Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segments

17. Segments

As further described in Note 1, the Company has classified its business into the following segments: Consumer Money Transfer, Business Solutions, and Consumer Services. Operating segments are defined as components of an enterprise that engage in business activities, about which separate financial information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker (“CODM”) in allocating resources and assessing performance.

The Consumer Money Transfer operating segment facilitates money transfers between two consumers. The segment includes five geographic regions whose functions are primarily related to generating, managing, and maintaining agent relationships and localized marketing activities. The Company includes Branded Digital transactions in its regions. By means of common processes and systems, these regions, including Branded Digital, create one interconnected global network for consumer transactions, thereby constituting one Consumer Money Transfer business and one operating segment.

The Business Solutions operating segment facilitated payment and foreign exchange solutions, primarily cross-border, cross-currency transactions, for small and medium size enterprises and other organizations and individuals. On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC, and the final closing for this transaction occurred on July 1, 2023. Accordingly, the Company will no longer report Business Solutions revenues and operating expenses after July 1, 2023. See Note 4 for further information regarding this transaction.

The Consumer Services segment primarily includes the Company’s bill payment services which facilitate payments for consumers, businesses, and other organizations, as well as the Company’s money order services, retail foreign exchange services, prepaid cards, lending partnerships, and digital wallets.

The Company’s segments are reviewed separately below because each segment addresses a different combination of customer groups, distribution networks, and services offered. The business segment measurements provided to, and evaluated by, the Company’s CODM are computed in accordance with the following principles:

•The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

•Corporate costs, including overhead expenses, are allocated to the segments primarily based on a percentage of the segments’ revenue compared to total revenue. Effective January 1, 2022, the Company stopped allocating corporate costs to its Business Solutions segment, given its agreement to sell this business, as discussed further in Note 4.

•The CODM does not review total assets by segment for purposes of assessing segment performance and allocating resources. As such, the disclosure of total assets by segment has not been included below.

•All items not included in operating income are excluded from the segments.

The following tables present the Company’s segment results for the years ended December 31, 2023, 2022, and 2021 (in millions):

	Year Ended December 31,
	2023			2022			2021
Revenues:
Consumer Money Transfer	$	4,005.0		$	3,993.5		$	4,394.0
Business Solutions(a)		29.7			196.9			421.8
Consumer Services		322.3			285.1			255.0
Total consolidated revenues	$	4,357.0		$	4,475.5		$	5,070.8
Operating income:
Consumer Money Transfer	$	750.8		$	765.1		$	977.6
Business Solutions(a)		3.7			58.5			95.5
Consumer Services		92.5			100.8			50.0
Total segment operating income		847.0			924.4			1,123.1
Russia/Belarus exit costs(b)		—			(10.0	)		—
Business Solutions exit costs(b)		—			(7.7	)		—
Operating expense redeployment program costs(c)		(29.5	)		(21.8	)		—
Total consolidated operating income	$	817.5		$	884.9		$	1,123.1

(a)On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to the Buyer. The sale was completed in three closings, the first of which occurred on March 1, 2022. The second occurred on December 31, 2022, and the final occurred on July 1, 2023. See Note 4 for further information regarding this transaction.

(b)Represents the exit costs incurred in connection with the Company’s suspension of its operations in Russia and Belarus and the divestiture of the Business Solutions business, primarily related to severance and non-cash impairments of property and equipment, an operating lease right-of-use asset, and other intangible assets. While certain of the expenses are identifiable to the Company’s segments, the expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company’s segment operating income results.

(c)Represents severance, expenses associated with streamlining the Company’s organizational and legal structure, and other expenses associated with the Company’s program to redeploy expenses in its cost base through optimizations in vendor management, real estate, marketing, and people strategy, as previously announced in October 2022. In 2023 and 2022, expenses incurred under the program also included non-cash impairments of operating lease right-of-use assets and property and equipment. The expenses are not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation. These expenses are therefore excluded from the Company’s segment operating income results.

	Year Ended December 31,
	2023		2022		2021
Depreciation and amortization:
Consumer Money Transfer	$	173.7	$	176.6	$	181.6
Business Solutions		—		—		16.1
Consumer Services		9.9		7.2		10.5
Total consolidated depreciation and amortization	$	183.6	$	183.8	$	208.2
Capital expenditures:
Consumer Money Transfer	$	136.6	$	198.8	$	192.3
Business Solutions		—		0.2		5.2
Consumer Services		11.2		9.2		17.1
Total consolidated capital expenditures	$	147.8	$	208.2	$	214.6

The geographic split of revenue below for the Consumer Money Transfer, Business Solutions, and Consumer Services segments is based upon the country where the transaction is initiated with 100% of the revenue allocated to that country. Long-lived assets, consisting of property and equipment, net, are presented based upon the location of the assets.

Based on the method used to attribute revenue between countries described in the paragraph above, each individual country outside the United States accounted for less than 10% of consolidated revenue for the years ended December 31, 2023, 2022, and 2021, respectively. In addition, each individual agent or Business Solutions customer accounted for less than 10% of consolidated revenue during these periods.

Information concerning principal geographic areas for Revenue was as follows (in millions):

	Year Ended December 31,
	2023		2022		2021
United States	$	1,507.9	$	1,575.1	$	1,702.0
International		2,849.1		2,900.4		3,368.8
Total	$	4,357.0	$	4,475.5	$	5,070.8

Information concerning principal geographic areas for long-lived assets was as follows (in millions):

	December 31,
	2023		2022
United States	$	54.6	$	69.7
International		36.8		40.6
Total(a)	$	91.4	$	110.3

(a)As of December 31, 2022, long-lived assets in International include Assets held for sale of $0.7 million. These assets related to the Company’s Business Solutions business, as further discussed in Note 4.