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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

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