Segments (Tables)

6 Months Ended

Jun. 30, 2020

The following table presents the Company’s reportable segment results for the three and six months ended June 30, 2020 and 2019 (in millions):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Revenues:
Consumer-to-Consumer	$	976.6	$	1,112.9	$	1,992.0	$	2,169.8
Business Solutions		79.4		95.6		177.8		191.2
Other ^(a)		58.7		132.0		134.9		316.5
Total consolidated revenues	$	1,114.7	$	1,340.5	$	2,304.7	$	2,677.5
Operating income:
Consumer-to-Consumer	$	212.8	$	250.2	$	422.7	$	483.5
Business Solutions		1.3		10.5		15.2		19.1
Other ^(a)		12.9		5.6		32.8		14.9
Total segment operating income ^(b)		227.0		266.3		470.7		517.5
Restructuring-related expenses (Note 5)		(5.2)		(7.4)		(15.7)		(7.4)
Total consolidated operating income	$	221.8	$	258.9	$	455.0	$	510.1

(a)

Other primarily includes the Company’s cash-based and electronic-based bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services. In May 2019, the Company sold a substantial majority of its United States based electronic bill payments services, as discussed in Note 4. Speedpay revenues and direct operating expenses included in the Company’s results were $37.2 million and $30.6 million, respectively, for the three months ended June 30, 2019 and $125.4 million and $98.2 million, respectively, for the six months ended June 30, 2019. Paymap revenues and direct operating expenses included in the Company’s results were $1.6 million and $0.5 million, respectively, for the three months ended June 30, 2019 and $5.3 million and $2.2 million, respectively, for the six months ended June 30, 2019.

(b)

In the first quarter of 2020, the Company changed its expense allocation method so that its corporate data center and network engineering information technology expenses are allocated based on a percentage of relative revenue. In 2019, these costs had been allocated based in part on a percentage of relative transactions. The Company believes that an allocation method based fully on relative revenue presents a more representative view of segment profitability, as certain of the Company’s services, particularly some of its bill payment services and its money order services, have much lower revenues per transaction than the Company’s other services. Further, these technology expenses are becoming increasingly based on data storage utilized and less based on the number of transactions processed. For the three and six months ended June 30, 2019, this change would have decreased Consumer-to-Consumer operating income and increased Other operating income by $11.7 million and $24.8 million, respectively. Business Solutions was not materially impacted by the change in the allocation method.