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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Western Union Company | NYSE:WU | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.19 | 1.51% | 12.80 | 12.87 | 12.70 | 12.72 | 3,076,938 | 01:00:00 |
þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended
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September 30, 2018
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¨
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TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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|
For the transition period from to
|
DELAWARE
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
20-4531180
(I.R.S. Employer
Identification No.)
|
7001 EAST BELLEVIEW AVENUE
Denver, CO
(Address of principal executive offices)
|
|
80237
(Zip Code)
|
Large accelerated filer
þ
|
|
Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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Emerging growth company
¨
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨
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PAGE
NUMBER
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
$
|
1,387.8
|
|
|
$
|
1,404.7
|
|
|
$
|
4,188.3
|
|
|
$
|
4,086.0
|
|
Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of services (Note 1)
|
812.4
|
|
|
840.5
|
|
|
2,467.0
|
|
|
2,482.7
|
|
||||
Selling, general and administrative
|
272.8
|
|
|
292.0
|
|
|
870.2
|
|
|
875.6
|
|
||||
Total expenses
|
1,085.2
|
|
|
1,132.5
|
|
|
3,337.2
|
|
|
3,358.3
|
|
||||
Operating income
|
302.6
|
|
|
272.2
|
|
|
851.1
|
|
|
727.7
|
|
||||
Other income/(expense):
|
|
|
|
|
|
|
|
||||||||
Interest income
|
1.6
|
|
|
1.3
|
|
|
3.6
|
|
|
3.8
|
|
||||
Interest expense
|
(38.4
|
)
|
|
(37.2
|
)
|
|
(111.4
|
)
|
|
(104.2
|
)
|
||||
Other income, net (Note 1)
|
0.6
|
|
|
2.9
|
|
|
13.1
|
|
|
9.4
|
|
||||
Total other expense, net
|
(36.2
|
)
|
|
(33.0
|
)
|
|
(94.7
|
)
|
|
(91.0
|
)
|
||||
Income before income taxes
|
266.4
|
|
|
239.2
|
|
|
756.4
|
|
|
636.7
|
|
||||
Provision for income taxes
|
57.8
|
|
|
3.6
|
|
|
116.6
|
|
|
72.9
|
|
||||
Net income
|
$
|
208.6
|
|
|
$
|
235.6
|
|
|
$
|
639.8
|
|
|
$
|
563.8
|
|
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.47
|
|
|
$
|
0.51
|
|
|
$
|
1.41
|
|
|
$
|
1.20
|
|
Diluted
|
$
|
0.46
|
|
|
$
|
0.51
|
|
|
$
|
1.40
|
|
|
$
|
1.19
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
446.8
|
|
|
462.8
|
|
|
454.8
|
|
|
470.6
|
|
||||
Diluted
|
449.0
|
|
|
465.4
|
|
|
457.4
|
|
|
473.6
|
|
||||
Cash dividends declared per common share
|
$
|
0.19
|
|
|
$
|
0.175
|
|
|
$
|
0.57
|
|
|
$
|
0.525
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
208.6
|
|
|
$
|
235.6
|
|
|
$
|
639.8
|
|
|
$
|
563.8
|
|
Other comprehensive income/(loss), net of tax (Note 10):
|
|
|
|
|
|
|
|
||||||||
Unrealized gains/(losses) on investment securities
|
(4.7
|
)
|
|
0.5
|
|
|
(12.6
|
)
|
|
10.1
|
|
||||
Unrealized gains/(losses) on hedging activities
|
3.7
|
|
|
(17.3
|
)
|
|
38.0
|
|
|
(75.5
|
)
|
||||
Foreign currency translation adjustments
|
—
|
|
|
(4.1
|
)
|
|
(19.5
|
)
|
|
(5.7
|
)
|
||||
Defined benefit pension plan adjustments
|
2.4
|
|
|
2.0
|
|
|
6.8
|
|
|
5.6
|
|
||||
Total other comprehensive income/(loss)
|
1.4
|
|
|
(18.9
|
)
|
|
12.7
|
|
|
(65.5
|
)
|
||||
Comprehensive income
|
$
|
210.0
|
|
|
$
|
216.7
|
|
|
$
|
652.5
|
|
|
$
|
498.3
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
767.6
|
|
|
$
|
838.2
|
|
Settlement assets
|
4,018.8
|
|
|
4,188.9
|
|
||
Property and equipment, net of accumulated depreciation of $685.8 and $635.7,
respectively
|
266.8
|
|
|
214.2
|
|
||
Goodwill
|
2,725.0
|
|
|
2,727.9
|
|
||
Other intangible assets, net of accumulated amortization of $1,044.9 and $1,042.7, respectively
|
604.5
|
|
|
586.3
|
|
||
Other assets
|
606.9
|
|
|
675.9
|
|
||
Total assets
|
$
|
8,989.6
|
|
|
$
|
9,231.4
|
|
Liabilities and Stockholders' Deficit
|
|
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|
||||
Liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
593.4
|
|
|
$
|
718.5
|
|
Settlement obligations
|
4,018.8
|
|
|
4,188.9
|
|
||
Income taxes payable
|
1,076.7
|
|
|
1,252.0
|
|
||
Deferred tax liability, net
|
156.3
|
|
|
173.0
|
|
||
Borrowings
|
3,295.0
|
|
|
3,033.6
|
|
||
Other liabilities
|
264.7
|
|
|
356.8
|
|
||
Total liabilities
|
9,404.9
|
|
|
9,722.8
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 7)
|
|
|
|
||||
|
|
|
|
||||
Stockholders' deficit:
|
|
|
|
||||
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 2,000 shares authorized; 443.7 shares and 459.0 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively
|
4.4
|
|
|
4.6
|
|
||
Capital surplus
|
743.7
|
|
|
697.8
|
|
||
Accumulated deficit
|
(916.8
|
)
|
|
(965.9
|
)
|
||
Accumulated other comprehensive loss
|
(246.6
|
)
|
|
(227.9
|
)
|
||
Total stockholders' deficit
|
(415.3
|
)
|
|
(491.4
|
)
|
||
Total liabilities and stockholders' deficit
|
$
|
8,989.6
|
|
|
$
|
9,231.4
|
|
|
Nine Months Ended
September 30, |
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
639.8
|
|
|
$
|
563.8
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
57.0
|
|
|
57.5
|
|
||
Amortization
|
139.0
|
|
|
139.6
|
|
||
Other non-cash items, net
|
23.5
|
|
|
130.3
|
|
||
Increase/(decrease) in cash resulting from changes in:
|
|
|
|
||||
Other assets
|
(55.6
|
)
|
|
(35.6
|
)
|
||
Accounts payable and accrued liabilities (Note 7)
|
(109.7
|
)
|
|
(538.4
|
)
|
||
Income taxes payable
|
(172.8
|
)
|
|
57.6
|
|
||
Other liabilities
|
(2.7
|
)
|
|
48.3
|
|
||
Net cash provided by operating activities
|
518.5
|
|
|
423.1
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Capitalization of contract costs
|
(109.5
|
)
|
|
(46.2
|
)
|
||
Capitalization of purchased and developed software
|
(37.4
|
)
|
|
(27.4
|
)
|
||
Purchases of property and equipment
|
(101.2
|
)
|
|
(48.9
|
)
|
||
Purchases of non-settlement related investments and other
|
(6.9
|
)
|
|
(191.6
|
)
|
||
Proceeds from maturity of non-settlement related investments and other
|
12.5
|
|
|
43.5
|
|
||
Purchases of held-to-maturity non-settlement related investments
|
(2.8
|
)
|
|
(42.7
|
)
|
||
Proceeds from held-to-maturity non-settlement related investments
|
15.5
|
|
|
27.2
|
|
||
Net cash used in investing activities
|
(229.8
|
)
|
|
(286.1
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Cash dividends paid
|
(257.8
|
)
|
|
(245.3
|
)
|
||
Common stock repurchased (Note 10)
|
(360.6
|
)
|
|
(489.3
|
)
|
||
Net proceeds from commercial paper
|
369.0
|
|
|
—
|
|
||
Net proceeds from issuance of borrowings
|
297.5
|
|
|
746.4
|
|
||
Principal payments on borrowings
|
(407.2
|
)
|
|
—
|
|
||
Proceeds from exercise of options
|
9.3
|
|
|
8.4
|
|
||
Other financing activities
|
(6.6
|
)
|
|
—
|
|
||
Net cash (used in)/provided by financing activities
|
(356.4
|
)
|
|
20.2
|
|
||
Net change in cash, cash equivalents and restricted cash
|
(67.7
|
)
|
|
157.2
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
844.4
|
|
|
877.5
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
776.7
|
|
|
$
|
1,034.7
|
|
Supplemental cash flow information:
|
|
|
|
||||
Interest paid
|
$
|
92.3
|
|
|
$
|
90.0
|
|
Income taxes paid/(refunded)
|
$
|
304.1
|
|
|
$
|
(22.0
|
)
|
Restricted cash at end of period
|
$
|
9.1
|
|
|
$
|
—
|
|
•
|
Consumer-to-Consumer
-
The Consumer-to-Consumer operating segment facilitates money transfers between two consumers, primarily through a network of third-party agents. The Company's multi-currency money transfer service is viewed by the Company as one interconnected global network where a money transfer can be sent from one location to another, around the world. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. This segment also includes money transfer transactions that can be initiated through websites and mobile devices.
|
•
|
Business Solutions
- The Business Solutions operating segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals. The
majority
of the segment's business relates to exchanges of currency at spot rates, which enable customers to make cross-currency payments. In addition, in certain countries, the Company writes foreign currency forward and option contracts for customers to facilitate future payments.
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||
|
|
Consumer Money Transfers
|
|
Foreign Exchange and Payment Services
|
|
Consumer Bill Payments
|
|
Other Services
|
|
Total
|
||||||||||
Regions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
|
$
|
407.0
|
|
|
$
|
25.8
|
|
|
$
|
112.9
|
|
|
$
|
14.0
|
|
|
$
|
559.7
|
|
Europe and Russia/CIS
|
|
349.4
|
|
|
35.2
|
|
|
0.9
|
|
|
1.2
|
|
|
386.7
|
|
|||||
Middle East, Africa, and South Asia
|
|
157.8
|
|
|
0.7
|
|
|
0.1
|
|
|
—
|
|
|
158.6
|
|
|||||
Latin America and the Caribbean
|
|
95.7
|
|
|
1.0
|
|
|
34.7
|
|
|
3.2
|
|
|
134.6
|
|
|||||
East Asia and Oceania
|
|
74.9
|
|
|
17.3
|
|
|
0.4
|
|
|
—
|
|
|
92.6
|
|
|||||
Revenues from contracts with customers
|
|
$
|
1,084.8
|
|
|
$
|
80.0
|
|
|
$
|
149.0
|
|
|
$
|
18.4
|
|
|
$
|
1,332.2
|
|
Other revenues (a)
|
|
22.6
|
|
|
20.2
|
|
|
7.4
|
|
|
5.4
|
|
|
55.6
|
|
|||||
Total revenues (b)
|
|
$
|
1,107.4
|
|
|
$
|
100.2
|
|
|
$
|
156.4
|
|
|
$
|
23.8
|
|
|
$
|
1,387.8
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
|
|
Consumer Money Transfers
|
|
Foreign Exchange and Payment Services
|
|
Consumer Bill Payments
|
|
Other Services
|
|
Total
|
||||||||||
Regions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
|
$
|
1,218.1
|
|
|
$
|
74.5
|
|
|
$
|
351.5
|
|
|
$
|
43.1
|
|
|
$
|
1,687.2
|
|
Europe and Russia/CIS
|
|
1,051.1
|
|
|
98.1
|
|
|
2.5
|
|
|
3.2
|
|
|
1,154.9
|
|
|||||
Middle East, Africa, and South Asia
|
|
489.7
|
|
|
1.0
|
|
|
0.3
|
|
|
—
|
|
|
491.0
|
|
|||||
Latin America and the Caribbean
|
|
288.8
|
|
|
2.0
|
|
|
122.0
|
|
|
10.1
|
|
|
422.9
|
|
|||||
East Asia and Oceania
|
|
230.1
|
|
|
52.1
|
|
|
1.3
|
|
|
—
|
|
|
283.5
|
|
|||||
Revenues from contracts with customers
|
|
$
|
3,277.8
|
|
|
$
|
227.7
|
|
|
$
|
477.6
|
|
|
$
|
56.4
|
|
|
$
|
4,039.5
|
|
Other revenues (a)
|
|
48.1
|
|
|
62.3
|
|
|
22.0
|
|
|
16.4
|
|
|
148.8
|
|
|||||
Total revenues (b)
|
|
$
|
3,325.9
|
|
|
$
|
290.0
|
|
|
$
|
499.6
|
|
|
$
|
72.8
|
|
|
$
|
4,188.3
|
|
(a)
|
Includes revenue from the sale of derivative financial instruments, investment income generated on settlement assets primarily related to money transfer and money order services, and other sources, which are not subject to the new accounting standard.
|
(b)
|
Revenues from "Consumer money transfers" are included in the Company's Consumer-to-Consumer segment, revenues from "Foreign exchange and payment services" are included in the Company's Business Solutions segment, and revenues from "Consumer bill payments" and "Other services" are not included in the Company's segments and are reported as "Other." See Note 15 for further information on the Company's segments.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Basic weighted-average shares outstanding
|
446.8
|
|
|
462.8
|
|
|
454.8
|
|
|
470.6
|
|
Common stock equivalents
|
2.2
|
|
|
2.6
|
|
|
2.6
|
|
|
3.0
|
|
Diluted weighted-average shares outstanding
|
449.0
|
|
|
465.4
|
|
|
457.4
|
|
|
473.6
|
|
|
Consulting Service Fees
|
|
Severance and Related Employee Benefits
|
|
Other
|
|
Total
|
||||||||
Balance, December 31, 2017
|
$
|
8.2
|
|
|
$
|
23.2
|
|
|
$
|
1.6
|
|
|
$
|
33.0
|
|
Cash payments and other
|
(8.2
|
)
|
|
(21.0
|
)
|
|
(0.8
|
)
|
|
(30.0
|
)
|
||||
Balance, September 30, 2018
|
$
|
—
|
|
|
$
|
2.2
|
|
|
$
|
0.8
|
|
|
$
|
3.0
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||
|
2017
|
|
2017
|
||||
Cost of services
|
$
|
4.0
|
|
|
$
|
27.7
|
|
Selling, general and administrative
|
5.9
|
|
|
31.5
|
|
||
Total expenses, pre-tax
|
$
|
9.9
|
|
|
$
|
59.2
|
|
Total expenses, net of tax
|
$
|
7.2
|
|
|
$
|
39.2
|
|
|
Fair Value Measurement Using
|
|
Assets/
Liabilities at
Fair
Value
|
||||||||||||
September 30, 2018
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Settlement assets:
|
|
|
|
|
|
|
|
||||||||
Measured at fair value through net income:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
56.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
56.5
|
|
Measured at fair value through other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
State and municipal debt securities
|
$
|
—
|
|
|
$
|
951.9
|
|
|
$
|
—
|
|
|
$
|
951.9
|
|
State and municipal variable rate demand notes
|
—
|
|
|
246.8
|
|
|
—
|
|
|
246.8
|
|
||||
Corporate and other debt securities
|
—
|
|
|
69.3
|
|
|
—
|
|
|
69.3
|
|
||||
United States Treasury securities
|
9.5
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
—
|
|
|
225.0
|
|
|
—
|
|
|
225.0
|
|
||||
Total assets
|
$
|
66.0
|
|
|
$
|
1,493.0
|
|
|
$
|
—
|
|
|
$
|
1,559.0
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
$
|
—
|
|
|
$
|
166.3
|
|
|
$
|
—
|
|
|
$
|
166.3
|
|
Total liabilities
|
$
|
—
|
|
|
$
|
166.3
|
|
|
$
|
—
|
|
|
$
|
166.3
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fair Value Measurement Using
|
|
Assets/
Liabilities at
Fair
Value
|
||||||||||||
December 31, 2017
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Settlement assets:
|
|
|
|
|
|
|
|
||||||||
Measured at fair value through other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
State and municipal debt securities
|
$
|
—
|
|
|
$
|
960.0
|
|
|
$
|
—
|
|
|
$
|
960.0
|
|
State and municipal variable rate demand notes
|
—
|
|
|
319.6
|
|
|
—
|
|
|
319.6
|
|
||||
Corporate and other debt securities
|
—
|
|
|
60.8
|
|
|
—
|
|
|
60.8
|
|
||||
United States Treasury securities
|
9.8
|
|
|
—
|
|
|
—
|
|
|
9.8
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
—
|
|
|
273.4
|
|
|
—
|
|
|
273.4
|
|
||||
Total assets
|
$
|
9.8
|
|
|
$
|
1,613.8
|
|
|
$
|
—
|
|
|
$
|
1,623.6
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
$
|
—
|
|
|
$
|
263.0
|
|
|
$
|
—
|
|
|
$
|
263.0
|
|
Total liabilities
|
$
|
—
|
|
|
$
|
263.0
|
|
|
$
|
—
|
|
|
$
|
263.0
|
|
|
2018
|
|
2017
|
||||
Settlement assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,255.6
|
|
|
$
|
1,264.8
|
|
Receivables from selling agents and Business Solutions customers
|
1,485.7
|
|
|
1,573.9
|
|
||
Investment securities
|
1,277.5
|
|
|
1,350.2
|
|
||
|
$
|
4,018.8
|
|
|
$
|
4,188.9
|
|
Settlement obligations:
|
|
|
|
||||
Money transfer, money order, and payment service payables
|
$
|
2,679.9
|
|
|
$
|
2,789.2
|
|
Payables to agents
|
1,338.9
|
|
|
1,399.7
|
|
||
|
$
|
4,018.8
|
|
|
$
|
4,188.9
|
|
September 30, 2018
|
Amortized
Cost
|
|
Fair
Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Net
Unrealized Losses
|
||||||||||
Settlement assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market funds
|
$
|
56.5
|
|
|
$
|
56.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
State and municipal debt securities (a)
|
962.9
|
|
|
951.9
|
|
|
2.1
|
|
|
(13.1
|
)
|
|
(11.0
|
)
|
|||||
State and municipal variable rate demand notes
|
246.8
|
|
|
246.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Corporate and other debt securities
|
70.2
|
|
|
69.3
|
|
|
—
|
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|||||
United States Treasury securities
|
9.9
|
|
|
9.5
|
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|||||
|
1,289.8
|
|
|
1,277.5
|
|
|
2.1
|
|
|
(14.4
|
)
|
|
(12.3
|
)
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign corporate debt securities
|
41.7
|
|
|
41.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
$
|
1,388.0
|
|
|
$
|
1,375.7
|
|
|
$
|
2.1
|
|
|
$
|
(14.4
|
)
|
|
$
|
(12.3
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
Amortized
Cost
|
|
Fair
Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Net
Unrealized
Gains/(Losses)
|
||||||||||
Settlement assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
State and municipal debt securities (a)
|
$
|
955.7
|
|
|
$
|
960.0
|
|
|
$
|
7.9
|
|
|
$
|
(3.6
|
)
|
|
$
|
4.3
|
|
State and municipal variable rate demand notes
|
319.6
|
|
|
319.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Corporate and other debt securities
|
60.9
|
|
|
60.8
|
|
|
0.2
|
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|||||
United States Treasury securities
|
9.9
|
|
|
9.8
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|||||
|
1,346.1
|
|
|
1,350.2
|
|
|
8.1
|
|
|
(4.0
|
)
|
|
4.1
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign corporate debt securities
|
56.2
|
|
|
56.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
$
|
1,402.3
|
|
|
$
|
1,406.4
|
|
|
$
|
8.1
|
|
|
$
|
(4.0
|
)
|
|
$
|
4.1
|
|
(a)
|
The majority of these securities are fixed rate instruments.
|
|
Fair
Value
|
||
Due within 1 year
|
$
|
135.4
|
|
Due after 1 year through 5 years
|
497.2
|
|
|
Due after 5 years through 10 years
|
227.0
|
|
|
Due after 10 years
|
417.9
|
|
|
|
$
|
1,277.5
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Unrealized gains/(losses) on investment securities, beginning of period
|
$
|
(4.7
|
)
|
|
$
|
5.8
|
|
|
$
|
2.7
|
|
|
$
|
(3.8
|
)
|
Unrealized gains/(losses)
|
(6.2
|
)
|
|
2.6
|
|
|
(16.8
|
)
|
|
18.0
|
|
||||
Tax (expense)/benefit
|
1.5
|
|
|
(1.0
|
)
|
|
3.9
|
|
|
(6.5
|
)
|
||||
Reclassification of (gains)/losses into "Revenues"
|
—
|
|
|
(1.8
|
)
|
|
0.4
|
|
|
(2.2
|
)
|
||||
Tax expense/(benefit) related to reclassifications
|
—
|
|
|
0.7
|
|
|
(0.1
|
)
|
|
0.8
|
|
||||
Net unrealized gains/(losses) on investment securities
|
(4.7
|
)
|
|
0.5
|
|
|
(12.6
|
)
|
|
10.1
|
|
||||
Reclassification of Tax Act effects into "Accumulated deficit" (Note 1)
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Unrealized gains/(losses) on investment securities, end of period
|
$
|
(9.4
|
)
|
|
$
|
6.3
|
|
|
$
|
(9.4
|
)
|
|
$
|
6.3
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gains/(losses) on hedging activities, beginning of period
|
$
|
(8.6
|
)
|
|
$
|
(24.4
|
)
|
|
$
|
(40.6
|
)
|
|
$
|
33.8
|
|
Unrealized gains/(losses)
|
3.3
|
|
|
(21.2
|
)
|
|
22.8
|
|
|
(68.4
|
)
|
||||
Tax (expense)/benefit
|
0.2
|
|
|
1.3
|
|
|
(0.8
|
)
|
|
2.3
|
|
||||
Reclassification of (gains)/losses into "Revenues"
|
(0.2
|
)
|
|
2.2
|
|
|
14.6
|
|
|
(11.3
|
)
|
||||
Reclassification of losses into "Interest expense"
|
0.3
|
|
|
0.8
|
|
|
2.0
|
|
|
2.5
|
|
||||
Tax expense/(benefit) related to reclassifications
|
0.1
|
|
|
(0.4
|
)
|
|
(0.6
|
)
|
|
(0.6
|
)
|
||||
Net unrealized gains/(losses) on hedging activities
|
3.7
|
|
|
(17.3
|
)
|
|
38.0
|
|
|
(75.5
|
)
|
||||
Reclassification of Tax Act effects into "Accumulated deficit" (Note 1)
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
||||
Unrealized losses on hedging activities, end of period
|
$
|
(4.9
|
)
|
|
$
|
(41.7
|
)
|
|
$
|
(4.9
|
)
|
|
$
|
(41.7
|
)
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments, beginning of period
|
$
|
(101.2
|
)
|
|
$
|
(72.3
|
)
|
|
$
|
(76.9
|
)
|
|
$
|
(70.7
|
)
|
Foreign currency translation adjustments
|
—
|
|
|
(2.8
|
)
|
|
(19.5
|
)
|
|
(4.8
|
)
|
||||
Tax expense
|
—
|
|
|
(1.3
|
)
|
|
—
|
|
|
(0.9
|
)
|
||||
Net foreign currency translation adjustments
|
—
|
|
|
(4.1
|
)
|
|
(19.5
|
)
|
|
(5.7
|
)
|
||||
Reclassification of Tax Act effects into "Accumulated deficit" (Note 1)
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
||||
Foreign currency translation adjustments, end of period
|
$
|
(101.2
|
)
|
|
$
|
(76.4
|
)
|
|
$
|
(101.2
|
)
|
|
$
|
(76.4
|
)
|
|
|
|
|
|
|
|
|
||||||||
Defined benefit pension plan adjustments, beginning of period
|
$
|
(133.5
|
)
|
|
$
|
(118.5
|
)
|
|
$
|
(113.1
|
)
|
|
$
|
(122.1
|
)
|
Reclassification of losses into "Other income, net"
|
3.0
|
|
|
2.8
|
|
|
8.8
|
|
|
8.5
|
|
||||
Tax benefit related to reclassifications
|
(0.6
|
)
|
|
(0.8
|
)
|
|
(2.0
|
)
|
|
(2.9
|
)
|
||||
Net defined benefit pension plan adjustments
|
2.4
|
|
|
2.0
|
|
|
6.8
|
|
|
5.6
|
|
||||
Reclassification of Tax Act effects into "Accumulated deficit" (Note 1)
|
—
|
|
|
—
|
|
|
(24.8
|
)
|
|
—
|
|
||||
Defined benefit pension plan adjustments, end of period
|
$
|
(131.1
|
)
|
|
$
|
(116.5
|
)
|
|
$
|
(131.1
|
)
|
|
$
|
(116.5
|
)
|
Accumulated other comprehensive loss, end of period
|
$
|
(246.6
|
)
|
|
$
|
(228.3
|
)
|
|
$
|
(246.6
|
)
|
|
$
|
(228.3
|
)
|
Contracts designated as hedges:
|
|
||
Euro
|
$
|
371.0
|
|
Canadian dollar
|
96.2
|
|
|
British pound
|
84.8
|
|
|
Australian dollar
|
48.9
|
|
|
Other
|
81.0
|
|
|
Contracts not designated as hedges:
|
|
||
Euro
|
$
|
305.3
|
|
British pound
|
72.6
|
|
|
Canadian dollar
|
55.4
|
|
|
Mexican peso
|
35.0
|
|
|
Indian rupee
|
30.4
|
|
|
Brazilian real
|
28.6
|
|
|
Australian dollar
|
27.8
|
|
|
Other (a)
|
157.4
|
|
(a)
|
Comprised of exposures to
24
different currencies. None of these individual currency exposures is greater than $
25 million
.
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||
|
Balance Sheet
Location
|
|
September 30,
2018 |
|
December 31,
2017 |
|
Balance Sheet
Location
|
|
September 30,
2018 |
|
December 31,
2017 |
||||||||
Derivatives — hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate fair value hedges
|
Other assets
|
|
$
|
1.5
|
|
|
$
|
3.3
|
|
|
Other liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign currency cash flow hedges
|
Other assets
|
|
19.6
|
|
|
8.0
|
|
|
Other liabilities
|
|
8.3
|
|
|
36.1
|
|
||||
Total
|
|
|
$
|
21.1
|
|
|
$
|
11.3
|
|
|
|
|
$
|
8.3
|
|
|
$
|
36.1
|
|
Derivatives — undesignated:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Business Solutions operations — foreign currency (a)
|
Other assets
|
|
$
|
200.0
|
|
|
$
|
260.2
|
|
|
Other liabilities
|
|
$
|
153.5
|
|
|
$
|
221.6
|
|
Foreign currency
|
Other assets
|
|
3.9
|
|
|
1.9
|
|
|
Other liabilities
|
|
4.5
|
|
|
5.3
|
|
||||
Total
|
|
|
$
|
203.9
|
|
|
$
|
262.1
|
|
|
|
|
$
|
158.0
|
|
|
$
|
226.9
|
|
Total derivatives
|
|
|
$
|
225.0
|
|
|
$
|
273.4
|
|
|
|
|
$
|
166.3
|
|
|
$
|
263.0
|
|
(a)
|
In many circumstances, the Company allows its Business Solutions customers to settle part or all of their derivative contracts prior to maturity. However, the offsetting positions originally entered into with financial institution counterparties do not allow for similar settlement. To mitigate this, additional foreign currency contracts are entered into with financial institution counterparties to offset the original economic hedge contracts. This frequently results in changes in the Company's derivative assets and liabilities that may not directly align to the growth in the underlying derivatives business.
|
September 30, 2018
|
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset in the Condensed Consolidated Balance Sheets
|
|
Net Amounts Presented
in the Condensed Consolidated Balance Sheets
|
|
Derivatives Not Offset
in the Condensed Consolidated Balance Sheets
|
|
Net Amounts
|
||||||||||
Derivatives subject to a master netting arrangement or similar agreement
|
|
$
|
156.8
|
|
|
$
|
—
|
|
|
$
|
156.8
|
|
|
$
|
(91.9
|
)
|
|
$
|
64.9
|
|
Derivatives that are not or may not be subject to master netting arrangement or similar agreement
|
|
68.2
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
$
|
225.0
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to a master netting arrangement or similar agreement
|
|
$
|
115.4
|
|
|
$
|
—
|
|
|
$
|
115.4
|
|
|
$
|
(98.7
|
)
|
|
$
|
16.7
|
|
Derivatives that are not or may not be subject to master netting arrangement or similar agreement
|
|
158.0
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
$
|
273.4
|
|
|
|
|
|
|
|
|
|
September 30, 2018
|
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset in the Condensed Consolidated Balance Sheets
|
|
Net Amounts Presented
in the Condensed Consolidated Balance Sheets
|
|
Derivatives Not Offset
in the Condensed Consolidated Balance Sheets
|
|
Net Amounts
|
||||||||||
Derivatives subject to a master netting arrangement or similar agreement
|
|
$
|
99.7
|
|
|
$
|
—
|
|
|
$
|
99.7
|
|
|
$
|
(91.9
|
)
|
|
$
|
7.8
|
|
Derivatives that are not or may not be subject to master netting arrangement or similar agreement
|
|
66.6
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
$
|
166.3
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives subject to a master netting arrangement or similar agreement
|
|
$
|
214.9
|
|
|
$
|
—
|
|
|
$
|
214.9
|
|
|
$
|
(98.7
|
)
|
|
$
|
116.2
|
|
Derivatives that are not or may not be subject to master netting arrangement or similar agreement
|
|
48.1
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
$
|
263.0
|
|
|
|
|
|
|
|
|
|
|
|
Amount of Gain/(Loss) Recognized in Other
|
||||||||||||||
|
|
Comprehensive Income on Derivatives
|
||||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
Derivatives
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency contracts (a)
|
|
$
|
3.3
|
|
|
$
|
(21.2
|
)
|
|
$
|
22.8
|
|
|
$
|
(68.4
|
)
|
|
|
Location and Amount of Gain/(Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
|
||||||||||||||||||||||
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||||||||||
|
|
Revenues
|
|
Interest Expense
|
|
Other income, net
|
|
Revenues
|
|
Interest Expense
|
|
Other income, net
|
||||||||||||
Total amounts presented in the condensed consolidated statements of income in which the effects of fair value or cash flow hedges are recorded
|
|
$
|
1,387.8
|
|
|
$
|
(38.4
|
)
|
|
$
|
0.6
|
|
|
$
|
1,404.7
|
|
|
$
|
(37.2
|
)
|
|
$
|
2.9
|
|
The effects of fair value and cash flow hedging:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain/(loss) on fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Hedged items
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||||
Derivatives designated as hedging instruments
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
||||||
Gain/(loss) on cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amount of gain/(loss) reclassified from accumulated other comprehensive loss into income
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
||||||
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
||||||
Amount of gain/(loss) reclassified from accumulated other comprehensive loss into income as a result that a forecasted transaction is no longer probable of occurring
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Location and Amount of Gain/(Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
|
||||||||||||||||||||||
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||||||||||
|
|
Revenues
|
|
Interest Expense
|
|
Other income, net
|
|
Revenues
|
|
Interest Expense
|
|
Other income, net
|
||||||||||||
Total amounts presented in the condensed consolidated statements of income in which the effects of fair value or cash flow hedges are recorded
|
|
$
|
4,188.3
|
|
|
$
|
(111.4
|
)
|
|
$
|
13.1
|
|
|
$
|
4,086.0
|
|
|
$
|
(104.2
|
)
|
|
$
|
9.4
|
|
The effects of fair value and cash flow hedging:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain/(loss) on fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Hedged items
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
||||||
Derivatives designated as hedging instruments
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
||||||
Gain/(loss) on cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amount of gain/(loss) reclassified from accumulated other comprehensive loss into income
|
|
(14.6
|
)
|
|
—
|
|
|
—
|
|
|
11.3
|
|
|
—
|
|
|
—
|
|
||||||
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value
|
|
5.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
||||||
Amount of gain/(loss) reclassified from accumulated other comprehensive loss into income as a result that a forecasted transaction is no longer probable of occurring
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Gain/(Loss) Recognized in Income on Derivatives (b)
|
||||||||||||||||
|
Income Statement Location
|
|
Amount
|
||||||||||||||
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
Derivatives
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Foreign currency contracts (c)
|
Selling, general and administrative
|
|
$
|
8.9
|
|
|
$
|
(4.0
|
)
|
|
$
|
44.1
|
|
|
$
|
(26.3
|
)
|
Foreign currency contracts (d)
|
Revenues
|
|
0.4
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
Foreign currency contracts (d)
|
Other income, net
|
|
—
|
|
|
(0.3
|
)
|
|
(1.9
|
)
|
|
(0.8
|
)
|
||||
Total gain/(loss)
|
|
$
|
9.3
|
|
|
$
|
(4.3
|
)
|
|
$
|
44.2
|
|
|
$
|
(27.1
|
)
|
(a)
|
For the
three and nine
months ended
September 30, 2018
, losses of
$0.4 million
and
$0.6 million
, respectively, represent the amounts excluded from the assessment of effectiveness that were recognized in other comprehensive income, for which an amortization approach is applied. For the
three and nine
months ended
September 30, 2017
, there were
no
amounts recorded in other comprehensive income for amounts excluded from the measurement of effectiveness.
|
(b)
|
The Company uses foreign currency forward and option contracts as part of its Business Solutions payments operations. These derivative contracts are excluded from this table as they are managed as part of a broader currency portfolio that includes non-derivative currency exposures. The gains and losses on these derivatives are included as part of the broader disclosure of portfolio revenue for this business discussed above.
|
(c)
|
The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations as well as certain foreign currency denominated positions. Foreign exchange gains/(losses) on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivatives activity as displayed above and included in "Selling, general and administrative" in the Condensed Consolidated Statements of Income, were
$(8.2) million
and
$3.4 million
for the
three months ended September 30, 2018
and
2017
, respectively, and
$(39.5) million
and
$24.2 million
for the
nine months ended September 30, 2018
and
2017
, respectively.
|
(d)
|
All derivative contracts executed in the Company's revenue hedging program prior to January 1, 2018 are not designated as hedges in the final month of the contract. The change in fair value in this final month was recorded to "Revenues" for the
three and nine
months ended
September 30, 2018
and "Other income, net" for the
three and nine
months ended
September 30, 2017
. The amount recorded to "Other income, net" for the
nine
months ended
September 30, 2018
relates to losses on certain undesignated foreign currency derivative contracts that were recognized after the Company determined that certain forecasted transactions were no longer probable of occurring.
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Commercial paper (a)
|
$
|
369.0
|
|
|
$
|
—
|
|
Notes:
|
|
|
|
||||
3.650% notes due 2018 (b)
|
—
|
|
|
400.0
|
|
||
3.350% notes due 2019 (c)
|
250.0
|
|
|
250.0
|
|
||
Floating rate notes (effective rate of 3.4%) due 2019
|
250.0
|
|
|
250.0
|
|
||
5.253% notes due 2020 (c)
|
324.9
|
|
|
324.9
|
|
||
3.600% notes due 2022 (c)
|
500.0
|
|
|
500.0
|
|
||
4.250% notes (effective rate of 4.5%) due 2023 (d)
|
300.0
|
|
|
—
|
|
||
6.200% notes due 2036 (c)
|
500.0
|
|
|
500.0
|
|
||
6.200% notes due 2040 (c)
|
250.0
|
|
|
250.0
|
|
||
Term loan facility borrowings (effective rate of 3.6%)
|
567.8
|
|
|
575.0
|
|
||
Total borrowings at par value
|
3,311.7
|
|
|
3,049.9
|
|
||
Fair value hedge accounting adjustments, net (e)
|
(0.8
|
)
|
|
0.5
|
|
||
Debt issuance costs and unamortized discount, net
|
(15.9
|
)
|
|
(16.8
|
)
|
||
Total borrowings at carrying value (f)
|
$
|
3,295.0
|
|
|
$
|
3,033.6
|
|
(a)
|
Pursuant to the Company's commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed
$1.5 billion
outstanding at any time, reduced to the extent of borrowings outstanding on the Company's Revolving Credit Facility in excess of
$150 million
. The commercial paper notes may have maturities of up to
397
days from date of issuance. The Company's commercial paper borrowings as of
September 30, 2018
had a weighted-average annual interest rate of approximately
2.4%
and a weighted-average term of approximately
2
days.
|
(b)
|
Proceeds from the
4.250%
unsecured notes due in 2023 ("2023 Notes"), commercial paper and cash, including cash generated from operations, were used to repay the August 2018 maturity of
$400.0 million
of aggregate principal amount unsecured notes.
|
(c)
|
The difference between the stated interest rate and the effective interest rate is not significant.
|
(d)
|
On June 11, 2018, the Company issued
$300.0 million
of aggregate principal amount of
4.250%
unsecured notes due in 2023.
|
(e)
|
The Company utilizes interest rate swaps designated as fair value hedges to effectively change the interest rate payments on a portion of its notes from fixed-rate payments to short-term LIBOR-based variable rate payments in order to manage its overall exposure to interest rates. The changes in fair value of these interest rate swaps result in an offsetting hedge accounting adjustment recorded to the carrying value of the related note. These hedge accounting adjustments will be reclassified as reductions to or increases in "Interest expense" in the Condensed Consolidated Statements of Income over the life of the related notes, and cause the effective rate of i
nterest to differ from the notes' stated rate.
|
(f)
|
As of
September 30, 2018
, the Company's weighted-average effective rate on total borrowings was approximately
4.4%
.
|
Due within 1 year
|
$
|
528.8
|
|
Due after 1 year through 2 years
|
360.8
|
|
|
Due after 2 years through 3 years
|
503.1
|
|
|
Due after 3 years through 4 years
|
500.0
|
|
|
Due after 4 years through 5 years
|
300.0
|
|
|
Due after 5 years
|
750.0
|
|
•
|
With respect to the United States taxation of certain previously undistributed earnings of foreign subsidiaries, the determination of the amount of earnings, the amount of assets which are to be included as cash and other specified assets, and which are therefore subject to the higher effective tax rate specified in the Tax Act, and the related potential foreign tax implications continue to be provisional and subject to further analysis, including the Company's completion of the calculation for certain 2017 income tax returns. The Company filed its federal income tax return in October and expects to file all outstanding state and foreign income tax returns in the fourth quarter. The Company has completed its analysis for a significant number of its controlled foreign corporations. However, given the pending completion of certain 2017 income tax returns, the amount of this tax may change until the Company finalizes these calculations. The estimated tax provision amount related to this matter was
$916 million
for the year ended December 31, 2017. During the three and
nine months ended September 30, 2018
, the Company increased its estimate of this expense by
$26.6 million
and
$19.5 million
, respectively, because of revised estimates for the cash and other specified assets that are subject to the higher effective tax rate specified in the Tax Act and the effects of tax liabilities and tax contingency reserves on the Company's previously undistributed earnings of foreign subsidiaries, so that the estimated tax provision amount related to this matter is currently
$935 million
. These adjustments increased the Company's effective tax rate by
10.0%
and
2.6%
for the three and
nine months ended September 30, 2018
, respectively.
|
•
|
The Company recorded a provisional
$87 million
benefit for the year ended
December 31, 2017
for the remeasurement of deferred tax assets and liabilities and other tax balances to reflect the lower federal income tax rate, among other effects. The Company is still analyzing certain aspects of the Tax Act and refining the calculations, which could potentially affect the measurement of these balances, and the amount is also subject to the Company's completion of the calculation for the 2017 state income tax returns. During the
nine months ended September 30, 2018
, the Company increased this provisional benefit by
$5.1 million
after further analysis of its tax liabilities. The provisional benefit related to this matter is currently
$92 million
. These adjustments reduced the Company's effective tax rate by
0.7%
for the
nine months ended September 30, 2018
.
|
•
|
The Company provisionally estimated the total amount of outside basis differences with respect to its foreign subsidiaries as of
December 31, 2017
to be
$260 million
(after giving effect to the Tax Act). These outside tax basis differences primarily relate to the remaining undistributed foreign earnings not subject to the tax on certain previously undistributed earnings of foreign subsidiaries pursuant to the Tax Act and additional outside basis difference inherent in certain entities. To the extent such outside basis differences are attributable to undistributed earnings not already subject to United States tax, such undistributed earnings continue to be indefinitely reinvested in foreign operations. Upon the future realization of the Company's basis difference, the Company could be subject to United States income taxes, state income taxes and possible withholding taxes payable to various foreign countries. Determination of this amount of unrecognized deferred tax liability continues to not be practicable because of the complexities associated with its hypothetical calculation, and therefore, no deferred income tax effects have been recognized with respect to such outside basis differences.
The amount of total outside basis differences and appropriate deferred tax effects are impacted by the application of the Tax Act and certain 2017 income tax returns, which will be finalized during the fourth quarter of 2018.
|
•
|
Subsequent to the enactment of the Tax Act, the Company must make an accounting policy election to account for the tax effects of global intangible low-taxed income either as a component of income tax expense in the period the tax arises, or as a component of deferred taxes for temporary basis differences expected to reverse in future years. Given the complexity of the provisions, the Company is currently evaluating these provisions of the Tax Act and the related implications and has not finalized its accounting policy election. As the Company is still evaluating these provisions and its analysis of future taxable income subject to these provisions, the Company has included global intangible low-taxed income related to the three and nine months ended September 30, 2018 in its estimated annual effective tax rate and has not recorded additional income tax expense related to temporary differences that could arise from global intangible low-taxed income. The Company will finalize its accounting policy election during the fourth quarter of 2018.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Consumer-to-Consumer
|
$
|
1,107.4
|
|
|
$
|
1,107.7
|
|
|
$
|
3,325.9
|
|
|
$
|
3,210.0
|
|
Business Solutions
|
100.2
|
|
|
99.4
|
|
|
290.0
|
|
|
289.6
|
|
||||
Other (a)
|
180.2
|
|
|
197.6
|
|
|
572.4
|
|
|
586.4
|
|
||||
Total consolidated revenues
|
$
|
1,387.8
|
|
|
$
|
1,404.7
|
|
|
$
|
4,188.3
|
|
|
$
|
4,086.0
|
|
Operating income (b):
|
|
|
|
|
|
|
|
||||||||
Consumer-to-Consumer
|
$
|
277.8
|
|
|
$
|
260.3
|
|
|
$
|
785.7
|
|
|
$
|
758.7
|
|
Business Solutions
|
14.3
|
|
|
9.1
|
|
|
18.2
|
|
|
16.8
|
|
||||
Other (a)
|
10.5
|
|
|
20.7
|
|
|
47.2
|
|
|
68.4
|
|
||||
Total segment operating income (b)
|
302.6
|
|
|
290.1
|
|
|
851.1
|
|
|
843.9
|
|
||||
NYDFS Consent Order (c)
|
—
|
|
|
—
|
|
|
—
|
|
|
(49.0
|
)
|
||||
Business transformation expenses (d)
|
—
|
|
|
(9.9
|
)
|
|
—
|
|
|
(59.2
|
)
|
||||
Joint Settlement Agreements (e)
|
—
|
|
|
(8.0
|
)
|
|
—
|
|
|
(8.0
|
)
|
||||
Total consolidated operating income (b)
|
$
|
302.6
|
|
|
$
|
272.2
|
|
|
$
|
851.1
|
|
|
$
|
727.7
|
|
(a)
|
Other consists primarily of the Company's bill payments businesses in the United States and Argentina.
|
(b)
|
On January 1, 2018, the Company adopted an accounting pronouncement that requires the non-service costs of a defined benefit pension plan to be presented outside a subtotal of income from operations, with adoption retrospective for periods previously presented. The adoption of this standard resulted in an increase of
$0.6 million
and
$1.8 million
to operating income for the
three and nine
months ended
September 30, 2017
, respectively, from the amounts previously reported, and this increase was allocated among the segments in a method consistent with the original allocation of this expense. Refer to Note 1 for further information.
|
(c)
|
During the second quarter of 2017, the Company accrued
$49 million
toward a resolution of a matter with the NYDFS, and on January 4, 2018, the Company agreed to the NYDFS Consent Order, as further described in Note 7. While this expense was identifiable to the Company's Consumer-to-Consumer segment, it was not included in the measurement of segment operating income provided to the CODM for purposes of assessing segment performance and decision making with respect to resource allocation.
|
(d)
|
Business transformation expenses for the
three and nine
months ended
September 30, 2017
were not allocated to the segments. While certain of these items were identifiable to the Company's segments, they were not included in the measurement of segment operating income provided to the CODM for purposes of assessing segment performance and decision making with respect to resource allocation. For additional information on business transformation related activities, see Note 5.
|
(e)
|
While expenses related to the Joint Settlement Agreements for the
three and nine
months ended
September 30, 2017
were identifiable to the Company's Consumer-to-Consumer segment, they were not included in the measurement of segment operating income provided to the CODM for purposes of assessing segment performance and decision making with respect to resource allocation. For additional information on the Joint Settlement Agreements, see Note 7.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Consumer-to-Consumer
- The Consumer-to-Consumer operating segment facilitates money transfers between two consumers, primarily through a network of third-party agents. Our multi-currency money transfer service is viewed by us as one interconnected global network where a money transfer can be sent from one location to another, around the world. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. This segment also includes money transfer transactions that can be initiated through websites and mobile devices.
|
•
|
Business Solutions
- The Business Solutions operating segment facilitates payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals. The
majority
of the segment's business relates to exchanges of currency at spot rates, which enable customers to make cross-currency payments. In addition, in certain countries, we write foreign currency forward and option contracts for customers to facilitate future payments.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||
(in millions, except per share amounts)
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
Revenues
|
$
|
1,387.8
|
|
|
$
|
1,404.7
|
|
|
(1
|
)%
|
|
$
|
4,188.3
|
|
|
$
|
4,086.0
|
|
|
3
|
%
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of services (a)
|
812.4
|
|
|
840.5
|
|
|
(3
|
)%
|
|
2,467.0
|
|
|
2,482.7
|
|
|
(1
|
)%
|
||||
Selling, general and administrative
|
272.8
|
|
|
292.0
|
|
|
(7
|
)%
|
|
870.2
|
|
|
875.6
|
|
|
(1
|
)%
|
||||
Total expenses
|
1,085.2
|
|
|
1,132.5
|
|
|
(4
|
)%
|
|
3,337.2
|
|
|
3,358.3
|
|
|
(1
|
)%
|
||||
Operating income
|
302.6
|
|
|
272.2
|
|
|
11
|
%
|
|
851.1
|
|
|
727.7
|
|
|
17
|
%
|
||||
Other income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
1.6
|
|
|
1.3
|
|
|
26
|
%
|
|
3.6
|
|
|
3.8
|
|
|
(4
|
)%
|
||||
Interest expense
|
(38.4
|
)
|
|
(37.2
|
)
|
|
3
|
%
|
|
(111.4
|
)
|
|
(104.2
|
)
|
|
7
|
%
|
||||
Other income, net (a)
|
0.6
|
|
|
2.9
|
|
|
(84
|
)%
|
|
13.1
|
|
|
9.4
|
|
|
38
|
%
|
||||
Total other expense, net
|
(36.2
|
)
|
|
(33.0
|
)
|
|
10
|
%
|
|
(94.7
|
)
|
|
(91.0
|
)
|
|
4
|
%
|
||||
Income before income taxes
|
266.4
|
|
|
239.2
|
|
|
11
|
%
|
|
756.4
|
|
|
636.7
|
|
|
19
|
%
|
||||
Provision for income taxes
|
57.8
|
|
|
3.6
|
|
|
(b)
|
|
|
116.6
|
|
|
72.9
|
|
|
60
|
%
|
||||
Net income
|
$
|
208.6
|
|
|
$
|
235.6
|
|
|
(11
|
)%
|
|
$
|
639.8
|
|
|
$
|
563.8
|
|
|
13
|
%
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.47
|
|
|
$
|
0.51
|
|
|
(8
|
)%
|
|
$
|
1.41
|
|
|
$
|
1.20
|
|
|
18
|
%
|
Diluted
|
$
|
0.46
|
|
|
$
|
0.51
|
|
|
(10
|
)%
|
|
$
|
1.40
|
|
|
$
|
1.19
|
|
|
18
|
%
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
446.8
|
|
|
462.8
|
|
|
|
|
454.8
|
|
|
470.6
|
|
|
|
||||||
Diluted
|
449.0
|
|
|
465.4
|
|
|
|
|
457.4
|
|
|
473.6
|
|
|
|
(a)
|
On January 1, 2018, the Company adopted an accounting pronouncement that requires the non-service costs of a defined benefit pension plan to be presented outside a subtotal of income from operations, with adoption retrospective for periods previously presented. The adoption of this standard resulted in reductions to "Cost of services" and "Other income, net" of $0.6 million and $1.8 million for the three and nine months ended September 30, 2017, respectively, from the amounts previously reported. Refer to Part I, Item 1,
Financial Statements
, Note 1, "Business and Basis of Presentation," for further information.
|
(b)
|
Calculation not meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
Revenues, as reported - (GAAP)
|
$
|
1,387.8
|
|
|
$
|
1,404.7
|
|
|
(1
|
)%
|
|
$
|
4,188.3
|
|
|
$
|
4,086.0
|
|
|
3
|
%
|
Foreign currency impact (a)
|
|
|
|
|
4
|
%
|
|
|
|
|
|
1
|
%
|
||||||||
Revenue change, constant currency adjusted - (Non-GAAP)
|
|
|
|
|
3
|
%
|
|
|
|
|
|
4
|
%
|
(a)
|
The strengthening of the the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges, resulted in a reduction to revenues of $52.8 million and $43.0 million for the three and nine months ended September 30, 2018, when compared to foreign currency rates in the corresponding periods of the prior year. Included within these amounts are impacts related to the strengthening of the dollar against the Argentine peso, which resulted in a reduction to revenues of $41.6 million and $87.4 million for the three and nine months ended September 30, 2018. The reduction in revenues during the nine months ended September 30, 2018, primarily from the Argentine peso, was partially offset by the weakening of the United States dollar against various European currencies, primarily the euro and the British pound.
|
•
|
With respect to the United States taxation of certain previously undistributed earnings of foreign subsidiaries, the determination of the amount of earnings, the amount of assets which are to be included as cash and other specified assets, and which are therefore subject to the higher effective tax rate specified in the Tax Act, and the related potential foreign tax implications continue to be provisional and subject to further analysis, including our completion of the calculation for certain 2017 income tax returns. We filed our federal income tax return in October and expect to file all outstanding state and foreign income tax returns in the fourth quarter. We have completed our analysis for a significant number of our controlled foreign corporations. However, given the pending completion of certain 2017 income tax returns, the amount of this tax may change until we finalize these calculations. The estimated tax provision amount related to this matter was $916 million for the year ended December 31, 2017. During the three and nine months ended September 30, 2018, we increased our estimate of this expense by $26.6 million and $19.5 million, respectively, because of revised estimates for the cash and other specified assets that are subject to the higher effective tax rate specified in the Tax Act and the effects of tax liabilities and tax contingency reserves on our previously undistributed earnings of foreign subsidiaries, so that the estimated tax provision amount related to this matter is currently $935 million. These adjustments increased our effective tax rate by 10.0% and 2.6% for the three and nine months ended September 30, 2018, respectively.
|
•
|
We recorded a provisional $87 million benefit for the year ended December 31, 2017 for the remeasurement of deferred tax assets and liabilities and other tax balances to reflect the lower federal income tax rate, among other effects. We are still analyzing certain aspects of the Tax Act and refining the calculations, which could potentially affect the measurement of these balances, and the amount is also subject to our completion of the calculation for the 2017 state income tax returns. During the nine months ended
September 30, 2018
, we increased this provisional benefit by $5.1 million after further analysis of our tax liabilities. The provisional benefit related to this matter is currently $92 million. These adjustments reduced our effective tax rate by 0.7% for the nine months ended
September 30, 2018
.
|
•
|
We provisionally estimated the total amount of outside basis differences with respect to our foreign subsidiaries as of December 31, 2017 to be $260 million (after giving effect to the Tax Act). These outside tax basis differences primarily relate to the remaining undistributed foreign earnings not subject to the tax on certain previously undistributed earnings of foreign subsidiaries pursuant to the Tax Act and additional outside basis difference inherent in certain entities. To the extent such outside basis differences are attributable to undistributed earnings not already subject to United States tax, such undistributed earnings continue to be indefinitely reinvested in foreign operations. Upon the future realization of this basis difference, we could be subject to United States income taxes, state income taxes and possible withholding taxes payable to various foreign countries. Determination of this amount of unrecognized deferred tax liability continues to not be practicable because of the complexities associated with its hypothetical calculation, and therefore, no deferred income tax effects have been recognized with respect to such outside basis differences. The amount of total outside basis differences and appropriate deferred tax effects are impacted by our application of the Tax Act and certain 2017 income tax returns, which will be finalized during the fourth quarter of 2018.
|
•
|
Subsequent to the enactment of the Tax Act, we must make an accounting policy election to account for the tax effects of global intangible low-taxed income either as a component of income tax expense in the period the tax arises, or as a component of deferred taxes for temporary basis differences expected to reverse in future years. Given the complexity of the provisions, we are currently evaluating these provisions of the Tax Act and the related implications and have not finalized our accounting policy election. As we are still evaluating these provisions and our analysis of future taxable income subject to these provisions, we have included global intangible low-taxed income related to the three and nine months ended September 30, 2018 in our estimated annual effective tax rate and have not recorded additional income tax expense related to temporary differences that could arise from global intangible low-taxed income. We will finalize this accounting policy election during the fourth quarter of 2018.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Consumer-to-Consumer
|
80
|
%
|
|
79
|
%
|
|
79
|
%
|
|
79
|
%
|
Business Solutions
|
7
|
%
|
|
7
|
%
|
|
7
|
%
|
|
7
|
%
|
Other
|
13
|
%
|
|
14
|
%
|
|
14
|
%
|
|
14
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||||||||
(dollars and transactions in millions)
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
Revenues
|
$
|
1,107.4
|
|
|
$
|
1,107.7
|
|
|
0
|
%
|
|
$
|
3,325.9
|
|
|
$
|
3,210.0
|
|
|
4
|
%
|
Operating income
|
$
|
277.8
|
|
|
$
|
260.3
|
|
|
7
|
%
|
|
$
|
785.7
|
|
|
$
|
758.7
|
|
|
4
|
%
|
Operating income margin
|
25
|
%
|
|
23
|
%
|
|
|
|
24
|
%
|
|
24
|
%
|
|
|
||||||
Key indicator:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer-to-Consumer transactions
|
71.8
|
|
|
69.2
|
|
|
4
|
%
|
|
212.7
|
|
|
204.4
|
|
|
4
|
%
|
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||
|
Revenue Growth/(Decline), as Reported - (GAAP)
|
|
Foreign Exchange Translation Impact
|
|
Constant Currency Revenue Growth/(Decline) (a) - (Non-GAAP)
|
|
Transaction Growth/(Decline)
|
|
Revenue Growth/(Decline), as Reported - (GAAP)
|
|
Foreign Exchange Translation Impact
|
|
Constant Currency Revenue Growth/(Decline) (a) - (Non-GAAP)
|
|
Transaction Growth
|
||||||||
Consumer-to-Consumer regional growth/(decline):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
North America (United States & Canada) ("NA")
|
2
|
%
|
|
0
|
%
|
|
2
|
%
|
|
1
|
%
|
|
3
|
%
|
|
0
|
%
|
|
3
|
%
|
|
2
|
%
|
Europe and Russia/CIS ("EU & CIS")
|
3
|
%
|
|
(1
|
)%
|
|
4
|
%
|
|
8
|
%
|
|
9
|
%
|
|
5
|
%
|
|
4
|
%
|
|
8
|
%
|
Middle East, Africa, and South Asia ("MEASA")
|
(7
|
)%
|
|
(1
|
)%
|
|
(6
|
)%
|
|
2
|
%
|
|
(4
|
)%
|
|
0
|
%
|
|
(4
|
)%
|
|
0
|
%
|
Latin America and the Caribbean ("LACA") (b)
|
2
|
%
|
|
(14
|
)%
|
|
16
|
%
|
|
11
|
%
|
|
10
|
%
|
|
(10
|
)%
|
|
20
|
%
|
|
15
|
%
|
East Asia and Oceania ("APAC")
|
(10
|
)%
|
|
(1
|
)%
|
|
(9
|
)%
|
|
(2
|
)%
|
|
(4
|
)%
|
|
1
|
%
|
|
(5
|
)%
|
|
0
|
%
|
Total Consumer-to-Consumer growth:
|
0
|
%
|
|
(2
|
)%
|
|
2
|
%
|
|
4
|
%
|
|
4
|
%
|
|
1
|
%
|
|
3
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
westernunion.com (c)
|
19
|
%
|
|
(1
|
)%
|
|
20
|
%
|
|
23
|
%
|
|
21
|
%
|
|
1
|
%
|
|
20
|
%
|
|
24
|
%
|
(a)
|
Constant currency revenue growth assumes that revenues denominated in foreign currencies are translated to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the corresponding prior periods.
|
(b)
|
Our LACA region results were impacted by the strengthening of the United States dollar against the Argentine peso, in addition to an increase in local currency revenue per transaction, primarily due to inflation, and transaction growth in our Argentine operations.
|
(c)
|
Westernunion.com revenues have also been included in each region, as described earlier.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Consumer-to-Consumer revenue as a percentage of segment revenue:
|
|
|
|
|
|
|
|
||||
NA
|
37
|
%
|
|
36
|
%
|
|
37
|
%
|
|
37
|
%
|
EU & CIS
|
32
|
%
|
|
31
|
%
|
|
32
|
%
|
|
31
|
%
|
MEASA
|
15
|
%
|
|
16
|
%
|
|
15
|
%
|
|
16
|
%
|
LACA
|
9
|
%
|
|
9
|
%
|
|
9
|
%
|
|
8
|
%
|
APAC
|
7
|
%
|
|
8
|
%
|
|
7
|
%
|
|
8
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
Revenues
|
$
|
100.2
|
|
|
$
|
99.4
|
|
|
1
|
%
|
|
$
|
290.0
|
|
|
$
|
289.6
|
|
|
0
|
%
|
Operating income
|
$
|
14.3
|
|
|
$
|
9.1
|
|
|
57
|
%
|
|
$
|
18.2
|
|
|
$
|
16.8
|
|
|
8
|
%
|
Operating income margin
|
14
|
%
|
|
9
|
%
|
|
|
|
6
|
%
|
|
6
|
%
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
Revenues
|
$
|
180.2
|
|
|
$
|
197.6
|
|
|
(9
|
)%
|
|
$
|
572.4
|
|
|
$
|
586.4
|
|
|
(2
|
)%
|
Operating income
|
$
|
10.5
|
|
|
$
|
20.7
|
|
|
(49
|
)%
|
|
$
|
47.2
|
|
|
$
|
68.4
|
|
|
(31
|
)%
|
Operating income margin
|
6
|
%
|
|
11
|
%
|
|
|
|
8
|
%
|
|
12
|
%
|
|
|
•
|
Income taxes
|
•
|
Derivative financial instruments
|
•
|
Other intangible assets
|
•
|
Goodwill
|
•
|
Legal contingencies
|
|
/s/ Ernst & Young LLP
|
Denver, Colorado
|
|
November 1, 2018
|
|
Period
|
|
Total Number of
Shares Purchased*
|
|
Average Price
Paid per Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs**
|
|
Remaining Dollar
Value of Shares that
May Yet Be Purchased
Under the Plans or
Programs (In millions)
|
||||||
July 1 - 31
|
|
1,674,922
|
|
|
$
|
20.29
|
|
|
1,643,737
|
|
|
$
|
660.2
|
|
August 1 - 31
|
|
1,930,845
|
|
|
$
|
19.07
|
|
|
1,915,694
|
|
|
$
|
623.6
|
|
September 1 - 30
|
|
1,603,037
|
|
|
$
|
18.90
|
|
|
1,594,226
|
|
|
$
|
593.5
|
|
Total
|
|
5,208,804
|
|
|
$
|
19.41
|
|
|
5,153,657
|
|
|
|
*
|
These amounts represent both shares authorized by the Board of Directors for repurchase under a publicly announced authorization, as described below, as well as shares withheld from employees to cover tax withholding obligations on restricted stock units that have vested.
|
**
|
On February 9, 2017, the Board of Directors authorized $1.2 billion of common stock repurchases through December 31, 2019, of which $593.5 million remained available as of September 30, 2018. In certain instances, management has historically and may continue to establish prearranged written plans pursuant to Rule 10b5-1. A Rule 10b5-1 plan permits us to repurchase shares at times when we may otherwise be unable to do so, provided the plan is adopted when we are not aware of material non-public information.
|
Exhibit
Number
|
|
Description
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
The Western Union Company (Registrant)
|
|
|
|
|
|
Date:
|
November 1, 2018
|
By:
|
/s/ Hikmet Ersek
|
|
|
|
Hikmet Ersek
|
|
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
Date:
|
November 1, 2018
|
By:
|
/s/ Rajesh K. Agrawal
|
|
|
|
Rajesh K. Agrawal
|
|
|
|
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
Date:
|
November 1, 2018
|
By:
|
/s/ Amintore T.X. Schenkel
|
|
|
|
Amintore T.X. Schenkel
|
|
|
|
Senior Vice President, Chief Accounting Officer and Controller
(Principal Accounting Officer)
|
1 Year Western Union Chart |
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