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Settlement Assets and Obligations (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Settlement Assets and Obligations

Settlement assets and obligations consisted of the following (in millions):


	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

	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

(a)

As of December 31, 2022 and 2021, both Settlement assets and Settlement obligations include $74.9 million and $566.0 million, respectively, 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, 2022	$	18.0		$	5.7
Current period provision for expected credit losses(a)		14.1			3.8
Write-offs charged against the allowance		(20.9	)		(1.5	)
Recoveries of amounts previously written off		4.7			—
Impacts of foreign currency exchange rates, divestitures, and other		(4.5	)		(6.4	)
Allowance for credit losses as of December 31, 2022	$	11.4		$	1.6


	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 $37.5 million, $51.4 million, and $41.3 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Components of Investment Securities

The components of investment securities are as follows (in millions):


					Gross		Gross			Net
	Amortized		Fair		Unrealized		Unrealized			Unrealized
December 31, 2022	Cost		Value		Gains		Losses (b)			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	)


					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

(a)

The majority of these securities are fixed-rate instruments.

(b)

As of December 31, 2022, the Company held 432 investment securities that were in an unrealized loss position, 324 of which have a total fair value of $871.9 million and unrealized losses of $57.2 million and have been in a loss position for less than twelve months and 108 of which have a total fair value of $186.6 million and unrealized losses of $28.3 million and have been in a loss position for greater than twelve months. As discussed above, the Company's provision for credit losses on its investment securities for the year ended December 31, 2022, and the related allowance for credit losses as of December 31, 2022 were immaterial, as the increase in unrealized losses was driven by a rise in U.S. Treasury interest rates over the year ended December 31, 2022.

Contractual Maturities of Debt Securities

The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of December 31, 2022 (in millions):


	Fair Value
Due within 1 year	$	116.5
Due after 1 year through 5 years		593.2
Due after 5 years through 10 years		476.8
Due after 10 years		147.2
Total	$	1,333.7