x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 16-1690064 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
2828 N. Harwood St., 15th Floor Dallas, Texas | 75201 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |||
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. | ¨ |
(Amounts in millions, except share data) | March 31, 2017 | December 31, 2016 | |||||
ASSETS | |||||||
Cash and cash equivalents | $ | 127.4 | $ | 157.2 | |||
Settlement assets | 3,492.9 | 3,634.3 | |||||
Property and equipment, net | 204.8 | 201.0 | |||||
Goodwill | 442.2 | 442.2 | |||||
Other assets | 170.2 | 162.7 | |||||
Total assets | $ | 4,437.5 | $ | 4,597.4 | |||
LIABILITIES | |||||||
Payment service obligations | $ | 3,492.9 | $ | 3,634.3 | |||
Debt, net | 913.4 | 915.2 | |||||
Pension and other postretirement benefits | 79.6 | 87.6 | |||||
Accounts payable and other liabilities | 150.9 | 168.7 | |||||
Total liabilities | 4,636.8 | 4,805.8 | |||||
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 March 31, 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 March 31, 2017 and December 31, 2016 | 0.6 | 0.6 | |||||
Additional paid-in capital | 1,024.3 | 1,020.3 | |||||
Retained loss | (1,283.5 | ) | (1,247.6 | ) | |||
Accumulated other comprehensive loss | (50.9 | ) | (53.9 | ) | |||
Treasury stock: 4,856,901 and 6,058,856 shares at March 31, 2017 and December 31, 2016, respectively | (73.7 | ) | (111.7 | ) | |||
Total stockholders’ deficit | (199.3 | ) | (208.4 | ) | |||
Total liabilities and stockholders’ deficit | $ | 4,437.5 | $ | 4,597.4 |
Three Months Ended March 31, | |||||||
(Amounts in millions, except per share data) | 2017 | 2016 | |||||
REVENUE | |||||||
Fee and other revenue | $ | 380.3 | $ | 383.4 | |||
Investment revenue | 5.8 | 3.7 | |||||
Total revenue | 386.1 | 387.1 | |||||
EXPENSES | |||||||
Fee and other commissions expense | 186.0 | 191.0 | |||||
Investment commissions expense | 1.3 | 0.5 | |||||
Total commissions expense | 187.3 | 191.5 | |||||
Compensation and benefits | 71.5 | 71.7 | |||||
Transaction and operations support | 71.6 | 64.5 | |||||
Occupancy, equipment and supplies | 15.3 | 15.2 | |||||
Depreciation and amortization | 18.3 | 21.1 | |||||
Total operating expenses | 364.0 | 364.0 | |||||
OPERATING INCOME | 22.1 | 23.1 | |||||
Other expense | |||||||
Interest expense | 10.8 | 11.3 | |||||
Total other expense | 10.8 | 11.3 | |||||
Income before income taxes | 11.3 | 11.8 | |||||
Income tax expense | 2.5 | 16.0 | |||||
NET INCOME (LOSS) | $ | 8.8 | $ | (4.2 | ) | ||
EARNINGS (LOSS) PER COMMON SHARE | |||||||
Basic | $ | 0.14 | $ | (0.07 | ) | ||
Diluted | $ | 0.13 | $ | (0.07 | ) | ||
Weighted-average outstanding common shares and equivalents used in computing earnings (loss) per common share | |||||||
Basic | 62.1 | 62.4 | |||||
Diluted | 66.1 | 62.4 |
Three Months Ended March 31, | |||||||
(Amounts in millions) | 2017 | 2016 | |||||
NET INCOME (LOSS) | $ | 8.8 | $ | (4.2 | ) | ||
OTHER COMPREHENSIVE INCOME | |||||||
Net change in unrealized holding gains on available-for-sale securities arising during the period, net of tax expense of $0.0 for each of the three months ended March 31, 2017 and 2016 | 0.1 | — | |||||
Net change in pension liability due to amortization of prior service credit and net actuarial loss, net of tax benefit of $0.4 and $0.5 for the three months ended March 31, 2017 and 2016, respectively | 0.7 | 0.8 | |||||
Unrealized foreign currency translation adjustments, net of tax expense of $0.0 and $2.8 for the three months ended March 31, 2017 and 2016, respectively | 2.2 | 1.2 | |||||
Other comprehensive income | 3.0 | 2.0 | |||||
COMPREHENSIVE INCOME (LOSS) | $ | 11.8 | $ | (2.2 | ) |
Three Months Ended March 31, | |||||||
(Amounts in millions) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 8.8 | $ | (4.2 | ) | ||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 18.3 | 21.1 | |||||
Signing bonus amortization | 13.0 | 14.3 | |||||
Signing bonus payments | (10.2 | ) | (7.4 | ) | |||
Amortization of debt issuance costs and debt discount | 0.8 | 0.9 | |||||
Non-cash compensation and pension expense | 5.3 | 6.7 | |||||
Change in other assets | (8.6 | ) | (1.2 | ) | |||
Change in accounts payable and other liabilities | (37.1 | ) | (30.1 | ) | |||
Other non-cash items, net | 0.1 | — | |||||
Net cash (used in) provided by operating activities | (9.6 | ) | 0.1 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (18.6 | ) | (18.0 | ) | |||
Net cash used in investing activities | (18.6 | ) | (18.0 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Principal payments on debt | (2.5 | ) | (2.5 | ) | |||
Proceeds from exercise of stock options | 0.9 | — | |||||
Stock repurchases | — | (1.9 | ) | ||||
Payments to tax authorities for stock-based compensation | — | (0.7 | ) | ||||
Net cash used in financing activities | (1.6 | ) | (5.1 | ) | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (29.8 | ) | (23.0 | ) | |||
CASH AND CASH EQUIVALENTS—Beginning of period | 157.2 | 164.5 | |||||
CASH AND CASH EQUIVALENTS—End of period | $ | 127.4 | $ | 141.5 | |||
Supplemental cash flow information: | |||||||
Cash payments for interest | $ | 10.0 | $ | 10.4 | |||
Cash taxes, net | $ | 0.7 | $ | 2.4 |
(Amounts in millions) | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Loss | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||
January 1, 2017 | $ | 183.9 | $ | 0.6 | $ | 1,020.3 | $ | (1,247.6 | ) | $ | (53.9 | ) | $ | (111.7 | ) | $ | (208.4 | ) | |||||||||
Net income | — | — | — | 8.8 | — | — | 8.8 | ||||||||||||||||||||
Stock-based compensation activity | — | — | 4.0 | (44.7 | ) | — | 38.0 | (2.7 | ) | ||||||||||||||||||
Other comprehensive income | — | — | — | — | 3.0 | — | 3.0 | ||||||||||||||||||||
March 31, 2017 | $ | 183.9 | $ | 0.6 | $ | 1,024.3 | $ | (1,283.5 | ) | $ | (50.9 | ) | $ | (73.7 | ) | $ | (199.3 | ) |
(Amounts in millions) | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Loss | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||
January 1, 2016 | $ | 183.9 | $ | 0.6 | $ | 1,002.4 | $ | (1,226.8 | ) | $ | (48.7 | ) | $ | (134.2 | ) | $ | (222.8 | ) | |||||||||
Net loss | — | — | — | (4.2 | ) | — | — | (4.2 | ) | ||||||||||||||||||
Stock-based compensation activity | — | — | 5.0 | (29.1 | ) | — | 26.7 | 2.6 | |||||||||||||||||||
Stock repurchases | — | — | — | — | — | (1.9 | ) | (1.9 | ) | ||||||||||||||||||
Other comprehensive income | — | — | — | — | 2.0 | — | 2.0 | ||||||||||||||||||||
March 31, 2016 | $ | 183.9 | $ | 0.6 | $ | 1,007.4 | $ | (1,260.1 | ) | $ | (46.7 | ) | $ | (109.4 | ) | $ | (224.3 | ) |
• | 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 |
(Amounts in millions) | March 31, 2017 | December 31, 2016 | |||||
Settlement assets: | |||||||
Settlement cash and cash equivalents | $ | 1,461.0 | $ | 1,365.0 | |||
Receivables, net | 861.1 | 999.4 | |||||
Interest-bearing investments | 1,153.4 | 1,252.1 | |||||
Available-for-sale investments | 17.4 | 17.8 | |||||
$ | 3,492.9 | $ | 3,634.3 | ||||
Payment service obligations | $ | (3,492.9 | ) | $ | (3,634.3 | ) |
(Amounts in millions) | Level 2 | Level 3 | Total | ||||||||
March 31, 2017 | |||||||||||
Financial assets: | |||||||||||
Available-for-sale investments: | |||||||||||
Residential mortgage-backed securities | $ | 6.8 | $ | — | $ | 6.8 | |||||
Asset-backed and other securities | — | 10.6 | 10.6 | ||||||||
Forward contracts | 0.2 | — | 0.2 | ||||||||
Total financial assets | $ | 7.0 | $ | 10.6 | $ | 17.6 | |||||
Financial liabilities: | |||||||||||
Forward contracts | $ | 0.7 | $ | — | $ | 0.7 | |||||
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 |
Three Months Ended March 31, | |||||||
(Amounts in millions) | 2017 | 2016 | |||||
Beginning balance | $ | 10.6 | $ | 11.6 | |||
Principal paydowns | (0.1 | ) | (0.2 | ) | |||
Change in unrealized gains | 0.1 | — | |||||
Ending balance | $ | 10.6 | $ | 11.4 |
Fair Value | Carrying Value | ||||||||||||||
(Amounts in millions) | March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | |||||||||||
Senior secured credit facility | $ | 921.5 | $ | 912.5 | $ | 921.5 | $ | 924.0 |
(Amounts in millions) | March 31, 2017 | December 31, 2016 | |||||
Cash | $ | 1,580.7 | $ | 1,514.5 | |||
Money market securities | 7.7 | 7.7 | |||||
Cash and cash equivalents (1) | 1,588.4 | 1,522.2 | |||||
Interest-bearing investments | 1,153.4 | 1,252.1 | |||||
Available-for-sale investments | 17.4 | 17.8 | |||||
Total investment portfolio | $ | 2,759.2 | $ | 2,792.1 |
Amortized Cost | Gross Unrealized Gains | Fair Value | |||||||||
(Amounts in millions) | |||||||||||
March 31, 2017 | |||||||||||
Residential mortgage-backed securities | $ | 6.2 | $ | 0.6 | $ | 6.8 | |||||
Asset-backed and other securities | 0.9 | 9.7 | 10.6 | ||||||||
Total | $ | 7.1 | $ | 10.3 | $ | 17.4 | |||||
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 |
Three Months Ended March 31, | |||||||
(Amounts in millions) | 2017 | 2016 | |||||
Net realized foreign currency gains | $ | 3.0 | $ | 6.7 | |||
Net (losses) gains from the related forward contracts | (2.0 | ) | 4.0 | ||||
Net gains from foreign currency transactions and related forward contracts | $ | 1.0 | $ | 10.7 |
Gross Amount of Recognized Assets | Gross Amount of Offset | Net Amount of Assets Presented in the Condensed Consolidated Balance Sheets | |||||||||||||||||||||||
Balance Sheet Location | March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | |||||||||||||||||||
(Amounts in millions) | |||||||||||||||||||||||||
Forward contracts | Other assets | $ | 0.5 | $ | 2.6 | $ | (0.3 | ) | $ | (0.2 | ) | $ | 0.2 | $ | 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 | March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | |||||||||||||||||||
(Amounts in millions) | |||||||||||||||||||||||||
Forward contracts | Accounts payable and other liabilities | $ | 1.0 | $ | 0.3 | $ | (0.3 | ) | $ | (0.2 | ) | $ | 0.7 | $ | 0.1 |
(Amounts in millions, except percentages) | Effective Interest Rate | March 31, 2017 | December 31, 2016 | |||||||
Senior secured credit facility due 2020 | 4.25 | % | $ | 921.5 | $ | 924.0 | ||||
Unamortized debt issuance costs and debt discount | (8.1 | ) | (8.8 | ) | ||||||
Total debt, net | $ | 913.4 | $ | 915.2 |
(Amounts in millions) | March 31, 2017 | December 31, 2016 | |||||
Cash and cash equivalents | $ | 127.4 | $ | 157.2 | |||
Settlement assets | 3,492.9 | 3,634.3 | |||||
Total cash and cash equivalents and settlement assets | 3,620.3 | 3,791.5 | |||||
Payment service obligations | (3,492.9 | ) | (3,634.3 | ) | |||
Assets in excess of payment service obligations | $ | 127.4 | $ | 157.2 |
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 |
Three Months Ended March 31, | |||||||
(Amounts in millions) | 2017 | 2016 | |||||
Interest cost | 1.5 | 1.7 | |||||
Expected return on plan assets | (1.3 | ) | (1.3 | ) | |||
Amortization of net actuarial loss | 1.1 | 1.4 | |||||
Net periodic benefit expense | $ | 1.3 | $ | 1.8 |
Three Months Ended March 31, | |||||||
(Amounts in millions) | 2017 | 2016 | |||||
Amortization of prior service credit | $ | (0.1 | ) | $ | (0.1 | ) | |
Amortization of net actuarial loss | 0.1 | — | |||||
Net periodic benefit income | $ | — | $ | (0.1 | ) |
(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 | ) | $ | (44.8 | ) | $ | (53.9 | ) | ||||
Other comprehensive income before reclassification | 0.1 | 2.2 | — | 2.3 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 0.7 | 0.7 | |||||||||||
Net current period other comprehensive income | 0.1 | 2.2 | 0.7 | 3.0 | |||||||||||
March 31, 2017 | $ | 10.9 | $ | (17.7 | ) | $ | (44.1 | ) | $ | (50.9 | ) | ||||
January 1, 2016 | $ | 11.1 | $ | (13.5 | ) | $ | (46.3 | ) | $ | (48.7 | ) | ||||
Other comprehensive income before reclassification | 0.1 | 1.2 | — | 1.3 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | (0.1 | ) | — | 0.8 | 0.7 | ||||||||||
Net current period other comprehensive income | — | 1.2 | 0.8 | 2.0 | |||||||||||
March 31, 2016 | $ | 11.1 | $ | (12.3 | ) | $ | (45.5 | ) | $ | (46.7 | ) |
Three Months Ended March 31, | Statement of Operations Location | ||||||||
(Amounts in millions) | 2017 | 2016 | |||||||
Change in unrealized gains on securities classified as available-for-sale, before and net of tax | $ | — | $ | (0.1 | ) | "Investment revenue" | |||
Pension and Postretirement Benefits adjustments: | |||||||||
Amortization of prior service credit | (0.1 | ) | (0.1 | ) | "Compensation and benefits" | ||||
Amortization of net actuarial loss | 1.2 | 1.4 | "Compensation and benefits" | ||||||
Total before tax | 1.1 | 1.3 | |||||||
Tax benefit | (0.4 | ) | (0.5 | ) | |||||
Total, net of tax | 0.7 | 0.8 | |||||||
Total reclassified for the period, net of tax | $ | 0.7 | $ | 0.7 |
Three Months Ended March 31, | |||||||
(Amounts in millions) | 2017 | 2016 | |||||
Expense recognized related to stock options | $ | 0.3 | $ | 0.9 | |||
Expense recognized related to restricted stock units | 3.7 | 4.1 | |||||
Stock-based compensation expense | $ | 4.0 | $ | 5.0 |
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 | (54,472 | ) | 13.88 | |||||||||
Forfeited/Expired | (110,934 | ) | 26.31 | |||||||||
Options outstanding at March 31, 2017 | 2,320,055 | $ | 17.72 | 3.6 years | $ | 2.9 | ||||||
Vested or expected to vest at March 31, 2017 | 2,319,415 | $ | 17.72 | 3.6 years | $ | 2.9 | ||||||
Options exercisable at March 31, 2017 | 2,273,235 | $ | 17.77 | 3.5 years | $ | 2.8 |
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 | 1,316,881 | 12.72 | ||||||||||
Vested and converted to shares | (1,731,135 | ) | 7.63 | |||||||||
Forfeited | (474,417 | ) | 14.91 | |||||||||
Restricted stock units outstanding at March 31, 2017 | 3,741,367 | $ | 8.56 | 1.4 years | $ | 62.9 | ||||||
Restricted stock units vested and outstanding at March 31, 2017 | 69,253 | $ | 6.81 | $ | 1.2 |
Three Months Ended March 31, | |||||
(Amounts in millions) | 2017 | 2016 | |||
Basic common shares outstanding | 62.1 | 62.4 | |||
Shares related to stock options and restricted stock units | 4.0 | — | |||
Diluted common shares outstanding | 66.1 | 62.4 |
Three Months Ended March 31, | |||||
(Amounts in millions) | 2017 | 2016 | |||
Shares related to stock options | 1.9 | 3.0 | |||
Shares related to restricted stock units | 0.2 | 4.1 | |||
Shares excluded from the computation | 2.1 | 7.1 |
Three Months Ended March 31, | |||||||
(Amounts in millions) | 2017 | 2016 | |||||
Global Funds Transfer revenue: | |||||||
Money transfer revenue | $ | 341.7 | $ | 344.9 | |||
Bill payment revenue | 25.1 | 24.1 | |||||
Total Global Funds Transfer revenue | 366.8 | 369.0 | |||||
Financial Paper Products revenue: | |||||||
Money order revenue | 12.5 | 12.7 | |||||
Official check revenue | 6.8 | 5.4 | |||||
Total Financial Paper Products revenue | 19.3 | 18.1 | |||||
Total revenue | $ | 386.1 | $ | 387.1 |
Three Months Ended March 31, | |||||||
(Amounts in millions) | 2017 | 2016 | |||||
Global Funds Transfer operating income | $ | 26.1 | $ | 23.7 | |||
Financial Paper Products operating income | 4.8 | 4.5 | |||||
Total segment operating income | 30.9 | 28.2 | |||||
Other operating loss | (8.8 | ) | (5.1 | ) | |||
Total operating income | 22.1 | 23.1 | |||||
Interest expense | 10.8 | 11.3 | |||||
Income before income taxes | $ | 11.3 | $ | 11.8 |
(Amounts in millions) | March 31, 2017 | December 31, 2016 | |||||
Global Funds Transfer | $ | 2,217.7 | $ | 2,213.9 | |||
Financial Paper Products | 2,065.6 | 2,198.3 | |||||
Other | 154.2 | 185.2 | |||||
Total assets | $ | 4,437.5 | $ | 4,597.4 |
(Amounts in millions) | Parent | Subsidiary Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 0.9 | $ | 107.5 | $ | 19.0 | $ | — | $ | 127.4 | |||||||||
Settlement assets | — | 3,364.2 | 128.7 | — | 3,492.9 | ||||||||||||||
Property and equipment, net | — | 188.7 | 16.1 | — | 204.8 | ||||||||||||||
Goodwill | — | 315.4 | 126.8 | — | 442.2 | ||||||||||||||
Other assets | 40.0 | 141.3 | 41.2 | (52.3 | ) | 170.2 | |||||||||||||
Equity investments in subsidiaries | 879.3 | 238.0 | — | (1,117.3 | ) | — | |||||||||||||
Intercompany receivables | — | 146.3 | 57.5 | (203.8 | ) | — | |||||||||||||
Total assets | $ | 920.2 | $ | 4,501.4 | $ | 389.3 | $ | (1,373.4 | ) | $ | 4,437.5 | ||||||||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||||||||||||||||
Payment service obligations | $ | — | $ | 3,374.5 | $ | 118.4 | $ | — | $ | 3,492.9 | |||||||||
Debt | 913.4 | — | — | — | 913.4 | ||||||||||||||
Pension and other postretirement benefits | — | 79.6 | — | — | 79.6 | ||||||||||||||
Accounts payable and other liabilities | 2.3 | 168.0 | 32.9 | (52.3 | ) | 150.9 | |||||||||||||
Intercompany liabilities | 203.8 | — | — | (203.8 | ) | — | |||||||||||||
Total liabilities | 1,119.5 | 3,622.1 | 151.3 | (256.1 | ) | 4,636.8 | |||||||||||||
Total stockholders’ (deficit) equity | (199.3 | ) | 879.3 | 238.0 | (1,117.3 | ) | (199.3 | ) | |||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | 920.2 | $ | 4,501.4 | $ | 389.3 | $ | (1,373.4 | ) | $ | 4,437.5 |
(Amounts in millions) | Parent | Subsidiary Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 128.8 | $ | 28.4 | $ | — | $ | 157.2 | |||||||||
Settlement assets | — | 3,504.7 | 129.6 | — | 3,634.3 | ||||||||||||||
Property and equipment, net | — | 184.3 | 16.7 | — | 201.0 | ||||||||||||||
Goodwill | — | 315.3 | 126.9 | — | 442.2 | ||||||||||||||
Other assets | 36.0 | 146.0 | 39.4 | (58.7 | ) | 162.7 | |||||||||||||
Equity investments in subsidiaries | 879.1 | 232.3 | — | (1,111.4 | ) | — | |||||||||||||
Intercompany receivables | — | 155.1 | 51.3 | (206.4 | ) | — | |||||||||||||
Total assets | $ | 915.1 | $ | 4,666.5 | $ | 392.3 | $ | (1,376.5 | ) | $ | 4,597.4 | ||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | |||||||||||||||||||
Payment service obligations | $ | — | $ | 3,525.4 | $ | 108.9 | $ | — | $ | 3,634.3 | |||||||||
Debt | 915.2 | — | — | — | 915.2 | ||||||||||||||
Pension and other postretirement benefits | — | 87.6 | — | — | 87.6 | ||||||||||||||
Accounts payable and other liabilities | 1.9 | 174.4 | 51.1 | (58.7 | ) | 168.7 | |||||||||||||
Intercompany liabilities | 206.4 | — | — | (206.4 | ) | — | |||||||||||||
Total liabilities | 1,123.5 | 3,787.4 | 160.0 | (265.1 | ) | 4,805.8 | |||||||||||||
Total stockholders’ (deficit) equity | (208.4 | ) | 879.1 | 232.3 | (1,111.4 | ) | (208.4 | ) | |||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | 915.1 | $ | 4,666.5 | $ | 392.3 | $ | (1,376.5 | ) | $ | 4,597.4 |
(Amounts in millions) | Parent | Subsidiary Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
REVENUE | |||||||||||||||||||
Fee and other revenue | $ | — | $ | 365.4 | $ | 94.0 | $ | (79.1 | ) | $ | 380.3 | ||||||||
Investment revenue | — | 5.8 | — | — | 5.8 | ||||||||||||||
Total revenue | — | 371.2 | 94.0 | (79.1 | ) | 386.1 | |||||||||||||
EXPENSES | |||||||||||||||||||
Fee and other commissions expense | — | 180.6 | 48.9 | (43.5 | ) | 186.0 | |||||||||||||
Investment commissions expense | — | 1.3 | — | — | 1.3 | ||||||||||||||
Total commissions expense | — | 181.9 | 48.9 | (43.5 | ) | 187.3 | |||||||||||||
Compensation and benefits | — | 48.0 | 23.5 | — | 71.5 | ||||||||||||||
Transaction and operations support | 0.4 | 95.2 | 11.6 | (35.6 | ) | 71.6 | |||||||||||||
Occupancy, equipment and supplies | — | 11.8 | 3.5 | — | 15.3 | ||||||||||||||
Depreciation and amortization | — | 15.5 | 2.8 | — | 18.3 | ||||||||||||||
Total operating expenses | 0.4 | 352.4 | 90.3 | (79.1 | ) | 364.0 | |||||||||||||
OPERATING (LOSS) INCOME | (0.4 | ) | 18.8 | 3.7 | — | 22.1 | |||||||||||||
Other expense | |||||||||||||||||||
Interest expense | 10.8 | — | — | — | 10.8 | ||||||||||||||
Total other expense | 10.8 | — | — | — | 10.8 | ||||||||||||||
(Loss) income before income taxes | (11.2 | ) | 18.8 | 3.7 | — | 11.3 | |||||||||||||
Income tax (benefit) expense | (4.1 | ) | 6.4 | 0.2 | — | 2.5 | |||||||||||||
(Loss) income after income taxes | (7.1 | ) | 12.4 | 3.5 | — | 8.8 | |||||||||||||
Equity income in subsidiaries | 15.9 | 3.5 | — | (19.4 | ) | — | |||||||||||||
NET INCOME | 8.8 | 15.9 | 3.5 | (19.4 | ) | 8.8 | |||||||||||||
TOTAL OTHER COMPREHENSIVE INCOME | 3.0 | 3.0 | 2.1 | (5.1 | ) | 3.0 | |||||||||||||
COMPREHENSIVE INCOME | $ | 11.8 | $ | 18.9 | $ | 5.6 | $ | (24.5 | ) | $ | 11.8 |
(Amounts in millions) | Parent | Subsidiary Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
REVENUE | |||||||||||||||||||
Fee and other revenue | $ | — | $ | 381.6 | $ | 92.4 | $ | (90.6 | ) | $ | 383.4 | ||||||||
Investment revenue | — | 3.7 | — | — | 3.7 | ||||||||||||||
Total revenue | — | 385.3 | 92.4 | (90.6 | ) | 387.1 | |||||||||||||
OPERATING EXPENSES | |||||||||||||||||||
Fee and other commissions expense | — | 186.1 | 54.8 | (49.9 | ) | 191.0 | |||||||||||||
Investment commissions expense | — | 0.5 | — | — | 0.5 | ||||||||||||||
Total commissions expense | — | 186.6 | 54.8 | (49.9 | ) | 191.5 | |||||||||||||
Compensation and benefits | — | 49.5 | 22.2 | — | 71.7 | ||||||||||||||
Transaction and operations support | 0.4 | 92.6 | 12.2 | (40.7 | ) | 64.5 | |||||||||||||
Occupancy, equipment and supplies | — | 11.3 | 3.9 | — | 15.2 | ||||||||||||||
Depreciation and amortization | — | 17.7 | 3.4 | — | 21.1 | ||||||||||||||
Total operating expenses | 0.4 | 357.7 | 96.5 | (90.6 | ) | 364.0 | |||||||||||||
OPERATING (LOSS) INCOME | (0.4 | ) | 27.6 | (4.1 | ) | — | 23.1 | ||||||||||||
Other expense | |||||||||||||||||||
Interest expense | 11.3 | — | — | — | 11.3 | ||||||||||||||
Total other expense | 11.3 | — | — | — | 11.3 | ||||||||||||||
(Loss) income before income taxes | (11.7 | ) | 27.6 | (4.1 | ) | — | 11.8 | ||||||||||||
Income tax (benefit) expense | (4.3 | ) | 24.5 | (4.2 | ) | — | 16.0 | ||||||||||||
(Loss) income after income taxes | (7.4 | ) | 3.1 | 0.1 | — | (4.2 | ) | ||||||||||||
Equity income in subsidiaries | 3.2 | 0.1 | — | (3.3 | ) | — | |||||||||||||
NET (LOSS) INCOME | (4.2 | ) | 3.2 | 0.1 | (3.3 | ) | (4.2 | ) | |||||||||||
TOTAL OTHER COMPREHENSIVE INCOME | 2.0 | 4.3 | 5.4 | (9.7 | ) | 2.0 | |||||||||||||
COMPREHENSIVE (LOSS) INCOME | $ | (2.2 | ) | $ | 7.5 | $ | 5.5 | $ | (13.0 | ) | $ | (2.2 | ) |
(Amounts in millions) | Parent | Subsidiary Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ | (7.5 | ) | $ | 0.4 | $ | (2.5 | ) | $ | — | $ | (9.6 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | — | (17.5 | ) | (1.1 | ) | — | (18.6 | ) | |||||||||||
Dividend from subsidiary guarantors | 12.6 | — | — | (12.6 | ) | — | |||||||||||||
Intercompany investments | — | 8.8 | (6.2 | ) | (2.6 | ) | — | ||||||||||||
Capital contributions to non-guarantors | — | (0.4 | ) | — | 0.4 | — | |||||||||||||
Net cash provided by (used in) investing activities | 12.6 | (9.1 | ) | (7.3 | ) | (14.8 | ) | (18.6 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Principal payments on debt | (2.5 | ) | — | — | — | (2.5 | ) | ||||||||||||
Proceeds from exercise of stock options | 0.9 | — | — | — | 0.9 | ||||||||||||||
Dividend to parent | — | (12.6 | ) | — | 12.6 | — | |||||||||||||
Intercompany financings | (2.6 | ) | — | — | 2.6 | — | |||||||||||||
Capital contribution from subsidiary guarantors | — | — | 0.4 | (0.4 | ) | — | |||||||||||||
Net cash (used in) provided by financing activities | (4.2 | ) | (12.6 | ) | 0.4 | 14.8 | (1.6 | ) | |||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 0.9 | (21.3 | ) | (9.4 | ) | — | (29.8 | ) | |||||||||||
CASH AND CASH EQUIVALENTS—Beginning of period | — | 128.8 | 28.4 | — | 157.2 | ||||||||||||||
CASH AND CASH EQUIVALENTS—End of period | $ | 0.9 | $ | 107.5 | $ | 19.0 | $ | — | $ | 127.4 |
(Amounts in millions) | Parent | Subsidiary Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ | (9.7 | ) | $ | 16.9 | $ | (7.1 | ) | $ | — | $ | 0.1 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | — | (15.4 | ) | (2.6 | ) | — | (18.0 | ) | |||||||||||
Dividend from subsidiary guarantors | 12.9 | — | — | (12.9 | ) | — | |||||||||||||
Intercompany investments | — | (17.0 | ) | — | 17.0 | — | |||||||||||||
Net cash provided by (used in) investing activities | 12.9 | (32.4 | ) | (2.6 | ) | 4.1 | (18.0 | ) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Principal payments on debt | (2.5 | ) | — | — | — | (2.5 | ) | ||||||||||||
Stock repurchase | (1.9 | ) | — | — | — | (1.9 | ) | ||||||||||||
Dividend to parent | — | (12.9 | ) | — | 12.9 | — | |||||||||||||
Intercompany financings | 1.2 | — | 15.8 | (17.0 | ) | — | |||||||||||||
Payments to tax authorities for stock-based compensation | — | (0.7 | ) | — | — | (0.7 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (3.2 | ) | (13.6 | ) | 15.8 | (4.1 | ) | (5.1 | ) | ||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | — | (29.1 | ) | 6.1 | — | (23.0 | ) | ||||||||||||
CASH AND CASH EQUIVALENTS—Beginning of period | 2.1 | 88.2 | 74.2 | — | 164.5 | ||||||||||||||
CASH AND CASH EQUIVALENTS—End of period | $ | 2.1 | $ | 59.1 | $ | 80.3 | $ | — | $ | 141.5 |
• | Overview |
• | Results of Operations |
• | Liquidity and Capital Resources |
• | Critical Accounting Policies and Estimates |
• | Cautionary Statements Regarding Forward-Looking Statements |
Three Months Ended March 31, | % Change | |||||||||
(Amounts in millions, except percentages) | 2017 | 2016 | ||||||||
REVENUE | ||||||||||
Fee and other revenue | $ | 380.3 | $ | 383.4 | (1 | )% | ||||
Investment revenue | 5.8 | 3.7 | 57 | % | ||||||
Total revenue | 386.1 | 387.1 | — | % | ||||||
EXPENSES | ||||||||||
Fee and other commissions expense | 186.0 | 191.0 | (3 | )% | ||||||
Investment commissions expense | 1.3 | 0.5 | NM | |||||||
Total commissions expense | 187.3 | 191.5 | (2 | )% | ||||||
Compensation and benefits | 71.5 | 71.7 | — | % | ||||||
Transaction and operations support | 71.6 | 64.5 | 11 | % | ||||||
Occupancy, equipment and supplies | 15.3 | 15.2 | 1 | % | ||||||
Depreciation and amortization | 18.3 | 21.1 | (13 | )% | ||||||
Total operating expenses | 364.0 | 364.0 | — | % | ||||||
OPERATING INCOME | 22.1 | 23.1 | (4 | )% | ||||||
Other expense | ||||||||||
Interest expense | 10.8 | 11.3 | (4 | )% | ||||||
Total other expense | 10.8 | 11.3 | (4 | )% | ||||||
Income before income taxes | 11.3 | 11.8 | (4 | )% | ||||||
Income tax expense | 2.5 | 16.0 | (84 | )% | ||||||
NET INCOME (LOSS) | $ | 8.8 | $ | (4.2 | ) | NM |
Three Months Ended March 31, | % Change | |||||||||
(Amounts in millions, except percentages) | 2017 | 2016 | ||||||||
Money transfer fee and other revenue | $ | 341.7 | $ | 344.9 | (1 | )% | ||||
Bill payment fee and other revenue | 25.1 | 24.1 | 4 | % | ||||||
Global Funds Transfer fee and other revenue | $ | 366.8 | $ | 369.0 | (1 | )% | ||||
Fee and other commissions expense | $ | 185.6 | $ | 190.9 | (3 | )% |
(Amounts in millions) | Three Months Ended | ||
For the period ended March 31, 2016 | $ | 344.9 | |
Change resulting from: | |||
Money transfer volume | 14.7 | ||
Corridor mix | (9.0 | ) | |
Average face value per transaction and pricing | (6.7 | ) | |
Impact from changes in exchange rates | (5.7 | ) | |
Other | 3.5 | ||
For the period ended March 31, 2017 | $ | 341.7 |
Three Months Ended March 31, | |
2017 vs 2016 | |
Total money transfer fee and other revenue | (1)% |
U.S. Outbound | 2% |
Non-U.S. | 1% |
U.S. to U.S. | (16)% |
Three Months Ended March 31, | |||||
2017 | 2016 | ||||
U.S. Outbound | 43 | % | 44 | % | |
Non-U.S. | 44 | % | 40 | % | |
U.S. to U.S. | 13 | % | 16 | % |
Three Months Ended March 31, | |
2017 vs 2016 | |
Total transactions | 4% |
U.S. Outbound | 2% |
Non-U.S. | 14% |
U.S. to U.S. | (14)% |
(Amounts in millions) | Three Months Ended | ||
For the period ended March 31, 2016 | $ | 190.9 | |
Change resulting from: | |||
Impact from changes in exchange rates | (3.0 | ) | |
Money transfer corridor and agent mix | (2.3 | ) | |
Money transfer revenue | 1.2 | ||
Signing bonus amortization | (1.0 | ) | |
Other | (0.2 | ) | |
For the period ended March 31, 2017 | $ | 185.6 |
Three Months Ended March 31, | % Change | |||||||||
(Amounts in millions, except percentages) | 2017 | 2016 | ||||||||
Money order fee and other revenue | $ | 10.8 | $ | 11.6 | (7 | )% | ||||
Official check fee and other revenue | 2.7 | 2.8 | (4 | )% | ||||||
Financial Paper Product fee and other revenue | $ | 13.5 | $ | 14.4 | (6 | )% | ||||
Fee and other commissions expense | $ | 0.4 | $ | 0.1 | NM |
Three Months Ended March 31, | % Change | |||||||||
(Amounts in millions, except percentages) | 2017 | 2016 | ||||||||
Investment revenue | $ | 5.8 | $ | 3.7 | 57 | % | ||||
Investment commissions expense (1) | 1.3 | 0.5 | NM |
Three Months Ended March 31, | |||||||||||||
2017 | 2016 | ||||||||||||
(Amounts in millions, except percentages) | Dollars | Percent of Total Revenue | Dollars | Percent of Total Revenue | |||||||||
Compensation and benefits | $ | 71.5 | 19 | % | $ | 71.7 | 19 | % | |||||
Transaction and operations support | 71.6 | 19 | % | 64.5 | 17 | % | |||||||
Occupancy, equipment and supplies | 15.3 | 4 | % | 15.2 | 4 | % | |||||||
Depreciation and amortization | 18.3 | 5 | % | 21.1 | 5 | % | |||||||
Total operating expenses | $ | 176.7 | 46 | % | $ | 172.5 | 45 | % |
(Amounts in millions) | Three Months Ended | ||
For the period ended March 31, 2016 | $ | 71.7 | |
Change resulting from: | |||
Salaries and related payroll taxes | 2.0 | ||
Cash-based incentive compensation | (1.3 | ) | |
Stock-based compensation | (1.0 | ) | |
Other | 0.1 | ||
For the period ended March 31, 2017 | $ | 71.5 |
(Amounts in millions) | Three Months Ended | ||
For the period ended March 31, 2016 | $ | 64.5 | |
Change resulting from: | |||
Net realized foreign exchange gains | 9.7 | ||
Outsourcing, independent contractor and consultant costs | (3.6 | ) | |
Legal expenses | 3.5 | ||
Provision for loss | (2.1 | ) | |
Agent-related costs | 1.5 | ||
Marketing costs | (1.4 | ) | |
Other | (0.5 | ) | |
For the period ended March 31, 2017 | $ | 71.6 |
Three Months Ended March 31, | Change | |||||||||||
(Amounts in millions, except percentages) | 2017 | 2016 | ||||||||||
Operating income: | ||||||||||||
Global Funds Transfer | $ | 26.1 | $ | 23.7 | $ | 2.4 | ||||||
Financial Paper Products | 4.8 | 4.5 | 0.3 | |||||||||
Total segment operating income | 30.9 | 28.2 | 2.7 | |||||||||
Other operating loss | (8.8 | ) | (5.1 | ) | (3.7 | ) | ||||||
Total operating income | $ | 22.1 | $ | 23.1 | $ | (1.0 | ) | |||||
Total operating margin | 5.7 | % | 6.0 | % | ||||||||
Global Funds Transfer | 7.1 | % | 6.4 | % | ||||||||
Financial Paper Products | 24.9 | % | 24.9 | % |
Three Months Ended March 31, | ||||||||||||
(Amounts in millions, except percentages) | 2017 | 2016 | Change | |||||||||
Income before income taxes | $ | 11.3 | $ | 11.8 | $ | (0.5 | ) | |||||
Interest expense | 10.8 | 11.3 | (0.5 | ) | ||||||||
Depreciation and amortization | 18.3 | 21.1 | (2.8 | ) | ||||||||
Signing bonus amortization | 13.0 | 14.3 | (1.3 | ) | ||||||||
EBITDA | 53.4 | 58.5 | (5.1 | ) | ||||||||
Significant items impacting EBITDA: | ||||||||||||
Stock-based, contingent and incentive compensation | 4.0 | 6.2 | (2.2 | ) | ||||||||
Merger-related costs | 2.8 | — | 2.8 | |||||||||
Direct monitor costs | 2.8 | 1.9 | 0.9 | |||||||||
Compliance enhancement program | 2.1 | 3.0 | (0.9 | ) | ||||||||
Legal and contingent matters | 1.2 | 0.2 | 1.0 | |||||||||
Adjusted EBITDA | $ | 66.3 | $ | 69.8 | $ | (3.5 | ) | |||||
Adjusted EBITDA growth, as reported | (5 | )% | ||||||||||
Adjusted EBITDA growth, constant currency adjusted | (2 | )% | ||||||||||
Adjusted EBITDA | $ | 66.3 | $ | 69.8 | $ | (3.5 | ) | |||||
Cash payments for interest | (10.0 | ) | (10.4 | ) | 0.4 | |||||||
Cash taxes, net | (0.7 | ) | (2.4 | ) | 1.7 | |||||||
Cash payments for capital expenditures | (18.6 | ) | (18.0 | ) | (0.6 | ) | ||||||
Cash payments for agent signing bonuses | (10.2 | ) | (7.4 | ) | (2.8 | ) | ||||||
Adjusted Free Cash Flow | $ | 26.8 | $ | 31.6 | $ | (4.8 | ) | |||||
(Amounts in millions) | March 31, 2017 | December 31, 2016 | |||||
Cash and cash equivalents | $ | 127.4 | $ | 157.2 | |||
Settlement assets: | |||||||
Settlement cash and cash equivalents | 1,461.0 | 1,365.0 | |||||
Receivables, net | 861.1 | 999.4 | |||||
Interest-bearing investments | 1,153.4 | 1,252.1 | |||||
Available-for-sale investments | 17.4 | 17.8 | |||||
$ | 3,492.9 | $ | 3,634.3 | ||||
Payment service obligations | $ | (3,492.9 | ) | $ | (3,634.3 | ) |
(Amounts in millions, except percentages) | Effective Interest Rate | March 31, 2017 | December 31, 2016 | |||||||
Senior secured credit facility due 2020 | 4.25 | % | $ | 921.5 | $ | 924.0 | ||||
Unamortized debt issuance costs and debt discount | (8.1 | ) | (8.8 | ) | ||||||
Total debt, net | $ | 913.4 | $ | 915.2 |
Three Months Ended March 31, | |||||||
(Amounts in millions) | 2017 | 2016 | |||||
Net cash (used in) provided by operating activities | $ | (9.6 | ) | $ | 0.1 | ||
Net cash used in investing activities | (18.6 | ) | (18.0 | ) | |||
Net cash used in financing activities | (1.6 | ) | (5.1 | ) | |||
Net change in cash and cash equivalents | $ | (29.8 | ) | $ | (23.0 | ) |
• | our ability to compete effectively; |
• | our ability to maintain key agent or biller relationships, or a reduction in business or transaction volume from these relationships, including with our largest agent, Walmart, through the introduction by Walmart of competing white label money transfer products or otherwise; |
• | our ability to manage fraud risks from consumers or agents; |
• | the ability of us and our agents to comply with U.S. and international laws and regulations; |
• | litigation and regulatory proceedings involving us or our agents, which could result in material settlements, fines or penalties, revocation of required licenses or registrations, termination of contracts, other administrative actions or lawsuits and negative publicity; |
• | possible uncertainties relating to compliance with and the impact of the DPA; |
• | current and proposed regulations addressing consumer privacy and data use and security; |
• | our ability to successfully develop and timely introduce new and enhanced products and services and our investments in new products, services or infrastructure changes; |
• | our offering of money transfer services through agents in regions that are politically volatile or, in a limited number of cases, that may be subject to certain Office of Foreign Assets Control ("OFAC") restrictions; |
• | changes in tax laws or unfavorable outcomes of tax positions we take, or a failure by us to establish adequate reserves for tax events; |
• | our substantial debt service obligations, significant debt covenant requirements and credit rating and our ability to maintain sufficient capital; |
• | our ability to manage risks associated with our international sales and operations, including risks associated with the United Kingdom's vote to withdraw from the European Union; |
• | major bank failure or sustained financial market illiquidity, or illiquidity at our clearing, cash management and custodial financial institutions; |
• | the ability of us and our agents to maintain adequate banking relationships; |
• | a security or privacy breach in systems, networks or databases on which we rely; |
• | disruptions to our computer systems and data centers and our ability to effectively operate and adapt our technology; |
• | continued weakness in economic conditions, in both the U.S. and global markets; |
• | a significant change, material slow down or complete disruption of international migration patterns; |
• | the financial health of certain European countries or the secession of a country from the European Union, and the resulting impact on the sustainability of the euro; |
• | our ability to manage credit risks from our agents and official check financial institution customers; |
• | our ability to adequately protect our brand and intellectual property rights and to avoid infringing on the rights of others; |
• | our ability to attract and retain key employees; |
• | our ability to manage risks related to the operation of retail locations and the acquisition or start-up of businesses; |
• | any restructuring actions and cost reduction initiatives that we undertake may not deliver the expected results and these actions may adversely affect our business; |
• | our ability to maintain effective internal controls; |
• | our capital structure and the special voting rights provided to designees of Thomas H. Lee Partners, L.P. on our Board of Directors; |
• | risks relating to the proposed Merger, including the possibility that the consummation of the Merger could be delayed or not completed, and the effect of announcement or pendency of the Merger on our business; and |
• | the risks and uncertainties described in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2016, as well as any additional risk factors that may be described in our other filings with the Securities and Exchange Commission ("SEC") from time to time. |
MoneyGram International, Inc. | ||
(Registrant) | ||
May 4, 2017 | By: | /s/ JOHN D. STONEHAM |
John D. Stoneham | ||
Corporate Controller | ||
(Principal Accounting Officer) |
Exhibit Number | Description |
2.1 | Agreement and Plan of Merger, dated January 26, 2017, by and among MoneyGram International, Inc., Alipay (UK) Limited, Matrix Acquisition Corp. and, solely for purposes of certain specified provisions thereof, Alipay (Hong Kong) Holding Limited (Incorporated by reference from Exhibit 2.1 to Registrant’s Current Report on Form 8-K filed January 26, 2017). |
3.1 | Amended and Restated Certificate of Incorporation of MoneyGram International, Inc., dated June 28, 2004 (Incorporated by reference from Exhibit 3.1 to Registrant's Annual Report on Form 10-K filed on March 15, 2010). |
3.2 | Certificate of Amendment of Amended and Restated Certificate of Incorporation of MoneyGram International, Inc., dated May 12, 2009 (Incorporated by reference from Exhibit 3.1 to Registrant’s Annual Report on Form 10-K filed March 15, 2010). |
3.3 | Certificate of Amendment of Amended and Restated Certificate of Incorporation of MoneyGram International, Inc., dated May 18, 2011 (Incorporated by reference from Exhibit 3.1 to Registrant's Current Report on Form 8-K filed May 23, 2011). |
3.4 | Certificate of Amendment of Amended and Restated Certificate of Incorporation of MoneyGram International, Inc., dated November 14, 2011 (Incorporated by reference from Exhibit 3.1 to Registrant's Current Report on Form 8-K filed November 14, 2011). |
3.5 | Amended and Restated Bylaws of MoneyGram International, Inc., as amended and restated October 28, 2015 (Incorporated by reference from Exhibit 3.5 to Registrant’s Quarterly Report on Form 10-Q filed on November 2, 2015). |
3.6 | Amendment to the Amended and Restated Bylaws of MoneyGram International, Inc., dated March 2, 2016 (Incorporated by reference from Exhibit 3.6 to Registrant’s Annual Report on Form 10-K filed on March 2, 2016). |
3.7 | Amended and Restated Certificate of Designations, Preferences and Rights of Series D Participating Convertible Preferred Stock of MoneyGram International, Inc., dated May 18, 2011 (Incorporated by reference from Exhibit 3.2 to Registrant's Current Report on Form 8-K filed May 23, 2011). |
10.1*† | Form of MoneyGram International, Inc. 2005 Omnibus Incentive Plan 2017 Global Time-Based Restricted Stock Unit Award Agreement. |
10.2*† | Form of MoneyGram International, Inc. 2005 Omnibus Incentive Plan 2017 Global Performance-Based Restricted Stock Unit Award Agreement. |
10.3*† | Form of MoneyGram International, Inc. 2005 Omnibus Incentive Plan 2017 Global Performance-Based Cash Award Agreement. |
10.4*† | 2017 Global Time-Based Restricted Stock Unit Award Agreement, dated February 22, 2017, between MoneyGram International, Inc. and Pamela H. Patsley. |
10.5*† | 2017 Global Performance-Based Restricted Stock Unit Award Agreement, dated February 22, 2017, between MoneyGram International, Inc. and Pamela H. Patsley. |
10.6*† | 2017 Global Performance-Based Cash Award Agreement, dated February 22, 2017, between MoneyGram International, Inc. and Pamela H. Patsley. |
10.7*† | 2017 Global Time-Based Restricted Stock Unit Award Agreement, dated February 22, 2017, between MoneyGram International, Inc. and W. Alexander Holmes. |
10.8*† | 2017 Global Performance-Based Restricted Stock Unit Award Agreement, dated February 22, 2017, between MoneyGram International, Inc. and W. Alexander Holmes. |
10.9*† | 2017 Global Performance-Based Cash Award Agreement, dated February 22, 2017, between MoneyGram International, Inc. and W. Alexander Holmes. |
10.10*† | Form of Amended and Restated Severance Agreement. |
10.11* | Amendment No. 4 to Amended and Restated Master Trust Agreement, dated January 25, 2017 by and between MoneyGram Payment Systems, Inc. and Wal-Mart Stores, Inc. |
10.12* | Amendment No. 5 to Amended and Restated Master Trust Agreement, dated January 1, 2017 by and between MoneyGram Payment Systems, Inc. and Wal-Mart Stores, Inc. |
10.13*+ | Amendment No. 6 to Amended and Restated Master Trust Agreement, dated February 20, 2017 by and between MoneyGram Payment Systems, Inc. and Wal-Mart Stores, Inc. |
10.14*+ | Amendment No. 1 to the Co-Branded MTaas Website Addendum to the Amended and Restated Master Trust Agreement, dated February 22, 2017 by and between MoneyGram Payment Systems, Inc. and Wal-Mart Stores, Inc. |
10.15 | Voting and Support Agreement, dated January 26, 2017, by and among MoneyGram International, Inc., Alipay (UK) Limited and the affiliates and co-investors of Thomas H. Lee Partners, L.P. signatories thereto (Incorporated by reference from Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed January 26, 2017). |
10.16 | Form of Voting and Support Agreement for the Management Stockholders (Incorporated by reference from Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed January 26, 2017). |
31.1* | Section 302 Certification of Chief Executive Officer |
31.2* | Section 302 Certification of Chief Financial Officer |
32.1** | Section 906 Certification of Chief Executive Officer |
32.2** | Section 906 Certification of Chief Financial Officer |
101* | The following financial statements, formatted in Extensible Business Reporting Language (“XBRL”): (i) Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2016; (ii) Condensed Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016; (iii) Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2016; (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016; (v) Condensed Consolidated Statements of Stockholders' Deficit for the three months ended March 31, 2017 and 2016; and (vi) Notes to Condensed Consolidated Financial Statements. |
* | Filed herewith. |
** | Furnished herewith. |
+ | Confidential information has been omitted from this Exhibit and has been filed separately with the SEC pursuant to a confidential treatment request under Rule 24b-2. |
† | Indicates management contract or compensatory plan or arrangement required to be filed as an exhibit to this report. |
1. | Award. |
2. | Vesting. |
Vesting Date | Cumulative Percentage Vested | ||
1st Anniversary of Grant Date | 33.3 | % | |
2nd Anniversary of Grant Date | 66.6 | % | |
3rd Anniversary of Grant Date | 100.0 | % |
1. | Award. |
2. | Vesting. |
Total Constant Currency Revenue Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
Adjusted EBITDA Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
1. | Award. |
2. | Vesting. |
Total Constant Currency Revenue Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
Adjusted EBITDA Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
1. | Award. |
2. | Vesting. |
Vesting Date | Cumulative Percentage Vested | ||
1st Anniversary of Grant Date | 33.3 | % | |
2nd Anniversary of Grant Date | 66.6 | % | |
3rd Anniversary of Grant Date | 100.0 | % |
1. | Award. |
2. | Vesting. |
Total Constant Currency Revenue Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
Adjusted EBITDA Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
1. | Award. |
2. | Vesting. |
7. | Forfeiture and Repayment Provisions. |
Total Constant Currency Revenue Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
Adjusted EBITDA Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
1. | Award. |
2. | Vesting. |
Vesting Date | Cumulative Percentage Vested | ||
1st Anniversary of Grant Date | 33.3 | % | |
2nd Anniversary of Grant Date | 66.6 | % | |
3rd Anniversary of Grant Date | 100.0 | % |
1. | Award. |
2. | Vesting. |
Total Constant Currency Revenue Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
Adjusted EBITDA Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
1. | Award. |
2. | Vesting. |
Total Constant Currency Revenue Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: $[ ] | [ ] |
Adjusted EBITDA Performance Goal: | |
Attainment Level | Attainment Factor |
Threshold: [ ] | [ ] |
Target: [ ] | [ ] |
1. | Definitions. |
a. | All claims arising out of or relating to Executive’s employment with the Company and/or Executive’s separation from that employment. |
b. | All claims arising out of or relating to the statements, actions, or omissions of the Released Parties. |
c. | All claims for any alleged unlawful discrimination, harassment, retaliation or reprisal, or other alleged unlawful practices arising under any federal, state, or local statute, ordinance, or regulation, including without limitation, claims under Title VII of the Civil Rights Act of 1964, as amended; the Age Discrimination in Employment Act of 1967, as amended; the Americans with Disabilities Act of 1990, as amended; the Family and Medical Leave Act of 1993; the Equal Pay Act of 1963; the Worker Adjustment and Retraining Notification Act; the Employee Retirement Income Security Act of 1974; the Fair Credit Reporting Act; the Minnesota Human Rights Act, any other federal, state or local anti-discrimination acts, state wage payment statutes and non-interference or non-retaliation statutes. |
d. | All claims for alleged wrongful discharge; breach of contract; breach of implied contract; failure to keep any promise; breach of a covenant of good faith and fair | |
dealing; breach of fiduciary duty; promissory estoppel; Executive’s activities, if any, as a “whistleblower”; defamation; infliction of emotional distress; fraud; misrepresentation; negligence; harassment; retaliation or reprisal; constructive discharge; assault; battery; false imprisonment; invasion of privacy; interference with contractual or business relationships; any other wrongful employment practices; and violation of any other principle of common law. |
e. | All claims for compensation of any kind, including without limitation, commission payments, bonus payments, vacation pay, expense reimbursements, reimbursement for health and welfare benefits, and perquisites. |
f. | All claims for back pay, front pay, reinstatement, other equitable relief, compensatory damages, damages for alleged personal injury, liquidated damages, and punitive damages. |
g. | All claims for attorneys’ fees, costs, and interest. |
MONEYGRAM INTERNATIONAL, INC. | ||
By: | ||
Name: | ______________________________ | |
Title: | ______________________________ | |
1. | The Agreement and all subsequent amendments are collectively referred to in this Amendment No. 4 as the “Agreement.” |
2. | Except as otherwise indicated, capitalized terms used in this Amendment No. 4 have the same meanings as in the Agreement. |
3. | Except as specifically amended hereby, the Agreement remains in full force and effect in accordance with the terms thereof. |
4. | If there is any inconsistency between the terms of this Amendment No. 4 and the Agreement, the terms of Amendment No. 4 will govern. |
5. | Section 7(d) of the Agreement is hereby amended and replaced in its entirety by the following: |
6. | Attachment J, “Data Sharing, POCS Data and License Attachment,” is deleted in its entirety and replaced by Attachment J, “Data Addendum,” attached to this Amendment No. 4 and incorporated into the Agreement by reference. All references in the Agreement to “Attachment J, Data Sharing, POCS Data and License Attachment shall be amended to refer instead to “Attachment J, Data Addendum.” |
WAL-MART STORES, INC. | MONEYGRAM PAYMENT SYSTEMS, INC. |
By: /s/ Daniel J. Eckert | By: /s/ W. Alexander Holmes |
Name: Daniel J. Eckert | Name: W. Alexander Holmes |
Title: Senior Vice President, Walmart Services Date: 1/25/2017 | Title: Chief Executive Officer Date: 1/25/2017 |
A. | Incorporation. This Data Addendum by and between Walmart and MoneyGram (the “Data Sharing Attachment”) is part of, and incorporated into, that certain Amended and Restated Master Trust Agreement between Walmart and MoneyGram (the “Agreement”). This Data Sharing Attachment sets forth the terms and conditions regarding the ownership and use of certain data obtained or generated from or in connection with Walmart’s sale of MoneyGram’s Services at the Agent Locations as well as data collected or maintained in Walmart’s POCS System pursuant to the Agreement , pursuant to the February 1, 2005 Money Services Agreement between Walmart and MoneyGram (“2005 Agreement”), and pursuant to the April 1, 2013 Master Trust Agreement between Walmart and MoneyGram (“2013 Agreement”). |
B. | Certain Definitions. The following capitalized terms shall have the meanings given below. Any other capitalized terms used but not defined in this Data Sharing Attachment shall have the meanings given to such terms in the Agreement. |
(i) | “Bill Payment Data” means the following data and information, if available, obtained in connection with Walmart’s sale and offering of the Bill Payment Services: (i) the Agent Location where the applicable Bill Payment Service transaction originated; (ii) sender’s first and last name, address and telephone number; (iii) Bill Payment Service details surrounding the transaction (date/time, amount, price, and fees); and (iv) biller name. |
(ii) | “Commit Message” means the message that Walmart sends to MoneyGram by or through websites, mobile applications, self-service kiosks, or Walmart-operated point of sale systems after a consumer agrees to purchase the Services that represents Walmart’s commitment to settle funds with MoneyGram. |
(iii) | “Competing Products and Services” means any products or services offered by or through Walmart that are substantially similar to the Services. |
(iv) | “MoneyGram Data” means collectively the Bill Payment Data, the Transfer Receive Data, the Transfer Send Data, and any data, other than Walmart Data, collected and obtained in connection with the sale of Bill Payment Services and the Transfer Send and Transfer Receive segments of Money Transfer Services. MoneyGram Data includes the 2010 Data and the 2013 Data. |
(v) | “Non-Competing Products and Services” means any products or services offered by or through Walmart that are not Competing Products and Services. |
(vi) | “Staging Data” means any information (i) collected by Walmart from a Walmart consumer or customer prior to the Commit Message being sent from Walmart to MoneyGram ; and (ii) previously collected by Walmart from a Walmart consumer or customer and displayed on or pre-populated to stage transactions prior to the Commit Message being sent. |
(vii) | “Transfer Receive Data” means the following data and information, if available, obtained in connection with Walmart’s sale and offering of the Transfer Receive segment of Money Transfer Services: (i) the Agent Location where the respective Transfer Receive transaction was disbursed; (ii) the date and time the Transfer Receive was actually disbursed by the Agent Location; (iii) receiver’s first and last name, and depending on transaction amount, address and telephone number. |
(ix) | “Transfer Send Data” means the following data and information, if available, obtained in connection with Walmart’s sale and offering of the Transfer Send segment of Money Transfer Services: (i) Agent Location where the respective Transfer Send transaction originated; (ii) sender’s first and last name, address and telephone number; (ii) Transfer Send transaction details (date/time, amount, price, consumer fee); (iv) name of intended recipient; (v) intended destination of the Transfer Send transaction (state and/or country). |
(x) | “Walmart Data” shall mean (i) any contact or other personal information provided by a consumer or customer to Walmart outside of the purchase and/or use of the Services; and (ii) Staging Data. |
(xi) | “2010 Data” means Bill Payment Data, Transfer Receive Data and Transfer Send Data with respect to transactions under the 2005 Agreement occurring from January 1, 2010 through March 31, 2013. |
(xii) | “2013 Data” means Bill Payment Data, Transfer Receive Data and Transfer Send Data with respect to transactions under the 2013 Agreement occurring from April 1, 2013 through and including the day immediately preceding the Effective Date of the Agreement. |
(i) | License to Walmart. Subject to the terms and conditions set forth in the Agreement, MoneyGram hereby grants to Walmart a royalty-free, non-exclusive, worldwide, irrevocable license, during the Data Sharing Term (as defined in Section H), to use, store, process, manipulate, reproduce and combine the MoneyGram Data. Walmart may permit its subcontractors to exercise the rights granted above, provided that subcontractors shall only exercise such rights in the course of providing services to Walmart or its Affiliates. To the extent MoneyGram Data is also Walmart Data, Walmart’s use of such data in any way shall be regarded as use of Walmart Data not MoneyGram Data that is the subject of the license granted herein. |
(ii) | Seller Use Restrictions. Notwithstanding the license granted pursuant to Section (c)(i), Walmart may use the MoneyGram Data only for the following purposes: |
(1) | to conduct internal statistical analyses on a personally identifiable basis; |
(2) | to perform internal business modeling; |
(3) | to add dimensionality to Walmart’s consumers and customers, including developing insights into consumer and customer behaviors, consumer and customer needs and demographics and creating, maintaining and updating consumer and customer profiles on or through websites, mobile applications, self-service kiosks, or Walmart-operated point of sale systems; or |
(4) | to provide or display consumer and customer transaction information on or through websites, mobile applications, self-service kiosks, or Walmart-operated point of sale systems. |
(1) | not to disclose or use the MoneyGram Data in any way that would breach or otherwise be inconsistent with MoneyGram’s applicable privacy disclosures or that would conflict with or otherwise violate Applicable Law; |
(2) | not to sell, resell, license, sublicense or distribute the MoneyGram Data to third parties other than Walmart’s subcontractors that are providing services to Walmart in connection with such data; and |
(3) | not to use the MoneyGram Data to market Walmart’s or its affiliates’ Competing Products and Services. The maintenance, use or display of consumer or customer transaction information to populate data fields and facilitate consumer or customer transactions does not constitute the use of MoneyGram Data to market Walmart’s or its affiliate’s Competing Products and Services. |
(iv) | Nothing herein shall restrict Walmart’s use or disclosure of any Walmart Data or shall restrict MoneyGram’s |
(v) | Additional MoneyGram Covenants. MoneyGram represents, warrants and covenants that MoneyGram Data provided pursuant to this Data Addendum will only include data that Walmart may use for each of the purposes identified in Section C(ii) of this Data Addendum, and that MoneyGram’s disclosure of MoneyGram Data provided pursuant to this Data Addendum is permitted by and consistent with MoneyGram’s applicable privacy policy and privacy disclosures. If any data included in MoneyGram Data provided pursuant to this Data Addendum may not be used for each of the purposes identified in Section C(ii), MoneyGram must specifically identify such data and such data may only be used by Walmart to offer and sell the Services. |
(i) | General. The parties recognize that the users of the Services at the Agent Locations are customers of both Walmart and MoneyGram. The parties further acknowledge that the same or similar information may be included in Walmart Data and MoneyGram Data. To the extent that the same information is included in both Walmart Data and MoneyGram Data: (1) Walmart shall retain its ownership and use rights in such Walmart Data and (2) MoneyGram shall retain its ownership and use rights in such MoneyGram Data, each subject to the limitations set forth in this Agreement. |
(ii) | “Consumer Report” Information. Notwithstanding anything to the contrary in this Agreement MoneyGram shall have no obligation to disclose any information contained in the MoneyGram Data which MoneyGram reasonably believes in good faith falls within the definition of a “consumer report” as set forth in the Fair Credit Reporting Act. |
(i) | Delivery of MoneyGram Data to Walmart. MoneyGram shall deliver to Walmart at no additional charge to Walmart the MoneyGram Data in such format and by such method as the Parties shall mutually agree in writing. |
(ii) | Third Party Data. Neither MoneyGram nor Walmart shall have any obligation to provide the other with any information or data purchased by such party from a third party for purposes of analyzing, enhancing or otherwise using the MoneyGram Data, as the case may be; provided, however, that nothing in this Section E(ii) shall limit MoneyGram’s or Walmart’s delivery obligations under this Section E. |
(i) | For purposes of clarity, the MoneyGram Data and the Walmart Data shall be included in the definition of Confidential Information, as defined in the Agreement. |
(ii) | Walmart accepts full responsibility for adequately securing any MoneyGram Data in its possession, and will hold MoneyGram harmless from any breach of such data from Walmart’s systems or any system of any service provider of Walmart. |
G. | Disclaimer of Warranties. NEITHER PARTY MAKES ANY WARRANTIES, EXPRESS OR IMPLIED, ARISING FROM COURSE OF DEALING, USAGE OF TRADE, NOR STATUTORY, AS TO THE MONEYGRAM DATA, THE WALMART DATA OR ANY OTHER MATTER WHATSOEVER. EACH PARTY HEREBY DISCLAIMS ANY AND ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. NEITHER PARTY MAKES ANY WARRANTY OF ANY KIND WITH RESPECT TO THE TIMELINESS, SEQUENCE, ACCURACY, COMPLETENESS, OR QUALITY OF THE MONEYGRAM DATA OR THE WALMART DATA. |
(i) | Term. The term of this Data Sharing Attachment shall commence on the Effective Date and continue until the later of the expiration or termination of the Agreement (“Data Sharing Term”). |
(ii) | Effect of Expiration or Termination. Upon expiration or termination of this Data Sharing Attachment, Walmart shall cease all use of the MoneyGram Data, provided that Walmart may retain one complete copy of the MoneyGram Data solely for the purpose of complying with Applicable Law and internal corporate compliance policies and Walmart may continue to use any information or data resulting from Walmart’s or its third parties’ manipulation or analysis of such MoneyGram Data whether alone or in conjunction with other data such that the underlying MoneyGram Data is not discernable as being MoneyGram Data. |
WAL-MART STORES, INC. | MONEYGRAM PAYMENT SYSTEMS, INC. |
By: /s/ Daniel J. Eckert | By: /s/ W. Alexander Holmes |
Name: Daniel J. Eckert | Name: W. Alexander Holmes |
Title: Senior Vice President, Walmart Services | Title: Chief Executive Officer |
1. | Trustee shall not authorize or appoint sub-agents or sub-delegates to sell or offer or perform money transfer services. |
2. | Trustee acknowledges and agrees that it may be subject to supervision and regulation by certain state governmental authorities; |
3. | Trustee hereby consents, with or without further prior notice, to examinations and/or inspections of its books, records and accounts by any authorized state governmental representative to the fullest extent allowed by law. |
4. | Trustee acknowledges and agrees that state governmental authorities may suspend or revoke Trustee’s designation as an “authorized delegate”, “agent”,” authorized agent”, “authorized seller” or “authorized vendor”, or require Company to terminate Trustee’s designation as such; |
5. | Trustee acknowledges and agrees that Trustee is under a duty to act only as authorized under the Agreement, and that if Trustee exceeds its authority under the Agreement the Agreement is subject to termination and Trustee may be subject to disciplinary action under applicable law; |
6. | Trustee agrees to post any notice that is legally required or provided by Company or any governmental authority in the manner required by law. |
1. | The Authorized Delegate shall perform the Services in compliance with the Alaska Uniform Money Services Act, Alaska Statutes, Title 6, Chapter 55 (the “Act”), and any regulations adopted or orders issued thereunder, as amended from time to time. |
2. | The Authorized Delegate certifies that it is familiar with, and agrees to operate in full compliance with, the Act and 3 Alaska Administrative Code Chapter 13 including the requirements of Alaska Statutes § 06.55.301(b) for remission of money, the trust and other requirements of Alaska Statutes § 06.55.301(d), and the record maintenance requirements of Alaska Stat. § 06.55.405 and 3 Alaska Administrative Code Chapter 13. |
3. | The Authorized Delegate acknowledges receipt of the written policies and procedures required under Alaska Stat. § 06.55.301(a). |
1. | The Agreement may contain a provision designating governing law as a state other than the State of California. Notwithstanding the terms of the Agreement, the provisions of the California Money Transmission Act shall apply to the Agreement for Agents or Agent locations in the State of California and in the event of a conflict of laws, the provisions of the California Money Transmission Act shall prevail. |
2. | MoneyGram appoints the Agent as its agent with authority to sell on behalf of MoneyGram payment instruments issued by MoneyGram or to conduct money transmission on behalf of MoneyGram. The Authorized Delegate shall perform the services in compliance with the Money Transmission Act, California Financial Code, Division 1.2 (the “Act”) and any regulations adopted or orders issued thereunder, as amended from time to time. |
3. | The Agent shall make and keep accounts, correspondence, memorandums, papers, books, and other records as the Department of Business Oversight by regulation or order requires and preserves the records for the time specified by the regulation or order. |
4. | The Agent acknowledges and agrees that: |
(a) | all money or monetary value, less fees due agents provided for and expressly set forth in the written agreement, received by the Agent for money transmission on behalf of MoneyGram shall be trust funds owned by and belonging to MoneyGram the time when the money or an equivalent amount are remitted by the agent to the MoneyGram in accordance with Section 2060 of Chapter 4 of the California Financial Code. |
(b) | all money must be remitted in accordance with the provisions of Cal. Fin. Code § 2000 et seq. |
(c) | it agrees to be bound by any other provisions that the Commissioner may by regulation or order find to be necessary to carry out the |
5. | Agent agrees to update and amend its agreements with MoneyGram to accommodate any other provisions that the Commissioner may by regulation find to be necessary to carry out the provisions and purposes of the Act. |
1. | The Authorized Vendor shall report to MoneyGram, immediately upon discovery, the theft or loss of currency received for a transmission or payment instrument. |
2. | The Authorized Vendor shall hold in trust all currency or payment instruments received for transmissions or for the purchase of payment instruments from the time of receipt by MoneyGram or the Authorized Vendor until the time the transmission obligation is completed. |
3. | The Authorized Vendor shall not commingle the money received for transmissions accepted or payment instruments sold on behalf of MoneyGram with the money or property of the Authorized Vendor, except for making change in the ordinary course of the Authorized Vendor’s business, and ensure that the money is accounted for at the end of the business day. |
1. | The Authorized Seller shall operate in full compliance with the laws of the State of Illinois and of the United States, including without limitation the Illinois Transmitters of Money Act (the “Act”), Illinois Compiled Statutes, Sections 657/1 - 657/105, and any rules and regulations issued thereunder, as amended from time to time. |
2. | The Authorized Seller acknowledges and agrees that it holds in trust for MoneyGram from the moment of receipt the proceeds of any business transacted under the Act in an amount equal to the amount of proceeds due MoneyGram less the amount due the Authorized Seller. The funds shall remain the property of MoneyGram whether or not commingled by the Authorized Seller with its own funds. In the event MoneyGram’s license is revoked by the Director of Financial Institutions (the “Director”), all proceeds then held in trust by the Authorized Seller shall be deemed to have been assigned to the Director. |
3. | The Authorized Seller shall upon discovery immediately report to MoneyGram the theft or loss of any payment instrument from MoneyGram or Authorized Seller in Illinois having a value in excess of $100 or an aggregate value of $1,000 in any 3 month period. |
1. | The Authorized Delegate agrees to operate in full compliance with the Iowa Money Services Act, Iowa Code Chapter 533C (the “Act”), and any regulations and orders issued thereunder, as amended from time to time. |
2. | The Authorized Delegate acknowledges and agrees that it shall not provide Money services outside the scope of activity permissible under the Agreement between MoneyGram and the Authorized Delegate, except activity in which the authorized delegate is authorized to engage under Article 2 or 3 of the Iowa Uniform Money Services Act, Iowa Code Chapter 533C. |
3. | The Authorized Delegate acknowledges and agrees that it holds in trust for the benefit of MoneyGram all money net of fees received from money transmission. |
• | Authority to Conduct Examinations or Investigations (M.C.L.A. § 487.1021) |
• | Filing of Changed Information (M.C.L.A. § 487.1023) |
• | Maintenance of Records (M.C.L.A. § 487.1025) |
(a) | A record of each payment instrument from the date it was created; |
(b) | A general ledger posted at least monthly containing all asset, liability, capital, income and expense accounts; |
(c) | Bank statements and bank reconciliation records; |
(d) | Records of outstanding payment instruments; |
(e) | Records of each payment instrument paid within the 3 year period; |
(f) | A list of the last known name and addresses of all of the MoneyGram’s Authorized Delegates. |
(g) | Any other records the commissioner reasonably requires. |
• | Agreements Between You and MoneyGram (M.C.L.A §§ 487.1033, 487.1034) |
1. | As an Authorized Delegate of MoneyGram, you shall comply with the Michigan Money Transmission Services Act, Mich. Comp. Laws §§ 487.1001 - 1047, as amended and all other applicable law. |
2. | You shall remit all monies owing to MoneyGram in accordance with the Agreement. “Remit” means to make direct payments of money to MoneyGram or its representative authorized to receive money or to deposit money in a depository financial institution in an amount specified by MoneyGram. |
3. | If MoneyGram’s license is suspended or revoked you shall immediately cease providing money transmission services as an Authorized Delegate of MoneyGram upon notice of the suspension or revocation. |
4. | You acknowledge and agree that you shall not provide money transmission services outside the scope of activity permissible under the Agreement, except activity in which you as an Authorized Delegate of MoneyGram is otherwise authorized to engage. |
5. | You acknowledge and agree that, as an Authorized Delegate of MoneyGram, you hold all money received from providing money transmission services, reduced by any fees owed to you by MoneyGram, in trust for the benefit of MoneyGram. |
• | Agent Conduct; Duties and Prohibited Activities (M.C.L.A. § 487.1034) |
• | Suspension or Revocation of Agents (M.C.L.A. § 487.1041) |
• | Criminal Penalties (M.C.L.A § 487.1042) |
• | Civil Penalties (M.C.L.A § 487.1046) |
1. | MoneyGram is licensed by the Superintendent of Banks of the State of New York (the “Superintendent”) to engage in the business of issuing and selling money orders denominated in United States currency and receiving money for transmission within this country and abroad pursuant to the provisions of Article XIII-B of the Banking Law. |
2. | The Agent shall not act on behalf of the consumer as a courier for the transmission of money which activity requires licensing as a money transmitter, and any money orders sold in the State of New York may not be retained by the Agent but must be given to the purchasers of the instruments for their own delivery to the beneficiary. |
3. | The Agent acknowledges and agrees that the Superintendent reserves the right to inspect, with or without prior notice to MoneyGram or the Agent or subagent, if any, the books and records of the Agent of MoneyGram, and that the expenses incurred by the Superintendent in making any such inspection shall be borne by MoneyGram. |
4. | The Agent shall not sell any travelers check, money order or other money transmission instrument in the State of New York unless MoneyGram’s name shall clearly appear on the face of the instrument and MoneyGram shall not condition its engagement as obligor under the payment instrument upon the remittance of proceeds of sale from the Agent and subagent, if any. |
5. | The Agent shall not sell any travelers check, money order or other money transmission instrument in the State of New York unless the Agent has provided the Superintendent with a written and irrevocable consent to examine, have access to, and retain copies of all of its books and records, wherever maintained, relating to these activities. |
6. | The Agent acknowledges and agrees that it is under a duty to act only as authorized under the Agreement between MoneyGram and the Agent, and the Agent who exceeds such authority is subject to cancellation of this Agreement and may result in further disciplinary action against MoneyGram by the Superintendent. |
7. | The Agent shall not sell or deliver money orders over-the-counter to the public or engage in the business of receiving money for transmission in a manner that would require the Agent to be licensed under Article XIII-B, Section 648 of the Banking Law, New York State Consolidated Laws. Section 648 provides that: § 648. Agents and subagents |
(a) | No license under this article shall be required of any agent or subagent of a licensee except as provided in the following subsection. |
(b) | An agent or subagent, other than a person expressly excepted from the application of this article, who sells or delivers the licensee`s checks over-the-counter to the public shall not be exempt from licensing under this article if such agent or subagent in the ordinary conduct of such business receives or at any time has access to (1) the licensee’s checks which, having been paid, are returned through banking channels or otherwise for verification or for reconciliation or accounting with respect thereto or (2) bank statements relating to checks so returned. No license under this article shall be required of an agent, including a general or managing agent, of a licensee who does not directly sell or deliver the licensee’s checks over-the-counter to the public. |
1. | MoneyGram appoints the Authorized Delegate to engage with authority to conduct money transmission on behalf of MoneyGram in North Carolina. |
2. | Authorized delegates, in their capacity as agents of MoneyGram, are subject to the supervision and regulation by the Commissioner notwithstanding exemption from licensure. |
3. | MoneyGram shall issue a certificate of authority for each location at which Trustee conducts licensed activities in the State of North Carolina and Trustee shall post such certificate in public view at each location. Each certificate shall state as follows: "Money transmission on behalf of MoneyGram Payment Systems, Inc. is conducted at this location pursuant to the North Carolina Money Transmitters Act, N.C.G.S. § 53-208.41” |
1. | The Agent is acting on behalf of MoneyGram in providing money transmission services. |
2. | The Agent and MoneyGram agree that the Agent is subject to the control of MoneyGram meaning that MoneyGram takes complete responsibility for the money being transmitted from the moment that an individual initiates the transmission of money with the Agent until the intended recipient receives the transmitted money, |
3. | There is no risk of loss to the individual initiating the transaction if the Agent fails to remit the funds to MoneyGram. |
4. | Receipt of funds by the Agent for MoneyGram products or services is deemed receipt of funds by MoneyGram. |
5. | The Agent may not provide money transmission services outside the scope of activity permissible under the written agreement between the Agent and MoneyGram except to the extent that the Agent is licensed itself or acting as an agent for another person. |
6. | Individuals doing business with the Agent are aware that the Agent is working on behalf of MoneyGram. |
1. | The Authorized Delegate certifies that it is familiar with and agrees to fully comply with all applicable state and federal laws, rules, and regulations pertaining to money transmission, including the Puerto Rico Act to Regulate Money Services Business, P.R. Laws, (Act No. 136 of 2010), the Bank Secrecy Act, the USA PATRIOT ACT and other money services laws and agrees to comply fully with such requirements. |
2. | The Authorized Delegate shall remit all money owing to MoneyGram in accordance with the terms of the Agreement between MoneyGram and the Authorized Delegate and in accordance with § 3.7 of the Puerto Rico Act to Regulate Money Services Business. |
3. | The Authorized Delegate shall prepare and maintain records as required by the Puerto Rico Act to Regulate Money Services Business or any rules adopted or orders issued thereunder or as reasonably requested by the Commissioner of Financial Institutions of Puerto Rico (‘Commissioner”). |
4. | The Authorized Delegate acknowledges and consents to examination or investigation by the Commissioner. |
5. | The Authorized Agent acknowledges and agrees that it is under a duty to act only as authorized under this Agreement, and that if the Authorized Agent exceeds such authority this Agreement is subject to cancellation by MoneyGram and the Authorized Agent is subject to disciplinary action by the Commissioner. |
6. | The Authorized Delegate acknowledges receipt of the written rules and procedures required under § 3.8 of the Puerto Rico Act to Regulate Money Services Business. |
1. | MoneyGram appoints the Authorized Delegate as MoneyGram's authorized delegate with the authority to conduct money transmission on behalf of MoneyGram in compliance with the Texas Regulation of Money Services Business, Chapter 151 of the Texas Finance Code, and any rules adopted or orders issued thereunder, as amended from time to time. |
2. | MoneyGram and the Authorized Delegate acknowledge that the contract between them sets forth the nature and scope of the relationship between MoneyGram and the Authorized Delegate and the respective rights and responsibilities of the parties. |
3. | The Authorized Delegate certifies that it is familiar with and agrees to fully comply with all applicable state and federal laws, rules, and regulations pertaining to money transmission, including the Texas Regulation of Money Services Business, Chapter 151 of the Texas Finance Code and any rules adopted or orders issued thereunder, relevant provisions of the Bank Secrecy Act and the USA PATRIOT ACT, and Chapter 271 and Chapter 278 of the Texas Finance Code. |
4. | The Authorized Delegate shall remit all money owed to MoneyGram: (1) not later than the 10th business day after the date the Authorized Delegate receives the money; (2) in accordance with the contract between MoneyGram and the Authorized Delegate; or (3) as directed by the commissioner. The Authorized Delegate may remit the money at a later date if the Authorized Delegate maintains on deposit with an office of a federally insured financial institution located in the United States an amount that: (1) is in an account solely in the name of MoneyGram; and (2) for each day by which the period before the remittance exceeds 10 business days, is not less than the outstanding obligations of MoneyGram routinely incurred by the Authorized Delegate on a daily basis. |
5. | MoneyGram shall hold in trust all money received for transmission directly or from the Authorized Delegate from the time of receipt until the time the transmission obligation is discharged. A trust resulting from MoneyGram's actions is in favor of the persons to whom the related money transmission obligations are owed. The Authorized Delegate shall hold in trust all money received for transmission by or for MoneyGram from the time of receipt until the time the money is remitted by the Authorized Delegate to MoneyGram. A trust resulting from the Authorized Delegate's actions is in favor of MoneyGram. The Authorized Delegate may not commingle the money received for transmission by or for MoneyGram with the Authorized Delegate's own money or other property, except to use in the ordinary course of the Authorized Delegate's business for the purpose of making change, if the money is accounted for at the end of each business day. If MoneyGram or the Authorized Delegate commingles any money received for transmission with money or other property owned or controlled by MoneyGram or the Authorized Delegate, all commingled money and other property are impressed with a trust as provided by section 151.404 of the Texas Finance Code in an amount equal to the amount of money received for transmission, less the amount of fees paid for the transmission. If the commissioner revokes MoneyGram’s license under section 151.703 of the Texas Finance Code, all money held in trust by MoneyGram and the Authorized Delegates is assigned to the commissioner for the benefit of the persons to whom the related money transmission obligations are owed. Money of MoneyGram or the Authorized Delegate impressed with a trust under section 151.404 of the Texas Finance Code may not be considered |
6. | The Authorized Delegate shall prepare and maintain records as required by Chapter 151 of the Texas Finance Code or any rules adopted or orders issued thereunder or as reasonably requested by the commissioner. |
7. | MoneyGram and the Authorized Delegate acknowledge that the Authorized Delegate consents to examination or investigation by the commissioner. |
8. | MoneyGram is subject to regulation by the commissioner and that, as part of that regulation, the commissioner may suspend or revoke an authorized delegate designation or require MoneyGram to terminate an authorized delegate designation. |
9. | The Authorized Delegate acknowledges receipt of the written policies and procedures adopted by MoneyGram to ensure that the Authorized Delegate complies with applicable state and federal law. |
10. | The Authorized Delegate acknowledge that it has been provided regulatory website addresses through which the Authorized Delegate can access Chapters 151 and 271 of the Texas Finance Code and rules adopted under those chapters (www.dob.texas.gov) and the Bank Secrecy Act (https://www.fincen.gov/resources/statutes-regulations/fincens-mandate-congress)and the USA PATRIOT ACT and (https://www.fincen.gov/resources/statutes-regulations/usa-patriot-act) |
1. | The Authorized Delegate shall operate in full compliance with the State of “Washington Uniform Money Services Act,” Rev. Code Wash. §§ 19.230.005 to 19.230.905 and any rules adopted, or orders issued thereunder, as amended from time to time. |
2. | The Authorized Delegate acknowledges and agrees that it may not provide money services outside the scope of activity permissible under the Agreement between MoneyGram and the Authorized Delegate, except activity in which the Authorized Delegate is authorized to engage under Rev. Code Wash. §§ 19.230.030 or 19.230.080. |
Arkansas | Arkansas Uniform Money Services Act, Ark. Code §§ 23-55-101 to 23-55-1005, including Ark. Money Service Rule, §§ 102-1006. |
Connecticut | Connecticut General Statutes Title 36a, Sections 595 to 610, inclusive, as amended by Public Act No. 13-253 (“Act’), and sections 18 and 19 of this Act. |
Georgia | Article 4 of title 7 of the Official Code of Georgia Annotated, the rules and regulations promulgated under Article 4, and any applicable order issued by the Georgia Commissioner of Banking and Finance. |
Kansas | Kansas Money Transmitters Act, Kan. Stat. §§ 9-508 through 9-513, and amendments thereto, and Kan. Stat. 2012 Supp. §§ 9-513a through 9-513d. |
Kentucky | Kentucky Money Transmitters Act and rules promulgated under the Act and any order issued by the Executive Director of the Kentucky Office of Financial Institutions. |
Minnesota | MoneyGram is subject to supervision and regulation by the Commissioner and that as a part of that supervision and regulation, the Commissioner may require MoneyGram to cancel the Agreement as a result of a violation of section 53B.21 of the Minnesota Money Transmitters Act, Minn. Stat. §§ 53B.01 - 53B.26. |
Nebraska | MoneyGram is subject to supervision and regulation by the Nebraska Director of Banking and Finance. |
New Mexico | New Mexico Uniform Money Services Act and rules promulgated under the Act and any order issued by the Director of the Financial Institutions Division of the Regulation and Licensing Department for the State of New Mexico. |
Ohio | Ohio Revised Code Sections 1315.01 to 1315.18, and any regulations adopted or issues ordered thereunder, as amended from time to time. |
Oklahoma | Oklahoma Financial Transaction Reporting Act, Oklahoma Statutes Title 6, Sections 1511 et seq., Oklahoma Sale of Checks Act, Title 6, Sections 2101 et seq., and any regulations adopted or orders issued thereunder, as amended from time to time. |
South Carolina | South Carolina Ant-Money Laundering Act and rules promulgated under the Act and any order issued by the South Carolina Attorney General. |
US Virgin Islands | U.S. Virgin Islands Uniform Money Services Act, V.1. Code Title 9, § 501 to 592 (the "Act"), and any regulations adopted or orders issued thereunder, as amended from time to time. |
Utah | MoneyGram is subject to supervision and regulation by the Commissioner of Financial Institutions. |
Vermont | Chapter 79, Title 8 of the Vermont Statutes (Money Services) |
Virginia | Virginia Code Title 6.2-1900 et seq. and any regulations adopted or orders issued thereunder, as amended from time to time, and all other applicable state and federal laws and regulations. |
West Virginia | The laws of the State of West Virginia and of the United States. The Authorized Delegate acknowledges and agrees that it holds in trust for MoneyGram from the moment of receipt of the proceeds of any business transacted under West Virginia Code §§ 32A-2-1 to 32-A-28 in an amount equal to the amount of proceeds due MoneyGram less the amount due the Authorized Delegate. |
1. | Except as otherwise indicated, capitalized terms used in this Amendment No. 6 have the same meanings as in the Agreement. |
2. | Except as specifically amended hereby, the Agreement remains in full force and effect in accordance with the terms thereof. |
3. | If there is any inconsistency between the terms of this Amendment No. 6 and the Agreement, the terms of Amendment No. 6 will govern. |
4. | The following paragraph shall be added as a second paragraph to Section N(ii) of Attachment C: |
WAL-MART STORES, INC. | MONEYGRAM PAYMENT SYSTEMS, INC. |
By: /s/ Daniel J. Eckert | By: /s/ W. Alexander Holmes |
Name: Daniel J. Eckert | Name: W. Alexander Holmes |
Title: Senior Vice President, Walmart Services Date: 2/20/2017 | Title: Chief Executive Officer Date: 2/6/2017 |
1. | Incorporation. MoneyGram will offer the MTaaS Bill Payment Services, as defined in the Amendment , through the MTaaS Co-Branded Site. |
2. | Additional Definitions. |
3. | Term and Termination. This Amendment shall commence on the Amendment Effective Date and continue for the Term of the Agreement, unless the Agreement is terminated prior to the end of the Term in accordance with Section 9 of the Agreement. |
4. | MTaaS Bill Payment Service Compensation. MoneyGram will pay Walmart a commission for each completed Bill Pay Transaction (the “BP MTaaS Commission”) in accordance with Section 12 of the MTaaS Attachment, including without limitation Sections 12(c), (d) and (e) as follows: [*] of the per transaction BP Commission rate set forth in Attachment B -Bill Payment Service Attachment, Section I. In the event Walmart is able to assume full responsibility for funding and payment authentication/authorization, the BP MTaaS Commission under this Section for each completed Bill Pay Transaction shall be [*]% of the per transaction BP Commission rate set forth in Attachment B -Bill Payment Services Attachment, Section I. MoneyGram and Walmart may agree from time to time to implement special initiatives for certain transactions. For those special initiatives, the Parties may agree to a modified MTaaS BP Commission for such transactions. |
5. | Marketing Fund. For the purposes of the first two sentences of Section 12(f) of the MTaaS Attachment, completed Bill Pay Transactions do not constitute “Completed Transactions,” and neither Walmart nor MoneyGram shall be obligated to allocate any amounts to the Marketing Fund with respect to any completed Bill Pay Transactions. Subject to the mutual agreement of the Parties, funds in the Marketing Fund may be used for the promotion and marketing of the Bill Pay Transactions. |
6. | Reporting. Section 6, "Reporting," of Exhibit A of the MTaaS Attachment is deleted in its entirety and replaced by the following: |
* | The number of cancelled Transactions, the dollar amount of cancelled Transactions, and any amounts deducted from Walmart Commissions due to cancelled Transactions; |
7. | Binding Effect. This Amendment shall bind and inure to the benefit of the parties hereto and their respective heirs, successors and assigns. |
8. | Interpretation. In the event of any conflict between the terms of this Amendment and the terms of the Agreement and any other amendment or addendum thereto with respect to the subject matter hereof, the terms of this Amendment shall control. |
9. | Entire Agreement. This Amendment supplements, amends, modifies and is made a part of the Agreement and together therewith, shall constitute the entire agreement between the parties hereto with respect to the subject matter hereof. This Amendment supersedes all prior understandings, arrangements or agreements, whether verbal or written, between the parties hereto with respect to the subject matter hereof. Except as expressly amended, supplemented or modified by this Amendment, the Agreement and any addendum or amendment thereto shall continue in full force and effect. |
10. | Effective Date. This Amendment shall be effective on the date of the last signature below. (the “Amendment Effective Date”). |
AGREED: | |
MoneyGram Payment Systems, Inc. | Wal-Mart Stores, Inc. |
(MoneyGram) | (Walmart) |
By: /s/ W. Alexander Holmes | By: /s/ Daniel Eckert |
Name: W. Alexander Holmes | Name: Daniel Eckert |
Title: Chief Executive Officer | Title: SVP |
Date: February 22, 2017 | Date: February 22, 2017 |
1. | I have reviewed this Quarterly Report on Form 10-Q of MoneyGram International, Inc. for the period ended March 31, 2017; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | May 4, 2017 | /s/ W. Alexander Holmes | |
W. Alexander Holmes | |||
Director and Chief Executive Officer | |||
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of MoneyGram International, Inc. for the period ended March 31, 2017; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | May 4, 2017 | /s/ Lawrence Angelilli | |
Lawrence Angelilli | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | May 4, 2017 | /s/ W. Alexander Holmes | |
W. Alexander Holmes | |||
Director and Chief Executive Officer | |||
(Principal Executive Officer) |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | May 4, 2017 | /s/ Lawrence Angelilli | |
Lawrence Angelilli | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
May 03, 2017 |
|
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | MONEYGRAM INTERNATIONAL INC | |
Entity Central Index Key | 0001273931 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,022,994 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 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) | 4,856,901 | 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 Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
NET INCOME (LOSS) | $ 8.8 | $ (4.2) |
OTHER COMPREHENSIVE INCOME | ||
Net change in unrealized holding gains on available-for-sale securities arising during the period, net of tax expense of $0.0 for each of the three months ended March 31, 2017 and 2016 | 0.1 | 0.0 |
Net change in pension liability due to amortization of prior service credit and net actuarial loss, net of tax benefit of $0.4 and $0.5 for the three months ended March 31, 2017 and 2016, respectively | 0.7 | 0.8 |
Unrealized foreign currency translation adjustments, net of tax expense of $0.0 and $2.8 for the three months ended March 31, 2017 and 2016, respectively | 2.2 | 1.2 |
Other comprehensive income | 3.0 | 2.0 |
COMPREHENSIVE INCOME (LOSS) | $ 11.8 | $ (2.2) |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net change in unrealized holding gains on available-for-sale securities, tax | $ 0.0 | $ 0.0 |
Amortization of prior service credit and net actuarial loss for pension and postretirement benefit plans, tax | (0.4) | (0.5) |
Unrealized foreign currency translation adjustments, tax | $ 0.0 | $ 2.8 |
Condensed Consolidated Statement of Stockholders' Deficit - 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, 2015 | $ (222.8) | $ 183.9 | $ 0.6 | $ 1,002.4 | $ (1,226.8) | $ (48.7) | $ (134.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (4.2) | ||||||
Stock-based compensation activity | 2.6 | 5.0 | (29.1) | 26.7 | |||
Stock repurchases | (1.9) | (1.9) | |||||
Other comprehensive income | 2.0 | 2.0 | |||||
Ending Balance at Mar. 31, 2016 | (224.3) | 183.9 | 0.6 | 1,007.4 | (1,260.1) | (46.7) | (109.4) |
Beginning Balance at Dec. 31, 2016 | (208.4) | 183.9 | 0.6 | 1,020.3 | (1,247.6) | (53.9) | (111.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 8.8 | ||||||
Stock-based compensation activity | (2.7) | 4.0 | (44.7) | 38.0 | |||
Other comprehensive income | 3.0 | 3.0 | |||||
Ending Balance at Mar. 31, 2017 | $ (199.3) | $ 183.9 | $ 0.6 | $ 1,024.3 | $ (1,283.5) | $ (50.9) | $ (73.7) |
Description of the Business and Basis of Presentation |
3 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 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 months ended March 31, 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. Recent Accounting Pronouncements and Related Developments — In May 2014, the Financial Accounting Standards Board ("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:
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. The Company continues to evaluate all other impacts from these standards as they pertain to our money transfer and bill payment services and the impacts on products and services provided by our Financial Paper Products segment. 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 has begun evaluating and planning for the adoption and implementation of ASU 2016-02. 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. 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”) to the Merger Agreement. 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 and shareholder approval. |
Settlement Assets and Payment Service Obligations |
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Mar. 31, 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:
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Fair Value Measurement |
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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:
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:
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:
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 March 31, 2017 and December 31, 2016. |
Investment Portfolio |
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Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Portfolio | Investment Portfolio The following table shows the components of the investment portfolio:
(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:
As of March 31, 2017 and December 31, 2016, 39% 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 March 31, 2017 and 2016, the Company had no net realized gains or losses. The Company had nominal and no gross unrealized losses in its available-for-sale portfolio as of March 31, 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 Instruments |
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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 (used in) provided by operating activities" line in the Condensed Consolidated Statements of Cash Flows:
As of March 31, 2017 and December 31, 2016, the Company had $318.0 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:
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 |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following is a summary of the Company’s outstanding debt:
Revolving Credit Facility — As of March 31, 2017, the Company had no outstanding letters of credit and no borrowings under its revolving credit facility, leaving $125.0 million of availability thereunder. 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 following table shows the components of our assets in excess of payment service obligations used for the asset coverage calculation:
The credit agreement also has quarterly financial covenants to maintain the following interest coverage and secured leverage ratios:
As of March 31, 2017, the Company was in compliance with its financial covenants: our interest coverage ratio was 6.67 to 1.00 and our secured leverage ratio was 3.345 to 1.00. We continuously monitor our compliance with our debt covenants. |
Pensions and Other Benefits |
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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 defined pension plan ("Pension Plan") and supplemental executive retirement plans ("SERPs"), collectively referred to as "Pension":
The following table is a summary of net periodic benefit income for the Company’s postretirement medical benefit plan ("Postretirement Benefits"):
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Stockholders' Deficit |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Deficit | Stockholders’ Deficit Common Stock — No dividends were paid during the three months ended March 31, 2017 or March 31, 2016. Accumulated Other Comprehensive Loss — The following tables are a summary of the changes to Accumulated other comprehensive loss by component:
The following table is a summary of the significant amounts reclassified out of each component of Accumulated other comprehensive loss:
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Stock-Based Compensation |
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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:
Stock Options — The following table is a summary of the Company’s stock option activity:
As of March 31, 2017, the unrecognized stock option expense related to outstanding options was $0.2 million with a remaining weighted-average vesting period of 0.4 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:
As of March 31, 2017, the Company’s outstanding restricted stock units had unrecognized compensation expense of $26.6 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 $13.2 million and $12.9 million for the three months ended March 31, 2017 and 2016, respectively. |
Income Taxes |
3 Months Ended |
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Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2017, the Company recognized income tax expense of $2.5 million on a pre-tax income of $11.3 million. The recorded income tax expense for the three months ended March 31, 2017 differs from taxes calculated at the statutory rate primarily due to the recognition of excess tax benefits on stock-based compensation vested during the quarter. For the three months ended March 31, 2016, the Company recognized an income tax expense of $16.0 million on pre-tax income of $11.8 million. The recorded income tax expense for the three months ended March 31, 2016 differs from taxes calculated at the statutory rate primarily due to tax expense of $7.7 million from the settlement reached with the Internal Revenue Service (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 $2.8 million on share-based compensation and a tax expense of $1.1 million related to non-deductible executive compensation. 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 March 31, 2017 and December 31, 2016, the liability for unrecognized tax benefits was $24.2 million. For the three months ended March 31, 2017 and 2016, the net amount of unrecognized tax benefits that if recognized could impact the effective tax rate was $16.7 million and $38.2 million, respectively. The Company accrues interest and penalties for unrecognized tax benefits through “Income tax expense” in the Condensed Consolidated Statements of Operations. For the three months ended March 31, 2017 and 2016, the Company's accrual for interest and penalties increased by $0.6 million and $0.5 million, respectively. As of March 31, 2017 and December 31, 2016, the Company had a liability of $7.0 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 previously discussed, 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 March 31, 2017, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax positions over the next 12 months. |
Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Participation Agreement between the Investors and Wal-Mart Stores, Inc. — 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 March 31, 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 $2.0 million and $1.2 million of liability recorded in the “Accounts payable and other liabilities” line in the Condensed Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016, respectively. A charge of $0.9 million and a nominal charge were recorded for legal proceedings during the three months ended March 31, 2017 and 2016, respectively, in the "Transaction and operations support" line in the Condensed Consolidated Statements of Operations. 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 alleges 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. In September 2016, the court denied plaintiffs' motion to remand. The Company believes that the claims are without merit and intends to vigorously defend against the lawsuit. The Company is unable to predict the outcome, or the possible loss or range of loss, if any, related to this matter. Merger-Related Litigation — On March 13, 2017 and March 17, 2017, respectively, putative securities class action lawsuits challenging the Merger were filed in the United States District Court for the District of Delaware and the United States District Court for the Northern District of Texas against MoneyGram and its directors. One of the lawsuits also named as defendants certain of our executive officers, Alipay and other parties to the Merger. The plaintiffs, our stockholders, challenged the Merger and the disclosures made in connection with the Merger. The lawsuits alleged violations of various securities laws and regulations due to allegedly material and misleading omissions in the preliminary proxy statement filed in connection with the Merger. Additionally, the lawsuits alleged that the Merger Agreement is unfair to our stockholders, resulted from an inadequate process, and contains terms that will supposedly deter third parties from making alternative offers. The plaintiffs sought to enjoin the Merger and to recover damages, costs and attorneys’ fees in unspecified amounts. On April 26, 2017 and April 28, 2017, the plaintiffs in the Delaware and Texas suits, respectively, filed notices of voluntary dismissal of those actions. 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: State Civil Investigative Demands — MoneyGram received Civil Investigative Demands from a working group of nine state attorneys general who initiated an investigation into whether the Company took adequate steps to prevent consumer fraud during the period from 2007 to 2014. On February 11, 2016, the Company entered into a settlement agreement with 49 states and the District of Columbia to settle any civil or administrative claims such attorneys general may have asserted under their consumer protection laws through the date of the settlement agreement in connection with the investigation. Under the settlement agreement, the Company made a non-refundable payment of $13.0 million to the participating states in March 2016 to be used by the states to provide restitution to consumers. The Company also agreed to implement certain enhancements to its compliance program and provide periodic reports to the states party to the settlement agreement. 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. 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. 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 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 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 March 31, 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 $17.8 million on amounts that have previously been accrued. |
Earnings per Common Share |
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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 (loss) per common share because the D Stock is deemed a common stock equivalent. Diluted earnings (loss) 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 (loss) 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 (loss) per share:
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 (loss) per common share, as their effect would be anti-dilutive:
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Segment Information |
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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% and 19% of total revenue for the three months ended March 31, 2017 and 2016, respectively. The following table is a summary of the total revenue by segment:
The following table is a summary of the operating income by segment and detail of the income before income taxes:
The following table sets forth the assets by segment:
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Condensed Consolidating Financial Statements |
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Condensed Consolidating Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements In the event the Company offers debt securities pursuant to an effective registration statement on Form S-3, these debt securities may be guaranteed by certain of its subsidiaries. Accordingly, the Company is providing condensed consolidating financial information in accordance with the Securities and Exchange Commission Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. If the Company issues debt securities, the following 100 percent directly or indirectly owned subsidiaries could fully and unconditionally guarantee the debt securities on a joint and several basis: MoneyGram Payment Systems Worldwide, Inc.; MoneyGram Payment Systems, Inc.; and MoneyGram of New York LLC (collectively, the “Guarantors”). The following information represents Condensed Consolidating Balance Sheets as of March 31, 2017 and December 31, 2016, Condensed Consolidating Statements of Operations for the three months ended March 31, 2017 and 2016 and Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2017 and 2016. The condensed consolidating financial information presents financial information in separate columns for MoneyGram International, Inc. on a Parent-only basis carrying its investment in subsidiaries under the equity method; Guarantors on a combined basis, carrying investments in subsidiaries that are not expected to guarantee the debt (collectively, the “Non-Guarantors”) under the equity method; Non-Guarantors on a combined basis; and eliminating entries. The eliminating entries primarily reflect intercompany transactions, such as accounts receivable and payable, fee revenue and commissions expense and the elimination of equity investments and income in subsidiaries. MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING BALANCE SHEETS AS OF MARCH 31, 2017
MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING BALANCE SHEETS AS OF DECEMBER 31, 2016
MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2017
MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2016
MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017
MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2016
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Description of the Business and Basis of Presentation (Policies) |
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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. |
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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 months ended March 31, 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. |
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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. |
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Recent Accounting Pronouncements and Related Developments | Recent Accounting Pronouncements and Related Developments — In May 2014, the Financial Accounting Standards Board ("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:
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. The Company continues to evaluate all other impacts from these standards as they pertain to our money transfer and bill payment services and the impacts on products and services provided by our Financial Paper Products segment. 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 has begun evaluating and planning for the adoption and implementation of ASU 2016-02. 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. 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. |
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Subsequent Events [Text Block] | 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”) to the Merger Agreement. 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 and shareholder approval. |
Settlement Assets and Payment Service Obligations (Tables) |
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Mar. 31, 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:
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Fair Value Measurement (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 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:
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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:
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Fair value and carrying value of debt | The following table is a summary of the Company's fair value and carrying value of debt:
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Investment Portfolio (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Investment Portfolio | The following table shows the components of the investment portfolio:
(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. |
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Available for Sale Investments | The following table is a summary of the amortized cost and fair value of available-for-sale investments:
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Derivative Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 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 (used in) provided by operating activities" line in the Condensed Consolidated Statements of Cash Flows:
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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:
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Outstanding Debt | The following is a summary of the Company’s outstanding debt:
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Settlement Assets and Payment Service Obligations | The following table shows the components of our assets in excess of payment service obligations used for the asset coverage calculation:
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Credit Agreement Quarterly Financial Covenants | The credit agreement also has quarterly financial covenants to maintain the following interest coverage and secured leverage ratios:
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Pensions and Other Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 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 defined pension plan ("Pension Plan") and supplemental executive retirement plans ("SERPs"), collectively referred to as "Pension":
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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"):
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Stockholders' Deficit (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Deficit | Stockholders’ Deficit Common Stock — No dividends were paid during the three months ended March 31, 2017 or March 31, 2016. Accumulated Other Comprehensive Loss — The following tables are a summary of the changes to Accumulated other comprehensive loss by component:
The following table is a summary of the significant amounts reclassified out of each component of Accumulated other comprehensive loss:
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss — The following tables are a summary of the changes to Accumulated other comprehensive loss by component:
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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:
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Stock-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 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:
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Summary of Stock Option Activity | The following table is a summary of the Company’s stock option activity:
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Summary of Restricted Stock Unit Activity | The following table is a summary of the Company’s restricted stock unit activity:
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Earnings per Common Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table is a reconciliation of the weighted-average amounts used in calculating earnings (loss) per share:
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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 (loss) per common share, as their effect would be anti-dilutive:
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Segment | The following table is a summary of the total revenue by segment:
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Operating Income by Segment | The following table is a summary of the operating income by segment and detail of the income before income taxes:
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Assets by Segment | The following table sets forth the assets by segment:
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Condensed Consolidating Financial Statements (Tables) |
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Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED, CONSOLIDATING BALANCE SHEETS | MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING BALANCE SHEETS AS OF MARCH 31, 2017
MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING BALANCE SHEETS AS OF DECEMBER 31, 2016
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CONDENSED, CONSOLIDATING STATEMENTS OF OPERATIONS | MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2017
MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2016
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CONDENSED, CONSOLIDATING STATEMENTS OF CASH FLOWS | MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017
MONEYGRAM INTERNATIONAL, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2016
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Description of the Business and Basis of Presentation (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017
Segment
|
Apr. 15, 2017
$ / shares
|
Jan. 26, 2017
$ / shares
|
|
Number of reporting segments (segment) | Segment | 2 | ||
Ant Financial [Member] | |||
Business Acquisition, Share Price | $ 13.25 | ||
Ant Financial [Member] | Subsequent Event [Member] | |||
Business Acquisition, Share Price | $ 18.00 |
Settlement Assets and Payment Service Obligations (Detail) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Disclosure Settlement Assets in Excess of Payment Service Obligations [Abstract] | ||
Settlement cash and cash equivalents | $ 1,461.0 | $ 1,365.0 |
Receivables, net | 861.1 | 999.4 |
Interest-bearing investments | 1,153.4 | 1,252.1 |
Available-for-sale investments | 17.4 | 17.8 |
Settlement Assets | 3,492.9 | 3,634.3 |
Payment service obligations | $ (3,492.9) | $ (3,634.3) |
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 | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 10.6 | $ 11.6 |
Principal paydowns | (0.1) | (0.2) |
Change in unrealized gains | (0.1) | 0.0 |
Ending balance | $ 10.6 | $ 11.4 |
Fair Value Measurement - Fair Value and Carrying Value of Debt (Detail) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Fair Value | $ 921.5 | $ 912.5 |
Carrying Value | $ 921.5 | $ 924.0 |
Investment Portfolio - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Percent of available-for-sale portfolio invested in U.S government agency residential mortgage-backed securities | 39.00% | 40.00% | |
Marketable Securities, Gain (Loss) | $ 0.0 | $ 0.0 |
Investment Portfolio - Components of Investment Portfolio (Detail) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|---|---|
Investments, Debt and Equity Securities [Line Items] | ||||||
Cash | $ 1,580.7 | $ 1,514.5 | ||||
Money market securities | 7.7 | 7.7 | ||||
Cash and cash equivalents | 127.4 | 157.2 | $ 141.5 | $ 164.5 | ||
Interest-bearing investments | 1,153.4 | 1,252.1 | ||||
Available-for-sale Securities | 17.4 | 17.8 | ||||
Total investment portfolio | 2,759.2 | 2,792.1 | ||||
Cash and cash equivalents | ||||||
Investments, Debt and Equity Securities [Line Items] | ||||||
Cash and cash equivalents | [1] | $ 1,588.4 | $ 1,522.2 | |||
|
Investment Portfolio - Available for Sale Investments (Detail) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Investment [Line Items] | ||
Amortized Cost | $ 7.1 | $ 7.6 |
Gross Unrealized Gains | 10.3 | 10.2 |
Fair Value | 17.4 | 17.8 |
Residential mortgage-backed securities | ||
Investment [Line Items] | ||
Amortized Cost | 6.2 | 6.6 |
Gross Unrealized Gains | 0.6 | 0.6 |
Fair Value | 6.8 | 7.2 |
Asset-backed and other securities | ||
Investment [Line Items] | ||
Amortized Cost | 0.9 | 1.0 |
Gross Unrealized Gains | 9.7 | 9.6 |
Fair Value | $ 10.6 | $ 10.6 |
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||
Notional Disclosures [Abstract] | ||
Forward contracts outstanding notional amount | $ 318.0 | $ 294.5 |
Derivative Financial Instruments - Summary of (Gains) Losses Related to Assets and Liabilities Denominated in Foreign Currencies (Detail) - Selling, General and Administrative Expenses [Member] - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Derivative [Line Items] | ||
Net realized foreign currency gains | $ 3.0 | $ 6.7 |
Net (losses) gains from the related forward contracts | (2.0) | 4.0 |
Net gains from foreign currency transactions and related forward contracts | $ 1.0 | $ 10.7 |
Derivative Financial Instruments - Fair Values of Derivative Forward Contract Instruments (Detail) - Foreign Exchange Forward - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Other assets | ||
Summary of Derivative Instruments by Hedge Designation [Abstract] | ||
Gross Amount of Recognized Assets | $ 0.5 | $ 2.6 |
Gross Amount of Offset | (0.3) | (0.2) |
Net Amount of Assets Presented in the Condensed Consolidated Balance Sheets | 0.2 | 2.4 |
Other liabilities | ||
Summary of Derivative Instruments by Hedge Designation [Abstract] | ||
Gross Amount of Recognized Liabilities | 1.0 | 0.3 |
Gross Amount of Offset | (0.3) | (0.2) |
Net Amount of Liabilities Presented in the Condensed Consolidated Balance Sheets | $ 0.7 | $ 0.1 |
Debt - Additional Information (Detail) |
Mar. 31, 2017
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Interest coverage ratio | 6.67 |
Secured leverage ratio | 3.345 |
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 Debt (Detail) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Effective Interest Rate | 4.25% | |
Senior secured credit facility due 2020 | $ 921.5 | $ 924.0 |
Total debt, net | 913.4 | 915.2 |
2013 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Senior secured credit facility due 2020 | 921.5 | 924.0 |
Unamortized debt issuance costs and debt discount | (8.1) | (8.8) |
Total debt, net | $ 913.4 | $ 915.2 |
Debt - Settlement Assets and Payment Service Obligations (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Debt Disclosure [Abstract] | ||||
Cash and cash equivalents | $ 127.4 | $ 157.2 | $ 141.5 | $ 164.5 |
Settlement assets | 3,492.9 | 3,634.3 | ||
Total cash and cash equivalents and settlement assets | 3,620.3 | 3,791.5 | ||
Payment service obligations | (3,492.9) | (3,634.3) | ||
Assets in excess of payment service obligations | $ 127.4 | $ 157.2 |
Pensions and Other Benefits - Net Periodic Benefit Expense (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1.5 | $ 1.7 |
Expected return on plan assets | (1.3) | (1.3) |
Amortization of net actuarial loss | 1.1 | 1.4 |
Net periodic benefit income | 1.3 | 1.8 |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amortization of prior service credit | (0.1) | (0.1) |
Amortization of net actuarial loss | 0.1 | 0.0 |
Net periodic benefit income | $ 0.0 | $ (0.1) |
Stockholders' Deficit Additional detail (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Dividends [Abstract] | ||
Dividends, Common Stock, Cash | $ 0 | $ 0 |
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 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] | |||
Unrecognized compensation expense | $ 0.2 | ||
Weighted-average vesting period (years) | 4 months 15 days | ||
Shares related to restricted stock units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Weighted-average vesting period (years) | 1 year 5 months 10 days | 10 months 12 days | |
Unrecognized compensation expense | $ 26.6 | ||
Grant-date fair value of restricted stock units vested | $ 13.2 | $ 12.9 |
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 4.0 | $ 5.0 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 0.3 | 0.9 |
Shares related to restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3.7 | $ 4.1 |
Commitments and Contingencies - Additional Information (Detail) $ in Millions |
3 Months Ended | 12 Months Ended | 36 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2015
USD ($)
|
Sep. 30, 2011
State
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2009
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Commitments And Contingencies [Line Items] | ||||||||
Loss Contingency Accrual | $ 2.0 | $ 1.2 | ||||||
Charge for legal proceedings | 0.9 | |||||||
Internal Revenue Service (IRS) | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Loss Contingency Accrual | 17.8 | |||||||
Cumulative Deductions For Net Securities Losses | $ 900.0 | |||||||
Tax adjustments | $ 63.7 | $ 186.9 | ||||||
Cash taxes, net | $ 61.0 | |||||||
State Civil Investigative Demands | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Number of state attorneys general | State | 9 | |||||||
Payments for Legal Settlements | $ 13.0 | |||||||
Wal Mart Participation Agreement [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Potential Adjustments To Additional Paid In Capital Other with Corresponding Expense | $ 30.0 |
Earnings per Common Share Earnings per Common Share (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Basic | 62.1 | 62.4 |
Shares related to stock options and restricted stock units | 4.0 | 0.0 |
Diluted | 66.1 | 62.4 |
Earnings per Common Share (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the computation (shares) | 2.1 | 7.1 |
Shares related to stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the computation (shares) | 1.9 | 3.0 |
Shares related to restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the computation (shares) | 0.2 | 4.1 |
Segment Information - Additional Information (Detail) - Segment |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Segment Reporting Information [Line Items] | ||
Number of reporting segments (segment) | 2 | |
Percentage of total revenue | 18.00% | 19.00% |
Segment Information - Revenue by Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Segment Reporting Information [Line Items] | ||
Total revenue | $ 386.1 | $ 387.1 |
Global Funds Transfer revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 366.8 | 369.0 |
Global Funds Transfer revenue | Money transfer revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 341.7 | 344.9 |
Global Funds Transfer revenue | Bill payment revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 25.1 | 24.1 |
Financial Paper Products revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 19.3 | 18.1 |
Financial Paper Products revenue | Money order revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 12.5 | 12.7 |
Financial Paper Products revenue | Official check revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 6.8 | $ 5.4 |
Segment Information - Operating Income by Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Segment operating income: | ||
Total operating income | $ 22.1 | $ 23.1 |
Interest expense | 10.8 | 11.3 |
Income before income taxes | 11.3 | 11.8 |
Global Funds Transfer | ||
Segment operating income: | ||
Total operating income | 26.1 | 23.7 |
Financial Paper Products | ||
Segment operating income: | ||
Total operating income | 4.8 | 4.5 |
Total segment operating income | ||
Segment operating income: | ||
Total operating income | 30.9 | 28.2 |
Other | ||
Segment operating income: | ||
Total operating income | $ (8.8) | $ (5.1) |
Segment Information - Assets by Segment (Detail) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Total assets | $ 4,437.5 | $ 4,597.4 |
Global Funds Transfer | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,217.7 | 2,213.9 |
Financial Paper Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,065.6 | 2,198.3 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 154.2 | $ 185.2 |
Condensed Consolidating Financial Statements - Additional Information (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Condensed Consolidating Financial Statements [Abstract] | |
Percentage ownership in subsidiary for unconditional guarantee of debt securities | 100.00% |
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