Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 01, 2017 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MONEYGRAM INTERNATIONAL INC | |
Entity Central Index Key | 1,273,931 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,231,330 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 170.4 | $ 157.2 |
Settlement assets | 3,499.5 | 3,634.3 |
Property and equipment, net | 215 | 201 |
Goodwill | 442.2 | 442.2 |
Other assets | 219 | 162.7 |
Total assets | 4,546.1 | 4,597.4 |
LIABILITIES | ||
Payment service obligations | 3,499.5 | 3,634.3 |
Debt, net | 909.9 | 915.2 |
Pension and other postretirement benefits | 84.2 | 99 |
Accounts payable and other liabilities | 236.5 | 164.5 |
Total liabilities | 4,730.1 | 4,813 |
COMMITMENTS AND CONTINGENCIES (NOTE 11) | ||
STOCKHOLDERS’ DEFICIT | ||
Participating convertible preferred stock - series D, $0.01 par value, 200,000 shares authorized, 71,282 issued at September 30, 2017 and December 31, 2016 | 183.9 | 183.9 |
Common stock, $0.01 par value, 162,500,000 shares authorized, 58,823,567 shares issued at September 30, 2017 and December 31, 2016 | 0.6 | 0.6 |
Additional paid-in capital | 1,031.3 | 1,020.3 |
Retained loss | (1,282.9) | (1,252.6) |
Accumulated other comprehensive loss | (50.8) | (56.1) |
Treasury stock: 4,605,928 and 6,058,856 shares at September 30, 2017 and December 31, 2016, respectively | (66.1) | (111.7) |
Total stockholders’ deficit | (184) | (215.6) |
Total liabilities and stockholders’ deficit | $ 4,546.1 | $ 4,597.4 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 162,500,000 | 162,500,000 |
Common stock, shares issued (shares) | 58,823,567 | 58,823,567 |
Treasury stock (shares) | 4,605,928 | 6,058,856 |
Series D Preferred Stock | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 200,000 | 200,000 |
Preferred stock, shares issued (shares) | 71,282 | 71,282 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUE | ||||
Fee and other revenue | $ 390.1 | $ 408.2 | $ 1,161.5 | $ 1,201.5 |
Investment revenue | 7.7 | 4.6 | 32.4 | 12.7 |
Total revenue | 397.8 | 412.8 | 1,193.9 | 1,214.2 |
EXPENSES | ||||
Fee and other commissions expense | 190.1 | 199.9 | 570.3 | 594.4 |
Investment commissions expense | 2.6 | 0.6 | 5.9 | 1.7 |
Total commissions expense | 192.7 | 200.5 | 576.2 | 596.1 |
Compensation and benefits | 69.1 | 72.5 | 207.5 | 218.9 |
Transaction and operations support | 78.3 | 79.5 | 240.2 | 227.1 |
Occupancy, equipment and supplies | 15.5 | 15.6 | 49 | 46.8 |
Depreciation and amortization | 18.9 | 18.6 | 55.8 | 60.2 |
Total operating expenses | 374.5 | 386.7 | 1,128.7 | 1,149.1 |
OPERATING INCOME | 23.3 | 26.1 | 65.2 | 65.1 |
Other expense | ||||
Interest expense | 11.6 | 11.3 | 33.6 | 33.8 |
Total other expense | 11.6 | 11.3 | 33.6 | 33.8 |
Income before income taxes | 11.7 | 14.8 | 31.6 | 31.3 |
Income tax expense | 4 | 4.7 | 8.9 | 22.4 |
NET INCOME | $ 7.7 | $ 10.1 | $ 22.7 | $ 8.9 |
EARNINGS PER COMMON SHARE | ||||
Basic (usd per share) | $ 0.12 | $ 0.16 | $ 0.36 | $ 0.14 |
Diluted (usd per share) | $ 0.12 | $ 0.15 | $ 0.34 | $ 0.13 |
Weighted-average outstanding common shares and equivalents used in computing earnings per common share | ||||
Basic | 63.1 | 62.2 | 62.8 | 62.4 |
Diluted | 66.2 | 66.4 | 66.2 | 66.2 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 7.7 | $ 10.1 | $ 22.7 | $ 8.9 |
OTHER COMPREHENSIVE INCOME | ||||
Net change in unrealized holding gains on available-for-sale securities arising during the period, net of tax benefit of $0.0 for the three and nine months ended September 30, 2017, respectively, and $0.0 and $0.1 for the three and nine months ended September 30, 2016, respectively | (0.4) | 0 | 3.8 | (0.2) |
Net reclassification adjustment for net realized gains included in net earnings, net of tax expense of $0.0 for the three and nine months ended September, 30, 2017 and 2016 | 0 | 0 | (12.2) | 0 |
Net change in pension liability due to amortization of prior service credit and net actuarial loss, net of tax benefit of $0.5 and $0.4 for the three months ended September 30, 2017 and 2016, respectively, and $1.2 and $1.5 for the nine months ended September 30, 2017 and 2016, respectively | 0.7 | 0.9 | 2.1 | 2.5 |
Valuation adjustment for pension and postretirement benefits, net of tax expense of $0.1 and $0.0 for the three and nine months ended September 30, 2017, and 2016, respectively | (0.3) | 0 | (0.3) | 0 |
Unrealized foreign currency translation adjustments, net of tax expense of $2.2 and $0.2 for the three months ended September 30, 2017 and 2016, respectively, and $6.2 and $2.0 for the nine months ended September 30, 2017 and 2016, respectively | 4.9 | 0.4 | 11.9 | (0.7) |
Other comprehensive income | 4.9 | 1.3 | 5.3 | 1.6 |
COMPREHENSIVE INCOME | $ 12.6 | $ 11.4 | $ 28 | $ 10.5 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||||
Net change in unrealized holding gains on available-for-sale securities, tax | $ 0 | $ 0 | $ 0 | $ (0.1) | ||
Net reclassification adjustment for net realized gains included in net earnings, tax | 0 | 0 | 0 | 0 | ||
Amortization of prior service credit and net actuarial loss for pension and postretirement benefit plans, tax | 0.5 | 0.4 | 1.2 | 1.5 | ||
Valuation adjustment for pension and postretirement benefit plans, tax | 0.1 | $ 0.1 | 0 | $ 0 | ||
Unrealized foreign currency translation adjustments, tax | $ 2.2 | $ 0.2 | $ 6.2 | $ 2 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 22.7 | $ 8.9 |
Depreciation and amortization | 55.8 | 60.2 |
Signing bonus amortization | 39 | 41 |
Signing bonus payments | (24.6) | (17.2) |
Amortization of debt issuance costs and debt discount | 2.4 | 2.5 |
Non-cash compensation and pension expense | 15.4 | 19.1 |
Gain on redemption of asset-backed security | (12.2) | 0 |
Change in other assets | (60.4) | 2.7 |
Change in accounts payable and other liabilities | 48 | (29.4) |
Other non-cash items, net | 3.7 | (0.7) |
Net cash provided by operating activities | 89.8 | 87.1 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (63.1) | (60.4) |
Net cash used in investing activities | (63.1) | (60.4) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on debt | (7.3) | (7.3) |
Proceeds from exercise of stock options | 1.8 | 0 |
Stock repurchases | 0 | (7.5) |
Payment for contingent consideration | 0 | (0.7) |
Payments to tax authorities for stock-based compensation | 8 | 2.6 |
Net cash used in financing activities | (13.5) | (18.1) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 13.2 | 8.6 |
CASH AND CASH EQUIVALENTS—Beginning of period | 157.2 | 164.5 |
CASH AND CASH EQUIVALENTS—End of period | 170.4 | 173.1 |
Supplemental cash flow information: | ||
Cash payments for interest | 31.1 | 31.4 |
Cash taxes, net | $ 6.4 | $ 7.1 |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Stockholders' Deficit - 9 months ended Sep. 30, 2017 - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Loss | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning Balance at Dec. 31, 2016 | $ (215.6) | $ 183.9 | $ 0.6 | $ 1,020.3 | $ (1,252.6) | $ (56.1) | $ (111.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 22.7 | 22.7 | |||||
Stock-based compensation activity | 3.6 | 11 | (53) | 45.6 | |||
Other comprehensive income | 5.3 | 5.3 | |||||
Ending Balance at Sep. 30, 2017 | $ (184) | $ 183.9 | $ 0.6 | $ 1,031.3 | $ (1,282.9) | $ (50.8) | $ (66.1) |
Description of the Business and
Description of the Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | Description of the Business and Basis of Presentation References to “MoneyGram,” the “Company,” “we,” “us” and “our” are to MoneyGram International, Inc. and its subsidiaries. Nature of Operations — MoneyGram offers products and services under its two reporting segments: Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment provides global money transfer services and bill payment services to consumers. We primarily offer services through third-party agents, including retail chains, independent retailers, post offices and other financial institutions. We also offer Digital solutions such as moneygram.com, mobile solutions, account deposit and kiosk-based services. Additionally, we have Company-operated retail locations in the U.S. and Western Europe. The Financial Paper Products segment provides official check outsourcing services and money orders through financial institutions and agent locations. Basis of Presentation — The accompanying unaudited condensed consolidated financial statements of MoneyGram are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for future periods. For further information, refer to the Consolidated Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 . Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are based on historical experience, future expectations and other factors and assumptions the Company believes to be reasonable under the circumstances. These estimates and assumptions are reviewed on an ongoing basis and are revised when necessary. Changes in estimates are recorded in the period of change. Actual amounts may differ from these estimates. Immaterial error correction — During the third quarter of 2017, the Company noted an error with respect to the defined pension plan (the “Pension Plan”). The Company assessed the materiality of the misstatement both quantitatively and qualitatively and determined the correction of this error to be immaterial to all prior consolidated financial statements taken as a whole. Accordingly, the Company adjusted its consolidated financial statements for the period ended December 31, 2016. The adjustment has no impact to "Total liabilities and stockholders' deficit" on the Consolidated Balance Sheet as of December 31, 2016. The effect of the correction is as follows: December 31, 2016 (Amounts in millions) As Previously Reported Correction As Corrected LIABILITIES Pension and other postretirement benefits $ 87.6 $ 11.4 $ 99.0 Accounts payable and other liabilities $ 168.7 $ (4.2 ) $ 164.5 STOCKHOLDERS’ DEFICIT Retained loss $ (1,247.6 ) $ (5.0 ) $ (1,252.6 ) Accumulated other comprehensive loss $ (53.9 ) $ (2.2 ) $ (56.1 ) The impact of the immaterial error correction on "Compensation and benefits" and "Net income" on the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2016, was an increase of $0.1 million and $0.4 million to compensation and benefits, and a decrease of $0.1 million and $0.2 million to net income, respectively. Recent Accounting Pronouncements and Related Developmen ts — In May 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) . The new guidance sets forth a five-step revenue recognition model which replaces the current revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance and requires more detailed disclosures. To further assist with adoption and implementation of ASU 2014-09, the FASB issued the following ASUs: • ASU 2016-08 (Issued March 2016) — Principal versus Agent Consideration (Reporting Revenue Gross versus Net) • ASU 2016-10 (Issued April 2016) — Identifying Performance Obligations and Licensing • ASU 2016-12 (Issued May 2016) — Narrow-Scope Improvements and Practical Expedients • ASU 2016-20 (Issued December 2016) — Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. The Company will not be early adopting these standards and will use the cumulative effect transition method upon adoption. Based on our initial evaluation for money transfer and bill payment services provided by the Global Funds Transfer segment, the Company has determined that each of these services includes only one performance obligation to the customer and the satisfaction of that performance obligation occurs at a point in time, which is not a change from how we currently recognize revenue. Management believes that the adoption of this standard will not have a material impact on the Company’s consolidated financial statements and our internal controls over financial reporting. Management is finalizing its disclosure requirements of this standard. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires organizations to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. The FASB retained the distinction between finance leases and operating leases, leaving the effect of leases in the statement of comprehensive income and the statement of cash flows largely unchanged from previous GAAP. ASU 2016-02 mandates a modified retrospective transition method and is effective for fiscal years beginning after December 15, 2018. Early adoption of the amendment is permitted. The Company's leases consist primarily of operating leases for buildings, equipment and vehicles. The impact of this ASU on the Company’s consolidated financial statements is still being evaluated. In April 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. Under the new ASU, companies are allowed to withhold up to the employees' maximum statutory tax rates in the applicable jurisdictions without resulting in liability classification. Further, the ASU requires that cash payments to tax authorities in connection with shares withheld to meet statutory tax withholding requirements be presented as a financing activity in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016. The Company adopted ASU 2016-09 in the first quarter of 2017. Prior to the adoption of ASU 2016-09, the Company presented cash payments to tax authorities in connection with shares withheld to meet statutory tax withholdings requirements as an operating activity in its statement of cash flows. Upon adoption of this ASU, the presentation of these payments was reclassified to a financing activity and prior period Condensed Consolidated Statements of Cash Flows have been updated to reflect this change. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra- Entity Transfers of Assets Other Than Inventory . This standard requires that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this standard eliminate the exception for an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for public companies for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The Company will not be early adopting this standard but, upon adoption, will use the modified retrospective approach, which will result in a reclassification of a net deferred charge of approximately $52.0 million from “Other assets” to “Retained loss” on the Condensed Consolidated Balance Sheets. The Company has determined that there have been no other recently adopted or issued accounting standards that had, or will have, a material impact on its consolidated financial statements. Merger Agreement — On January 26, 2017, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) among the Company, Alipay (UK) Limited, a United Kingdom limited company (“Alipay”), Matrix Acquisition Corp., a Delaware corporation and wholly owned subsidiary of Alipay (“Merger Sub”) and, solely for purposes of certain specified provisions in the Merger Agreement, Alipay (Hong Kong) Holding Limited, a Hong Kong limited company. The Merger Agreement provides that, subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Alipay, and holders of the Company’s common stock would be entitled to receive $13.25 in cash, less any required withholding taxes, for each share of the Company’s common stock, on an as-converted basis, owned at the effective time of the Merger. On April 15, 2017, the Company entered into the First Amendment to the Agreement and Plan of Merger (the “Merger Agreement Amendment”). The Merger Agreement Amendment increased the merger consideration to $18.00 per share and also increased the termination fee payable by the Company in connection with the termination of the Merger Agreement under specified circumstances, including the termination of the Merger Agreement by the Company to accept a Company Superior Proposal (as defined in the Merger Agreement), the termination of the Merger Agreement by Alipay following a change of recommendation by the Company’s Board of Directors, and other customary circumstances. Completion of the Merger is subject to a number of conditions, including the receipt of regulatory approvals. On May 16, 2017, the Company's stockholders voted to approve the Merger. |
Settlement Assets and Payment S
Settlement Assets and Payment Service Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Settlement Assets in Excess of Payment Service Obligations [Abstract] | |
Settlement Assets and Payment Service Obligations | Settlement Assets and Payment Service Obligations Settlement assets represent funds received or to be received from agents for unsettled money transfers, money orders and consumer payments. The Company records corresponding payment service obligations relating to amounts payable under money transfers, money orders and consumer payment service arrangements. These obligations are recognized by the Company at the time the underlying transactions occur. The following table summarizes the amount of Settlement assets and Payment service obligations: (Amounts in millions) September 30, 2017 December 31, 2016 Settlement assets: Settlement cash and cash equivalents $ 1,418.0 $ 1,365.0 Receivables, net 920.1 999.4 Interest-bearing investments 1,153.9 1,252.1 Available-for-sale investments 7.5 17.8 $ 3,499.5 $ 3,634.3 Payment service obligations $ (3,499.5 ) $ (3,634.3 ) |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis: (Amounts in millions) Level 2 Level 3 Total September 30, 2017 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 6.1 $ — $ 6.1 Asset-backed and other securities — 1.4 1.4 Forward contracts 1.5 — 1.5 Total financial assets $ 7.6 $ 1.4 $ 9.0 Financial liabilities: Forward contracts $ 0.5 $ — $ 0.5 December 31, 2016 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 7.2 $ — $ 7.2 Asset-backed and other securities — 10.6 10.6 Forward contracts 2.4 — 2.4 Total financial assets $ 9.6 $ 10.6 $ 20.2 Financial liabilities: Forward contracts $ 0.1 $ — $ 0.1 The following table provides a roll-forward of the asset-backed and other securities classified as Level 3, which are measured at fair value on a recurring basis: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Beginning balance $ 1.8 $ 11.0 $ 10.6 $ 11.6 Principal paydowns — (0.3 ) (0.8 ) (1.1 ) Change in unrealized gains (0.4 ) 0.2 3.8 0.3 Net realized gains — (0.3 ) (12.2 ) (0.2 ) Ending balance $ 1.4 $ 10.6 $ 1.4 $ 10.6 Assets and liabilities that are disclosed at fair value — Debt and interest-bearing investments are carried at amortized cost; however, the Company estimates the fair value of debt for disclosure purposes. The fair value of debt is estimated using an observable market quotation (Level 2). The following table is a summary of the Company's fair value and carrying value of debt: Fair Value Carrying Value (Amounts in millions) September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Senior secured credit facility $ 915.5 $ 912.5 $ 916.7 $ 924.0 The carrying amounts for the Company's cash and cash equivalents, settlement cash and cash equivalents, interest-bearing investments and payment service obligations approximate fair value as of September 30, 2017 and December 31, 2016 . |
Investment Portfolio
Investment Portfolio | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Portfolio | Investment Portfolio The following table shows the components of the investment portfolio: (Amounts in millions) September 30, 2017 December 31, 2016 Cash $ 1,583.1 $ 1,514.5 Money market securities 5.4 7.7 Cash and cash equivalents (1) 1,588.5 1,522.2 Interest-bearing investments 1,153.9 1,252.1 Available-for-sale investments 7.5 17.8 Total investment portfolio $ 2,749.9 $ 2,792.1 (1) For purposes of the disclosure of the investment portfolio as a whole, the cash and cash equivalents balance includes settlement cash and cash equivalents. The following table is a summary of the amortized cost and fair value of available-for-sale investments: Amortized Cost Gross Unrealized Gains Fair Value (Amounts in millions) September 30, 2017 Residential mortgage-backed securities $ 5.5 $ 0.6 $ 6.1 Asset-backed and other securities 0.2 1.2 1.4 Total $ 5.7 $ 1.8 $ 7.5 December 31, 2016 Residential mortgage-backed securities $ 6.6 $ 0.6 $ 7.2 Asset-backed and other securities 1.0 9.6 10.6 Total $ 7.6 $ 10.2 $ 17.8 As of September 30, 2017 and December 31, 2016 , 81% and 40% , respectively, of the available-for-sale portfolio were invested in residential mortgage-backed securities issued by U.S. government agencies. These securities have the implicit backing of the U.S. government and the Company expects to receive full par value upon maturity or pay-down, as well as all interest payments. Gains and Losses — For the three months ended September 30, 2017 and 2016 , the Company had nominal net realized losses from its available-for-sale portfolio. For the nine months ended September 30, 2017 , the Company recognized $12.2 million of investment income from the redemption at par value of $12.7 million of a previously impaired asset-backed security in "Investment revenue" on the Condensed Consolidated Statement of Operations. Prior to the redemption, the security had $0.5 million in book value with $7.9 million in unrealized gains. For the nine months ended September 30, 2016 , the Company had nominal net realized losses from its available-for-sale portfolio. The Company had nominal and no unrealized losses in its available-for-sale portfolio as of September 30, 2017 and December 31, 2016 , respectively. See summary of net unrealized gains included in Accumulated other comprehensive loss in Note 8 — Stockholders' Deficit . Contractual Maturities — Actual maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations, sometimes without call or prepayment penalties. Maturities of residential mortgage-backed and asset-backed and other securities depend on the repayment characteristics and experience of the underlying obligations. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The following gains (losses) related to assets and liabilities denominated in foreign currencies are included in the “Transaction and operations support” line in the Condensed Consolidated Statements of Operations and in the "Net cash provided by operating activities" line in the Condensed Consolidated Statements of Cash Flows: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Net realized foreign currency gains $ 3.6 $ 0.9 $ 17.9 $ 5.5 Net (losses) gains from the related forward contracts (2.0 ) 0.7 (12.2 ) 10.6 Net gains from foreign currency transactions and related forward contracts $ 1.6 $ 1.6 $ 5.7 $ 16.1 As of September 30, 2017 and December 31, 2016 , the Company had $348.9 million and $294.5 million , respectively, of outstanding notional amounts relating to its foreign currency forward contracts. The Company reflects the following fair values of derivative forward contract instruments in its Condensed Consolidated Balance Sheets: Gross Amount of Recognized Assets Gross Amount of Offset Net Amount of Assets Presented in the Condensed Consolidated Balance Sheets Balance Sheet Location September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 (Amounts in millions) Forward contracts Other assets $ 1.6 $ 2.6 $ (0.1 ) $ (0.2 ) $ 1.5 $ 2.4 Gross Amount of Recognized Liabilities Gross Amount of Offset Net Amount of Liabilities Presented in the Condensed Consolidated Balance Sheets Balance Sheet Location September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 (Amounts in millions) Forward contracts Accounts payable and other liabilities $ 0.6 $ 0.3 $ (0.1 ) $ (0.2 ) $ 0.5 $ 0.1 The Company's forward contracts are primarily executed with counterparties governed by International Swaps and Derivatives Association agreements that generally include standard netting arrangements. Asset and liability positions from forward contracts and all other foreign exchange transactions with the same counterparty are net settled upon maturity. The Company is exposed to credit loss in the event of non-performance by counterparties to its derivative contracts. In the unlikely event the counterparty fails to meet the contractual terms of the derivative contract, the Company’s risk is limited to the fair value of the instrument. The Company has not had any historical instances of non-performance by any counterparties, nor does it anticipate any future instances of non-performance. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of the Company’s outstanding debt: September 30, 2017 December 31, 2016 (Amounts in millions, except percentages) Effective Interest Rate Effective Interest Rate Senior secured credit facility due 2020 4.55 % $ 916.7 4.25 % $ 924.0 Unamortized debt issuance costs and debt discount (6.8 ) (8.8 ) Total debt, net $ 909.9 $ 915.2 Revolving Credit Facility — As of September 30, 2017 , the Company had no outstanding letters of credit and no borrowings under its revolving credit facility, leaving $125.0 million of availability thereunder. The Company's effective interest rate on senior secured borrowings increased from 4.25% as of December 31, 2016 to 4.55% as of September 30, 2017 due to an increase in the Eurodollar rate. Debt Covenants and Other Restrictions — Borrowings under the credit agreement that provides for the senior secured facility due 2020 and the revolving credit facility are subject to various limitations that restrict the Company’s ability to: incur additional indebtedness; create or incur additional liens; effect mergers and consolidations; make certain acquisitions or investments; sell assets or subsidiary stock; pay dividends and other restricted payments; and effect loans, advances and certain other transactions with affiliates. In addition, the revolving credit facility has covenants that place limitations on the use of proceeds from borrowings under the facility. The revolving credit facility contains certain financial covenants, in addition to the non-financial covenants described above. The Company is required to maintain asset coverage greater than its payment service obligations. Assets used in the determination of the asset coverage covenant are cash and cash equivalents and settlement assets. The Company's assets in excess of payment service obligations used for the asset coverage calculation, which is equal to total cash and cash equivalents and settlement assets less payment service obligations, are $170.4 million and $157.2 million as of September 30, 2017 and December 31, 2016 , respectively. The credit agreement also has quarterly financial covenants to maintain the following interest coverage and secured leverage ratios: Interest Coverage Minimum Ratio Secured Leverage Not to Exceed January 1, 2017 through December 31, 2017 2.25:1 4.250:1 January 1, 2018 through June 30, 2018 2.25:1 4.000:1 July 1, 2018 through December 31, 2018 2.25:1 3.750:1 January 1, 2019 through maturity 2.25:1 3.500:1 As of September 30, 2017 , the Company was in compliance with its financial covenants: our interest coverage ratio was 6.49 to 1.00 and our secured leverage ratio was 3.395 to 1.00. We continuously monitor our compliance with our debt covenants. |
Pensions and Other Benefits
Pensions and Other Benefits | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pensions and Other Benefits | Pensions and Other Benefits The following table is a summary of net periodic benefit expense for the Company's Pension Plan and supplemental executive retirement plans ("SERPs"), collectively referred to as "Pension": Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Interest cost $ 1.8 $ 1.7 $ 4.9 $ 5.2 Expected return on plan assets (1.3 ) (1.2 ) (3.8 ) (3.8 ) Amortization of net actuarial loss 1.3 1.4 3.5 4.3 Net periodic benefit expense $ 1.8 $ 1.9 $ 4.6 $ 5.7 The following table is a summary of net periodic benefit income for the Company’s postretirement medical benefit plan ("Postretirement Benefits"): Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Amortization of prior service credit $ (0.1 ) $ (0.1 ) $ (0.3 ) $ (0.4 ) Amortization of net actuarial loss — — 0.1 0.1 Net periodic benefit income $ (0.1 ) $ (0.1 ) $ (0.2 ) $ (0.3 ) |
Stockholders' Deficit
Stockholders' Deficit | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Deficit | Stockholders’ Deficit Common Stock — No dividends were paid during the three or nine months ended September 30, 2017 or September 30, 2016 . Accumulated Other Comprehensive Loss — The following tables summarize the changes to Accumulated other comprehensive loss by component: (Amounts in millions) Net Unrealized Gains on Securities Classified as Available-for-sale, Net of Tax Cumulative Foreign Currency Translation Adjustments, Net of Tax Pension and Postretirement Benefits Adjustment, Net of Tax Total January 1, 2017 $ 10.8 $ (19.9 ) $ (47.0 ) $ (56.1 ) Other comprehensive income before reclassification 3.8 11.9 (0.3 ) 15.4 Amounts reclassified from accumulated other comprehensive loss (12.2 ) — 2.1 (10.1 ) Net current period other comprehensive (loss) income (8.4 ) 11.9 1.8 5.3 September 30, 2017 $ 2.4 $ (8.0 ) $ (45.2 ) $ (50.8 ) January 1, 2016 $ 11.1 $ (13.5 ) $ (48.4 ) $ (50.8 ) Other comprehensive loss before reclassification — (0.7 ) — (0.7 ) Amounts reclassified from accumulated other comprehensive loss (0.2 ) — 2.5 2.3 Net current period other comprehensive (loss) income (0.2 ) (0.7 ) 2.5 1.6 September 30, 2016 $ 10.9 $ (14.2 ) $ (45.9 ) $ (49.2 ) The following table is a summary of the significant amounts reclassified out of each component of Accumulated other comprehensive loss: Three Months Ended September 30, Nine Months Ended September 30, Statement of Operations Location (Amounts in millions) 2017 2016 2017 2016 Change in unrealized gains on securities classified as available-for-sale, before tax $ — $ (0.2 ) $ (12.2 ) $ (0.3 ) "Investment revenue" Tax expense — 0.1 — 0.1 Total, net of tax — (0.1 ) (12.2 ) (0.2 ) Pension and Postretirement Benefits adjustments: Amortization of prior service credit (0.1 ) (0.1 ) (0.3 ) (0.4 ) "Compensation and benefits" Amortization of net actuarial loss 1.3 1.4 3.6 4.4 "Compensation and benefits" Total before tax 1.2 1.3 3.3 4.0 Tax benefit (0.5 ) (0.4 ) (1.2 ) (1.5 ) Total, net of tax 0.7 0.9 2.1 2.5 Total reclassified for the period, net of tax $ 0.7 $ 0.8 $ (10.1 ) $ 2.3 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table is a summary of the Company's stock-based compensation expense: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Expense recognized related to stock options $ 0.1 $ 0.6 $ 0.5 $ 2.2 Expense recognized related to restricted stock units 3.4 3.6 10.5 11.5 Stock-based compensation expense $ 3.5 $ 4.2 $ 11.0 $ 13.7 Stock Options — The following table is a summary of the Company’s stock option activity: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($000,000) Options outstanding at December 31, 2016 2,485,461 $ 18.02 4.0 years $ — Exercised (109,731 ) 14.49 Forfeited/Expired (335,790 ) 21.10 Options outstanding at September 30, 2017 2,039,940 $ 17.70 3.1 years $ 2.2 Vested or expected to vest at September 30, 2017 2,039,775 $ 17.70 3.1 years $ 2.2 Options exercisable at September 30, 2017 2,018,170 $ 17.74 3.0 years $ 2.2 As of September 30, 2017 , the unrecognized stock option expense related to outstanding options was nominal with a remaining weighted-average vesting period of 0.1 years . Restricted Stock Units — In February 2017, the Company issued time-based and performance-based restricted stock units. The time-based restricted stock units vest in three equal installments on each anniversary of the grant date. The performance-based restricted stock units are subject to performance conditions that must be satisfied. If such performance conditions are satisfied at the conclusion of a one-year performance period, the performance-based restricted stock units will vest in three equal installments on each anniversary of the grant date. With respect to the performance-based restricted stock units, up to 50% of such awards become eligible to vest over such three year period if a target level of Adjusted EBITDA is achieved for the year ended December 31, 2017. Adjusted EBITDA is EBITDA (earnings before interest, taxes, depreciation and amortization, including agent signing bonus amortization) adjusted for certain significant items. The other 50% of the performance-based restricted stock units become eligible to vest over such three year period if a target level of revenue is achieved for the year ended December 31, 2017. The performance-based restricted stock units have a threshold level of performance for each of the target levels. Achievement of the threshold level will result in vesting of 50% of the target levels discussed above. The number of performance-based restricted stock units that will vest for performance achievement between the threshold and target will be determined based on a straight-line interpolation. No performance-based restricted stock units will vest for performance achievement below the thresholds. The following table is a summary of the Company’s restricted stock unit activity: Total Shares Weighted Average Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($000,000) Restricted stock units outstanding at December 31, 2016 4,630,038 $ 7.68 0.9 years $ 54.7 Granted 1,361,986 12.87 Vested and converted to shares (2,010,441 ) 7.59 Forfeited (635,873 ) 13.35 Restricted stock units outstanding at September 30, 2017 3,345,710 $ 8.77 1.0 years $ 53.9 Restricted stock units vested and outstanding at September 30, 2017 32,680 $ 6.12 $ 0.5 As of September 30, 2017 , the Company’s outstanding restricted stock units had unrecognized compensation expense of $17.5 million . Unrecognized restricted stock unit expense and the remaining weighted-average vesting period are presented using the Company’s current estimate of achievement of performance goals. The grant-date fair value of restricted stock units vested and converted was $0.9 million and $15.3 million for the three and nine months ended September 30, 2017 , respectively, and $0.8 million and $14.7 million for the three and nine months ended September 30, 2016 , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recognized income tax expense of $4.0 million and $8.9 million on a pre-tax income of $11.7 million and $31.6 million for the three and nine months ended September 30, 2017 , respectively. The recorded income tax expense differs from taxes calculated at the statutory rate for the three months ended September 30, 2017 , primarily due to a net favorable change in estimate for certain tax credits generated in both 2017 and 2016. For the nine months ended September 30, 2017 , the recorded income tax expense differs from taxes calculated at the statutory rate primarily due to a net tax benefit recognized for the redemption of a previously impaired asset-backed security, a tax benefit on stock-based compensation, a benefit on the estimated income tax credits generated in 2017 and a tax benefit from the reorganization of our international business activities, partially offset by the related amortization of the deferred charge. For more information related to the redemption see Note 4 — Investment Portfolio. For the three months ended September 30, 2016 , the Company recognized income tax expense of $4.7 million on pre-tax income of $14.8 million . The recorded income tax differs from the taxes calculated at the statutory rate primarily due to a favorable change in estimate for certain tax credits generated in both 2016 and 2015. For the nine months ended September 30, 2016 , the Company recognized an income tax expense of $22.4 million on pre-tax income of $31.3 million . The recorded income tax expense for the nine months ended September 30, 2016 differs from taxes calculated at the statutory rate primarily due to tax expense of $7.7 million from the settlement reached with the IRS related to the deduction of payments previously made by the Company to the Asset Forfeiture and Money Laundering Section of the Department of Justice ("U.S. DOJ") pursuant to the Deferred Prosecution Agreement with the U.S. Attorney's Office for the Middle District of Pennsylvania and the U.S. DOJ (the "Deferred Prosecution Agreement"), the reversal of tax benefits of $3.6 million on share-based compensation and a tax expense of $1.6 million related to non-deductible executive compensation, offset by $1.7 million of tax benefit related to the Company's increase in estimate for certain tax credits. The IRS completed its examination of the Company’s consolidated income tax returns for the tax years 2011 through 2013 and issued a Revenue Agent Report (“RAR”) in the first quarter of 2015 that included disallowing $100.0 million of deductions related to payments the Company made to the U.S. DOJ pursuant to the Deferred Prosecution Agreement. In April 2016, the Company entered into a settlement agreement with the IRS allowing a deduction of $39.3 million . As of December 31, 2016, the Company had fully settled this matter with $21.2 million of existing deferred tax assets and $0.5 million of cash after recognizing an additional $7.7 million of Income tax expense for the three months ended March 31, 2016. The state tax liabilities related to the federal settlement have yet to be settled due to the pending implications of the security losses. Unrecognized tax benefits are recorded in “Accounts payable and other liabilities” in the Condensed Consolidated Balance Sheets. As of September 30, 2017 and December 31, 2016 , the liability for unrecognized tax benefits was $32.2 million and $24.2 million , respectively, and the net amount of unrecognized tax benefits that if recognized could impact the effective tax rate was $24.7 million and $16.7 million , respectively. For the nine months ended September 30, 2017 , the Company's unrecognized tax benefits increased by $8.0 million primarily as a result of a reorganization of our international business activities. The Company accrues interest and penalties for unrecognized tax benefits through “Income tax expense” in the Condensed Consolidated Statements of Operations. For the nine months ended September 30, 2017 , the Company's accrual for interest and penalties increased by $1.7 million . For the nine months ended September 30, 2016 , the Company's accrual for interest and penalties increased by $1.0 million , which was offset by $0.5 million from the settlement of the U.S. DOJ tax matter. As of September 30, 2017 and December 31, 2016 , the Company had a liability of $8.1 million and $6.4 million , respectively, for interest and penalties related to its unrecognized tax benefits. As a result of the Company's litigation related to its securities losses discussed below in Note 11 — Commitments and Contingencies , it is possible that there could be a significant decrease to the total amount of unrecognized tax benefits over the next 12 months. As of September 30, 2017 , it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax positions over the next 12 months. In the first half of 2017, the Company initiated a reorganization to more closely align our operations to our international business activities, which resulted in a deferred charge of $60.2 million recorded in "Other assets" with an offset to "Accounts payable and other liabilities" in the Condensed Consolidated Balance Sheets as of September 30, 2017 . The deferred charge is amortized on a straight-line basis over five years through the Company's est imated annual effective tax rate as a component of "Income tax expense" in the Condensed Consolidated Statements of Operations. As of September 30, 2017 , the net deferred charge balance was $54.3 million . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Participation Agreement between the Investors and Wal-Mart Stores, Inc. — Affiliates of Thomas H. Lee Partners, L.P. and Goldman, Sachs & Co. (collectively, the “Investors”) have a Participation Agreement (the “Participation Agreement”) with Wal-Mart Stores, Inc. (“Walmart”), under which the Investors are obligated to pay Walmart certain percentages of any accumulated cash payments received by the Investors in excess of the Investors’ original investment in the Company. While the Company is not a party to, and has no obligations to Walmart or additional obligations to the Investors under, the Participation Agreement, the Company must recognize the Participation Agreement in its consolidated financial statements as the Company indirectly benefits from the agreement. Any future payments by the Investors to Walmart may result in an expense that could be material to the Company’s financial position or results of operations, but would have no impact on the Company’s cash flows. Upon completion of the proposed Merger, described in Note 1 — Description of the Business and Basis of Presentation , the Company may recognize an expense and a corresponding increase to additional paid-in capital in regards to the Participation Agreement of approximately $30 million . As of September 30, 2017 , the Company has not recognized any further liability or expense because completion of the Merger remains subject to certain closing conditions that have not yet been satisfied. Legal Proceedings — The matters set forth below are subject to uncertainties and outcomes that are not predictable. The Company accrues for these matters as any resulting losses become probable and can be reasonably estimated. Further, the Company maintains insurance coverage for many claims and litigation matters. In relation to various legal matters, including those described below, the Company had $0.6 million and $1.2 million of liability recorded in the “Accounts payable and other liabilities” line in the Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 , respectively. A nominal charge was recorded in the "Transaction and operations support" line in the Condensed Consolidated Statements of Operations during the three months ended September 30, 2017 , while a charge of $0.9 million was recorded for legal proceedings during the nine months ended September 30, 2017 in the "Transaction and operations support" line in the Condensed Consolidated Statements of Operations. A nominal charge was recorded for legal proceedings during the three and nine months ended September 30, 2016 . Litigation Commenced Against the Company: Class Action Securities Litigation — On April 15, 2015, a securities class action lawsuit was filed in the Superior Court of the State of Delaware, County of New Castle, against MoneyGram, all of its directors, certain of its executive officers, Thomas H. Lee Partners, L.P., Goldman, Sachs & Co. and the underwriters of the secondary public offering of the Company’s common stock that closed on April 2, 2014 (the “2014 Offering”). The lawsuit was brought by the Iron Workers District Council of New England Pension Fund seeking to represent a class consisting of all purchasers of the Company’s common stock issued pursuant and/or traceable to the Company’s registration statement and prospectus, and all documents incorporated by reference therein, for the 2014 Offering. The lawsuit alleged violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, as amended, due to allegedly false and misleading statements in connection with the 2014 Offering and seeks unspecified damages and other relief. In May 2015, MoneyGram and the other defendants filed a notice of removal to the federal district court of the District of Delaware. On July 24, 2017, the plaintiff voluntarily dismissed its complaint without prejudice. Other Matters — The Company is involved in various other claims and litigation that arise from time to time in the ordinary course of the Company's business. Management does not believe that after final disposition any of these matters is likely to have a material adverse impact on the Company's financial condition, results of operations and cash flows. Government Investigations: OFAC — In 2015, we initiated an internal investigation to identify any payments processed by the Company that were violations of the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC") sanctions regulations. We notified OFAC of the internal investigation, which was conducted in conjunction with the Company's outside counsel. On March 28, 2017, we filed a Voluntary Self-Disclosure with OFAC regarding the findings of our internal investigation. OFAC is currently reviewing the results of the Company’s investigation. At this time, it is not possible to determine the outcome of this matter, or the significance, if any, to our business, financial condition, or operations, and we cannot predict when OFAC will conclude their review of our Voluntary Self-Disclosure. Deferred Prosecution Agreement — In November 2012, we announced that a settlement was reached with the U.S. Attorney's Office for the Middle District of Pennsylvania (the "MDPA") and the U.S. Department of Justice ("U.S. DOJ") relating to the previously disclosed investigation of transactions involving certain of our U.S. and Canadian agents, as well as fraud complaint data and the consumer anti-fraud program, during the period from 2003 to early 2009. In connection with this settlement, we entered into a five-year deferred prosecution agreement (the "DPA") with the MDPA and U.S. DOJ dated November 8, 2012. On November 1, 2017, the Company agreed to a stipulation with the MDPA and the DOJ (collectively, the “Government”) that the term of the Company’s DPA be extended for 90 days to February 6, 2018 during which the Company and the Government can discuss whether the Company is in compliance with the DPA. There can be no assurance that the Company and the Government will continue to be able to negotiate a mutually satisfactory outcome during such 90 day period (or any further short-term extension of the DPA) or that such outcome will not include a further extension of the DPA, financial penalties or additional restrictions on the Company, including a monitorship period beyond the current monitorship that ends on April 30, 2018. Furthermore, there can be no assurance that the Government will not seek any other remedy, including criminal prosecution and financial penalties, in lieu of an extension of the DPA and monitorship. Other Matters — The Company is involved in various other government inquiries and other matters that arise from time to time. Management does not believe that after final disposition any of these other matters is likely to have a material adverse impact on the Company’s financial condition, results of operations and cash flows. Actions Commenced by the Company: Tax Litigation — The IRS completed its examination of the Company’s consolidated income tax returns through 2013 and issued Notices of Deficiency for 2005-2007 and 2009, and an Examination Report for 2008. The Notices of Deficiency and Examination Report disallow, among other items, approximately $900.0 million of ordinary deductions on securities losses in the 2007, 2008 and 2009 tax returns. In May 2012 and December 2012, the Company filed petitions in the U.S. Tax Court challenging the 2005-2007 and 2009 Notices of Deficiency, respectively. In 2013, the Company reached a partial settlement with the IRS allowing ordinary loss treatment on $186.9 million of deductions in dispute. In January 2015, the U.S. Tax Court granted the IRS's motion for summary judgment upholding the remaining adjustments in the Notices of Deficiency. The Company filed a notice of appeal with the U.S. Tax Court on July 27, 2015 for an appeal to the U.S. Court of Appeals for the Fifth Circuit. Oral arguments were held before the Fifth Circuit on June 7, 2016, and on November 15, 2016, the Fifth Circuit vacated the Tax Court's decision and remanded the case to the Tax Court for further proceedings. The Company filed a motion for summary judgment in the Tax Court on May 31, 2017. On August 23, 2017, the IRS filed a motion for summary judgment and its response to the Company’s motion for summary judgment. The January 2015 Tax Court decision was a change in facts which warranted reassessment of the Company's uncertain tax position. Although the Company believes that it has substantive tax law arguments in favor of its position and has appealed the ruling, the reassessment resulted in the Company determining that it is no longer more likely than not that its existing position will be sustained. Accordingly, the Company re-characterized certain deductions relating to securities losses to be capital in nature, rather than ordinary. The Company recorded a full valuation allowance against these losses in the quarter ended March 31, 2015. This change increased "Income tax expense" in the Consolidated Statements of Operations in the quarter ended March 31, 2015 by $63.7 million . During 2015, the Company made payments to the IRS of $61.0 million for federal tax payments and associated interest related to the matter. The November 2016 Fifth Circuit decision to remand the case back to the U.S. Tax Court does not change the Company’s current assessment regarding the likelihood that these deductions will be sustained. Accordingly, no change in the valuation allowance was made as of September 30, 2017 . Pending the outcome of the Tax Court proceeding, the Company may be required to file amended state returns and make additional cash payments of up to $18.3 million on amounts that have previously been accrued. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share For all periods in which it is outstanding, the Series D Participating Convertible Preferred Stock (the "D Stock") is included in the weighted-average number of common shares outstanding utilized to calculate basic earnings per common share because the D Stock is deemed a common stock equivalent. Diluted earnings per common share reflects the potential dilution that could result if securities or incremental shares arising out of the Company’s stock-based compensation plans were exercised or converted into common stock. Diluted earnings per common share assumes the exercise of stock options using the treasury stock method. The following table is a reconciliation of the weighted-average amounts used in calculating earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Basic common shares outstanding 63.1 62.2 62.8 62.4 Shares related to stock options and restricted stock units 3.1 4.2 3.4 3.8 Diluted common shares outstanding 66.2 66.4 66.2 66.2 Potential common shares are excluded from the computation of diluted earnings per common share when the effect would be anti-dilutive. All potential common shares are anti-dilutive in periods of net loss available to common stockholders. Stock options are anti-dilutive when the exercise price of these instruments is greater than the average market price of the Company’s common stock for the period and restricted stock units are anti-dilutive if they are subject to performance conditions that have not been met. The following table summarizes the weighted-average potential common shares excluded from diluted earnings per common share, as their effect would be anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Shares related to stock options 1.6 2.7 1.7 2.8 Shares related to restricted stock units 0.3 0.8 0.2 0.8 Shares excluded from the computation 1.9 3.5 1.9 3.6 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s reporting segments are primarily organized based on the nature of products and services offered and the type of consumer served. The Company has two reporting segments: Global Funds Transfer and Financial Paper Products. See Note 1 — Description of the Business and Basis for Presentation for further discussion on our segments. One of the Company’s agents for both the Global Funds Transfer segment and the Financial Paper Products segment accounted for 18% of total revenue for the three and nine months ended September 30, 2017 , and 18% and 19% of total revenue for the three and nine months ended September 30, 2016 , respectively. The following table is a summary of the total revenue by segment: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Global Funds Transfer revenue: Money transfer revenue $ 356.8 $ 369.3 $ 1,055.4 $ 1,086.3 Bill payment revenue 20.3 24.6 66.1 71.9 Total Global Funds Transfer revenue 377.1 393.9 1,121.5 1,158.2 Financial Paper Products revenue: Money order revenue 12.8 12.6 42.0 38.2 Official check revenue 7.9 6.3 30.4 17.8 Total Financial Paper Products revenue 20.7 18.9 72.4 56.0 Total revenue $ 397.8 $ 412.8 $ 1,193.9 $ 1,214.2 The following table is a summary of the operating income by segment and detail of the income before income taxes: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Global Funds Transfer operating income $ 29.6 $ 26.6 $ 70.4 $ 70.0 Financial Paper Products operating income 4.6 4.5 26.6 13.6 Total segment operating income 34.2 31.1 97.0 83.6 Other operating loss (10.9 ) (5.0 ) (31.8 ) (18.5 ) Total operating income 23.3 26.1 65.2 65.1 Interest expense 11.6 11.3 33.6 33.8 Income before income taxes $ 11.7 $ 14.8 $ 31.6 $ 31.3 The following table sets forth the assets by segment: (Amounts in millions) September 30, 2017 December 31, 2016 Global Funds Transfer $ 2,315.4 $ 2,213.9 Financial Paper Products 2,036.0 2,198.3 Other 194.7 185.2 Total assets $ 4,546.1 $ 4,597.4 |
Description of the Business a22
Description of the Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations — MoneyGram offers products and services under its two reporting segments: Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment provides global money transfer services and bill payment services to consumers. We primarily offer services through third-party agents, including retail chains, independent retailers, post offices and other financial institutions. We also offer Digital solutions such as moneygram.com, mobile solutions, account deposit and kiosk-based services. Additionally, we have Company-operated retail locations in the U.S. and Western Europe. The Financial Paper Products segment provides official check outsourcing services and money orders through financial institutions and agent locations. |
Basis of Presentation | Basis of Presentation — The accompanying unaudited condensed consolidated financial statements of MoneyGram are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for future periods. For further information, refer to the Consolidated Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 . |
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 reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are based on historical experience, future expectations and other factors and assumptions the Company believes to be reasonable under the circumstances. These estimates and assumptions are reviewed on an ongoing basis and are revised when necessary. Changes in estimates are recorded in the period of change. Actual amounts may differ from these estimates. |
Recent Accounting Pronouncements and Related Developments | Recent Accounting Pronouncements and Related Developmen ts — In May 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) . The new guidance sets forth a five-step revenue recognition model which replaces the current revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance and requires more detailed disclosures. To further assist with adoption and implementation of ASU 2014-09, the FASB issued the following ASUs: • ASU 2016-08 (Issued March 2016) — Principal versus Agent Consideration (Reporting Revenue Gross versus Net) • ASU 2016-10 (Issued April 2016) — Identifying Performance Obligations and Licensing • ASU 2016-12 (Issued May 2016) — Narrow-Scope Improvements and Practical Expedients • ASU 2016-20 (Issued December 2016) — Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. The Company will not be early adopting these standards and will use the cumulative effect transition method upon adoption. Based on our initial evaluation for money transfer and bill payment services provided by the Global Funds Transfer segment, the Company has determined that each of these services includes only one performance obligation to the customer and the satisfaction of that performance obligation occurs at a point in time, which is not a change from how we currently recognize revenue. Management believes that the adoption of this standard will not have a material impact on the Company’s consolidated financial statements and our internal controls over financial reporting. Management is finalizing its disclosure requirements of this standard. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires organizations to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. The FASB retained the distinction between finance leases and operating leases, leaving the effect of leases in the statement of comprehensive income and the statement of cash flows largely unchanged from previous GAAP. ASU 2016-02 mandates a modified retrospective transition method and is effective for fiscal years beginning after December 15, 2018. Early adoption of the amendment is permitted. The Company's leases consist primarily of operating leases for buildings, equipment and vehicles. The impact of this ASU on the Company’s consolidated financial statements is still being evaluated. In April 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. Under the new ASU, companies are allowed to withhold up to the employees' maximum statutory tax rates in the applicable jurisdictions without resulting in liability classification. Further, the ASU requires that cash payments to tax authorities in connection with shares withheld to meet statutory tax withholding requirements be presented as a financing activity in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016. The Company adopted ASU 2016-09 in the first quarter of 2017. Prior to the adoption of ASU 2016-09, the Company presented cash payments to tax authorities in connection with shares withheld to meet statutory tax withholdings requirements as an operating activity in its statement of cash flows. Upon adoption of this ASU, the presentation of these payments was reclassified to a financing activity and prior period Condensed Consolidated Statements of Cash Flows have been updated to reflect this change. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra- Entity Transfers of Assets Other Than Inventory . This standard requires that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this standard eliminate the exception for an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for public companies for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The Company will not be early adopting this standard but, upon adoption, will use the modified retrospective approach, which will result in a reclassification of a net deferred charge of approximately $52.0 million from “Other assets” to “Retained loss” on the Condensed Consolidated Balance Sheets. The Company has determined that there have been no other recently adopted or issued accounting standards that had, or will have, a material impact on its consolidated financial statements. |
Commitments and Contingencies S
Commitments and Contingencies Sub event (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Deferred Prosecution Agreement — In November 2012, we announced that a settlement was reached with the U.S. Attorney's Office for the Middle District of Pennsylvania (the "MDPA") and the U.S. Department of Justice ("U.S. DOJ") relating to the previously disclosed investigation of transactions involving certain of our U.S. and Canadian agents, as well as fraud complaint data and the consumer anti-fraud program, during the period from 2003 to early 2009. In connection with this settlement, we entered into a five-year deferred prosecution agreement (the "DPA") with the MDPA and U.S. DOJ dated November 8, 2012. On November 1, 2017, the Company agreed to a stipulation with the MDPA and the DOJ (collectively, the “Government”) that the term of the Company’s DPA be extended for 90 days to February 6, 2018 during which the Company and the Government can discuss whether the Company is in compliance with the DPA. There can be no assurance that the Company and the Government will continue to be able to negotiate a mutually satisfactory outcome during such 90 day period (or any further short-term extension of the DPA) or that such outcome will not include a further extension of the DPA, financial penalties or additional restrictions on the Company, including a monitorship period beyond the current monitorship that ends on April 30, 2018. Furthermore, there can be no assurance that the Government will not seek any other remedy, including criminal prosecution and financial penalties, in lieu of an extension of the DPA and monitorship. |
Description of the Business a24
Description of the Business and Basis of Presentation Immaterial Correction of an Error (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The effect of the correction is as follows: December 31, 2016 (Amounts in millions) As Previously Reported Correction As Corrected LIABILITIES Pension and other postretirement benefits $ 87.6 $ 11.4 $ 99.0 Accounts payable and other liabilities $ 168.7 $ (4.2 ) $ 164.5 STOCKHOLDERS’ DEFICIT Retained loss $ (1,247.6 ) $ (5.0 ) $ (1,252.6 ) Accumulated other comprehensive loss $ (53.9 ) $ (2.2 ) $ (56.1 ) |
Settlement Assets and Payment25
Settlement Assets and Payment Service Obligations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Settlement Assets in Excess of Payment Service Obligations [Abstract] | |
Settlement Assets and Payment Service Obligations | The following table summarizes the amount of Settlement assets and Payment service obligations: (Amounts in millions) September 30, 2017 December 31, 2016 Settlement assets: Settlement cash and cash equivalents $ 1,418.0 $ 1,365.0 Receivables, net 920.1 999.4 Interest-bearing investments 1,153.9 1,252.1 Available-for-sale investments 7.5 17.8 $ 3,499.5 $ 3,634.3 Payment service obligations $ (3,499.5 ) $ (3,634.3 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial assets measured at fair value by hierarchy level | The following table summarizes the Company’s financial assets and liabilities measured at fair value by hierarchy level on a recurring basis: (Amounts in millions) Level 2 Level 3 Total September 30, 2017 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 6.1 $ — $ 6.1 Asset-backed and other securities — 1.4 1.4 Forward contracts 1.5 — 1.5 Total financial assets $ 7.6 $ 1.4 $ 9.0 Financial liabilities: Forward contracts $ 0.5 $ — $ 0.5 December 31, 2016 Financial assets: Available-for-sale investments: Residential mortgage-backed securities $ 7.2 $ — $ 7.2 Asset-backed and other securities — 10.6 10.6 Forward contracts 2.4 — 2.4 Total financial assets $ 9.6 $ 10.6 $ 20.2 Financial liabilities: Forward contracts $ 0.1 $ — $ 0.1 |
Roll-forward of other asset-backed securities | The following table provides a roll-forward of the asset-backed and other securities classified as Level 3, which are measured at fair value on a recurring basis: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Beginning balance $ 1.8 $ 11.0 $ 10.6 $ 11.6 Principal paydowns — (0.3 ) (0.8 ) (1.1 ) Change in unrealized gains (0.4 ) 0.2 3.8 0.3 Net realized gains — (0.3 ) (12.2 ) (0.2 ) Ending balance $ 1.4 $ 10.6 $ 1.4 $ 10.6 |
Fair value and carrying value of debt | The following table is a summary of the Company's fair value and carrying value of debt: Fair Value Carrying Value (Amounts in millions) September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Senior secured credit facility $ 915.5 $ 912.5 $ 916.7 $ 924.0 |
Investment Portfolio (Tables)
Investment Portfolio (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Components of Investment Portfolio | The following table shows the components of the investment portfolio: (Amounts in millions) September 30, 2017 December 31, 2016 Cash $ 1,583.1 $ 1,514.5 Money market securities 5.4 7.7 Cash and cash equivalents (1) 1,588.5 1,522.2 Interest-bearing investments 1,153.9 1,252.1 Available-for-sale investments 7.5 17.8 Total investment portfolio $ 2,749.9 $ 2,792.1 (1) For purposes of the disclosure of the investment portfolio as a whole, the cash and cash equivalents balance includes settlement cash and cash equivalents. |
Available for Sale Investments | The following table is a summary of the amortized cost and fair value of available-for-sale investments: Amortized Cost Gross Unrealized Gains Fair Value (Amounts in millions) September 30, 2017 Residential mortgage-backed securities $ 5.5 $ 0.6 $ 6.1 Asset-backed and other securities 0.2 1.2 1.4 Total $ 5.7 $ 1.8 $ 7.5 December 31, 2016 Residential mortgage-backed securities $ 6.6 $ 0.6 $ 7.2 Asset-backed and other securities 1.0 9.6 10.6 Total $ 7.6 $ 10.2 $ 17.8 |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of (Gains) Losses Related to Assets and Liabilities Denominated in Foreign Currencies | The following gains (losses) related to assets and liabilities denominated in foreign currencies are included in the “Transaction and operations support” line in the Condensed Consolidated Statements of Operations and in the "Net cash provided by operating activities" line in the Condensed Consolidated Statements of Cash Flows: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Net realized foreign currency gains $ 3.6 $ 0.9 $ 17.9 $ 5.5 Net (losses) gains from the related forward contracts (2.0 ) 0.7 (12.2 ) 10.6 Net gains from foreign currency transactions and related forward contracts $ 1.6 $ 1.6 $ 5.7 $ 16.1 |
Fair Values of Derivative Forward Contract Instruments | The Company reflects the following fair values of derivative forward contract instruments in its Condensed Consolidated Balance Sheets: Gross Amount of Recognized Assets Gross Amount of Offset Net Amount of Assets Presented in the Condensed Consolidated Balance Sheets Balance Sheet Location September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 (Amounts in millions) Forward contracts Other assets $ 1.6 $ 2.6 $ (0.1 ) $ (0.2 ) $ 1.5 $ 2.4 Gross Amount of Recognized Liabilities Gross Amount of Offset Net Amount of Liabilities Presented in the Condensed Consolidated Balance Sheets Balance Sheet Location September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 (Amounts in millions) Forward contracts Accounts payable and other liabilities $ 0.6 $ 0.3 $ (0.1 ) $ (0.2 ) $ 0.5 $ 0.1 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following is a summary of the Company’s outstanding debt: September 30, 2017 December 31, 2016 (Amounts in millions, except percentages) Effective Interest Rate Effective Interest Rate Senior secured credit facility due 2020 4.55 % $ 916.7 4.25 % $ 924.0 Unamortized debt issuance costs and debt discount (6.8 ) (8.8 ) Total debt, net $ 909.9 $ 915.2 |
Credit Agreement Quarterly Financial Covenants | The credit agreement also has quarterly financial covenants to maintain the following interest coverage and secured leverage ratios: Interest Coverage Minimum Ratio Secured Leverage Not to Exceed January 1, 2017 through December 31, 2017 2.25:1 4.250:1 January 1, 2018 through June 30, 2018 2.25:1 4.000:1 July 1, 2018 through December 31, 2018 2.25:1 3.750:1 January 1, 2019 through maturity 2.25:1 3.500:1 |
Pensions and Other Benefits (Ta
Pensions and Other Benefits (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | The following table is a summary of net periodic benefit expense for the Company's Pension Plan and supplemental executive retirement plans ("SERPs"), collectively referred to as "Pension": Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Interest cost $ 1.8 $ 1.7 $ 4.9 $ 5.2 Expected return on plan assets (1.3 ) (1.2 ) (3.8 ) (3.8 ) Amortization of net actuarial loss 1.3 1.4 3.5 4.3 Net periodic benefit expense $ 1.8 $ 1.9 $ 4.6 $ 5.7 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | The following table is a summary of net periodic benefit income for the Company’s postretirement medical benefit plan ("Postretirement Benefits"): Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Amortization of prior service credit $ (0.1 ) $ (0.1 ) $ (0.3 ) $ (0.4 ) Amortization of net actuarial loss — — 0.1 0.1 Net periodic benefit income $ (0.1 ) $ (0.1 ) $ (0.2 ) $ (0.3 ) |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss — The following tables summarize the changes to Accumulated other comprehensive loss by component: (Amounts in millions) Net Unrealized Gains on Securities Classified as Available-for-sale, Net of Tax Cumulative Foreign Currency Translation Adjustments, Net of Tax Pension and Postretirement Benefits Adjustment, Net of Tax Total January 1, 2017 $ 10.8 $ (19.9 ) $ (47.0 ) $ (56.1 ) Other comprehensive income before reclassification 3.8 11.9 (0.3 ) 15.4 Amounts reclassified from accumulated other comprehensive loss (12.2 ) — 2.1 (10.1 ) Net current period other comprehensive (loss) income (8.4 ) 11.9 1.8 5.3 September 30, 2017 $ 2.4 $ (8.0 ) $ (45.2 ) $ (50.8 ) January 1, 2016 $ 11.1 $ (13.5 ) $ (48.4 ) $ (50.8 ) Other comprehensive loss before reclassification — (0.7 ) — (0.7 ) Amounts reclassified from accumulated other comprehensive loss (0.2 ) — 2.5 2.3 Net current period other comprehensive (loss) income (0.2 ) (0.7 ) 2.5 1.6 September 30, 2016 $ 10.9 $ (14.2 ) $ (45.9 ) $ (49.2 ) |
Schedule of Amounts Reclassified From AOCI | The following table is a summary of the significant amounts reclassified out of each component of Accumulated other comprehensive loss: Three Months Ended September 30, Nine Months Ended September 30, Statement of Operations Location (Amounts in millions) 2017 2016 2017 2016 Change in unrealized gains on securities classified as available-for-sale, before tax $ — $ (0.2 ) $ (12.2 ) $ (0.3 ) "Investment revenue" Tax expense — 0.1 — 0.1 Total, net of tax — (0.1 ) (12.2 ) (0.2 ) Pension and Postretirement Benefits adjustments: Amortization of prior service credit (0.1 ) (0.1 ) (0.3 ) (0.4 ) "Compensation and benefits" Amortization of net actuarial loss 1.3 1.4 3.6 4.4 "Compensation and benefits" Total before tax 1.2 1.3 3.3 4.0 Tax benefit (0.5 ) (0.4 ) (1.2 ) (1.5 ) Total, net of tax 0.7 0.9 2.1 2.5 Total reclassified for the period, net of tax $ 0.7 $ 0.8 $ (10.1 ) $ 2.3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table is a summary of the Company's stock-based compensation expense: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Expense recognized related to stock options $ 0.1 $ 0.6 $ 0.5 $ 2.2 Expense recognized related to restricted stock units 3.4 3.6 10.5 11.5 Stock-based compensation expense $ 3.5 $ 4.2 $ 11.0 $ 13.7 |
Summary of Stock Option Activity | The following table is a summary of the Company’s stock option activity: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($000,000) Options outstanding at December 31, 2016 2,485,461 $ 18.02 4.0 years $ — Exercised (109,731 ) 14.49 Forfeited/Expired (335,790 ) 21.10 Options outstanding at September 30, 2017 2,039,940 $ 17.70 3.1 years $ 2.2 Vested or expected to vest at September 30, 2017 2,039,775 $ 17.70 3.1 years $ 2.2 Options exercisable at September 30, 2017 2,018,170 $ 17.74 3.0 years $ 2.2 |
Summary of Restricted Stock Unit Activity | The following table is a summary of the Company’s restricted stock unit activity: Total Shares Weighted Average Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value ($000,000) Restricted stock units outstanding at December 31, 2016 4,630,038 $ 7.68 0.9 years $ 54.7 Granted 1,361,986 12.87 Vested and converted to shares (2,010,441 ) 7.59 Forfeited (635,873 ) 13.35 Restricted stock units outstanding at September 30, 2017 3,345,710 $ 8.77 1.0 years $ 53.9 Restricted stock units vested and outstanding at September 30, 2017 32,680 $ 6.12 $ 0.5 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table is a reconciliation of the weighted-average amounts used in calculating earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Basic common shares outstanding 63.1 62.2 62.8 62.4 Shares related to stock options and restricted stock units 3.1 4.2 3.4 3.8 Diluted common shares outstanding 66.2 66.4 66.2 66.2 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the weighted-average potential common shares excluded from diluted earnings per common share, as their effect would be anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Shares related to stock options 1.6 2.7 1.7 2.8 Shares related to restricted stock units 0.3 0.8 0.2 0.8 Shares excluded from the computation 1.9 3.5 1.9 3.6 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Revenue by Segment | The following table is a summary of the total revenue by segment: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Global Funds Transfer revenue: Money transfer revenue $ 356.8 $ 369.3 $ 1,055.4 $ 1,086.3 Bill payment revenue 20.3 24.6 66.1 71.9 Total Global Funds Transfer revenue 377.1 393.9 1,121.5 1,158.2 Financial Paper Products revenue: Money order revenue 12.8 12.6 42.0 38.2 Official check revenue 7.9 6.3 30.4 17.8 Total Financial Paper Products revenue 20.7 18.9 72.4 56.0 Total revenue $ 397.8 $ 412.8 $ 1,193.9 $ 1,214.2 |
Operating Income by Segment | The following table is a summary of the operating income by segment and detail of the income before income taxes: Three Months Ended September 30, Nine Months Ended September 30, (Amounts in millions) 2017 2016 2017 2016 Global Funds Transfer operating income $ 29.6 $ 26.6 $ 70.4 $ 70.0 Financial Paper Products operating income 4.6 4.5 26.6 13.6 Total segment operating income 34.2 31.1 97.0 83.6 Other operating loss (10.9 ) (5.0 ) (31.8 ) (18.5 ) Total operating income 23.3 26.1 65.2 65.1 Interest expense 11.6 11.3 33.6 33.8 Income before income taxes $ 11.7 $ 14.8 $ 31.6 $ 31.3 |
Assets by Segment | The following table sets forth the assets by segment: (Amounts in millions) September 30, 2017 December 31, 2016 Global Funds Transfer $ 2,315.4 $ 2,213.9 Financial Paper Products 2,036.0 2,198.3 Other 194.7 185.2 Total assets $ 4,546.1 $ 4,597.4 |
Description of the Business a35
Description of the Business and Basis of Presentation (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Segment | Sep. 30, 2016USD ($) | Apr. 15, 2017$ / shares | Jan. 26, 2017$ / shares | |
Compensation and benefits | $ 69.1 | $ 72.5 | $ 207.5 | $ 218.9 | ||
Number of reporting segments (segment) | Segment | 2 | |||||
NET INCOME | 7.7 | 10.1 | $ 22.7 | 8.9 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 52 | $ 52 | ||||
Ant Financial | ||||||
Business Acquisition, Share Price | $ / shares | $ 18 | $ 13.25 | ||||
Restatement Adjustment [Member] | ||||||
Compensation and benefits | 0.1 | 0.4 | ||||
NET INCOME | $ 0.1 | $ 0.2 |
Description of the Business a36
Description of the Business and Basis of Presentation Immaterial Correction of an Error (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Pension and other postretirement benefits | $ 84.2 | $ 99 |
Accounts payable and other liabilities | 236.5 | 164.5 |
Retained loss | (1,282.9) | (1,252.6) |
Accumulated other comprehensive loss | $ (50.8) | (56.1) |
Scenario, Previously Reported [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Pension and other postretirement benefits | 87.6 | |
Accounts payable and other liabilities | 168.7 | |
Retained loss | (1,247.6) | |
Accumulated other comprehensive loss | (53.9) | |
Restatement Adjustment [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Pension and other postretirement benefits | 11.4 | |
Accounts payable and other liabilities | (4.2) | |
Retained loss | (5) | |
Accumulated other comprehensive loss | $ (2.2) |
Settlement Assets and Payment37
Settlement Assets and Payment Service Obligations (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Disclosure Settlement Assets in Excess of Payment Service Obligations [Abstract] | ||
Settlement cash and cash equivalents | $ 1,418 | $ 1,365 |
Receivables, net | 920.1 | 999.4 |
Interest-bearing investments | 1,153.9 | 1,252.1 |
Available-for-sale investments | 7.5 | 17.8 |
Settlement Assets | 3,499.5 | 3,634.3 |
Payment service obligations | $ (3,499.5) | $ (3,634.3) |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured at Fair Value by Hierarchy Level (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Available-for-sale investments | $ 7.5 | $ 17.8 |
Asset-backed and other securities | ||
Financial assets: | ||
Available-for-sale investments | 1.4 | 10.6 |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Forward contracts | 1.5 | 2.4 |
Total financial assets | 9 | 20.2 |
Financial liabilities: | ||
Forward contracts | 0.5 | 0.1 |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale investments | 6.1 | 7.2 |
Fair Value, Measurements, Recurring | Asset-backed and other securities | ||
Financial assets: | ||
Available-for-sale investments | 1.4 | 10.6 |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial assets: | ||
Forward contracts | 1.5 | 2.4 |
Total financial assets | 7.6 | 9.6 |
Financial liabilities: | ||
Forward contracts | 0.5 | 0.1 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale investments | 6.1 | 7.2 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed and other securities | ||
Financial assets: | ||
Available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial assets: | ||
Forward contracts | 0 | 0 |
Total financial assets | 1.4 | 10.6 |
Financial liabilities: | ||
Forward contracts | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed and other securities | ||
Financial assets: | ||
Available-for-sale investments | $ 1.4 | $ 10.6 |
Fair Value Measurement - Roll-f
Fair Value Measurement - Roll-forward of Other Asset-Backed Securities (Detail) - Level 3 - Fair Value, Measurements, Recurring - Asset-backed and other securities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 1.8 | $ 11 | $ 10.6 | $ 11.6 |
Principal paydowns | 0 | (0.3) | (0.8) | (1.1) |
Change in unrealized gains | (0.4) | 0.2 | 3.8 | 0.3 |
Net realized gains | 0 | (0.3) | (12.2) | (0.2) |
Ending balance | $ 1.4 | $ 10.6 | $ 1.4 | $ 10.6 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value and Carrying Value of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Fair Value | $ 915.5 | $ 912.5 |
Carrying Value | $ 916.7 | $ 924 |
Investment Portfolio - Addition
Investment Portfolio - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Investment [Line Items] | ||||
Percent of available-for-sale portfolio invested in U.S government agency residential mortgage-backed securities | 81.00% | 40.00% | ||
Gain on redemption of asset-backed security | $ 0 | $ (12.2) | $ 0 | |
Amortized Cost | 5.7 | $ 7.6 | ||
Asset-backed and other securities | ||||
Investment [Line Items] | ||||
Amortized Cost | 0.2 | $ 1 | ||
Redemption Value | Asset-backed and other securities | ||||
Investment [Line Items] | ||||
Previously impaired asset-backed security redemption at par | 12.7 | |||
Amortized Cost | 0.5 | |||
Unrealized gains | $ 7.9 |
Investment Portfolio - Componen
Investment Portfolio - Components of Investment Portfolio (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Line Items] | |||||
Cash | $ 1,583.1 | $ 1,514.5 | |||
Money market securities | 5.4 | 7.7 | |||
Cash and cash equivalents | 170.4 | 157.2 | $ 173.1 | $ 164.5 | |
Interest-bearing investments | 1,153.9 | 1,252.1 | |||
Available-for-sale Securities | 7.5 | 17.8 | |||
Total investment portfolio | 2,749.9 | 2,792.1 | |||
Cash and cash equivalents | |||||
Investments, Debt and Equity Securities [Line Items] | |||||
Cash and cash equivalents | [1] | $ 1,588.5 | $ 1,522.2 | ||
[1] | (1) For purposes of the disclosure of the investment portfolio as a whole, the cash and cash equivalents balance includes settlement cash and cash equivalents. |
Investment Portfolio - Availabl
Investment Portfolio - Available for Sale Investments (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Amortized Cost | $ 5.7 | $ 7.6 |
Gross Unrealized Gains | 1.8 | 10.2 |
Fair Value | 7.5 | 17.8 |
Residential mortgage-backed securities | ||
Investment [Line Items] | ||
Amortized Cost | 5.5 | 6.6 |
Gross Unrealized Gains | 0.6 | 0.6 |
Fair Value | 6.1 | 7.2 |
Asset-backed and other securities | ||
Investment [Line Items] | ||
Amortized Cost | 0.2 | 1 |
Gross Unrealized Gains | 1.2 | 9.6 |
Fair Value | $ 1.4 | $ 10.6 |
Derivative Financial Instrume44
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||
Notional Disclosures [Abstract] | ||
Forward contracts outstanding notional amount | $ 348.9 | $ 294.5 |
Derivative Financial Instrume45
Derivative Financial Instruments - Summary of (Gains) Losses Related to Assets and Liabilities Denominated in Foreign Currencies (Detail) - Transaction and operations support - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||
Net realized foreign currency gains | $ 3.6 | $ 0.9 | $ 17.9 | $ 5.5 |
Net (losses) gains from the related forward contracts | (2) | 0.7 | (12.2) | 10.6 |
Net gains from foreign currency transactions and related forward contracts | $ 1.6 | $ 1.6 | $ 5.7 | $ 16.1 |
Derivative Financial Instrume46
Derivative Financial Instruments - Fair Values of Derivative Forward Contract Instruments (Detail) - Foreign Exchange Forward - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Other assets | ||
Summary of Derivative Instruments by Hedge Designation | ||
Gross Amount of Recognized Assets | $ 1.6 | $ 2.6 |
Gross Amount of Offset | (0.1) | (0.2) |
Net Amount of Assets Presented in the Condensed Consolidated Balance Sheets | 1.5 | 2.4 |
Accounts payable and other liabilities | ||
Summary of Derivative Instruments by Hedge Designation | ||
Gross Amount of Recognized Liabilities | 0.6 | 0.3 |
Gross Amount of Offset | (0.1) | (0.2) |
Net Amount of Liabilities Presented in the Condensed Consolidated Balance Sheets | $ 0.5 | $ 0.1 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||
Effective Interest Rate | 4.55% | 4.25% |
Assets In Excess Of Payment Service Obligations | $ 170,400,000 | $ 157,200,000 |
Interest coverage ratio | 6.49 | |
Secured leverage ratio | 3.395 | |
2013 Credit Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 0 | |
Borrowings outstanding | 0 | |
Remaining borrowing capacity | $ 125,000,000 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Effective Interest Rate | 4.55% | 4.25% |
Senior secured credit facility due 2020 | $ 916.7 | $ 924 |
Unamortized debt issuance costs and debt discount | (6.8) | (8.8) |
Total debt, net | $ 909.9 | $ 915.2 |
Debt - Credit Agreement Quarter
Debt - Credit Agreement Quarterly Financial Covenants (Detail) | Sep. 30, 2017 |
Debt Instrument [Line Items] | |
Interest Coverage Minimum Ratio | 6.49 |
Secured Leverage Not to Exceed | 3.395 |
January 1, 2017 through December 31, 2017 | |
Debt Instrument [Line Items] | |
Interest Coverage Minimum Ratio | 2.25 |
Secured Leverage Not to Exceed | 4.25 |
January 1, 2018 through June 30, 2018 | |
Debt Instrument [Line Items] | |
Interest Coverage Minimum Ratio | 2.25 |
Secured Leverage Not to Exceed | 4 |
July 1, 2018 through December 31, 2018 | |
Debt Instrument [Line Items] | |
Interest Coverage Minimum Ratio | 2.25 |
Secured Leverage Not to Exceed | 3.75 |
January 1, 2019 through maturity | |
Debt Instrument [Line Items] | |
Interest Coverage Minimum Ratio | 2.25 |
Secured Leverage Not to Exceed | 3.5 |
Pensions and Other Benefits - N
Pensions and Other Benefits - Net Periodic Benefit Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 1.8 | $ 1.7 | $ 4.9 | $ 5.2 |
Expected return on plan assets | (1.3) | (1.2) | (3.8) | (3.8) |
Amortization of net actuarial loss | 1.3 | 1.4 | 3.5 | 4.3 |
Net periodic benefit expense (income) | 1.8 | 1.9 | 4.6 | 5.7 |
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service credit | (0.1) | (0.1) | (0.3) | (0.4) |
Amortization of net actuarial loss | 0 | 0 | 0.1 | 0.1 |
Net periodic benefit expense (income) | $ (0.1) | $ (0.1) | $ (0.2) | $ (0.3) |
Stockholders' Deficit Additiona
Stockholders' Deficit Additional detail (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Dividends [Abstract] | ||||
Dividends, Common Stock, Cash | $ 0 | $ 0 | $ 0 | $ 0 |
Stockholders' Deficit - Compone
Stockholders' Deficit - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | $ (56.1) | |||
Amounts reclassified from accumulated other comprehensive loss | $ 0 | $ 0 | (12.2) | $ 0 |
Net current period other comprehensive (loss) income | 5.3 | |||
Ending Balance | (50.8) | (50.8) | ||
Net Unrealized Gains on Securities Classified as Available-for-sale, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 10.8 | 11.1 | ||
Other comprehensive income before reclassification | 3.8 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | (12.2) | (0.2) | ||
Net current period other comprehensive (loss) income | (8.4) | (0.2) | ||
Ending Balance | 2.4 | 10.9 | 2.4 | 10.9 |
Cumulative Foreign Currency Translation Adjustments, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (19.9) | (13.5) | ||
Other comprehensive income before reclassification | 11.9 | (0.7) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Net current period other comprehensive (loss) income | 11.9 | (0.7) | ||
Ending Balance | (8) | (14.2) | (8) | (14.2) |
Pension and Postretirement Benefits Adjustment, Net of Tax | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (47) | (48.4) | ||
Other comprehensive income before reclassification | (0.3) | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 2.1 | 2.5 | ||
Net current period other comprehensive (loss) income | 1.8 | 2.5 | ||
Ending Balance | (45.2) | (45.9) | (45.2) | (45.9) |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (56.1) | (50.8) | ||
Other comprehensive income before reclassification | 15.4 | (0.7) | ||
Amounts reclassified from accumulated other comprehensive loss | (10.1) | 2.3 | ||
Net current period other comprehensive (loss) income | 5.3 | 1.6 | ||
Ending Balance | $ (50.8) | $ (49.2) | $ (50.8) | $ (49.2) |
Stockholders' Deficit - Stockho
Stockholders' Deficit - Stockholders' Deficit Reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax benefit | $ (4) | $ (4.7) | $ (8.9) | $ (22.4) |
Total, net of tax | 0 | 0 | (12.2) | 0 |
Net unrealized gains on securities classified as available-for-sale, net of tax | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total, net of tax | (12.2) | (0.2) | ||
Pension and Postretirement Benefits adjustment, net of tax | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total, net of tax | 2.1 | 2.5 | ||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total, net of tax | 0.7 | 0.8 | (10.1) | 2.3 |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains on securities classified as available-for-sale, net of tax | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 0 | (0.2) | (12.2) | (0.3) |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 0 | 0.1 | 0 | 0.1 |
Total, net of tax | 0 | (0.1) | (12.2) | (0.2) |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Postretirement Benefits adjustment, net of tax | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of prior service credit | (0.1) | (0.1) | (0.3) | (0.4) |
Amortization of net actuarial loss | 1.3 | 1.4 | 3.6 | 4.4 |
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 1.2 | 1.3 | 3.3 | 4 |
Tax benefit | (0.5) | (0.4) | (1.2) | (1.5) |
Total, net of tax | $ 0.7 | $ 0.9 | $ 2.1 | $ 2.5 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Percent Vested For Achievement of Adjusted EBITDA at target | 50.00% | ||||
Percent vested for achievement of Digital revenue target | 50.00% | ||||
Percentage Vested If Minimum Performance Goal Met | 50.00% | ||||
Stock options | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Weighted-average vesting period (years) | 23 days | ||||
Shares related to restricted stock units | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Weighted-average vesting period (years) | 11 months 25 days | 10 months 12 days | |||
Unrecognized compensation expense | $ 17.5 | $ 17.5 | |||
Grant-date fair value of restricted stock units vested | $ 0.9 | $ 0.8 | $ 15.3 | $ 14.7 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 3.5 | $ 4.2 | $ 11 | $ 13.7 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 0.1 | 0.6 | 0.5 | 2.2 |
Shares related to restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 3.4 | $ 3.6 | $ 10.5 | $ 11.5 |
Stock-Based Compensation - Su56
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - Stock options - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Stock option activity | ||
Options outstanding, beginning balance (shares) | 2,485,461 | |
Exercised (shares) | (109,731) | |
Forfeited/expired (shares) | (335,790) | |
Options outstanding, ending balance (shares) | 2,039,940 | 2,485,461 |
Vested or expected to vest (shares) | 2,039,775 | |
Option exercisable (shares) | 2,018,170 | |
Weighted Average Exercise Price | ||
Options outstanding, beginning balance, weighted-average exercise price | $ 18.02 | |
Exercised, weighted-average exercise price | 14.49 | |
Forfeited/expired, weighted-average exercise price | 21.10 | |
Options outstanding, ending balance, weighted-average exercise price | 17.70 | $ 18.02 |
Vested or expected to vest, weighted-average exercise price | 17.70 | |
Options exercisable, weighted-average exercise price | $ 17.74 | |
Additional Disclosures | ||
Options outstanding, weighted-average remaining contractual term (years) | 3 years 25 days | 3 years 11 months 13 days |
Vested or expected to vest, weighted-average remaining contractual term (years) | 3 years 25 days | |
Options exercisable, weighted-average remaining contractual term (years) | 3 years 10 days | |
Options outstanding, aggregate intrinsic value | $ 2.2 | $ 0 |
Options vested or expected to vest, aggregate intrinsic value | 2.2 | |
Options exercisable, aggregate intrinsic value | $ 2.2 |
Stock-Based Compensation - Su57
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Detail) - Shares related to restricted stock units - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Equity Instruments Other than Options, Nonvested, Number of Shares | ||
Restricted stock units outstanding, beginning balance (shares) | 4,630,038 | |
Granted (shares) | 1,361,986 | |
Vested and converted (shares) | (2,010,441) | |
Forfeited (shares) | (635,873) | |
Restricted stock units outstanding, ending balance (shares) | 3,345,710 | 4,630,038 |
Restricted stock units vested and outstanding (shares) | 32,680 | |
Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||
Restricted stock units outstanding, beginning balance, weighted-average price (usd per share) | $ 7.68 | |
Granted, weighted-average price | 12.87 | |
Vested and converted, weighted-average price | 7.59 | |
Forfeited, weighted-average | 13.35 | |
Restricted stock units outstanding, ending balance, weighted-average price (usd per share) | 8.77 | $ 7.68 |
Restricted stock units vested and outstanding, weighted-average price (usd per share) | $ 6.12 | |
Weighted-average vesting period (years) | 11 months 25 days | 10 months 12 days |
Restricted stock units outstanding, aggregate intrinsic value | $ 53.9 | $ 54.7 |
Restricted stock units vested and outstanding, aggregate intrinsic value | $ 0.5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2013 | May 01, 2017 | Apr. 30, 2016 | |
Income tax expense | $ 4 | $ 4.7 | $ 8.9 | $ 22.4 | |||||
Income before income taxes | 11.7 | $ 14.8 | 31.6 | 31.3 | |||||
Tax expense benefit reconciliation | 1.6 | ||||||||
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | 1.7 | ||||||||
Tax benefit reversal on share-based compensation | 3.6 | ||||||||
Unrecognized tax benefits | 32.2 | 32.2 | $ 24.2 | ||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 24.7 | 24.7 | 16.7 | ||||||
Unrecognized Tax Benefits, Increase due to uncertainties with respect to related party agreements | 8 | ||||||||
Unrecognized tax benefits interest and penalties accrual | (1.7) | (1) | |||||||
Liability for unrecognized tax benefits, interest and penalties | 8.1 | 8.1 | 6.4 | ||||||
Deferred charge recorded in other assets | 219 | 219 | 162.7 | ||||||
Internal Revenue Service (IRS) | |||||||||
Tax adjustments | $ 63.7 | $ 186.9 | |||||||
Deferred Prosecution Agreement | |||||||||
Tax adjustments | $ 7.7 | ||||||||
Disallowed deductions | $ 100 | ||||||||
Settlement allowable deductions | $ 39.3 | ||||||||
Deferred Prosecution Agreement | Internal Revenue Service (IRS) | |||||||||
Unrecognized tax benefits | 21.2 | ||||||||
Payments for Legal Settlements | $ 0.5 | ||||||||
Deferred charge | |||||||||
Deferred charge recorded in other assets | $ 54.3 | $ 54.3 | $ 60.2 | ||||||
Deferred charge | |||||||||
Deferred charge recorded in accounts payable and other liabilities | $ 60.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 36 Months Ended | ||
Mar. 31, 2015 | Sep. 30, 2017 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2016 | |
Commitments And Contingencies [Line Items] | ||||||
Loss Contingency Accrual | $ 0.6 | $ 1.2 | ||||
Charge for legal proceedings | 0.9 | |||||
Internal Revenue Service (IRS) | ||||||
Commitments And Contingencies [Line Items] | ||||||
Loss Contingency Accrual | 18.3 | |||||
Cumulative Deductions For Net Securities Losses | $ 900 | |||||
Tax adjustments | $ 63.7 | $ 186.9 | ||||
Cash taxes, net | $ 61 | |||||
Wal Mart Participation Agreement | ||||||
Commitments And Contingencies [Line Items] | ||||||
Potential Adjustments To Additional Paid In Capital Other with Corresponding Expense | $ 30 |
Earnings per Common Share Earni
Earnings per Common Share Earnings per Common Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic common shares outstanding | 63.1 | 62.2 | 62.8 | 62.4 |
Shares related to stock options and restricted stock units | 3.1 | 4.2 | 3.4 | 3.8 |
Diluted common shares outstanding | 66.2 | 66.4 | 66.2 | 66.2 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation (shares) | 1.9 | 3.5 | 1.9 | 3.6 |
Shares related to stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation (shares) | 1.6 | 2.7 | 1.7 | 2.8 |
Shares related to restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation (shares) | 0.3 | 0.8 | 0.2 | 0.8 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Number of reporting segments (segment) | 2 | |||
Percentage of total revenue | 18.00% | 18.00% | 18.00% | 19.00% |
Segment Information - Revenue b
Segment Information - Revenue by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 397.8 | $ 412.8 | $ 1,193.9 | $ 1,214.2 |
Global Funds Transfer revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 377.1 | 393.9 | 1,121.5 | 1,158.2 |
Global Funds Transfer revenue | Money transfer revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 356.8 | 369.3 | 1,055.4 | 1,086.3 |
Global Funds Transfer revenue | Bill payment revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 20.3 | 24.6 | 66.1 | 71.9 |
Financial Paper Products revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 20.7 | 18.9 | 72.4 | 56 |
Financial Paper Products revenue | Money order revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 12.8 | 12.6 | 42 | 38.2 |
Financial Paper Products revenue | Official check revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 7.9 | $ 6.3 | $ 30.4 | $ 17.8 |
Segment Information - Operating
Segment Information - Operating Income by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment operating income: | ||||
Total operating income | $ 23.3 | $ 26.1 | $ 65.2 | $ 65.1 |
Interest expense | 11.6 | 11.3 | 33.6 | 33.8 |
Income before income taxes | 11.7 | 14.8 | 31.6 | 31.3 |
Global Funds Transfer | ||||
Segment operating income: | ||||
Total operating income | 29.6 | 26.6 | 70.4 | 70 |
Financial Paper Products | ||||
Segment operating income: | ||||
Total operating income | 4.6 | 4.5 | 26.6 | 13.6 |
Total segment operating income | ||||
Segment operating income: | ||||
Total operating income | 34.2 | 31.1 | 97 | 83.6 |
Other | ||||
Segment operating income: | ||||
Total operating income | $ (10.9) | $ (5) | $ (31.8) | $ (18.5) |
Segment Information - Assets by
Segment Information - Assets by Segment (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 4,546.1 | $ 4,597.4 |
Global Funds Transfer | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,315.4 | 2,213.9 |
Financial Paper Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,036 | 2,198.3 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 194.7 | $ 185.2 |