of the Business Solutions divestiture. The derivatives written were part of the broader portfolio of foreign currency positions arising from the Company’s cross-currency payments operations, which primarily included spot exchanges of currency in addition to forwards and options. Foreign exchange revenues from the total portfolio of positions included in Revenues in the Company’s Condensed Consolidated Statements of Income were $ 13.5 million and $ 33.6 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 27.8 million and $ 112.2 million for the six months ended June 30, 2023 and 2022, respectively. None of the derivative contracts used in Business Solutions operations were designated as accounting hedges and the majority of these derivative contracts have a duration at inception of greater than one year . |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue Earned from Contracts with Customers | The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the three and six months ended June 30, 2023 and 2022 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated. Three Months Ended June 30, 2023 Foreign Consumer Exchange Money and Payment Other Transfers Services (b) Services Total Regions: North America $ 372.3 $ — $ 33.8 $ 406.1 Europe and CIS 246.0 6.5 4.7 257.2 Middle East, Africa, and South Asia 264.8 — 0.1 264.9 Latin America and the Caribbean 99.8 — 27.3 127.1 East Asia and Oceania 54.8 — — 54.8 Revenues from contracts with customers $ 1,037.7 $ 6.5 $ 65.9 $ 1,110.1 Other revenues (a) 34.5 7.8 17.6 59.9 Total revenues $ 1,072.2 $ 14.3 $ 83.5 $ 1,170.0 Three Months Ended June 30, 2022 Foreign Consumer Exchange Money and Payment Other Transfers Services (b) Services Total Regions: North America $ 406.5 $ — $ 32.4 $ 438.9 Europe and CIS 273.1 20.7 5.6 299.4 Middle East, Africa, and South Asia 158.9 — 0.1 159.0 Latin America and the Caribbean 94.1 — 29.7 123.8 East Asia and Oceania 59.2 — 0.2 59.4 Revenues from contracts with customers $ 991.8 $ 20.7 $ 68.0 $ 1,080.5 Other revenues (a) 35.1 15.0 7.7 57.8 Total revenues $ 1,026.9 $ 35.7 $ 75.7 $ 1,138.3 Six Months Ended June 30, 2023 Foreign Consumer Exchange Money and Payment Other Transfers Services (b) Services Total Regions: North America $ 719.6 $ — $ 67.2 $ 786.8 Europe and CIS 479.7 13.0 10.2 502.9 Middle East, Africa, and South Asia 434.1 — 0.2 434.3 Latin America and the Caribbean 199.5 — 55.5 255.0 East Asia and Oceania 110.1 — — 110.1 Revenues from contracts with customers $ 1,943.0 $ 13.0 $ 133.1 $ 2,089.1 Other revenues (a) 67.5 16.7 33.6 117.8 Total revenues $ 2,010.5 $ 29.7 $ 166.7 $ 2,206.9 Six Months Ended June 30, 2022 Foreign Consumer Exchange Money and Payment Other Transfers Services (b) Services Total Regions: North America $ 787.7 $ 17.9 $ 64.1 $ 869.7 Europe and CIS 556.9 54.4 9.2 620.5 Middle East, Africa, and South Asia 321.2 0.4 0.2 321.8 Latin America and the Caribbean 182.2 0.5 55.8 238.5 East Asia and Oceania 120.6 12.5 0.5 133.6 Revenues from contracts with customers $ 1,968.6 $ 85.7 $ 129.8 $ 2,184.1 Other revenues (a) 57.3 39.1 13.5 109.9 Total revenues $ 2,025.9 $ 124.8 $ 143.3 $ 2,294.0 (a) Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources. (b) On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. The first closing occurred on March 1, 2022, the second occurred on December 31, 2022, and the final closing occurred on July 1, 2023 . See Note 4 for further information regarding this transaction. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Diluted Weighted-average Shares Outstanding | The following table provides the calculation of diluted weighted-average shares outstanding (in millions): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Basic weighted-average shares outstanding 375.0 386.7 374.7 389.9 Common stock equivalents 0.6 0.9 0.9 1.1 Diluted weighted-average shares outstanding 375.6 387.6 375.6 391.0 |
Assets Held for Sale and Rela_2
Assets Held for Sale and Related Divestiture (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Assets Held for Sale and Related Divestiture [Abstract] | |
Schedule of Assets and Liabilities Held for Sale | The following table reflects the assets held for sale and associated liabilities of the Business Solutions business in the accompanying Condensed Consolidated Balance Sheets (in millions). These balances are subject to regulatory capital adjustments. June 30, December 31, 2023 2022 Cash and cash equivalents $ — $ 5.2 Settlement assets 91.6 74.9 Property and equipment, net of accumulated depreciation of $ 0.3 and $ 1.0 , respectively 0.7 0.7 Goodwill 61.4 61.4 Other intangible assets, net of accumulated amortization of $ 9.8 and $ 9.8 , respectively 1.4 1.4 Other assets 85.5 118.0 Total assets $ 240.6 $ 261.6 Accounts payable and accrued liabilities $ 9.6 $ 18.2 Settlement obligations 91.6 74.9 Other liabilities 60.3 89.4 Total liabilities $ 161.5 $ 182.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
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 category (in millions): Fair Value Measurement Using Total June 30, 2023 Level 1 Level 2 Fair Value Assets: Settlement assets: Measured at fair value through net income: Money market funds $ 7.6 — $ 7.6 Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income): State and municipal debt securities — 1,019.3 1,019.3 Asset-backed securities — 190.9 190.9 Corporate debt securities — 147.5 147.5 State and municipal variable-rate demand notes — 46.3 46.3 United States government agency mortgage-backed securities — 16.0 16.0 Other assets: Derivatives — 80.8 80.8 Total assets $ 7.6 $ 1,500.8 $ 1,508.4 Liabilities: Other liabilities: Derivatives $ — $ 70.3 $ 70.3 Total liabilities $ — $ 70.3 $ 70.3 Fair Value Measurement Using Total December 31, 2022 Level 1 Level 2 Fair Value Assets: Settlement assets: Measured at fair value through net income: Money market funds $ 11.7 $ — $ 11.7 Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income): State and municipal debt securities — 933.3 933.3 Asset-backed securities — 184.1 184.1 Corporate debt securities — 146.9 146.9 State and municipal variable-rate demand notes — 48.9 48.9 United States government agency mortgage-backed securities — 20.5 20.5 Other assets: Derivatives — 126.1 126.1 Total assets $ 11.7 $ 1,459.8 $ 1,471.5 Liabilities: Other liabilities: Derivatives $ — $ 98.9 $ 98.9 Total liabilities $ — $ 98.9 $ 98.9 |
Settlement Assets and Obligat_2
Settlement Assets and Obligations (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Settlement Assets and Obligations | Settlement assets and obligations consisted of the following (in millions): June 30, 2023 Settlement assets: Cash and cash equivalents $ 11.1 Receivables from agents, Business Solutions customers, and others 2,000.6 Less: Allowance for credit losses ( 11.7 ) Receivables from agents, Business Solutions customers, and others, net 1,988.9 Investment securities 1,420.0 Less: Allowance for credit losses ( 0.3 ) Investment securities, net 1,419.7 Total settlement assets (a) $ 3,419.7 Settlement obligations: Money transfer, money order, and payment service payables $ 2,759.5 Payables to agents 660.2 Total settlement obligations (a) $ 3,419.7 December 31, 2022 Settlement assets: Cash and cash equivalents $ 708.1 Receivables from agents, Business Solutions customers, and others 1,533.2 Less: Allowance for credit losses ( 13.0 ) Receivables from agents, Business Solutions customers, and others, net 1,520.2 Investment securities 1,333.7 Less: Allowance for credit losses ( 0.3 ) Investment securities, net 1,333.4 Total settlement assets (a) $ 3,561.7 Settlement obligations: Money transfer, money order, and payment service payables $ 2,843.3 Payables to agents 718.4 Total settlement obligations (a) $ 3,561.7 (a) Settlement assets and Settlement obligations include Assets held for sale and Liabilities associated with assets held for sale of $ 91.6 million and $ 74.9 million as of June 30, 2023 and December 31, 2022 , respectively (see Note 4). |
Summary of Activity in the Allowance for Credit Losses | The following tables summarize the activity in the allowance for credit losses on receivables from agents and others, and Business Solutions customers (in millions): Agents and Business Solutions Others Customers Allowance for credit losses as of January 1, 2023 $ 11.4 $ 1.6 Current period provision for expected credit losses (a) ( 0.4 ) 0.4 Write-offs charged against the allowance ( 4.2 ) ( 0.7 ) Recoveries of amounts previously written off 1.8 — Impacts of foreign currency exchange rates and other 0.1 0.7 Allowance for credit losses as of March 31, 2023 8.7 2.0 Current period provision for expected credit losses (a) 5.3 1.0 Write-offs charged against the allowance ( 4.1 ) ( 2.4 ) Recoveries of amounts previously written off 1.4 — Impacts of foreign currency exchange rates and other 0.4 ( 0.6 ) Allowance for credit losses as of June 30, 2023 $ 11.7 $ — Agents and Business Solutions Others Customers Allowance for credit losses as of January 1, 2022 $ 18.0 $ 5.7 Current period provision for expected credit losses (a) 1.9 0.4 Write-offs charged against the allowance ( 3.1 ) ( 0.4 ) Recoveries of amounts previously written off 1.7 — Impacts of foreign currency exchange rates, divestitures, and other ( 0.1 ) ( 4.2 ) Allowance for credit losses as of March 31, 2022 18.4 1.5 Current period provision for expected credit losses (a) 1.8 2.1 Write-offs charged against the allowance ( 1.3 ) ( 1.4 ) Recoveries of amounts previously written off 1.0 — Impacts of foreign currency exchange rates and other ( 3.0 ) ( 0.5 ) Allowance for credit losses as of June 30, 2022 $ 16.9 $ 1.7 (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 $ 9.1 million and $ 6.1 million for the three months ended March 31, 2023 and June 30, 2023, respectively, and $ 10.0 million and $ 7.7 million for the three months ended March 31, 2022 and June 30, 2022, respectively. |
Components of Investment Securities | The components of investment securities are as follows (in millions): Gross Gross Net Amortized Fair Unrealized Unrealized Unrealized June 30, 2023 Cost Value Gains Losses Losses Settlement assets: Cash and cash equivalents: Money market funds $ 7.6 $ 7.6 $ — $ — $ — Available-for-sale securities: State and municipal debt securities (a) 1,085.6 1,019.3 1.8 ( 68.1 ) ( 66.3 ) Asset-backed securities 191.3 190.9 0.4 ( 0.8 ) ( 0.4 ) Corporate debt securities 153.7 147.5 0.3 ( 6.5 ) ( 6.2 ) State and municipal variable-rate demand notes 46.3 46.3 — — — United States government agency mortgage-backed securities 16.8 16.0 — ( 0.8 ) ( 0.8 ) Total available-for-sale securities 1,493.7 1,420.0 2.5 ( 76.2 ) ( 73.7 ) Total investment securities $ 1,501.3 $ 1,427.6 $ 2.5 $ ( 76.2 ) $ ( 73.7 ) Gross Gross Net Amortized Fair Unrealized Unrealized Unrealized December 31, 2022 Cost Value Gains Losses Gains/(Losses) Settlement assets: Cash and cash equivalents: Money market funds $ 11.7 $ 11.7 $ — $ — $ — Available-for-sale securities: State and municipal debt securities (a) 1,010.5 933.3 0.3 ( 77.5 ) ( 77.2 ) Asset-backed securities 183.4 184.1 0.8 ( 0.1 ) 0.7 Corporate debt securities 153.5 146.9 0.3 ( 6.9 ) ( 6.6 ) State and municipal variable-rate demand notes 48.9 48.9 — — — United States government agency mortgage-backed securities 21.5 20.5 — ( 1.0 ) ( 1.0 ) Total available-for-sale securities 1,417.8 1,333.7 1.4 ( 85.5 ) ( 84.1 ) Total investment securities $ 1,429.5 $ 1,345.4 $ 1.4 $ ( 85.5 ) $ ( 84.1 ) (a) The majority of these securities are fixed-rate instruments. |
Summary of Investment Securities in Unrealized Position | The following summarizes investment securities that were in an unrealized loss position as of June 30, 2023, by the length of time the securities were in a continuous loss position (in millions): Less Than One Year Number of Securities Fair Value Unrealized Losses State and municipal debt securities 111 $ 296.5 $ ( 5.6 ) Asset-backed securities 28 163.8 ( 0.8 ) Corporate debt securities 28 84.3 ( 1.3 ) United States government agency mortgage-backed securities 6 5.2 ( 0.2 ) One Year or Greater Number of Securities Fair Value Unrealized Losses State and municipal debt securities 267 $ 609.4 $ ( 62.5 ) Corporate debt securities 11 40.5 ( 5.2 ) United States government agency mortgage-backed securities 7 10.7 ( 0.6 ) |
Contractual Maturities of Debt Securities | The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of June 30, 2023 (in millions): Fair Value Due within 1 year $ 115.9 Due after 1 year through 5 years 676.8 Due after 5 years through 10 years 437.6 Due after 10 years 189.7 Total $ 1,420.0 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified from AOCL | The following table details reclassifications out of AOCL and into Net income. All amounts reclassified from AOCL affect the line items as indicated below and the amounts in parentheses indicate decreases to Net income in the Condensed Consolidated Statements of Income. Amounts Reclassified from AOCL to Net Income Three Months Ended Six Months Ended Income Statement June 30, June 30, Income for the period (in millions) Location 2023 2022 2023 2022 Accumulated other comprehensive loss components: Losses on investment securities: Available-for-sale securities Revenues $ — $ — $ ( 0.1 ) $ ( 0.1 ) Total reclassification adjustments related to investment securities, net of tax — — ( 0.1 ) ( 0.1 ) Gains/(losses) on cash flow hedges: Foreign currency contracts Revenues 7.8 13.9 16.0 14.9 Interest rate contracts Interest expense — — — ( 0.1 ) Income tax expense Provision for income taxes ( 0.2 ) — ( 0.2 ) — Total reclassification adjustments related to cash flow hedges, net of tax 7.6 13.9 15.8 14.8 Foreign currency translation adjustments: Foreign currency translation Gain on divestiture of business — — — 17.8 Total reclassification adjustments related to foreign currency translation adjustments, net of tax — — — 17.8 Total reclassifications, net of tax $ 7.6 $ 13.9 $ 15.7 $ 32.5 |
Schedule of Components of Accumulated Other Comprehensive Income/(Loss) | The following tables summarize the components of AOCL, net of tax in the accompanying Condensed Consolidated Balance Sheets (in millions): Investment Hedging Foreign Currency Securities Activities Translation Total As of December 31, 2022 $ ( 69.4 ) $ 20.5 $ ( 119.0 ) $ ( 167.9 ) Unrealized gains/(losses) 24.1 ( 2.2 ) — 21.9 Tax benefit/(expense) ( 4.2 ) 0.1 — ( 4.1 ) Amounts reclassified from AOCL into earnings, net of tax 0.1 ( 8.2 ) — ( 8.1 ) As of March 31, 2023 ( 49.4 ) 10.2 ( 119.0 ) ( 158.2 ) Unrealized losses ( 13.8 ) ( 3.1 ) — ( 16.9 ) Tax benefit/(expense) 2.4 ( 0.1 ) — 2.3 Amounts reclassified from AOCL into earnings, net of tax — ( 7.6 ) — ( 7.6 ) As of June 30, 2023 $ ( 60.8 ) $ ( 0.6 ) $ ( 119.0 ) $ ( 180.4 ) Investment Hedging Foreign Currency Securities Activities Translation Total As of December 31, 2021 $ 30.4 $ 18.7 $ ( 101.2 ) $ ( 52.1 ) Unrealized gains/(losses) ( 63.6 ) 6.2 — ( 57.4 ) Tax benefit 11.9 — — 11.9 Amounts reclassified from AOCL into earnings, net of tax 0.1 ( 0.9 ) ( 17.8 ) ( 18.6 ) As of March 31, 2022 ( 21.2 ) 24.0 ( 119.0 ) ( 116.2 ) Unrealized gains/(losses) ( 28.7 ) 37.3 — 8.6 Tax benefit/(expense) 5.0 ( 0.3 ) — 4.7 Amounts reclassified from AOCL into earnings, net of tax — ( 13.9 ) — ( 13.9 ) As of June 30, 2022 $ ( 44.9 ) $ 47.1 $ ( 119.0 ) $ ( 116.8 ) |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amounts of Foreign Currency Forward Contracts | The aggregate equivalent United States dollar notional amounts of foreign currency forward contracts as of June 30, 2023 and December 31, 2022 were as follows (in millions): June 30, 2023 Contracts designated as hedges: Euro $ 260.0 Canadian dollar 104.6 British pound 50.9 Australian dollar 50.4 Swiss franc 37.4 Other (a) 43.7 Contracts not designated as hedges: Euro $ 521.0 Mexican peso 176.3 British pound 120.1 United Arab Emirates dirham 68.6 Indian rupee 53.8 Philippine peso 44.0 Australian dollar 41.4 Canadian dollar 36.2 Indonesian rupiah 31.6 Brazilian real 31.0 Singapore dollar 28.1 Other (a) 175.5 December 31, 2022 Contracts designated as hedges: Euro $ 321.6 Canadian dollar 117.3 Australian dollar 53.2 Swiss franc 40.4 British pound 40.4 Swedish krona 25.8 Other (a) 22.1 Contracts not designated as hedges: Euro $ 603.2 Mexican peso 132.9 British pound 115.1 Indian rupee 52.6 Australian dollar 48.7 Canadian dollar 32.2 Japanese yen 30.5 Chinese yuan 30.1 Swiss franc 28.3 Swedish krona 26.7 Philippine peso 26.2 Other (a) 137.0 (a) Comprised of exposures to various currencies; none of these individual currency exposures is greater than $ 25 million. |
Fair Value of Derivatives | The following table summarizes the fair value of derivatives reported in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (in millions): Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Location 2023 2022 Location 2023 2022 Derivatives designated as hedges: Foreign currency cash flow hedges Other assets $ 18.5 $ 35.2 Other liabilities $ 9.1 $ 4.7 Total derivatives designated as hedges $ 18.5 $ 35.2 $ 9.1 $ 4.7 Derivatives not designated as hedges: Business Solutions operations - foreign currency (a) Assets held for sale $ 58.6 $ 88.6 Liabilities associated with assets held for sale $ 59.5 $ 89.5 Foreign currency Other assets 3.7 2.3 Other liabilities 1.7 4.7 Total derivatives not designated as hedges $ 62.3 $ 90.9 $ 61.2 $ 94.2 Total derivatives $ 80.8 $ 126.1 $ 70.3 $ 98.9 (a) In many circumstances, the Company allowed its Business Solutions customers to settle part or all of their derivative contracts prior to maturity. However, the offsetting positions entered into with Convera did not allow for similar settlement. To mitigate this, additional foreign currency contracts were entered into with Convera to offset the original economic hedge contracts. This frequently resulted in changes in the Company’s derivative assets and liabilities that did 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 June 30, 2023 and December 31, 2022 (in millions): Offsetting of Derivative Assets Gross Net Amounts Derivatives Gross Amounts Offset in Presented in Not Offset in Amounts of the Condensed the Condensed the Condensed Recognized Consolidated Consolidated Consolidated Net June 30, 2023 Assets Balance Sheets Balance Sheets Balance Sheets Amounts Derivatives subject to a master netting arrangement or similar agreement $ 32.4 $ — $ 32.4 $ ( 20.3 ) $ 12.1 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 48.4 Total $ 80.8 December 31, 2022 Derivatives subject to a master netting arrangement or similar agreement $ 55.8 $ — $ 55.8 $ ( 26.3 ) $ 29.5 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 70.3 Total $ 126.1 |
Gross and Net Fair Value of Derivative Liabilities | Offsetting of Derivative Liabilities Gross Net Amounts Derivatives Gross Amounts Offset in Presented in Not Offset in Amounts of the Condensed the Condensed the Condensed Recognized Consolidated Consolidated Consolidated Net June 30, 2023 Liabilities Balance Sheets Balance Sheets Balance Sheets Amounts Derivatives subject to a master netting arrangement or similar agreement $ 54.3 $ — $ 54.3 $ ( 20.3 ) $ 34.0 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 16.0 Total $ 70.3 December 31, 2022 Derivatives subject to a master netting arrangement or similar agreement $ 77.8 $ — $ 77.8 $ ( 26.3 ) $ 51.5 Derivatives that are not or may not be subject to master netting arrangement or similar agreement 21.1 Total $ 98.9 |
Schedule of Amount and Location of Gains/(Losses) from Hedging Activities | The following table presents the pre-tax amount of unrealized gains/(losses) recognized in other comprehensive income from cash flow hedges for the three and six months ended June 30, 2023 and 2022 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Foreign currency derivatives (a) $ ( 3.5 ) $ 37.3 $ ( 5.7 ) $ 43.5 (a) Gains/(losses) of $ 0.1 million and $( 0.7 ) million for the three months ended June 30, 2023 and 2022 , respectively, and $ 1.9 million and ($ 4.9 million) for the six months ended June 30, 2023 and 2022, respectively, represent amounts excluded from the assessment of effectiveness and recognized in other comprehensive income, for which an amortization approach is applied. The following table presents the location and amounts of pre-tax net gains/(losses) from cash flow hedging relationships recognized in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022 (in millions): Three Months Ended June 30, 2023 2022 Revenues Interest Expense Revenues Interest Expense Total amounts presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded $ 1,170.0 $ ( 27.0 ) $ 1,138.3 $ ( 24.8 ) Gain/(loss) on cash flow hedges: Foreign currency derivatives: Gains reclassified from AOCL into earnings 7.8 — 13.9 — Amount excluded from effectiveness testing recognized in earnings based on an amortization approach 1.7 — 1.4 — Interest rate derivatives: Losses reclassified from AOCL into earnings — — — — Six Months Ended June 30, 2023 2022 Revenues Interest Expense Revenues Interest Expense Total amounts presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded $ 2,206.9 $ ( 52.0 ) $ 2,294.0 $ ( 49.6 ) Gain/(loss) on cash flow hedges: Foreign currency derivatives: Gains reclassified from AOCL into earnings 16.0 — 14.9 — Amount excluded from effectiveness testing recognized in earnings based on an amortization approach 3.3 — 2.5 — Interest rate derivatives: Losses reclassified from AOCL into earnings — — — ( 0.1 ) Undesignated Hedges The following table presents the location and amount of pre-tax net gains from undesignated hedges in the Condensed Consolidated Statements of Income on derivatives for the three and six months ended June 30, 2023 and 2022 (in millions): Three Months Ended Six Months Ended June 30, June 30, Derivatives (a) Location 2023 2022 2023 2022 Foreign currency derivatives (b) Selling, general, and administrative $ 3.3 $ 43.3 $ 8.0 $ 55.0 (a) The Company uses foreign currency forward and option contracts as part of its Business Solutions payments operations. These derivative contracts are excluded from this table as they are managed as part of a broader currency portfolio that includes non-derivative currency exposures. The gains and losses on these derivatives are included as part of the broader disclosure of portfolio revenue for this business discussed above. (b) The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations as well as certain foreign currency denominated positions. Foreign exchange losses on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivative activity as displayed above and included in Selling, general, and administrative in the Condensed Consolidated Statements of Income, were $ 3.1 million and $ 39.9 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 2.9 million and $ 49.8 million for the six months ended June 30, 2023 and 2022 , respectively. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings | The Company’s outstanding borrowings consisted of the following (in millions): June 30, 2023 December 31, 2022 Commercial paper (a) $ 674.6 $ 180.0 Notes: 4.250 % notes due 2023 (b) — 300.0 2.850 % notes due 2025 (c) 500.0 500.0 1.350 % notes due 2026 (c) 600.0 600.0 2.750 % notes due 2031 (c) 300.0 300.0 6.200 % notes due 2036 (c) 500.0 500.0 6.200 % notes due 2040 (c) 250.0 250.0 Total borrowings at par value 2,824.6 2,630.0 Debt issuance costs and unamortized discount, net ( 11.6 ) ( 13.2 ) Total borrowings at carrying value (d) $ 2,813.0 $ 2,616.8 (a) Pursuant to the Company’s commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $ 1.5 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Company’s revolving credit facility. The commercial paper notes may have maturities of up to 397 days from date of issuance. The Company’s commercial paper borrowings as of June 30, 2023 had a weighted-average annual interest rate of approximately 5.3 % and a weighted-average term of approximately 5 days. (b) Commercial paper and cash, including cash generated from operations, were used to repay $ 300.0 million of the aggregate principal amount of 4.250 % unsecured notes due in June 2023. (c) The difference between the stated interest rate and the effective interest rate is not significant. (d) As of June 30, 2023, the Company’s weighted-average effective rate on total borrowings was approximately 4.1 % . |
Schedule of Maturities of Borrowings | The following summarizes the Company’s maturities of its notes at par value as of June 30, 2023 (in millions): Due within 1 year $ — Due after 1 year through 2 years 500.0 Due after 2 years through 3 years 600.0 Due after 3 years through 4 years — Due after 4 years through 5 years — Due after 5 years 1,050.0 Total $ 2,150.0 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Results | The following table presents the Company’s segment results for the three and six months ended June 30, 2023 and 2022 (in millions): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues: Consumer-to-Consumer $ 1,072.2 $ 1,026.9 $ 2,010.5 $ 2,025.9 Business Solutions (a) 14.3 35.7 29.7 124.8 Other 83.5 75.7 166.7 143.3 Total consolidated revenues $ 1,170.0 $ 1,138.3 $ 2,206.9 $ 2,294.0 Operating income: Consumer-to-Consumer $ 230.7 $ 225.6 $ 408.5 $ 432.8 Business Solutions (a) 1.8 8.3 3.7 35.8 Other 18.4 30.3 50.5 51.8 Total segment operating income 250.9 264.2 462.7 520.4 Russia/Belarus exit costs (b) — ( 0.2 ) — ( 11.2 ) Business Solutions exit costs (b) — — — ( 7.7 ) Operating expense redeployment program costs (c) ( 8.3 ) — ( 15.4 ) — Total consolidated operating income $ 242.6 $ 264.0 $ 447.3 $ 501.5 (a) On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to the Buyer. The sale was completed in three closings, the first of which occurred on March 1, 2022. The second occurred on December 31, 2022, and the final occurred on July 1, 2023. See Note 4 for further information regarding this transaction. (b) Represents the exit costs incurred in connection with the Company's suspension of its operations in Russia and Belarus and the divestiture of the Business Solutions business, primarily related to severance and non-cash impairments of property and equipment, an operating lease right-of-use asset, and other intangible assets. While certain of the expenses are identifiable to the Company's segments, the expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results. (c) Represents severance, expenses associated with streamlining the Company's organizational and legal structure, and other expenses associated with the Company's program to redeploy expenses in its cost base through optimizations in vendor management, real estate, marketing, and people strategy, as previously announced in October 2022. In the fourth quarter of 2022, expenses incurred under the program included non-cash impairments of operating lease right-of-use assets and property and equipment. The expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results. |
Business and Basis of Present_3
Business and Basis of Presentation - Narrative (Details) $ in Millions | Jun. 30, 2023 Country | Dec. 31, 2022 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of countries and territories where services are available (more than) | Country | 200 | |
Net assets subject to limitations | $ | $ 710 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue Earned from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenue | |||||
Revenues from contracts with customers | $ 1,110.1 | $ 1,080.5 | $ 2,089.1 | $ 2,184.1 | |
Other revenues | [1] | 59.9 | 57.8 | 117.8 | 109.9 |
Revenues | 1,170 | 1,138.3 | 2,206.9 | 2,294 | |
Consumer money transfers | |||||
Revenue | |||||
Revenues from contracts with customers | 1,037.7 | 991.8 | 1,943 | 1,968.6 | |
Other revenues | [1] | 34.5 | 35.1 | 67.5 | 57.3 |
Revenues | 1,072.2 | 1,026.9 | 2,010.5 | 2,025.9 | |
Foreign exchange and payment services | |||||
Revenue | |||||
Revenues from contracts with customers | [2] | 6.5 | 20.7 | 13 | 85.7 |
Other revenues | [1],[2] | 7.8 | 15 | 16.7 | 39.1 |
Revenues | [2] | 14.3 | 35.7 | 29.7 | 124.8 |
Other services | |||||
Revenue | |||||
Revenues from contracts with customers | 65.9 | 68 | 133.1 | 129.8 | |
Other revenues | [1] | 17.6 | 7.7 | 33.6 | 13.5 |
Revenues | 83.5 | 75.7 | 166.7 | 143.3 | |
North America | |||||
Revenue | |||||
Revenues from contracts with customers | 406.1 | 438.9 | 786.8 | 869.7 | |
North America | Consumer money transfers | |||||
Revenue | |||||
Revenues from contracts with customers | 372.3 | 406.5 | 719.6 | 787.7 | |
North America | Foreign exchange and payment services | |||||
Revenue | |||||
Revenues from contracts with customers | [2] | 17.9 | |||
North America | Other services | |||||
Revenue | |||||
Revenues from contracts with customers | 33.8 | 32.4 | 67.2 | 64.1 | |
Europe and CIS | |||||
Revenue | |||||
Revenues from contracts with customers | 257.2 | 299.4 | 502.9 | 620.5 | |
Europe and CIS | Consumer money transfers | |||||
Revenue | |||||
Revenues from contracts with customers | 246 | 273.1 | 479.7 | 556.9 | |
Europe and CIS | Foreign exchange and payment services | |||||
Revenue | |||||
Revenues from contracts with customers | [2] | 6.5 | 20.7 | 13 | 54.4 |
Europe and CIS | Other services | |||||
Revenue | |||||
Revenues from contracts with customers | 4.7 | 5.6 | 10.2 | 9.2 | |
Middle East, Africa, and South Asia | |||||
Revenue | |||||
Revenues from contracts with customers | 264.9 | 159 | 434.3 | 321.8 | |
Middle East, Africa, and South Asia | Consumer money transfers | |||||
Revenue | |||||
Revenues from contracts with customers | 264.8 | 158.9 | 434.1 | 321.2 | |
Middle East, Africa, and South Asia | Foreign exchange and payment services | |||||
Revenue | |||||
Revenues from contracts with customers | [2] | 0.4 | |||
Middle East, Africa, and South Asia | Other services | |||||
Revenue | |||||
Revenues from contracts with customers | 0.1 | 0.1 | 0.2 | 0.2 | |
Latin America and the Caribbean | |||||
Revenue | |||||
Revenues from contracts with customers | 127.1 | 123.8 | 255 | 238.5 | |
Latin America and the Caribbean | Consumer money transfers | |||||
Revenue | |||||
Revenues from contracts with customers | 99.8 | 94.1 | 199.5 | 182.2 | |
Latin America and the Caribbean | Foreign exchange and payment services | |||||
Revenue | |||||
Revenues from contracts with customers | [2] | 0.5 | |||
Latin America and the Caribbean | Other services | |||||
Revenue | |||||
Revenues from contracts with customers | 27.3 | 29.7 | 55.5 | 55.8 | |
East Asia and Oceania | |||||
Revenue | |||||
Revenues from contracts with customers | 54.8 | 59.4 | 110.1 | 133.6 | |
East Asia and Oceania | Consumer money transfers | |||||
Revenue | |||||
Revenues from contracts with customers | $ 54.8 | 59.2 | $ 110.1 | 120.6 | |
East Asia and Oceania | Foreign exchange and payment services | |||||
Revenue | |||||
Revenues from contracts with customers | [2] | 12.5 | |||
East Asia and Oceania | Other services | |||||
Revenue | |||||
Revenues from contracts with customers | $ 0.2 | $ 0.5 | |||
[1] 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. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC. The first closing occurred on March 1, 2022, the second occurred on December 31, 2022, and the final closing occurred on July 1, 2023 . See Note 4 for further information regarding this transaction. |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Outstanding restricted stock and options to purchase shares of stock excluded from the diluted earnings per share calculation | 10.1 | 8.6 | 9.7 | 7.9 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Diluted Weighted-Average Shares Outstanding (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share, Diluted, Other Disclosure [Abstract] | ||||
Basic weighted-average shares outstanding | 375 | 386.7 | 374.7 | 389.9 |
Common stock equivalents | 0.6 | 0.9 | 0.9 | 1.1 |
Diluted weighted-average shares outstanding | 375.6 | 387.6 | 375.6 | 391 |
Assets Held for Sale and Rela_3
Assets Held for Sale and Related Divestiture - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Aug. 04, 2021 USD ($) Item | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Liability | $ 161.5 | $ 161.5 | $ 182.5 | ||||
Gain on sale | $ 151.4 | ||||||
Business Solutions | Asset Held for Sale, Not Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Consideration from sale of business | $ 910 | ||||||
Number of closings | Item | 3 | ||||||
Revenues | 14.3 | $ 35.7 | 29.7 | 124.8 | |||
Operating expenses | 12.6 | 27.8 | 26.1 | 90.4 | |||
Divestiture costs directly associated with transaction | 1 | 0.8 | 1 | 4 | |||
Liability | 161.5 | 161.5 | 182.5 | ||||
Other expense | 1.5 | $ 8.1 | 2.9 | $ 10.9 | |||
Business Solutions | Asset Held for Sale, Not Discontinued Operations | First Closing | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Unrealized currency translation gains | $ 17.8 | ||||||
Gain on sale | $ 151.4 | ||||||
Business Solutions | Asset Held for Sale, Not Discontinued Operations | Second Closing | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain on sale | 96.9 | ||||||
Business Solutions | Asset Held for Sale, Not Discontinued Operations | Other liabilities | First Closing | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Liability | $ 104 | $ 104 | $ 104 |
Assets Held for Sale and Rela_4
Assets Held for Sale and Related Divestiture - Schedule of Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | $ 77 | ||
Total assets | $ 240.6 | $ 261.6 | |
Total liabilities | 161.5 | 182.5 | |
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 | 5.2 | ||
Settlement assets | 91.6 | 74.9 | |
Property and equipment, net of accumulated depreciation of $0.3 and $1.0, respectively | 0.7 | 0.7 | |
Goodwill | 61.4 | 61.4 | |
Other intangible assets, net of accumulated amortization of $9.8 and $9.8, respectively | 1.4 | 1.4 | |
Other assets | 85.5 | 118 | |
Total assets | 240.6 | 261.6 | |
Accounts payable and accrued liabilities | 9.6 | 18.2 | |
Settlement obligations | 91.6 | 74.9 | |
Other liabilities | 60.3 | 89.4 | |
Total liabilities | $ 161.5 | $ 182.5 |
Assets Held for Sale and Rela_5
Assets Held for Sale and Related Divestiture - Schedule of Assets and Liabilities Held for Sale (Parenthetical) (Details) - Business Solutions - Asset Held for Sale, Not Discontinued Operations - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accumulated depreciation on property and equipment | $ 0.3 | $ 1 |
Accumulated amortization on other intangible assets | $ 9.8 | $ 9.8 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Assets: | |||
Settlement assets | $ 3,328.1 | $ 3,486.8 | |
Cash and cash equivalents | 1,585.9 | 1,285.9 | $ 1,201.9 |
Derivatives | 80.8 | 126.1 | |
Liabilities: | |||
Derivatives | 70.3 | 98.9 | |
Recurring | |||
Assets: | |||
Derivatives | 80.8 | 126.1 | |
Total assets | 1,508.4 | 1,471.5 | |
Liabilities: | |||
Derivatives | 70.3 | 98.9 | |
Total liabilities | 70.3 | 98.9 | |
Recurring | Money market funds | |||
Assets: | |||
Settlement assets | 7.6 | 11.7 | |
Recurring | State and municipal debt securities | |||
Assets: | |||
Settlement assets | 1,019.3 | 933.3 | |
Recurring | United States government agency mortgage-backed securities | |||
Assets: | |||
Settlement assets | 16 | 20.5 | |
Recurring | Corporate and other debt securities | |||
Assets: | |||
Settlement assets | 147.5 | 146.9 | |
Recurring | State and municipal variable-rate demand notes | |||
Assets: | |||
Settlement assets | 46.3 | 48.9 | |
Recurring | Asset-backed securities | |||
Assets: | |||
Settlement assets | 190.9 | 184.1 | |
Recurring | Level 1 | |||
Assets: | |||
Total assets | 7.6 | 11.7 | |
Recurring | Level 1 | Money market funds | |||
Assets: | |||
Settlement assets | 7.6 | 11.7 | |
Recurring | Level 2 | |||
Assets: | |||
Derivatives | 80.8 | 126.1 | |
Total assets | 1,500.8 | 1,459.8 | |
Liabilities: | |||
Derivatives | 70.3 | 98.9 | |
Total liabilities | 70.3 | 98.9 | |
Recurring | Level 2 | State and municipal debt securities | |||
Assets: | |||
Settlement assets | 1,019.3 | 933.3 | |
Recurring | Level 2 | United States government agency mortgage-backed securities | |||
Assets: | |||
Settlement assets | 16 | 20.5 | |
Recurring | Level 2 | Corporate and other debt securities | |||
Assets: | |||
Settlement assets | 147.5 | 146.9 | |
Recurring | Level 2 | State and municipal variable-rate demand notes | |||
Assets: | |||
Settlement assets | 46.3 | 48.9 | |
Recurring | Level 2 | Asset-backed securities | |||
Assets: | |||
Settlement assets | $ 190.9 | $ 184.1 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings | $ 2,813 | $ 2,616.8 | |
Carrying Value | Other Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of investments | 100 | ||
Fair Value | Other Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of investments | 100 | ||
Level 2 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings | $ 2,668.1 | $ 2,442.5 | |
Non-recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-recurring asset fair value adjustments | $ 9 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) | Dec. 31, 2019 EUR (€) | Dec. 31, 2018 EUR (€) | Dec. 31, 2017 EUR (€) Individual | |
Commitments and Contingencies | ||||
Letters of credit outstanding and bank guarantees | $ 160 | |||
Number of individuals filed lawsuit | Individual | 6 | |||
Damages sought, value | € | € 22.4 | |||
Judgement Against Defendants | ||||
Commitments and Contingencies | ||||
Court judgment against company, value | 11.4 | € 10.5 | ||
Judgment Against The Western Union Company | ||||
Commitments and Contingencies | ||||
Court judgment against company, value | 9.8 | € 9 | ||
Pending Litigation | ||||
Commitments and Contingencies | ||||
Range of possible loss, portion not accrued | $ 30 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Equity Method Investee - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transactions | ||||
Commission expense | $ 11.5 | $ 12.8 | $ 22.3 | $ 24.3 |
Operating Cost and Expense, Related and Nonrelated Party Status [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember |
Settlement Assets and Obligat_3
Settlement Assets and Obligations - Schedule of Settlement Assets and Obligations (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Settlement assets: | ||||
Cash and cash equivalents | $ 11.1 | $ 708.1 | $ 602.7 | |
Receivables from agents, Business Solutions customers, and others | 2,000.6 | 1,533.2 | ||
Less: Allowance for credit losses | (11.7) | (13) | ||
Receivables from agents, Business Solutions customers, and others, net | 1,988.9 | 1,520.2 | ||
Investment securities | 1,420 | 1,333.7 | ||
Less: Allowance for credit losses | (0.3) | (0.3) | ||
Investment securities, net | 1,419.7 | 1,333.4 | ||
Total settlement assets | [1] | 3,419.7 | 3,561.7 | |
Settlement obligations: | ||||
Money transfer, money order, and payment service payables | 2,759.5 | 2,843.3 | ||
Payables to agents | 660.2 | 718.4 | ||
Total settlement obligations | [1] | $ 3,419.7 | $ 3,561.7 | |
[1] Settlement assets and Settlement obligations include Assets held for sale and Liabilities associated with assets held for sale of $ 91.6 million and $ 74.9 million as of June 30, 2023 and December 31, 2022 , respectively (see Note 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 - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Settlement assets: | ||
Settlement assets held for sale | $ 91.6 | $ 74.9 |
Settlement obligations: | ||
Settlement obligations associated with assets held for sale | $ 91.6 | $ 74.9 |
Settlement Assets and Obligat_5
Settlement Assets and Obligations - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables from agents, business solutions customers, and others, net | $ 1,988.9 | $ 1,520.2 |
Advances to agents | $ 2,000.6 | 1,533.2 |
Variable rate demand notes, maximum maturity year | 2052 | |
Due after 10 years | $ 189.7 | |
Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Advances to agents | 184.1 | 154.9 |
Receivables from agents and others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables from agents, business solutions customers, and others, net | 1,980 | 1,508.5 |
Receivables from Business Solutions customers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables from agents, business solutions customers, and others, net | 8.9 | $ 11.7 |
State and municipal variable-rate demand notes | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Due after 10 years | $ 46.3 |
Settlement Assets and Obligat_6
Settlement Assets and Obligations - Summary of Activity in the Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | ||
Summary of activity in allowance for credit losses | |||||
Allowance for credit losses, Beginning Balance | $ 13 | ||||
Allowance for credit losses, Ending Balance | $ 11.7 | ||||
Receivables from agents and others | |||||
Summary of activity in allowance for credit losses | |||||
Allowance for credit losses, Beginning Balance | 8.7 | 11.4 | $ 18.4 | $ 18 | |
Current period provision for expected credit losses | [1] | 5.3 | (0.4) | 1.8 | 1.9 |
Write-offs charged against the allowance | (4.1) | (4.2) | (1.3) | (3.1) | |
Recoveries of amounts previously written off | 1.4 | 1.8 | 1 | 1.7 | |
Impacts of foreign currency exchange rates, divestitures and other | 0.4 | 0.1 | (3) | (0.1) | |
Allowance for credit losses, Ending Balance | 11.7 | 8.7 | 16.9 | 18.4 | |
Receivables from Business Solutions customers | |||||
Summary of activity in allowance for credit losses | |||||
Allowance for credit losses, Beginning Balance | 2 | 1.6 | 1.5 | 5.7 | |
Current period provision for expected credit losses | [1] | 1 | 0.4 | 2.1 | 0.4 |
Write-offs charged against the allowance | (2.4) | (0.7) | (1.4) | (0.4) | |
Impacts of foreign currency exchange rates, divestitures and other | $ (0.6) | 0.7 | (0.5) | (4.2) | |
Allowance for credit losses, Ending Balance | $ 2 | $ 1.7 | $ 1.5 | ||
[1] 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 $ 9.1 million and $ 6.1 million for the three months ended March 31, 2023 and June 30, 2023, respectively, and $ 10.0 million and $ 7.7 million for the three months ended March 31, 2022 and June 30, 2022, respectively. |
Settlement Assets and Obligat_7
Settlement Assets and Obligations - Summary of Activity in the Allowance for Credit Losses (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Losses from chargebacks or fraud that are not credit-related | $ 6.1 | $ 9.1 | $ 7.7 | $ 10 |
Settlement Assets and Obligat_8
Settlement Assets and Obligations - Components of Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Cash and cash equivalents | ||||
Amortized Cost | $ 1,585.9 | $ 1,285.9 | $ 1,201.9 | |
Available-for-sale securities: | ||||
Fair Value | 1,420 | |||
Settlement Assets | ||||
Available-for-sale securities: | ||||
Amortized Cost | 1,493.7 | 1,417.8 | ||
Fair Value | 1,420 | 1,333.7 | ||
Gross Unrealized Gains | 2.5 | 1.4 | ||
Gross Unrealized Losses | (76.2) | (85.5) | ||
Net Unrealized Gains/ (Losses) | (73.7) | (84.1) | ||
Amortized Cost | 1,501.3 | 1,429.5 | ||
Fair Value | 1,427.6 | 1,345.4 | ||
Gross Unrealized Gains | 2.5 | 1.4 | ||
Gross Unrealized Losses | 76.2 | 85.5 | ||
Net Unrealized Gains/ (Losses) | (73.7) | (84.1) | ||
Money market funds | Settlement Assets | ||||
Cash and cash equivalents | ||||
Amortized Cost | 7.6 | 11.7 | ||
Fair Value | 7.6 | 11.7 | ||
State and municipal debt securities | Settlement Assets | ||||
Available-for-sale securities: | ||||
Amortized Cost | 1,085.6 | 1,010.5 | [1] | |
Fair Value | 1,019.3 | 933.3 | [1] | |
Gross Unrealized Gains | 1.8 | 0.3 | [1] | |
Gross Unrealized Losses | (68.1) | (77.5) | [1] | |
Net Unrealized Gains/ (Losses) | (66.3) | (77.2) | [1] | |
Asset-backed securities | Settlement Assets | ||||
Available-for-sale securities: | ||||
Amortized Cost | 191.3 | 183.4 | ||
Fair Value | 190.9 | 184.1 | ||
Gross Unrealized Gains | 0.4 | 0.8 | ||
Gross Unrealized Losses | (0.8) | (0.1) | ||
Net Unrealized Gains/ (Losses) | (0.4) | 0.7 | ||
Corporate debt securities | Settlement Assets | ||||
Available-for-sale securities: | ||||
Amortized Cost | 153.7 | 153.5 | ||
Fair Value | 147.5 | 146.9 | ||
Gross Unrealized Gains | 0.3 | 0.3 | ||
Gross Unrealized Losses | (6.5) | (6.9) | ||
Net Unrealized Gains/ (Losses) | (6.2) | (6.6) | ||
State and municipal variable-rate demand notes | Settlement Assets | ||||
Available-for-sale securities: | ||||
Amortized Cost | 46.3 | 48.9 | ||
Fair Value | 46.3 | 48.9 | ||
United States government agency mortgage-backed securities | Settlement Assets | ||||
Available-for-sale securities: | ||||
Amortized Cost | 16.8 | 21.5 | ||
Fair Value | 16 | 20.5 | ||
Gross Unrealized Losses | (0.8) | (1) | ||
Net Unrealized Gains/ (Losses) | $ (0.8) | $ (1) | ||
[1] The majority of these securities are fixed-rate instruments. |
Settlement Assets and Obligat_9
Settlement Assets and Obligation - Summary of Investment Securities in Unrealized Position (Details) $ in Millions | Jun. 30, 2023 USD ($) Securities |
State and municipal debt securities | |
Summary of Investment Holdings [Line Items] | |
Number of securities less than one year | Securities | 111 |
Fair value less than one year | $ 296.5 |
Unrealized losses less than one year | $ (5.6) |
Number of securities one year or greater | Securities | 267 |
Fair value less than one year | $ 609.4 |
Unrealized losses one year or greater | $ (62.5) |
Asset-backed securities | |
Summary of Investment Holdings [Line Items] | |
Number of securities less than one year | Securities | 28 |
Fair value less than one year | $ 163.8 |
Unrealized losses less than one year | $ (0.8) |
Corporate debt securities | |
Summary of Investment Holdings [Line Items] | |
Number of securities less than one year | Securities | 28 |
Fair value less than one year | $ 84.3 |
Unrealized losses less than one year | $ (1.3) |
Number of securities one year or greater | Securities | 11 |
Fair value less than one year | $ 40.5 |
Unrealized losses one year or greater | $ (5.2) |
United States government agency mortgage-backed securities | |
Summary of Investment Holdings [Line Items] | |
Number of securities less than one year | Securities | 6 |
Fair value less than one year | $ 5.2 |
Unrealized losses less than one year | $ (0.2) |
Number of securities one year or greater | Securities | 7 |
Fair value less than one year | $ 10.7 |
Unrealized losses one year or greater | $ (0.6) |
Settlement Assets and Obliga_10
Settlement Assets and Obligations - Contractual Maturities of Debt Securities (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Fair Value | |
Due within 1 year | $ 115.9 |
Due after 1 year through 5 years | 676.8 |
Due after 5 years through 10 years | 437.6 |
Due after 10 years | 189.7 |
Total | $ 1,420 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jul. 19, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 10, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Cash dividends paid | $ 88 | $ 88 | $ 90.8 | $ 91.7 | $ 176 | $ 182.5 | ||
Common stock dividends (USD per share) | $ 0.235 | $ 0.235 | $ 0.235 | $ 0.235 | ||||
Stock repurchased and retired, publicly announced authorizations (shares) | 0 | 9,200,000 | ||||||
Stock repurchased and retired, publicly announced authorizations, value excluding commissions | $ 171 | |||||||
Stock repurchased and retired, publicly announced authorizations, average cost per share excluding commissions (USD per share) | $ 18.52 | |||||||
Subsequent Event | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Common stock dividends (USD per share) | $ 0.235 | |||||||
Dividends payable, date declared | Jul. 19, 2023 | |||||||
Dividends payable, date to be paid | Sep. 29, 2023 | |||||||
Authorized through December 31, 2024 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock repurchases authorized amount | $ 1,000 | |||||||
Remaining amount available under share repurchase authorization | $ 648.2 | $ 648.2 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Amounts Reclassified from AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated other comprehensive income (loss) | ||||||
Reclassification from AOCL, net of tax | $ 7.6 | $ 13.9 | $ 15.7 | $ 32.5 | ||
Investment Securities | ||||||
Accumulated other comprehensive income (loss) | ||||||
Reclassification from AOCL, net of tax | $ (0.1) | $ (0.1) | (0.1) | (0.1) | ||
Investment Securities | Revenues | ||||||
Accumulated other comprehensive income (loss) | ||||||
Reclassification from AOCL, before tax | (0.1) | (0.1) | ||||
Hedging Activities | ||||||
Accumulated other comprehensive income (loss) | ||||||
Reclassification from AOCL, Provision for income taxes | (0.2) | (0.2) | ||||
Reclassification from AOCL, net of tax | 7.6 | $ 8.2 | 13.9 | 0.9 | 15.8 | 14.8 |
Hedging Activities | Foreign currency contracts | Revenues | ||||||
Accumulated other comprehensive income (loss) | ||||||
Reclassification from AOCL, before tax | $ 7.8 | $ 13.9 | $ 16 | 14.9 | ||
Hedging Activities | Interest rate contracts | Interest Expense | ||||||
Accumulated other comprehensive income (loss) | ||||||
Reclassification from AOCL, before tax | (0.1) | |||||
Foreign Currency Translation | ||||||
Accumulated other comprehensive income (loss) | ||||||
Reclassification from AOCL, net of tax | $ 17.8 | 17.8 | ||||
Foreign Currency Translation | Gain on Divestiture of Business | ||||||
Accumulated other comprehensive income (loss) | ||||||
Reclassification from AOCL, before tax | $ 17.8 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Components of Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning balance | $ 552.8 | $ 477.8 | $ 352.8 | $ 355.6 | $ 477.8 | $ 355.6 |
Amounts reclassified from AOCL into earnings, net of tax | (7.6) | (13.9) | (15.7) | (32.5) | ||
Ending balance | 626.5 | 552.8 | 448.3 | 352.8 | 626.5 | 448.3 |
Investment Securities | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning balance | (49.4) | (69.4) | (21.2) | 30.4 | (69.4) | 30.4 |
Unrealized gains/(losses) | (13.8) | 24.1 | (28.7) | (63.6) | ||
Tax benefit/(expense) | 2.4 | (4.2) | 5 | 11.9 | ||
Amounts reclassified from AOCL into earnings, net of tax | 0.1 | 0.1 | 0.1 | 0.1 | ||
Ending balance | (60.8) | (49.4) | (44.9) | (21.2) | (60.8) | (44.9) |
Hedging Activities | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning balance | 10.2 | 20.5 | 24 | 18.7 | 20.5 | 18.7 |
Unrealized gains/(losses) | (3.1) | (2.2) | 37.3 | 6.2 | ||
Tax benefit/(expense) | (0.1) | 0.1 | (0.3) | |||
Amounts reclassified from AOCL into earnings, net of tax | (7.6) | (8.2) | (13.9) | (0.9) | (15.8) | (14.8) |
Ending balance | (0.6) | 10.2 | 47.1 | 24 | (0.6) | 47.1 |
Foreign Currency Translation | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning balance | (119) | (119) | (119) | (101.2) | (119) | (101.2) |
Amounts reclassified from AOCL into earnings, net of tax | (17.8) | (17.8) | ||||
Ending balance | (119) | (119) | (119) | (119) | (119) | (119) |
Total AOCL | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning balance | (158.2) | (167.9) | (116.2) | (52.1) | (167.9) | (52.1) |
Unrealized gains/(losses) | (16.9) | 21.9 | 8.6 | (57.4) | ||
Tax benefit/(expense) | 2.3 | (4.1) | 4.7 | 11.9 | ||
Amounts reclassified from AOCL into earnings, net of tax | (7.6) | (8.1) | (13.9) | (18.6) | ||
Ending balance | $ (180.4) | $ (158.2) | $ (116.8) | $ (116.2) | $ (180.4) | $ (116.8) |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Derivatives | |||||
Accumulated other comprehensive pre-tax gain (loss) to be reclassified into revenue within the next 12 months | $ 7.5 | $ 7.5 | |||
Business Solutions | |||||
Derivatives | |||||
Foreign exchange revenues | 13.5 | $ 33.6 | $ 27.8 | $ 112.2 | |
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 | $ 1,500 | $ 1,500 | $ 3,000 | ||
Minimum | Not designated as hedges | Uncollected Settlement Assets and Obligations | |||||
Derivatives | |||||
Foreign currency forward contracts maturity range | 2 days | 2 days | |||
Maximum | Not designated as hedges | Uncollected Settlement Assets and Obligations | |||||
Derivatives | |||||
Foreign currency forward contracts maturity range | 1 month | 1 month | |||
Maximum | Not designated as hedges | Foreign currency contracts | Business Solutions | |||||
Derivatives | |||||
Foreign currency forward contracts maturity range | 1 year | 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 year |
Derivatives - Notional Amounts
Derivatives - Notional Amounts of Foreign Currency Forward Contracts (Details) - Foreign currency contracts - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
Designated as hedges | Euro | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | $ 260 | $ 321.6 | |
Designated as hedges | Canadian dollar | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 104.6 | 117.3 | |
Designated as hedges | British pound | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 50.9 | 40.4 | |
Designated as hedges | Australian dollar | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 50.4 | 53.2 | |
Designated as hedges | Swiss franc | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 37.4 | 40.4 | |
Designated as hedges | Swedish krona | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 25.8 | ||
Designated as hedges | Other Currencies | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | [1] | 43.7 | 22.1 |
Not designated as hedges | Euro | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 521 | 603.2 | |
Not designated as hedges | Canadian dollar | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 36.2 | 32.2 | |
Not designated as hedges | British pound | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 120.1 | 115.1 | |
Not designated as hedges | Australian dollar | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 41.4 | 48.7 | |
Not designated as hedges | Swiss franc | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 28.3 | ||
Not designated as hedges | Swedish krona | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 26.7 | ||
Not designated as hedges | Japanese yen | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 30.5 | ||
Not designated as hedges | Mexican peso | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 176.3 | 132.9 | |
Not designated as hedges | United Arab Emirates dirham | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 68.6 | ||
Not designated as hedges | Indian rupee | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 53.8 | 52.6 | |
Not designated as hedges | Philippine peso | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 44 | 26.2 | |
Not designated as hedges | Chinese yuan | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 30.1 | ||
Not designated as hedges | Indonesian rupiah | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 31.6 | ||
Not designated as hedges | Brazilian real | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 31 | ||
Not designated as hedges | Singapore dollar | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | 28.1 | ||
Not designated as hedges | Other Currencies | |||
Notional amounts of foreign currency forward contracts | |||
Notional amounts | [1] | $ 175.5 | $ 137 |
[1] Comprised of exposures to various currencies; none of these individual currency exposures is greater than $ 25 million. |
Derivatives - Notional Amount_2
Derivatives - Notional Amounts of Foreign Currency Forward Contracts (Parenthetical) (Details) - Other Currencies - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
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 | Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value of Derivatives | |||
Derivative Assets | $ 80.8 | $ 126.1 | |
Derivative Liabilities | 70.3 | 98.9 | |
Designated as hedges | |||
Fair Value of Derivatives | |||
Derivative Assets | 18.5 | 35.2 | |
Derivative Liabilities | 9.1 | 4.7 | |
Designated as hedges | Foreign currency contracts | |||
Fair Value of Derivatives | |||
Derivative Assets | $ 18.5 | $ 35.2 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | |
Derivative Liabilities | $ 9.1 | $ 4.7 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | |
Not designated as hedges | |||
Fair Value of Derivatives | |||
Derivative Assets | $ 62.3 | $ 90.9 | |
Derivative Liabilities | 61.2 | 94.2 | |
Not designated as hedges | Foreign currency contracts | |||
Fair Value of Derivatives | |||
Derivative Assets | $ 3.7 | $ 2.3 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | |
Derivative Liabilities | $ 1.7 | $ 4.7 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | |
Not designated as hedges | Business Solutions | Foreign currency contracts | |||
Fair Value of Derivatives | |||
Derivative Assets | [1] | $ 58.6 | $ 88.6 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Disposal Group, Including Discontinued Operation, Assets | Disposal Group, Including Discontinued Operation, Assets | |
Derivative Liabilities | [1] | $ 59.5 | $ 89.5 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liability | Liability | |
[1] In many circumstances, the Company allowed its Business Solutions customers to settle part or all of their derivative contracts prior to maturity. However, the offsetting positions entered into with Convera did not allow for similar settlement. To mitigate this, additional foreign currency contracts were entered into with Convera to offset the original economic hedge contracts. This frequently resulted in changes in the Company’s derivative assets and liabilities that did not directly align with the performance in the underlying derivatives business. |
Derivatives - Gross and Net Fai
Derivatives - Gross and Net Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 32.4 | $ 55.8 |
Net Amounts Presented in the Consolidated Balance Sheets | 32.4 | 55.8 |
Derivatives Not Offset in the Consolidated Balance Sheets | (20.3) | (26.3) |
Net Amounts | 12.1 | 29.5 |
Derivatives that are not or may not be subject to master netting arrangement or similar agreement | 48.4 | 70.3 |
Total | 80.8 | 126.1 |
Offsetting of Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 54.3 | 77.8 |
Net Amounts Presented in the Consolidated Balance Sheets | 54.3 | 77.8 |
Derivatives Not Offset in the Consolidated Balance Sheets | (20.3) | (26.3) |
Net Amounts | 34 | 51.5 |
Derivatives that are not or may not be subject to master netting arrangement or similar agreement | 16 | 21.1 |
Total | $ 70.3 | $ 98.9 |
Derivatives - Unrealized Gains_
Derivatives - Unrealized Gains/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Foreign currency contracts | |||||
Derivatives | |||||
Gain/(Loss) recognized in OCI | [1] | $ (3.5) | $ 37.3 | $ (5.7) | $ 43.5 |
[1] Gains/(losses) of $ 0.1 million and $( 0.7 ) million for the three months ended June 30, 2023 and 2022 , respectively, and $ 1.9 million and ($ 4.9 million) for the six months ended June 30, 2023 and 2022, respectively, represent amounts excluded from the assessment of effectiveness and recognized in other comprehensive income, for which an amortization approach is applied. |
Derivatives - Unrealized Gain_2
Derivatives - Unrealized Gains/(Losses) (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Gains/(losses) excluded from effectiveness testing recognized in other comprehensive income | $ 0.1 | $ (0.7) | $ 1.9 | $ (4.9) |
Derivatives - Gains_(Losses) fr
Derivatives - Gains/(Losses) from Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Gains/(Losses) from Derivatives | ||||
Revenues | $ 1,170 | $ 1,138.3 | $ 2,206.9 | $ 2,294 |
Interest expense | (27) | (24.8) | (52) | (49.6) |
Other expense, net | (3.4) | (4.8) | (5.3) | (7.3) |
Cash Flow Hedges | Foreign currency contracts | Revenues | ||||
Cash Flow and Fair Value Hedges | ||||
Gains/(losses) reclassified from AOCL into earnings | 7.8 | 13.9 | 16 | 14.9 |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | $ 1.7 | $ 1.4 | $ 3.3 | 2.5 |
Cash Flow Hedges | Interest rate contracts | Interest Expense | ||||
Cash Flow and Fair Value Hedges | ||||
Gains/(losses) reclassified from AOCL into earnings | $ (0.1) |
Derivatives - Undesignated Hedg
Derivatives - Undesignated Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Not designated as hedges | Selling, General and Administrative | |||||
Cash Flow and Fair Value Hedges | |||||
Gain recognized in Income on Foreign currency derivatives | [1],[2] | $ 3.3 | $ 43.3 | $ 8 | $ 55 |
[1] 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. 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 losses on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivative activity as displayed above and included in Selling, general, and administrative in the Condensed Consolidated Statements of Income, were $ 3.1 million and $ 39.9 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 2.9 million and $ 49.8 million for the six months ended June 30, 2023 and 2022 , respectively. |
Derivatives - Undesignated He_2
Derivatives - Undesignated Hedges (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flow and Fair Value Hedges | ||||
Foreign exchange losses on settlement assets and obligations, cash balances, and other assets and liabilities | $ 3.1 | $ 39.9 | $ 2.9 | $ 49.8 |
Borrowings - Schedule of Outsta
Borrowings - Schedule of Outstanding Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
Outstanding Borrowings | |||
Total borrowings at par value | $ 2,824.6 | $ 2,630 | |
Debt issuance costs and unamortized discount, net | (11.6) | (13.2) | |
Total borrowings at carrying value | [1] | 2,813 | 2,616.8 |
Commercial Paper | |||
Outstanding Borrowings | |||
Total borrowings at par value | [2] | 674.6 | 180 |
4.250% Notes Due 2023 | |||
Outstanding Borrowings | |||
Total borrowings at par value | [3] | 300 | |
2.850% Notes Due 2025 | |||
Outstanding Borrowings | |||
Total borrowings at par value | [4] | 500 | 500 |
1.350% Notes Due 2026 | |||
Outstanding Borrowings | |||
Total borrowings at par value | [4] | 600 | 600 |
2.750% Notes Due 2031 | |||
Outstanding Borrowings | |||
Total borrowings at par value | [4] | 300 | 300 |
6.200% Notes Due 2036 | |||
Outstanding Borrowings | |||
Total borrowings at par value | [4] | 500 | 500 |
6.200% Notes Due 2040 | |||
Outstanding Borrowings | |||
Total borrowings at par value | [4] | $ 250 | $ 250 |
[1] As of June 30, 2023, the Company’s weighted-average effective rate on total borrowings was approximately 4.1 % . Pursuant to the Company’s commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $ 1.5 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Company’s revolving credit facility. The commercial paper notes may have maturities of up to 397 days from date of issuance. The Company’s commercial paper borrowings as of June 30, 2023 had a weighted-average annual interest rate of approximately 5.3 % and a weighted-average term of approximately 5 days. Commercial paper and cash, including cash generated from operations, were used to repay $ 300.0 million of the aggregate principal amount of 4.250 % unsecured notes due in June 2023. 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) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Outstanding Borrowings | ||
Weighted-average effective interest rate (as a percent) | 4.10% | |
Commercial Paper | ||
Outstanding Borrowings | ||
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) | 5.30% | |
Weighted-average term | 5 days | |
4.250% Notes Due 2023 | ||
Outstanding Borrowings | ||
Stated interest rate (as a percent) | 4.25% | 4.25% |
Repayment of aggregated principal amount of unsecured debts | $ 300 | |
2.850% Notes Due 2025 | ||
Outstanding Borrowings | ||
Stated interest rate (as a percent) | 2.85% | 2.85% |
1.350% Notes Due 2026 | ||
Outstanding Borrowings | ||
Stated interest rate (as a percent) | 1.35% | 1.35% |
2.750% Notes Due 2031 | ||
Outstanding Borrowings | ||
Stated interest rate (as a percent) | 2.75% | 2.75% |
6.200% Notes Due 2036 | ||
Outstanding Borrowings | ||
Stated interest rate (as a percent) | 6.20% | 6.20% |
6.200% Notes Due 2040 | ||
Outstanding Borrowings | ||
Stated interest rate (as a percent) | 6.20% | 6.20% |
Borrowings - Schedule of Maturi
Borrowings - Schedule of Maturities of Borrowings (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Borrowings maturities at par value | |
Due after 1 year through 2 years | $ 500 |
Due after 2 years through 3 years | 600 |
Due after 5 years | 1,050 |
Total | $ 2,150 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 18.60% | 17.90% | 17.40% | 18.60% | |
Unrecognized tax benefits, including interest and penalties | $ 297.5 | $ 297.5 | $ 290.7 | ||
Income tax examination, year under examination | 2017 2018 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Long-Term Incentive Plan | ||||
Stock-based compensation expense | $ 9.5 | $ 12.3 | $ 17.5 | $ 23 |
Options granted (shares) | 1 | |||
Options granted exercise price (in dollars per share) | $ 13.27 | |||
Performance-based restricted stock units and Restricted stock units granted (in shares) | 4.1 | |||
Performance-based restricted stock units and Restricted stock units weighted average grant date fair value (in dollars per share) | $ 13.11 | |||
Number of options outstanding (in shares) | 7.1 | 7.1 | ||
Exercise price of options outstanding (in dollars per share) | $ 18.09 | $ 18.09 | ||
Number of options exercisable (in shares) | 4.2 | 4.2 | ||
Exercise price of options exercisable (in dollars per share) | $ 19.28 | $ 19.28 | ||
Number of non-vested Performance-based restricted stock units and Restricted stock units (in shares) | 8 | 8 | ||
Grant date fair value of Performance-based restricted stock units and Restricted stock units (in dollars per share) | $ 16.72 | $ 16.72 |
Segments - Narrative (Details)
Segments - Narrative (Details) - Operating Segments | 6 Months Ended |
Jun. 30, 2023 Region Customer Segment | |
Segments | |
Number of operating segments | Segment | 2 |
Consumer-to-Consumer | |
Segments | |
Number of consumers in money transfer | Customer | 2 |
Number of geographic regions in segment | Region | 5 |
Segments - Segments Results (De
Segments - Segments Results (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenues: | |||||
Total consolidated revenues | $ 1,170 | $ 1,138.3 | $ 2,206.9 | $ 2,294 | |
Operating income: | |||||
Total operating income | 242.6 | 264 | 447.3 | 501.5 | |
Operating Segments | |||||
Operating income: | |||||
Total operating income | 250.9 | 264.2 | 462.7 | 520.4 | |
Operating Segments | Consumer-to-Consumer | |||||
Revenues: | |||||
Total consolidated revenues | 1,072.2 | 1,026.9 | 2,010.5 | 2,025.9 | |
Operating income: | |||||
Total operating income | 230.7 | 225.6 | 408.5 | 432.8 | |
Operating Segments | Business Solutions | |||||
Revenues: | |||||
Total consolidated revenues | [1] | 14.3 | 35.7 | 29.7 | 124.8 |
Operating income: | |||||
Total operating income | [1] | 1.8 | 8.3 | 3.7 | 35.8 |
Operating Segments | Other | |||||
Revenues: | |||||
Total consolidated revenues | 83.5 | 75.7 | 166.7 | 143.3 | |
Operating income: | |||||
Total operating income | 18.4 | 30.3 | 50.5 | 51.8 | |
Not Allocated To Segments | |||||
Operating income: | |||||
Operating expense redeployment program costs | [2] | $ (8.3) | $ (15.4) | ||
Not Allocated To Segments | Russia/Belarus | |||||
Operating income: | |||||
Exit costs | [3] | $ (0.2) | (11.2) | ||
Not Allocated To Segments | Business Solutions | |||||
Operating income: | |||||
Exit costs | [3] | $ (7.7) | |||
[1] On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to the Buyer. The sale was completed in three closings, the first of which occurred on March 1, 2022. The second occurred on December 31, 2022, and the final occurred on July 1, 2023. See Note 4 for further information regarding this transaction. Represents severance, expenses associated with streamlining the Company's organizational and legal structure, and other expenses associated with the Company's program to redeploy expenses in its cost base through optimizations in vendor management, real estate, marketing, and people strategy, as previously announced in October 2022. In the fourth quarter of 2022, expenses incurred under the program included non-cash impairments of operating lease right-of-use assets and property and equipment. The expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results. Represents the exit costs incurred in connection with the Company's suspension of its operations in Russia and Belarus and the divestiture of the Business Solutions business, primarily related to severance and non-cash impairments of property and equipment, an operating lease right-of-use asset, and other intangible assets. While certain of the expenses are identifiable to the Company's segments, the expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company's segment operating income results. |
Segments - Segments Results (Pa
Segments - Segments Results (Parenthetical) (Details) | Aug. 04, 2021 Item |
Business Solutions | Asset Held for Sale, Not Discontinued Operations | |
Segment Reporting Information [Line Items] | |
Number of closings | 3 |