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Settlement Assets and Obligations (Tables) | 12 Months Ended
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Dec. 31, 2021
Settlement Assets and Obligations |
Schedule of Settlement Assets and Obligations | Settlement assets and obligations consisted of the following (in millions):
|  | December 31, 2021 |
Settlement assets: |  |  |
Cash and cash equivalents |  | $ | 835.5 |
Receivables from agents, Business Solutions customers, and others |  |  | 1,198.8 |
Less: Allowance for credit losses |  |  | (23.7 | )
Receivables from agents, Business Solutions customers, and others, net |  |  | 1,175.1 |
Investment securities |  |  | 1,398.9 |
Total settlement assets(a) |  | $ | 3,409.5 |
Settlement obligations: |  |  |
Money transfer, money order, and payment service payables |  | $ | 2,838.9 |
Payables to agents |  |  | 570.6 |
Total settlement obligations(a) |  | $ | 3,409.5 |
|  | December 31, 2020 |
Settlement assets: |  |  |
Cash and cash equivalents |  | $ | 695.7 |
Receivables from agents, Business Solutions customers, and others |  |  | 1,188.3 |
Less: Allowance for credit losses |  |  | (53.2 | )
Receivables from agents, Business Solutions customers, and others, net |  |  | 1,135.1 |
Investment securities |  |  | 1,990.6 |
Total settlement assets |  | $ | 3,821.4 |
Settlement obligations: |  |  |
Money transfer, money order, and payment service payables |  | $ | 2,902.9 |
Payables to agents |  |  | 918.5 |
Total settlement obligations |  | $ | 3,821.4 |
(a) As of December 31, 2021, both Settlement assets and Settlement obligations include $566.0 million classified as Assets held for sale and Liabilities associated with assets held for sale (see Note 5).
Summary of Activity in the Allowance for Credit Losses | The following tables summarize the activity in the allowance for credit losses on receivables from agents and others, and Business Solutions customers (in millions):
|  | Agents and |  |  | Business Solutions |
|  | Others |  |  | Customers |
Allowance for credit losses as of January 1, 2021 |  | $ | 49.3 |  |  | $ | 3.9 |
Current period provision for expected credit losses(a) |  |  | 8.9 |  |  |  | 4.2 |
Write-offs charged against the allowance |  |  | (44.8 | ) |  |  | (2.1 | )
Recoveries of amounts previously written off |  |  | 6.8 |  |  |  | — |
Impacts of foreign currency exchange rates and other |  |  | (2.2 | ) |  |  | (0.3 | )
Allowance for credit losses as of December 31, 2021 |  | $ | 18.0 |  |  | $ | 5.7 |
|  | Agents and |  |  | Business Solutions |
|  | Others |  |  | Customers |
Allowance for credit losses as of January 1, 2020 |  | $ | 20.4 |  |  | $ | 4.5 |
Current period provision for expected credit losses(a) |  |  | 39.9 |  |  |  | 2.0 |
Write-offs charged against the allowance |  |  | (11.9 | ) |  |  | (3.1 | )
Recoveries of amounts previously written off |  |  | 2.3 |  |  |  | — |
Impacts of foreign currency exchange rates and other |  |  | (1.4 | ) |  |  | 0.5 |
Allowance for credit losses as of December 31, 2020 |  | $ | 49.3 |  |  | $ | 3.9 |
(a) Provision does not include losses from chargebacks or fraud associated with transactions initiated through the Company’s digital channels, as these losses are not credit-related. The Company recognized losses that were not credit-related of $51.4 million and $41.3 million, respectively, for the years ended December 31, 2021 and 2020.
Components of Investment Securities | The components of investment securities are as follows (in millions):
|  |  |  |  |  |  |  | Gross |  |  | Gross |  |  | Net |
|  | Amortized |  |  | Fair |  |  | Unrealized |  |  | Unrealized |  |  | Unrealized |
December 31, 2021 |  | Cost |  |  | Value |  |  | Gains |  |  | Losses |  |  | Gains/(Losses) |
Settlement assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 7.9 |  |  | $ | 7.9 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal debt securities(a) |  |  | 1,182.6 |  |  |  | 1,219.9 |  |  |  | 39.8 |  |  |  | (2.5 | ) |  |  | 37.3 |
State and municipal variable-rate demand notes |  |  | 84.8 |  |  |  | 84.8 |  |  |  | — |  |  |  | — |  |  |  | — |
Corporate and other debt securities |  |  | 58.1 |  |  |  | 57.8 |  |  |  | 0.2 |  |  |  | (0.5 | ) |  |  | (0.3 | )
United States government agency mortgage-backed securities |  |  | 35.6 |  |  |  | 36.4 |  |  |  | 0.8 |  |  |  | — |  |  |  | 0.8 |
Total available-for-sale securities |  |  | 1,361.1 |  |  |  | 1,398.9 |  |  |  | 40.8 |  |  |  | (3.0 | ) |  |  | 37.8 |
Total investment securities |  | $ | 1,369.0 |  |  | $ | 1,406.8 |  |  | $ | 40.8 |  |  | $ | (3.0 | ) |  | $ | 37.8 |
|  |  |  |  |  |  |  | Gross |  |  | Gross |  |  | Net |
|  | Amortized |  |  | Fair |  |  | Unrealized |  |  | Unrealized |  |  | Unrealized |
December 31, 2020 |  | Cost |  |  | Value |  |  | Gains |  |  | Losses |  |  | Gains/(Losses) |
Settlement assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 13.1 |  |  | $ | 13.1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal debt securities(a) |  |  | 1,234.1 |  |  |  | 1,303.9 |  |  |  | 69.8 |  |  |  | — |  |  |  | 69.8 |
State and municipal variable-rate demand notes |  |  | 562.1 |  |  |  | 562.1 |  |  |  | — |  |  |  | — |  |  |  | — |
Corporate and other debt securities |  |  | 71.6 |  |  |  | 72.8 |  |  |  | 1.2 |  |  |  | — |  |  |  | 1.2 |
United States government agency mortgage-backed securities |  |  | 50.3 |  |  |  | 51.8 |  |  |  | 1.5 |  |  |  | — |  |  |  | 1.5 |
Total available-for-sale securities |  |  | 1,918.1 |  |  |  | 1,990.6 |  |  |  | 72.5 |  |  |  | — |  |  |  | 72.5 |
Total investment securities |  | $ | 1,931.2 |  |  | $ | 2,003.7 |  |  | $ | 72.5 |  |  | $ | — |  |  | $ | 72.5 |
(a) The majority of these securities are fixed-rate instruments.
Contractual Maturities of Debt Securities | The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of December 31, 2021 (in millions):
|  | Fair Value |
Due within 1 year |  | $ | 162.5 |
Due after 1 year through 5 years |  |  | 575.6 |
Due after 5 years through 10 years |  |  | 503.5 |
Due after 10 years |  |  | 157.3 |
Total |  | $ | 1,398.9 |

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