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Settlement Assets and Obligations (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Settlement Assets and Obligations

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


	June 30, 2024			December 31, 2023
Settlement assets:
Cash and cash equivalents	$	434.7		$	496.0
Receivables from agents and others		1,788.6			1,748.3
Less: Allowance for credit losses		(11.7	)		(15.4	)
Receivables from agents and others, net		1,776.9			1,732.9
Investment securities		1,436.8			1,458.2
Less: Allowance for credit losses		(0.1	)		(0.1	)
Investment securities, net		1,436.7			1,458.1
Total settlement assets	$	3,648.3		$	3,687.0
Settlement obligations:
Money transfer, money order, and payment service payables	$	2,758.9		$	2,764.5
Payables to agents		889.4			922.5
Total settlement obligations	$	3,648.3		$	3,687.0

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
	Others
Allowance for credit losses as of January 1, 2024	$	15.4
Current period provision for expected credit losses (a)		—
Write-offs charged against the allowance		(5.2	)
Recoveries of amounts previously written off		2.3
Impacts of foreign currency exchange rates and other		(0.6	)
Allowance for credit losses as of March 31, 2024		11.9
Current period provision for expected credit losses (a)		3.0
Write-offs charged against the allowance		(8.4	)
Recoveries of amounts previously written off		3.3
Impacts of foreign currency exchange rates and other		1.9
Allowance for credit losses as of June 30, 2024	$	11.7


	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		$	—

(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 $14.8 million and $12.5 million for the three months ended March 31, 2024 and June 30, 2024, respectively, and $9.1 million and $6.1 million for the three months ended March 31, 2023 and June 30, 2023, 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, 2024	Cost		Value		Gains		Losses			Gains/(Losses)
Settlement assets:
Cash and cash equivalents:
Money market funds	$	11.4	$	11.4	$	—	$	—		$	—
Available-for-sale securities:
State and municipal debt securities (a)		1,079.3		1,035.0		3.1		(47.4	)		(44.3	)
Asset-backed securities		260.4		261.7		1.4		(0.1	)		1.3
Corporate debt securities		87.0		83.4		0.5		(4.1	)		(3.6	)
State and municipal variable-rate demand notes		47.7		47.7		—		—			—
United States government agency mortgage-backed securities		9.4		9.0		—		(0.4	)		(0.4	)
Total available-for-sale securities		1,483.8		1,436.8		5.0		(52.0	)		(47.0	)
Total investment securities	$	1,495.2	$	1,448.2	$	5.0	$	(52.0	)	$	(47.0	)


					Gross		Gross			Net
	Amortized		Fair		Unrealized		Unrealized			Unrealized
December 31, 2023	Cost		Value		Gains		Losses			Gains/(Losses)
Settlement assets:
Cash and cash equivalents:
Money market funds	$	11.8	$	11.8	$	—	$	—		$	—
Available-for-sale securities:
State and municipal debt securities (a)		1,049.3		1,011.4		8.7		(46.6	)		(37.9	)
Asset-backed securities		194.5		195.7		1.2		—			1.2
Corporate debt securities		155.2		152.2		1.5		(4.5	)		(3.0	)
State and municipal variable-rate demand notes		86.8		86.8		—		—			—
United States government agency mortgage-backed securities		12.6		12.1		—		(0.5	)		(0.5	)
Total available-for-sale securities		1,498.4		1,458.2		11.4		(51.6	)		(40.2	)
Total investment securities	$	1,510.2	$	1,470.0	$	11.4	$	(51.6	)	$	(40.2	)

(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, 2024, by the length of time the securities were in a continuous loss position (in millions, except number of securities):


Less Than One Year	Number of Securities		Fair Value		Unrealized Losses
State and municipal debt securities		126	$	248.1	$	(2.2	)
Asset-backed securities		12		25.0		(0.1	)


One Year or Greater	Number of Securities		Fair Value		Unrealized Losses
State and municipal debt securities		255	$	544.3	$	(45.2	)
Corporate debt securities		13		49.4		(4.1	)
United States government agency mortgage-backed securities		10		8.6		(0.4	)

Contractual Maturities of Debt Securities

The following summarizes the contractual maturities of available-for-sale securities within Settlement assets as of June 30, 2024 (in millions):


	Fair Value
Due within 1 year	$	102.6
Due after 1 year through 5 years		536.8
Due after 5 years through 10 years		526.4
Due after 10 years		271.0
Total	$	1,436.8