0001101215-21-000133 | 10-Q | XBRL Viewer | Alliance Data Systems Corp

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Jul. 23, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Entity File Number	001-15749
Entity Registrant Name	ALLIANCE DATA SYSTEMS CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-1429215
Entity Address, Address Line One	3075 Loyalty Circle
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43219
City Area Code	614
Local Phone Number	729-4000
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	ADS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		49,755,996
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001101215
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Cash and cash equivalents	$ 3,001.9	$ 3,081.5
Accounts receivable, net, less allowance for doubtful accounts ($6.3 million and $4.0 million at June 30, 2021 and December 31, 2020, respectively)	369.0	383.8
Credit card and loan receivables:
Credit card and loan receivables - restricted for securitization investors	10,419.8	11,208.5
Other credit card and loan receivables	5,304.0	5,575.9
Total credit card and loan receivables	15,723.8	16,784.4
Allowance for loan loss	(1,635.3)	(2,008.0)
Credit card and loan receivables, net	14,088.5	14,776.4
Inventories, net	162.3	164.3
Other current assets	541.4	534.9
Redemption settlement assets, restricted	745.1	693.5
Total current assets	18,908.2	19,634.4
Property and equipment, net	295.4	310.9
Right of use assets - operating	215.3	233.2
Deferred tax asset, net	336.9	359.2
Intangible assets, net	69.6	81.7
Goodwill	1,359.3	1,369.6
Other non-current assets	627.7	558.1
Total assets	21,812.4	22,547.1
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	351.8	328.2
Accrued expenses	367.6	444.7
Current operating lease liabilities	21.8	23.6
Current portion of deposits	6,964.2	6,553.9
Current portion of non-recourse borrowings of consolidated securitization entities	1,561.2	1,850.7
Current portion of long-term and other debt	101.5	101.4
Other current liabilities	259.7	220.9
Deferred revenue	942.2	898.5
Total current liabilities	10,570.0	10,421.9
Deferred revenue	100.6	105.5
Long-term operating lease liabilities	259.2	276.4
Deposits	2,655.6	3,238.7
Non-recourse borrowings of consolidated securitization entities	3,042.1	3,859.2
Long-term and other debt	2,658.6	2,704.3
Other liabilities	478.4	419.5
Total liabilities	19,764.5	21,025.5
Commitments and contingencies (Note 14)
Stockholders' equity:
Common stock, $0.01 par value; authorized, 200.0 million shares; issued, 117.1 million shares at each of June 30, 2021 and December 31, 2020	1.2	1.2
Additional paid-in capital	3,442.9	3,427.2
Treasury stock, at cost, 67.4 million shares at each of June 30, 2021 and December 31, 2020	(6,733.9)	(6,733.9)
Retained earnings	5,370.8	4,832.1
Accumulated other comprehensive loss	(33.1)	(5.0)
Total stockholders' equity	2,047.9	1,521.6
Total liabilities and stockholders' equity	$ 21,812.4	$ 22,547.1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Jun. 30, 2021	Dec. 31, 2020
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, net, allowance for doubtful accounts (in dollars)	$ 6.3	$ 4.0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	200.0	200.0
Common stock, issued shares	117.1	117.1
Treasury stock, shares	67.4	67.4

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues
Services	$ 20.7	$ 37.9	$ 60.0	$ 84.5
Redemption, net	78.8	84.7	183.7	205.6
Finance charges, net	912.9	856.7	1,853.6	2,071.0
Total revenue	1,012.4	979.3	2,097.3	2,361.1
Operating expenses
Cost of operations (exclusive of depreciation and amortization disclosed separately below)	494.5	492.8	992.0	992.1
Provision for loan loss	(14.1)	250.1	19.3	906.0
General and administrative	27.2	20.4	44.1	44.3
Depreciation and other amortization	20.0	20.3	42.8	37.7
Amortization of purchased intangibles	11.5	21.0	22.7	42.4
Total operating expenses	539.1	804.6	1,120.9	2,022.5
Operating income	473.3	174.7	976.4	338.6
Interest expense
Securitization funding costs	30.4	42.7	64.0	92.6
Interest expense on deposits	41.8	58.9	87.3	119.2
Interest expense on long-term and other debt, net	29.5	26.1	59.0	54.4
Total interest expense, net	101.7	127.7	210.3	266.2
Income before income taxes	371.6	47.0	766.1	72.4
Provision for income taxes	98.1	8.6	206.4	4.0
Net income	$ 273.5	$ 38.4	$ 559.7	$ 68.4
Basic income per share (Note 3):
Net income per share (in dollars per share)	$ 5.50	$ 0.81	$ 11.26	$ 1.44
Diluted income per share (Note 3):
Net income per share (in dollars per share)	$ 5.47	$ 0.81	$ 11.21	$ 1.43
Weighted average shares (Note 3):
Basic (in shares)	49.7	47.6	49.7	47.6
Diluted (in shares)	50.0	47.7	49.9	47.7

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 273.5	$ 38.4	$ 559.7	$ 68.4
Other comprehensive income (loss):
Unrealized (loss) gain on securities available-for-sale	(1.7)	13.5	(10.7)	16.1
Tax benefit (expense)	0.5	(0.1)	1.2	(1.1)
Unrealized (loss) gain on securities available-for-sale, net of tax	(1.2)	13.4	(9.5)	15.0
Unrealized (loss) gain on cash flow hedges	(0.2)	(1.1)	0.9	(0.7)
Tax benefit (expense)	0.1	0.3	(0.1)	0.2
Unrealized (loss) gain on cash flow hedges, net of tax	(0.1)	(0.8)	0.8	(0.5)
Foreign currency translation adjustments (inclusive of deconsolidation of $3.8 million for the six months ended June 30, 2020 related to the sale of a business)	10.5	18.0	(19.4)	(2.1)
Other comprehensive income (loss), net of tax	9.2	30.6	(28.1)	12.4
Total comprehensive income, net of tax	$ 282.7	$ 69.0	$ 531.6	$ 80.8

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Millions	6 Months Ended
	Jun. 30, 2020 USD ($)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Deconsolidation related to sale of businesses	$ 3.8

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings Period of Adoption Adjustment	Retained Earnings	Accumulated Other Comprehensive Loss	Period of Adoption Adjustment	Total
Balance (ASU 2016-13) at Dec. 31, 2019				$ (485.0)			$ (485.0)
Balance at Dec. 31, 2019	$ 1.1	$ 3,257.7	$ (6,733.9)		$ 5,163.3	$ (99.9)		$ 1,588.3
Balance (in shares) at Dec. 31, 2019	115,000,000.0
Increase (Decrease) in Stockholders' Equity
Net income					68.4			68.4
Other comprehensive income (loss)						12.4		12.4
Stock-based compensation		11.0						11.0
Dividends and dividend equivalent rights declared					(39.6)			(39.6)
Other	$ 0.1	(1.0)						(0.9)
Other (in shares)	100,000
Balance at Jun. 30, 2020	$ 1.2	3,267.7	(6,733.9)		4,707.1	(87.5)		1,154.6
Balance (in shares) at Jun. 30, 2020	115,100,000
Balance at Mar. 31, 2020	$ 1.2	3,259.7	(6,733.9)		4,678.8	(118.1)		1,087.7
Balance (in shares) at Mar. 31, 2020	115,000,000.0
Increase (Decrease) in Stockholders' Equity
Net income					38.4			38.4
Other comprehensive income (loss)						30.6		30.6
Stock-based compensation		6.2						6.2
Dividends and dividend equivalent rights declared					(10.1)			(10.1)
Other		1.8						1.8
Other (in shares)	100,000
Balance at Jun. 30, 2020	$ 1.2	3,267.7	(6,733.9)		4,707.1	(87.5)		1,154.6
Balance (in shares) at Jun. 30, 2020	115,100,000
Balance at Dec. 31, 2020	$ 1.2	3,427.2	(6,733.9)		4,832.1	(5.0)		1,521.6
Balance (in shares) at Dec. 31, 2020	117,100,000
Increase (Decrease) in Stockholders' Equity
Net income					559.7			559.7
Other comprehensive income (loss)						(28.1)		(28.1)
Stock-based compensation		16.0						16.0
Dividends and dividend equivalent rights declared					(21.0)			(21.0)
Other		(0.3)						(0.3)
Balance at Jun. 30, 2021	$ 1.2	3,442.9	(6,733.9)		5,370.8	(33.1)		2,047.9
Balance (in shares) at Jun. 30, 2021	117,100,000
Balance at Mar. 31, 2021	$ 1.2	3,431.3	(6,733.9)		5,108.0	(42.3)		1,764.3
Balance (in shares) at Mar. 31, 2021	117,100,000
Increase (Decrease) in Stockholders' Equity
Net income					273.5			273.5
Other comprehensive income (loss)						9.2		9.2
Stock-based compensation		9.2						9.2
Dividends and dividend equivalent rights declared					(10.7)			(10.7)
Other		2.4						2.4
Balance at Jun. 30, 2021	$ 1.2	$ 3,442.9	$ (6,733.9)		$ 5,370.8	$ (33.1)		$ 2,047.9
Balance (in shares) at Jun. 30, 2021	117,100,000

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares				3 Months Ended			6 Months Ended
	Jul. 29, 2021	Apr. 29, 2021	Jan. 28, 2021	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Common Stock dividends and dividend equivalent rights declared (in dollars per share)	$ 0.21	$ 0.21	$ 0.21	$ 0.21	$ 0.21	$ 0.63	$ 0.21

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 559.7	$ 68.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	65.5	80.1
Deferred income taxes	22.1	131.4
Provision for loan loss	19.3	906.0
Non-cash stock compensation	16.0	11.0
Amortization of deferred financing costs	16.4	18.3
Asset impairment charges		34.2
Change in other operating assets and liabilities, net of sale of business	(4.9)	(179.8)
Other	39.1	(2.1)
Net cash provided by operating activities	733.2	1,067.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in redemption settlement assets	(41.0)	(18.7)
Change in credit card and loan receivables	666.2	3,053.4
Proceeds from sale of business		25.4
Proceeds from sale of credit card portfolio		289.5
Purchase of credit card portfolio	(31.5)
Capital expenditures	(34.9)	(26.1)
Purchases of other investments	(60.3)	(14.8)
Maturities/sales of other investments	34.6	31.2
Other	1.5	0.1
Net cash provided by investing activities	534.6	3,340.0
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under debt agreements	31.0	650.0
Repayments of borrowings	(81.7)	(300.7)
Non-recourse borrowings of consolidated securitization entities	2,065.0	350.0
Repayments/maturities of non-recourse borrowings of consolidated securitization entities	(3,172.9)	(2,630.0)
Net decrease in deposits	(176.0)	(936.4)
Payment of deferred financing costs	(8.3)	(3.0)
Dividends paid	(21.1)	(40.4)
Other	(0.6)	(1.1)
Net cash used in financing activities	(1,364.6)	(2,911.6)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0.7	(2.9)
Change in cash, cash equivalents and restricted cash	(96.1)	1,493.0
Cash, cash equivalents and restricted cash at beginning of period	3,463.2	3,958.1
Cash, cash equivalents and restricted cash at end of period	3,367.1	5,451.1
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	204.0	276.6
Income taxes paid, net	$ 173.3	$ 49.9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited condensed consolidated financial statements included herein have been prepared by Alliance Data Systems Corporation (“ADSC” or, including its consolidated subsidiaries and variable interest entities (“VIEs”), the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021.

The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Planned Spinoff of the LoyaltyOne segment

In May 2021, the Company announced its intention to spin off its LoyaltyOne segment, comprised of its Canadian AIR MILES^® Reward Program and Netherlands-based BrandLoyalty business, into a new, independent, publicly traded company (“SpinCo”) through a distribution of 81% of SpinCo’s shares to the stockholders of ADSC. The transaction is expected to qualify as a tax-free reorganization and a tax-free distribution to the Company and its stockholders for U.S. federal income tax purposes. The spinoff is expected to be completed in the fourth quarter of 2021, subject to market and certain other conditions. At the time of the spinoff, the Company expects to retain a 19% interest in SpinCo and the historical results of the LoyaltyOne segment will be reflected as discontinued operations in the Company’s consolidated financial statements.

Recently Issued Accounting Standards

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. This ASU is elective and is effective upon issuance for all entities. The Company is evaluating the impact that adoption of ASU 2020-04 will have on its consolidated financial statements.

Recently Adopted Accounting Standards

In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminated certain exceptions within Accounting Standards Codification (“ASC”) 740, “Income Taxes,” and clarified certain aspects of ASC 740 to promote consistency among reporting entities. Most amendments within the standard were required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company’s adoption of this standard on January 1, 2021 did not have a material impact on its consolidated financial statements.

REVENUE

6 Months Ended

Jun. 30, 2021

REVENUE

REVENUE

2. REVENUE

The Company’s products and services are reported under two segments—LoyaltyOne and Card Services, as shown below. The following tables present revenue disaggregated by major source:


					Corporate/
Three Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Major Source:

Coalition loyalty program	$	68.5	$	—	$	—	$	68.5
Short-term loyalty programs		76.6		—		—		76.6
Servicing fees, net		—		(51.4)		—		(51.4)
Other		2.4		—		—		2.4
Revenue from contracts with customers	$	147.5	$	(51.4)	$	—	$	96.1

Finance charges, net		—		912.9		—		912.9
Investment income		3.4		—		—		3.4
Total	$	150.9	$	861.5	$	—	$	1,012.4


					Corporate/
Three Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Major Source:

Coalition loyalty program	$	61.6	$	—	$	—	$	61.6
Short-term loyalty programs		84.8		—		—		84.8
Servicing fees, net		—		(28.5)		—		(28.5)
Other		1.6		—		—		1.6
Revenue from contracts with customers	$	148.0	$	(28.5)	$	—	$	119.5

Finance charges, net		—		856.7		—		856.7
Investment income		3.1		—		—		3.1
Total	$	151.1	$	828.2	$	—	$	979.3


					Corporate/
Six Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Major Source:

Coalition loyalty program	$	135.3	$	—	$	—	$	135.3
Short-term loyalty programs		182.9		—		—		182.9
Servicing fees, net		—		(83.8)		—		(83.8)
Other		2.4		—		—		2.4
Revenue from contracts with customers	$	320.6	$	(83.8)	$	—	$	236.8

Finance charges, net		—		1,853.6		—		1,853.6
Investment income		6.9		—		—		6.9
Total	$	327.5	$	1,769.8	$	—	$	2,097.3


					Corporate/
Six Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Major Source:

Coalition loyalty program	$	132.9	$	—	$	—	$	132.9
Short-term loyalty programs		205.1		—		—		205.1
Servicing fees, net		—		(59.1)		—		(59.1)
Other		4.9		—		—		4.9
Revenue from contracts with customers	$	342.9	$	(59.1)	$	—	$	283.8

Finance charges, net		—		2,071.0		—		2,071.0
Investment income		6.3		—		—		6.3
Total	$	349.2	$	2,011.9	$	—	$	2,361.1

The following tables present revenue disaggregated by geographic region based on the location of the subsidiary that generally correlates with the location of the customer:


					Corporate/
Three Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Geographic Region:

United States	$	1.5	$	861.5	$	—	$	863.0
Canada		73.6		—		—		73.6
Europe, Middle East and Africa		52.5		—		—		52.5
Asia Pacific		19.8		—		—		19.8
Other		3.5		—		—		3.5
Total	$	150.9	$	861.5	$	—	$	1,012.4


					Corporate/
Three Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Geographic Region:

United States	$	4.2	$	828.2	$	—	$	832.4
Canada		64.7		—		—		64.7
Europe, Middle East and Africa		50.7		—		—		50.7
Asia Pacific		13.4		—		—		13.4
Other		18.1		—		—		18.1
Total	$	151.1	$	828.2	$	—	$	979.3


					Corporate/
Six Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Geographic Region:

United States	$	2.5	$	1,769.7	$	—	$	1,772.2
Canada		153.5		0.1		—		153.6
Europe, Middle East and Africa		131.9		—		—		131.9
Asia Pacific		34.7		—		—		34.7
Other		4.9		—		—		4.9
Total	$	327.5	$	1,769.8	$	—	$	2,097.3


					Corporate/
Six Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Geographic Region:

United States	$	6.3	$	2,011.9	$	—	$	2,018.2
Canada		143.8		—		—		143.8
Europe, Middle East and Africa		119.3		—		—		119.3
Asia Pacific		50.4		—		—		50.4
Other		29.4		—		—		29.4
Total	$	349.2	$	2,011.9	$	—	$	2,361.1

Contract Liabilities

The Company records a contract liability when cash payments are received in advance of its performance, which applies to the service and redemption of an AIR MILES reward mile and the reward products for its short-term loyalty programs.

A reconciliation of contract liabilities for the AIR MILES Reward Program is as follows:


	Deferred Revenue
	Service		Redemption		Total

	(in millions)
Balance at January 1, 2021	$	247.2	$	756.8	$	1,004.0
Cash proceeds		84.8		137.1		221.9
Revenue recognized ⁽¹⁾		(100.3)		(110.9)		(211.2)
Other		—		0.7		0.7
Effects of foreign currency translation		6.6		20.8		27.4
Balance at June 30, 2021	$	238.3	$	804.5	$	1,042.8
Amounts recognized in the consolidated balance sheets:
Deferred revenue (current)	$	137.7	$	804.5	$	942.2
Deferred revenue (non-current)	$	100.6	$	—	$	100.6

(1)

Reported on a gross basis herein.

The deferred redemption obligation associated with the AIR MILES Reward Program is effectively due on demand from the collector base, thus the timing of revenue recognition is based on the redemption by the collector. Service revenue is amortized over the expected life of a mile, with the deferred revenue balance expected to be recognized into revenue in the amount of $83.3 million in 2021, $96.4 million in 2022, $49.0 million in 2023, and $9.6 million in 2024.

Additionally, contract liabilities for the Company’s short-term loyalty programs are recognized in other current liabilities in the Company’s unaudited condensed consolidated balance sheets. The beginning balance as of January 1, 2021 was $66.9 million and the closing balance as of June 30, 2021 was $75.2 million, with the change due to cash payments received in advance of program performance, offset in part by revenue recognized of approximately $156.3 million during the six months ended June 30, 2021.

Contract Costs

The Company recognizes an asset for the incremental costs of obtaining or fulfilling a contract with the retailer for a credit card program agreement to the extent it expects to recover those costs, in accordance with ASC 340-40, “Other Assets and Deferred Costs.” Contract costs are deferred and amortized on a straight-line basis that is consistent with the transfer of services, which is generally the term of the contract. Depending on the nature of the contract costs, the amortization is recorded as a reduction to revenue, or costs of operations, in the Company’s unaudited condensed consolidated statements of income. As of June 30, 2021 and December 31, 2020, the remaining unamortized contract

costs were $365.1 million and $311.1 million, respectively, and are included in other current assets and other non-current assets in the Company’s unaudited condensed consolidated balance sheets.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2021

EARNINGS PER SHARE

EARNINGS PER SHARE

3. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted net income per share of common stock:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020

	(in millions, except per share amounts)
Numerator:
Net income	$	273.5	$	38.4	$	559.7	$	68.4

Denominator:
Weighted average shares, basic		49.7		47.6		49.7		47.6
Weighted average effect of dilutive securities:
Net effect of dilutive unvested restricted stock ⁽¹⁾		0.3		0.1		0.2		0.1
Denominator for diluted calculation		50.0		47.7		49.9		47.7

Basic net income per share:	$	5.50	$	0.81	$	11.26	$	1.44
Diluted net income per share:	$	5.47	$	0.81	$	11.21	$	1.43

(1)

For both the three and six months ended June 30, 2021, the number of restricted stock units excluded from the calculation of weighted average dilutive common shares as the effect would have been anti-dilutive were de minimis. For both the three and six months ended June 30, 2020, 0.3 million of restricted stock units were excluded from the calculation of weighted average dilutive common shares as the effect would have been anti-dilutive.

ACQUISITION

6 Months Ended

Jun. 30, 2021

ACQUISITION

ACQUISITION

4. ACQUISITION

On September 28, 2020, the Company acquired 3.5 million preferred Series D Shares of Lon Inc., a Delaware corporation (“Bread”), for approximately $25.0 million, which represented an approximate 6% ownership interest in Bread. Bread is a technology-driven digital payments company, offering an omnichannel solution for retailers and platform capabilities to bank partners. On December 3, 2020, the Company acquired the remaining interest in Bread. In accordance with ASC 805, the Company’s approximate 6% interest was remeasured at fair value when control of Bread was obtained on December 3, 2020; no gain or loss was recognized on the remeasurement.

Consideration for the 100% ownership of Bread consisted of cash of $275.0 million, equity of $149.2 million with the issuance of 1.9 million shares of the Company’s common stock, and deferred cash consideration of $75.0 million due December 2021, subject to customary closing purchase price adjustments. Consideration, net of cash and restricted cash acquired, was $491.0 million.

The following table summarizes the allocation of the consideration and the respective fair values of the assets acquired and liabilities assumed in the Bread transaction as of the acquisition date, net of cash acquired:


	As of December 3, 2020
	(in millions)
Installment loan receivables	$	111.7
Accounts receivable		0.2
Other current assets		0.6
Property and equipment		0.3
Developed technology		90.7
Right of use assets - operating		3.6
Deferred tax asset, net		7.0
Intangible assets		11.3
Goodwill		369.6
Total assets acquired		595.0

Accounts payable		2.0
Accrued expenses		2.9
Operating lease liabilities		3.5
Non-recourse borrowings of consolidated securitization entities		95.6
Total liabilities assumed		104.0

Net assets acquired, net of cash and restricted cash	$	491.0

DISPOSITION

6 Months Ended

Jun. 30, 2021

DISPOSITION

DISPOSITION

5. DISPOSITION

On January 10, 2020, the Company sold Precima^®, a provider of retail strategy and customer data applications and analytics, to Nielsen Holdings plc for total consideration of $43.8 million. The purchase and sale agreement provided for $10.0 million in contingent consideration based upon the occurrence of specified events and performance of the business, with two earnout determinations in September 2020 and September 2021, respectively. In September 2020, the Company received cash of $5.0 million upon the earnout determination date. At June 30, 2021, the Company estimated the fair value of the remaining contingent purchase price at approximately $1.5 million, which is included in the total consideration below. Precima was included in the Company’s LoyaltyOne segment. The pre-tax gain was recorded in cost of operations in the Company’s unaudited condensed consolidated statements of income for the six months ended June 30, 2020.


	January 10,
	2020
	(in millions)
Total consideration ⁽¹⁾	$	43.8
Net carrying value of assets and liabilities (including other comprehensive income)		26.8
Allocation of goodwill		3.2
Strategic transaction costs		5.8
Pre-tax gain on sale of business, net of strategic transaction costs	$	8.0

(1)	Consideration as defined included cash associated with the sold Precima entities, which was $10.8 million.

CREDIT CARD AND LOAN RECEIVABLES

6 Months Ended

Jun. 30, 2021

CREDIT CARD AND LOAN RECEIVABLES

CREDIT CARD AND LOAN RECEIVABLES

6. CREDIT CARD AND LOAN RECEIVABLES

Quantitative information about the components of the Company’s credit card and loan receivables is presented in the table below:


	June 30,		December 31,
	2021		2020

	(in millions)
Credit card receivables	$	15,313.7	$	16,376.4
Installment loan receivables		152.1		118.0
Other		258.0		290.0
Total credit card and loan receivables		15,723.8		16,784.4
Less: Credit card and loan receivables – restricted for securitization investors		10,419.8		11,208.5
Other credit card and loan receivables	$	5,304.0	$	5,575.9

Allowance for Loan Loss

The allowance for loan loss is an estimate of expected credit losses, measured over the estimated life of the Company’s credit card and loan receivables that considers forecasts of future economic conditions in addition to information about past events and current conditions. The estimate under the current expected credit loss (“CECL”) model is significantly influenced by the composition, characteristics and quality of its portfolio of credit card and loan receivables, as well as the prevailing economic conditions and forecasts utilized. The estimate of the allowance for loan loss includes an estimate for uncollectible principal as well as unpaid interest and fees. Charge-offs of principal amounts, net of recoveries are deducted from the allowance. The allowance is maintained through an adjustment to the provision for loan loss and is evaluated for appropriateness.

Credit Card Receivables

ASC 326, “Financial Instruments—Credit Losses,” requires entities to use a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. To estimate its allowance for loan loss, the Company segregates its credit card receivables into four groups with similar risk characteristics, on the basis of delinquency status and credit quality risk score, which were determined by the Company to be the most significant characteristics for estimating expected credit losses. These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. The Company’s credit card receivables do not have stated maturities and therefore prepayments are not factored into the determination of the estimated life of the credit card receivables. In determining the estimated life of a credit card receivable, payments were applied to the measurement date balance with no payments allocated to future purchase activity. The Company uses a combination of First In First Out (“FIFO”) and the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (“CARD Act”) methodology to model balance paydown.

The Company’s groups of pooled financial assets with similar risk characteristics and their estimated life is as follows:


	Estimated Life
	(in months)
Group A (Current, risk score - high)		14
Group B (Current, risk score - low)		19
Group C (Delinquent, risk score - high)		17
Group D (Delinquent, risk score - low)		26

In estimating its allowance for loan loss, for each identified group, management utilizes various models and estimation techniques based on historical loss experience, current conditions, reasonable and supportable forecasts and other relevant factors. These models utilize historical data and applicable macroeconomic variables with statistical analysis and behavioral relationships with credit performance. The Company’s quantitative estimate of expected credit losses under CECL is impacted by certain forecasted economic factors. Management utilizes a third party service to analyze a number of scenarios, but uses one scenario to determine the macroeconomic variables over the forecast period.

The Company considers the forecast used to be reasonable and supportable over the estimated life of the credit card receivables, with no reversion period. In addition to the quantitative estimate of expected credit losses, the Company also incorporates qualitative adjustments for certain factors such as Company-specific risks, changes in current economic conditions that may not be captured in the quantitatively derived results, or other relevant factors to ensure the allowance for loan loss reflects the Company’s best estimate of current expected credit losses. As permitted by ASC 326, the Company excludes unbilled finance charges from its amortized cost basis of credit card and loan receivables. As of June 30, 2021 and December 31, 2020, unbilled finance charges were $206.2 million and $219.4 million, respectively, and are included in other credit card and loan receivables in the Company’s unaudited condensed consolidated balance sheets.

Installment Loan Receivables

The allowance for loan loss for installment loan receivables utilizes a migration model over the remaining life of the loans. The model segments accounts based on three attributes: delinquency, risk score and remaining term. As of June 30, 2021 and December 31, 2020, the allowance for loan loss related to installment loan receivables was $7.6 million and $5.7 million, respectively.

Allowance for Loan Loss Rollforward

The following table presents the Company’s allowance for loan loss for its credit card and loan receivables for the periods indicated:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021 ⁽¹⁾		2020		2021 ⁽¹⁾		2020

	(in millions)
Balance at beginning of period	$	1,843.3	$	2,150.8	$	2,008.0	$	1,171.1
Adoption of ASC 326 ⁽²⁾		—		—		—		644.0
Provision for loan loss		(14.1)		250.1		19.3		906.0
Recoveries		40.8		56.9		91.7		124.8
Principal charge-offs		(234.7)		(361.5)		(483.7)		(749.6)
Balance at end of period	$	1,635.3	$	2,096.3	$	1,635.3	$	2,096.3

(1)

With the acquisition of Bread in December 2020, the Company acquired certain installment loans which represented a separate portfolio segment. As the amount of the allowance for loan loss was immaterial, the amounts were included in the above table.

(2)

Recorded January 1, 2020 through a cumulative-effect adjustment to retained earnings, net of taxes.

For the six months ended June 30, 2021, the decrease in the allowance for loan loss was due to improved credit performance, lower net charge-offs and improving macroeconomic indicators. In addition, improvements in customer payment behavior, which include the effects of government stimulus actions, have contributed to a reduction in credit card receivables and delinquencies, which also contributed to the reduction in the allowance for loan loss. For the six months ended June 30, 2020, the increase in the allowance for loan loss was due to a $644.0 million cumulative-effect adjustment for the adoption of ASC 326 as well as deterioration of the macroeconomic outlook due to COVID-19.

Net Charge-offs

Net charge-offs include the principal amount of losses that are deemed uncollectible, less recoveries and exclude charged-off interest, fees and fraud losses. Charged-off interest and fees reduce finance charges, net while fraud losses are recorded as a cost of operations expense. Credit card receivables, including unpaid interest and fees, are charged-off in the month during which an account becomes 180 days contractually past due, except in the case of customer bankruptcies or death. Installment loan receivables, including unpaid interest, are charged-off when a loan is 120 days past due. Credit card receivables, including unpaid interest and fees, associated with customer bankruptcies or death are charged-off in each month subsequent to 60 days after the receipt of notification of the bankruptcy or death, but in any case, not later than the 180-day contractual time frame. Principal charge-offs, net of recoveries, were $193.9 million and $304.6 million for the three months ended June 30, 2021 and 2020, respectively, and $392.0 million and $624.8 million for the six months ended June 30, 2021 and 2020, respectively. Charge-offs for unpaid interest and fees were $113.9 million and

$197.7 million for the three months ended June 30, 2021 and 2020, respectively, and $244.5 million and $429.6 million for the six months ended June 30, 2021 and 2020, respectively.

Delinquencies

An account is contractually delinquent if the Company does not receive the minimum payment by the specified due date. It is the Company’s policy to continue to accrue interest and fee income on all accounts, except in limited circumstances, until the account balance and all related interest and other fees are paid or charged-off, typically at 180 days delinquent for credit card receivables and 120 days delinquent for installment loan receivables. After an account becomes 30 days past due, a proprietary collection scoring algorithm automatically scores the risk of the account becoming further delinquent. The collection system then recommends a collection strategy for the past due account based on the collection score and account balance and dictates the contact schedule and collections priority for the account. If the Company is unable to make a collection after exhausting all in-house collection efforts, the Company may engage collection agencies and outside attorneys to continue those efforts.

The following table presents the amortized cost basis of the aging analysis of the Company’s credit card and loan receivables portfolio:


	Aging Analysis of Delinquent Amortized Cost Credit Card and Loan Receivables ⁽¹⁾
	31 to 60 days delinquent		61 to 90 days delinquent		91 or more days delinquent		Total delinquent		Current		Total

	(in millions)
As of June 30, 2021	$	214.9	$	135.4	$	294.3	$	644.6	$	14,821.2	$	15,465.8

As of December 31, 2020	$	272.5	$	203.3	$	439.8	$	915.6	$	15,578.8	$	16,494.4

(1)

As the amount of the installment loans and associated delinquencies were immaterial, the amounts were included in the above table for both the period ended June 30, 2021 and December 31, 2020.

Modified Credit Card Receivables

Forbearance Programs

In response to the COVID-19 pandemic, the Company offered forbearance programs, which provided for short-term modifications in the form of payment deferrals and late fee waivers to borrowers who were current with their payments prior to any relief. As of June 30, 2021 and December 31, 2020, the credit card receivables in these deferral forbearance programs were approximately $77.9 million and $157.4 million, respectively. Additionally, the Company instituted two short-term programs with durations of three and six months, which provide concessions consisting primarily of a reduced minimum payment and an interest rate reduction, the balances of which were $23.1 million and $67.3 million as of June 30, 2021 and December 31, 2020, respectively.

As these short-term modifications were made in response to COVID-19 to borrowers who were current prior to any relief, these are not considered troubled debt restructurings under the Interagency Statement guidance on certain loan modifications and an interpretation of ASC 310-40, “Receivables—Troubled Debt Restructurings by Creditors.”

Troubled Debt Restructurings

The Company holds certain credit card receivables for which the terms have been modified. The Company’s modified credit card receivables include credit card receivables for which temporary hardship concessions have been granted and credit card receivables in permanent workout programs. These modified credit card receivables include concessions consisting primarily of a reduced minimum payment and an interest rate reduction. The temporary programs’ concessions remain in place for a period no longer than twelve months, while the permanent programs remain in place through the payoff of the credit card receivables if the credit cardholder complies with the terms of the program. Additionally, the Company instituted two temporary hardship programs with durations of three and six months with similar terms to our short-term forbearance programs. As of June 30, 2021 and December 31, 2020, the outstanding

balance of credit card receivables in these two short-term temporary hardship programs treated as troubled debt restructurings totaled approximately $17.8 million and $39.9 million, respectively.

Troubled debt restructuring concessions do not include the forgiveness of unpaid principal, but may involve the reversal of certain unpaid interest or fee assessments. In the case of the temporary hardship programs, at the end of the concession period, credit card receivable terms revert to standard rates. These arrangements are automatically terminated if the customer fails to make payments in accordance with the terms of the program, at which time their account reverts back to its original terms. Credit card receivables for which temporary hardship and permanent concessions were granted are each considered troubled debt restructurings and are collectively evaluated for impairment.

The Company had $369.3 million and $489.8 million, respectively, as a recorded investment in impaired credit card receivables as of June 30, 2021 and December 31, 2020, respectively, which represented approximately 3% of the Company’s total credit card receivables as of June 30, 2021 and December 31, 2020, respectively. The average recorded investment in impaired credit card receivables was $415.4 million and $387.5 million for the three months ended June 30, 2021 and 2020, respectively, and $448.5 million and $351.1 million for the six months ended June 30, 2021 and 2020, respectively.

Interest income on these modified credit card receivables is accounted for in the same manner as other accruing credit card receivables. Cash collections on these modified credit card receivables are allocated according to the same payment hierarchy methodology applied to credit card receivables that are not in such programs. The Company recognized $7.1 million for both the three months ended June 30, 2021 and 2020, and $15.9 million and $12.6 million for the six months ended June 30, 2021 and 2020, respectively, in interest income associated with modified credit card receivables during the period that such credit card receivables were impaired.

The following table provides information on credit card receivables that are considered troubled debt restructurings as described above, which entered into a modification program during the specified periods:

Three Months Ended June 30, 2021

Six Months Ended June 30, 2021

Pre-modification

Post-modification

Pre-modification

Post-modification

Number of

Outstanding

Number of

Outstanding

Restructurings

Balance

Restructurings

Balance

(Dollars in millions)

Troubled debt restructurings – credit card receivables

33,061

52.0

96,689

145.2

145.0

Three Months Ended June 30, 2020

Six Months Ended June 30, 2020

Pre-modification

Post-modification

Pre-modification

Post-modification

Number of

Outstanding

Number of

Outstanding

Restructurings

Balance

Restructurings

Balance

(Dollars in millions)

Troubled debt restructurings – credit card receivables

95,454

156.1

155.8

170,519

268.9

268.5

The table below summarizes troubled debt restructurings that have defaulted in the specified periods where the default occurred within 12 months of their modification date:


	Three Months Ended			Six Months Ended
	June 30, 2021			June 30, 2021
	Number of	Outstanding		Number of	Outstanding
	Restructurings	Balance		Restructurings	Balance

	(Dollars in millions)
Troubled debt restructurings that subsequently defaulted – credit card receivables	31,727	$	42.4	82,736	$	109.4


	Three Months Ended			Six Months Ended
	June 30, 2020			June 30, 2020
	Number of	Outstanding		Number of	Outstanding
	Restructurings	Balance		Restructurings	Balance

	(Dollars in millions)
Troubled debt restructurings that subsequently defaulted – credit card receivables	21,606	$	31.2	53,276	$	75.3

Credit Quality

Credit Card Receivables

The Company uses proprietary scoring models developed specifically for the purpose of monitoring the Company’s obligor credit quality for its credit card receivables. The proprietary scoring models are used as a tool in the underwriting process and for making credit decisions. The proprietary scoring models are based on historical data and require various assumptions about future performance, which the Company updates periodically. Information regarding customer performance is factored into these proprietary scoring models to determine the probability of an account becoming 91 or more days past due at any time within the next 12 months. Obligor credit quality is monitored at least monthly during the life of an account. The following table reflects the composition of the Company’s credit card receivables by obligor credit quality as of June 30, 2021 and December 31, 2020:


	Amortized Cost Revolving Credit Card Receivables
	June 30, 2021				December 31, 2020
			Percentage of				Percentage of
			Amortized				Amortized
Probability of an Account Becoming 91 or More Days Past	Amortized		Cost Basis		Amortized		Cost Basis
Due or Becoming Charged-off (within the next 12 months)	Cost Basis		Outstanding		Cost Basis		Outstanding

	(in millions, except percentages)
No Score	$	171.2	1.1	%	$	204.1	1.2	%
27.1% and higher		954.4	6.2			1,390.4	8.5
17.1% - 27.0%		754.2	4.9			848.8	5.2
12.6% - 17.0%		834.6	5.4			937.0	5.7
3.7% - 12.5%		6,729.0	43.9			7,305.5	44.6
1.9% - 3.6%		2,857.8	18.7			2,939.5	17.9
Lower than 1.9%		3,012.5	19.8			2,751.1	16.9
Total	$	15,313.7	100.0	%	$	16,376.4	100.0	%

Note: The Company’s credit card receivables are revolving receivables as they do not have stated maturities and are exempted from certain vintage disclosures required under ASC 326.

In addition, as part of the Company’s credit risk management activities, the Company also assesses overall credit quality by reviewing information related to the performance of a credit cardholder’s account, as well as information from credit bureaus relating to the cardholder’s broader credit performance. The credit scores obtained by the Company are Vantage scores, which is one of several credit scoring models used by industry participants. The Company uses these credit scores as one of its tools in its underwriting and credit decision process. Credit scores are obtained at origination of the account and refreshed monthly thereafter.

The following table reflects the distribution of the Company’s credit card receivables by credit score as of June 30, 2021 and December 31, 2020:


	June 30,		December 31,
	2021		2020
Greater than 660	64.5	%	59.8	%
601-660	25.9		27.8
600 or below	9.6		12.4
Total ⁽¹⁾	100.0	%	100.0	%

⁽¹⁾	Balances for which no credit score is available have been excluded from the table above and represent 0.1% of the credit card receivable balances as of both June 30, 2021 and December 31, 2020, respectively.

Installment Loan Receivables

The amortized cost basis of the Company’s installment loan receivables totaled $152.1 million and $118.0 million as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, approximately 84% of these loans were originated by customers with Fair Isaac Corporation (“FICO”) scores of 660 or above, and approximately 16% of these loans were originated by customers with FICO scores below 660. As of December 31, 2020, approximately 86% of these loans were originated by customers with FICO scores of 660 or above, and approximately 14% of these loans were originated by customers with FICO scores below 660.

Portfolio Acquisition

In April 2021, the Company acquired a credit card portfolio for cash consideration of approximately $31.5 million, which consisted of approximately $29.9 million of credit card receivables and $1.6 million of intangible assets, subject to customary purchase price adjustments.

Securitized Credit Card Receivables

The Company regularly securitizes its credit card and loan receivables through its trusts. The Company continues to own and service the accounts that generate credit card and loan receivables held by the trusts. In its capacity as a servicer, each of the respective entities earns a fee from the trusts to service and administer the credit card and loan receivables, collect payments and charge-off uncollectible receivables. These fees are eliminated and therefore are not reflected in the Company’s unaudited condensed consolidated statements of income for the three and six months ended June, 2021 and 2020.

The trusts are VIEs and the assets of these consolidated VIEs include certain credit card receivables that are restricted to settle the obligations of those entities and are not expected to be available to the Company or its creditors. The liabilities of the consolidated VIEs include non-recourse secured borrowings and other liabilities for which creditors or beneficial interest holders do not have recourse to the general credit of the Company.

The tables below present quantitative information about the components of total securitized credit card receivables, delinquencies and net charge-offs:


	June 30,		December 31,
	2021		2020

	(in millions)
Total credit card and loan receivables – restricted for securitization investors	$	10,419.8	$	11,208.5
Principal amount of credit card and loan receivables – restricted for securitization investors, 91 days or more past due	$	127.5	$	200.8


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(in millions)
Net charge-offs of securitized principal	$	125.1	$	215.1	$	256.2	$	454.6

INVENTORIES, NET

6 Months Ended

Jun. 30, 2021

INVENTORIES, NET

INVENTORIES, NET

7. INVENTORIES, NET

Inventories, net of $162.3 million and $164.3 million at June 30, 2021 and December 31, 2020, respectively, primarily consist of finished goods to be utilized as rewards in the Company’s loyalty programs. Inventories, net are stated at the lower of cost and net realizable value and valued primarily on a first-in-first-out basis. The Company records valuation adjustments to its inventories if the cost of inventory exceeds the amount it expects to realize from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future market conditions and an analysis of historical experience.

OTHER INVESTMENTS

6 Months Ended

Jun. 30, 2021

OTHER INVESTMENTS

OTHER INVESTMENTS

8. OTHER INVESTMENTS

Other investments consist of marketable securities and U.S. Treasury bonds and are included in other current assets and other non-current assets in the Company’s unaudited condensed consolidated balance sheets. Marketable securities include available-for-sale debt securities, mutual funds and domestic certificate of deposit investments. The principal components of other investments, which are carried at fair value, are as follows:


	June 30, 2021								December 31, 2020
	Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value

	(in millions)
Marketable securities	$	243.2	$	5.0	$	(0.9)	$	247.3	$	219.0	$	6.4	$	—	$	225.4
Total	$	243.2	$	5.0	$	(0.9)	$	247.3	$	219.0	$	6.4	$	—	$	225.4

The following table shows the unrealized losses and fair value for those investments that were in an unrealized loss position as of June 30, 2021, aggregated by investment category and the length of time that individual securities have been in a continuous loss position. Unrealized losses as of December 31, 2020 were de minimis.


	June 30, 2021
	Less than 12 months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

	(in millions)
Marketable securities	$	46.1	$	(0.9)	$	—	$	—	$	46.1	$	(0.9)
Total	$	46.1	$	(0.9)	$	—	$	—	$	46.1	$	(0.9)

The amortized cost and estimated fair value of the marketable securities at June 30, 2021 by contractual maturity are as follows:


	Amortized		Estimated
	Cost		Fair Value

	(in millions)
Due in one year or less ⁽¹⁾	$	68.0	$	68.0
Due after one year through five years		0.7		0.7
Due after five years through ten years		—		—
Due after ten years		174.5		178.6
Total	$	243.2	$	247.3

(1)

Includes mutual funds, which do not have a stated maturity.

Market values were determined for each individual security in the investment portfolio. For available-for-sale debt securities in which fair value is less than cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk. The Company typically invests in highly-rated securities with low probabilities of default and has the intent and ability to hold the investments until maturity, and the Company performs an assessment each period for credit-related impairment. As of June 30, 2021, the Company does not consider its investments to be impaired.

There were no realized gains or losses from the sale of investment securities for the three and six months ended June 30, 2021 and 2020.

REDEMPTION SETTLEMENT ASSETS

6 Months Ended

Jun. 30, 2021

REDEMPTION SETTLEMENT ASSETS

REDEMPTION SETTLEMENT ASSETS

9. REDEMPTION SETTLEMENT ASSETS

Redemption settlement assets consist of restricted cash and securities available-for-sale and are designated for settling redemptions by collectors of the AIR MILES Reward Program in Canada under certain contractual relationships with sponsors of the AIR MILES Reward Program. The principal components of redemption settlement assets, which are

carried at fair value, are as follows:


	June 30, 2021								December 31, 2020
		Amortized	Unrealized		Unrealized					Amortized	Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value

	(in millions)
Restricted cash	$	56.1	$	—	$	—	$	56.1	$	55.4	$	—	$	—	$	55.4
Mutual funds		26.9		—		—		26.9		26.9		—		—		26.9
Corporate bonds		651.6		12.5		(2.0)		662.1		592.3		19.1		(0.2)		611.2
Total	$	734.6	$	12.5	$	(2.0)	$	745.1	$	674.6	$	19.1	$	(0.2)	$	693.5

The following tables show the unrealized losses and fair value for those investments that were in an unrealized loss position as of June 30, 2021 and December 31, 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position:


	June 30, 2021
	Less than 12 months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

	(in millions)
Corporate bonds	$	184.5	$	(2.0)	$	—	$	—	$	184.5	$	(2.0)
Total	$	184.5	$	(2.0)	$	—	$	—	$	184.5	$	(2.0)


	December 31, 2020
	Less than 12 months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

	(in millions)
Corporate bonds	$	46.2	$	(0.1)	$	10.3	$	(0.1)	$	56.5	$	(0.2)
Total	$	46.2	$	(0.1)	$	10.3	$	(0.1)	$	56.5	$	(0.2)

The amortized cost and estimated fair value of the securities at June 30, 2021 by contractual maturity are as follows:


	Amortized		Estimated
	Cost		Fair Value

	(in millions)
Due in one year or less ⁽¹⁾	$	169.8	$	170.8
Due after one year through five years		489.7		499.4
Due after five year through ten years		19.0		18.8
Total	$	678.5	$	689.0

(1)

Includes mutual funds, which do not have a stated maturity.

Losses from the sale of investment securities were $0.2 million for the three and six months ended June 30, 2021. There were no realized gains or losses from the sale of investment securities for the three and six months ended June 30, 2020.

LEASES

6 Months Ended

Jun. 30, 2021

LEASES

LEASES

10. LEASES

The Company has operating leases for general office properties, warehouses, data centers, customer care centers, automobiles and certain equipment. As of June 30, 2021, the Company’s leases have remaining lease terms of less than 1 year to 17 years, some of which may include renewal options. For leases in which the implicit rate is not readily determinable, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease.

Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and nonlease components as a single lease component for its identified asset classes.

The components of lease expense were as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(in millions)
Operating lease cost	$	10.8	$	9.9	$	22.0	$	20.2
Short-term lease cost		0.1		0.2		0.3		0.5
Variable lease cost		1.5		2.9		3.1		3.1
Total	$	12.4	$	13.0	$	25.4	$	23.8

Other information related to leases was as follows:


	June 30,		June 30,
	2021		2020
Weighted-average remaining lease term (in years):
Operating leases		10.5		11.2
Weighted-average discount rate:
Operating leases		5.3%		5.2%

Supplemental cash flow information related to leases was as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10.1	$	11.3	$	24.4	$	25.7
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	2.6	$	0.2	$	4.3	$	2.8

Maturities of the lease liabilities as of June 30, 2021 were as follows:


	Operating
Year	Leases
	(in millions)
2021 (excluding the six months ended June 30, 2021)	$	16.1
2022		38.8
2023		37.4
2024		35.7
2025		35.0
Thereafter		207.8
Total undiscounted lease liabilities		370.8
Less: Amount representing interest		(89.8)
Total present value of minimum lease payments	$	281.0

Amounts recognized in the June 30, 2021 consolidated balance sheet:
Current operating lease liabilities	$	21.8
Long-term operating lease liabilities		259.2
Total	$	281.0

INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Jun. 30, 2021

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL

11. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

Intangible assets consist of the following:


	June 30, 2021
	Gross		Accumulated
	Assets		Amortization		Net		Amortization Life and Method

	(in millions)
Definite-Lived Assets
Customer contracts and lists	$	8.8	$	(1.7)	$	7.1	3 years—straight line
Premium on purchased credit card portfolios		138.8		(83.8)		55.0	1-13 years—straight line
Collector database		56.5		(56.2)		0.3	5 years—straight line
Tradenames		34.0		(29.9)		4.1	4-15 years—straight line
Non-compete agreements		2.2		(0.3)		1.9	5 years—straight line
	$	240.3	$	(171.9)	$	68.4
Indefinite-Lived Assets
Tradename		1.2		—		1.2	Indefinite life
Total intangible assets	$	241.5	$	(171.9)	$	69.6


	December 31, 2020
	Gross		Accumulated
	Assets		Amortization		Net		Amortization Life and Method

	(in millions)
Definite-Lived Assets
Customer contracts and lists	$	363.0	$	(354.5)	$	8.5	3-7 years—straight line
Premium on purchased credit card portfolios		137.2		(72.8)		64.4	3-13 years—straight line
Collector database		55.0		(54.5)		0.5	5 years—straight line
Tradenames		35.0		(30.1)		4.9	4-15 years—straight line
Non-compete agreements		2.2		—		2.2	5 years—straight line
	$	592.4	$	(511.9)	$	80.5
Indefinite-Lived Assets
Tradename		1.2		—		1.2	Indefinite life
Total intangible assets	$	593.6	$	(511.9)	$	81.7

The estimated amortization expense related to intangible assets for the next five years and thereafter is as follows:


	For the Years Ending
	December 31,
	(in millions)
2021 (excluding the six months ended June 30, 2021)	$	13.4
2022		21.4
2023		16.1
2024		11.2
2025		2.4
Thereafter		3.9

Goodwill

The changes in the carrying amount of goodwill are as follows:



	LoyaltyOne		Card Services		Total

	(in millions)
Balance at January 1, 2021	$	736.0	$	633.6	$	1,369.6
Effects of foreign currency translation		(10.3)		—		(10.3)
Balance at June 30, 2021	$	725.7	$	633.6	$	1,359.3

The Company tests goodwill for impairment annually, as of July 1, or when events and circumstances change that would indicate the carrying value may not be recoverable. As of June 30, 2021, the Company does not believe it is more likely than not that the fair value of any reporting unit is less than its carrying amount. However, in light of the COVID-19 pandemic and current uncertainty in the macroeconomic environment, future deterioration in the economy could adversely impact the Company’s reporting units and result in a goodwill impairment.

DEBT

6 Months Ended

Jun. 30, 2021

DEBT

DEBT

12. DEBT

Debt consists of the following:


	June 30,		December 31,
Description	2021		2020		Maturity	Interest Rate

	(Dollars in millions)
Long-term and other debt:
2017 revolving line of credit	$	—	$	—	December 2022	⁽¹⁾
2017 term loans		1,433.6		1,484.3	December 2022	⁽²⁾
BrandLoyalty credit agreement		—		—	April 2024	⁽³⁾
Senior notes due 2024		850.0		850.0	December 2024	4.750%
Senior notes due 2026		500.0		500.0	January 2026	7.000%
Total long-term and other debt		2,783.6		2,834.3
Less: Unamortized debt issuance costs		23.5		28.6
Less: Current portion		101.5		101.4
Long-term portion	$	2,658.6	$	2,704.3

Deposits:
Certificates of deposit	$	5,211.6	$	6,014.9	Various – Jul 2021 to Jun 2026	0.15% to 3.75%
Money market deposits		4,417.5		3,790.2	Non-maturity	⁽⁴⁾
Total deposits		9,629.1		9,805.1
Less: Unamortized debt issuance costs		9.3		12.5
Less: Current portion		6,964.2		6,553.9
Long-term portion	$	2,655.6	$	3,238.7

Non-recourse borrowings of consolidated securitization entities:
Fixed rate asset-backed term note securities	$	2,216.3	$	3,423.8	Various – Sep 2021 to Sep 2022	2.21% to 3.95%
Conduit asset-backed securities		2,370.0		2,205.1	Various – Aug 2022 to Oct 2023	⁽⁵⁾
Secured loan facility		21.0		86.3	November 2022	⁽⁶⁾
Total non-recourse borrowings of consolidated securitization entities		4,607.3		5,715.2
Less: Unamortized debt issuance costs		4.0		5.3
Less: Current portion		1,561.2		1,850.7
Long-term portion	$	3,042.1	$	3,859.2

(1)	The interest rate is based upon LIBOR plus an applicable margin.

(2)	The interest rate is based upon LIBOR plus an applicable margin. The weighted average interest rate for the term loans was 1.85% and 1.90% at June 30, 2021 and December 31, 2020, respectively.

(3)	The interest rate is based upon the Euro Interbank Offered Rate plus an applicable margin.

(4)	The interest rates are primarily based on the Federal Funds rate plus an applicable margin. At June 30, 2021, the interest rates ranged from 0.39% to 3.50%. At December 31, 2020, the interest rates ranged from 0.38% to 3.50%.

(5)	The interest rate is based upon LIBOR or the asset-backed commercial paper costs of each individual conduit provider plus an applicable margin. At June 30, 2021, the interest rates ranged from 0.85% to 0.94%. At December 31, 2020, the interest rates ranged from 1.39% to 1.89%.

(6)	The interest rate is based upon LIBOR plus an applicable margin. The weighted average interest rate for the secured loan facility was 3.90% at each of June 30, 2021 and December 31, 2020, respectively.

At June 30, 2021, the Company was in compliance with its financial covenants.

Long-term and Other Debt

Credit Agreement

As of June 30, 2021, the Company had $1,433.6 million in term loans outstanding with $750.0 million total availability under the revolving line of credit.

In July 2021, the Company amended its credit agreement to, among other things, (i) provide consent by the lenders to the spinoff or sale of the Company’s LoyaltyOne segment, (ii) extend the maturity date of the revolving loans and approximately 86% of the term loans from December 31, 2022 to July 1, 2024, (iii) revise the method of determining interest rates and commitment fees to be charged in connection with the loans, (iv) modify the financial and operational covenants and certain other provisions in the credit agreement to reflect the Company’s business and operations after giving effect to the LoyaltyOne spinoff or sale, (v) require a prepayment of certain of the loans in an amount equal to the net proceeds from the LoyaltyOne spinoff or sale, including any net proceeds from debt that is distributed to the Company and (vi) add Lon Inc. and Lon Operations LLC as additional guarantors.

BrandLoyalty Credit Agreement

In the first quarter of 2021, BrandLoyalty and certain of its subsidiaries, as borrowers and guarantors, amended its credit agreement to extend the maturity date by one year from April 3, 2023 to April 3, 2024.

As of June 30, 2021, there were no amounts outstanding under the BrandLoyalty Credit Agreement.

Non-Recourse Borrowings of Consolidated Securitization Entities

Asset-Backed Term Notes

In February 2021, $591.5 million of Series 2018-A asset-backed term notes, $66.5 million of which were retained by the Company and eliminated from the Company’s unaudited condensed consolidated balance sheets, matured and were repaid.

In June 2021, $866.7 million of Series 2016-A asset-backed term notes, $184.2 million of which were retained by the Company and eliminated from the Company’s unaudited condensed consolidated balance sheets, matured and were repaid.

Conduit Facilities

The Company has access to committed undrawn capacity through three conduit facilities to support the funding of its credit card receivables for certain of its trusts.

In June 2021, Master Trust I amended its 2009-VFN conduit facility, increasing the capacity from $1.0 billion to $2.75 billion and extending the maturity to October 2023. In June 2021, Master Trust III amended its 2009-VFC conduit facility, decreasing the capacity from $700.0 million to $225.0 million and extending the maturity to August 2022. In June 2021, the WFC Trust amended its 2009-VFN conduit facility, extending the maturity to August 2022.

As of June 30, 2021, total capacity under the conduit facilities was $4.5 billion, of which $2.4 billion had been drawn and was included in non-recourse borrowings of consolidated securitization entities in the unaudited condensed consolidated balance sheets.

DERIVATIVE INSTRUMENTS

6 Months Ended

Jun. 30, 2021

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

13. DERIVATIVE INSTRUMENTS

The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in foreign currency exchange rates. Certain derivatives used to manage the Company’s exposure to foreign currency exchange rate movements are not designated as hedges and do not qualify for hedge accounting. The fair value of the Company’s derivative instruments as of June 30, 2021 was $0.9 million included in other current assets and $1.1 million included in other current liabilities in the Company’s unaudited condensed consolidated balance sheets. The fair value of the Company’s derivative instruments as of December 31, 2020 was $0.4 million included in other current assets and $1.5 million included in other current liabilities in the Company’s unaudited condensed consolidated balance sheets.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2021

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

14. COMMITMENTS AND CONTINGENCIES

Regulatory Matters

On September 10, 2019, Comenity Capital Bank submitted a bank merger application to the Federal Deposit Insurance Corporation (“FDIC”) seeking the FDIC’s approval to merge Comenity Bank with and into Comenity Capital Bank as the surviving bank entity. On the same date, Comenity Capital Bank and Comenity Bank each submitted counterpart bank merger applications to the Utah Department of Financial Institutions and the Delaware Office of the State Bank Commissioner, respectively, in connection with the proposed merger. On April 20, 2021, Comenity Capital Bank withdrew its bank merger application with the FDIC. On May 3, 2021, each of Comenity Capital Bank and Comenity Bank similarly withdrew their counterpart bank merger applications in Utah and Delaware, respectively.

Indemnification

On July 1, 2019, the Company completed the sale of its Epsilon segment to Publicis Groupe S.A. (“Publicis”). Under the terms of the agreement governing that transaction, the Company agreed to indemnify Publicis and its affiliates from and against any losses arising out of or related to a United States Department of Justice (“DOJ”) investigation. The DOJ investigation related to third-party marketers who sent, or allegedly sent, deceptive mailings and the provision of data and services to those marketers by Epsilon’s data practice. Epsilon actively cooperated with the DOJ in connection with the investigation. On January 19, 2021, Epsilon entered into a deferred prosecution agreement (“DPA”) with the DOJ to resolve the matters that were the subject of the investigation. Pursuant to the DPA, Epsilon agreed, among other things, to pay penalties and consumer compensation in the aggregate amount of $150.0 million, to be paid in two equal installments, the first in January 2021 and the second in January 2022. In accordance with ASC 450, “Contingencies,” the Company records a loss contingency when a loss is probable and an amount can be reasonably estimated, and therefore as of December 31, 2020, a $150.0 million liability was recorded. The Company paid $75.0 million to Publicis pursuant to its contractual indemnification obligation in January 2021. As of June 30, 2021, the Company has $75.0 million included in accrued expenses in its unaudited condensed consolidated balance sheets.

STOCKHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2021

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

15. STOCKHOLDERS’ EQUITY

Stock Compensation Expense

During the six months ended June 30, 2021, the Company awarded 632,050 service-based restricted stock units with a weighted average grant date fair value per share of $87.81 as determined on the date of grant. Service-based restricted stock units typically vest ratably over three years provided that the participant is employed by the Company on each such vesting date.

During the six months ended June 30, 2021, the Company awarded 95,762 performance-based restricted stock units with pre-defined vesting criteria that permit a range from 0% to 170% to be earned, subject to a market-based condition. The fair market value of these awards is $92.62 and was estimated utilizing Monte Carlo simulations of the Company’s stock price correlation, expected volatility and risk-free rate over a three-year time horizon matching the performance period. If the performance targets are met, the restrictions will lapse with respect to the entire award on February 16, 2024, provided that the participant is employed by the Company on the vesting date.

Stock-based compensation expense recognized in the Company’s unaudited condensed consolidated statements of income for the three and six months ended June 30, 2021 and 2020 is as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(in millions)
Cost of operations	$	5.5	$	3.3	$	9.5	$	6.1
General and administrative		3.7		2.9		6.5		4.9
Total	$	9.2	$	6.2	$	16.0	$	11.0

Dividends

On January 28, 2021, the Company’s board of directors declared a quarterly cash dividend of $0.21 per share on the Company’s common stock to stockholders of record at the close of business on February 12, 2021, resulting in an aggregate dividend payment of $10.4 million on March 18, 2021.

On April 29, 2021, the Company’s board of directors declared a quarterly cash dividend of $0.21 per share on the Company’s common stock to stockholders of record at the close of business on May 14, 2021, resulting in an aggregate dividend payment of $10.4 million on June 18, 2021.

Additionally, the Company paid $0.2 million in cash related to dividend equivalent rights for the six months ended June 30, 2021.

On July 29, 2021, the Company’s board of directors declared a quarterly cash dividend of $0.21 per share on the Company’s common stock, payable on August 13, 2021 to stockholders of record at the close of business on September 17, 2021.

Treasury Stock

On July 30, 2021, the Company retired its 67.4 million shares of treasury stock.

ACCUMULATED OTHER COMPREHENSIVE LOSS

6 Months Ended

Jun. 30, 2021

ACCUMULATED OTHER COMPREHENSIVE LOSS.

ACCUMULATED OTHER COMPREHENSIVE LOSS

16. ACCUMULATED OTHER COMPREHENSIVE LOSS

The changes in each component of accumulated other comprehensive loss, net of tax effects, are as follows:


	Net		Net Unrealized		Net Unrealized		Foreign		Accumulated
	Unrealized		Gains (Losses)		Gains (Losses)		Currency		Other
	Gains (Losses)		on Cash		on Net		Translation		Comprehensive
Three Months Ended June 30, 2021	on Securities		Flow Hedges		Investment Hedge		Adjustments ⁽¹⁾		Loss

	(in millions)
Balance at March 31, 2021	$	14.9	$	0.2	$	(7.5)	$	(49.9)	$	(42.3)
Changes in other comprehensive income (loss)		(1.2)		(0.1)		—		10.5		9.2
Balance at June 30, 2021	$	13.7	$	0.1	$	(7.5)	$	(39.4)	$	(33.1)


	Net		Net Unrealized		Net Unrealized		Foreign		Accumulated
	Unrealized		Gains (Losses)		Gains (Losses)		Currency		Other
	Gains (Losses)		on Cash		on Net		Translation		Comprehensive
Three Months Ended June 30, 2020	on Securities		Flow Hedges		Investment Hedge		Adjustments ⁽¹⁾		Loss

	(in millions)
Balance at March 31, 2020	$	4.1	$	0.2	$	(7.5)	$	(114.9)	$	(118.1)
Changes in other comprehensive income (loss)		13.4		(0.8)		—		18.0		30.6
Balance at June 30, 2020	$	17.5	$	(0.6)	$	(7.5)	$	(96.9)	$	(87.5)


	Net		Net Unrealized		Net Unrealized		Foreign		Accumulated
	Unrealized		Gains (Losses)		Gains (Losses)		Currency		Other
	Gains (Losses)		on Cash		on Net		Translation		Comprehensive
Six Months Ended June 30, 2021	on Securities		Flow Hedges		Investment Hedge		Adjustments ⁽¹⁾		Loss

	(in millions)
Balance at December 31, 2020	$	23.2	$	(0.7)	$	(7.5)	$	(20.0)	$	(5.0)
Changes in other comprehensive income (loss)		(9.5)		0.8		—		(19.4)		(28.1)
Balance at June 30, 2021	$	13.7	$	0.1	$	(7.5)	$	(39.4)	$	(33.1)


	Net		Net Unrealized		Net Unrealized		Foreign		Accumulated
	Unrealized		Gains (Losses)		Gains (Losses)		Currency		Other
	Gains (Losses)		on Cash		on Net		Translation		Comprehensive
Six Months Ended June 30, 2020	on Securities		Flow Hedges		Investment Hedge		Adjustments ⁽¹⁾		Loss

	(in millions)
Balance at December 31, 2019	$	2.5	$	(0.1)	$	(7.5)	$	(94.8)	$	(99.9)
Changes in other comprehensive income (loss)		15.0		(0.5)		—		(5.9)		8.6
Recognition resulting from the sale of Precima's foreign subsidiaries		—		—		—		3.8		3.8
Balance at June 30, 2020	$	17.5	$	(0.6)	$	(7.5)	$	(96.9)	$	(87.5)

(1)

Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates.

In accordance with ASC 830, “Foreign Currency Matters,” upon the sale of Precima on January 10, 2020, $3.8 million of accumulated foreign currency translation adjustments attributable to Precima’s foreign subsidiaries sold were reclassified from accumulated other comprehensive loss and included in the calculation of the gain on sale of Precima. Other reclassifications from accumulated other comprehensive loss into net income for each of the periods presented were not material.

FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2021

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

17. FINANCIAL INSTRUMENTS

In accordance with ASC 825, “Financial Instruments,” the Company is required to disclose the fair value of financial instruments for which it is practical to estimate fair value. To obtain fair values, observable market prices are used if available. In some instances, observable market prices are not readily available and fair value is determined using present value or other techniques appropriate for a particular financial instrument. These techniques involve judgment and as a result are not necessarily indicative of the amounts the Company would realize in a current market exchange. The use of different assumptions or estimation techniques may have a material effect on the estimated fair value amounts.

Fair Value of Financial Instruments — The estimated fair values of the Company’s financial instruments are as follows:


	June 30, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value

	(in millions)
Financial assets
Credit card and loan receivables, net	$	14,088.5	$	16,149.0	$	14,776.4	$	17,301.2
Redemption settlement assets, restricted		745.1		745.1		693.5		693.5
Other investments		247.3		247.3		225.4		225.4
Derivative instruments		0.9		0.9		0.4		0.4
Financial liabilities
Derivative instruments		1.1		1.1		1.5		1.5
Deposits		9,619.8		9,785.2		9,792.6		10,015.9
Non-recourse borrowings of consolidated securitization entities		4,603.3		4,645.8		5,709.9		5,783.4
Long-term and other debt		2,760.1		2,844.2		2,805.7		2,875.1

The following techniques and assumptions were used by the Company in estimating fair values of financial instruments as disclosed herein:

Credit card and loan receivables, net — The Company utilizes a discounted cash flow model using unobservable inputs, including estimated yields (interest and fee income), loss rates, payment rates and discount rates to estimate the fair value measurement of the credit card and loan receivables.

Redemption settlement assets, restricted — Redemption settlement assets, restricted are recorded at fair value based on quoted market prices for the same or similar securities.

Other investments — Other investments consist of marketable securities and are included in other current assets and other non-current assets in the unaudited condensed consolidated balance sheets. Other investments are recorded at fair value based on quoted market prices for the same or similar securities.

Deposits — For money market deposits, carrying value approximates fair value due to the liquid nature of these deposits. For certificates of deposit, the fair value is estimated based on the current observable market rates available to the Company for similar deposits with similar remaining maturities.

Non-recourse borrowings of consolidated securitization entities — The fair value is estimated based on the current observable market rates available to the Company for similar debt instruments with similar remaining maturities or quoted market prices for the same transaction.

Long-term and other debt — The fair value is estimated based on the current observable market rates available to the Company for similar debt instruments with similar remaining maturities or quoted market prices for the same transaction.

Derivative instruments — The Company’s foreign currency cash flow hedges and foreign currency exchange forward contracts are recorded at fair value based on a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflected the contractual terms of the derivatives, including the period to maturity, and used observable market-based inputs.

Financial Assets and Financial Liabilities Fair Value Hierarchy

ASC 820, “Fair Value Measurement,” establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

●

Level 1, defined as observable inputs such as quoted prices in active markets;

●

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

●

Level 3, defined as unobservable inputs where little or no market data exists, therefore requiring an entity to develop its own assumptions.

Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. The use of different techniques to determine fair value of these financial instruments could result in different estimates of fair value at the reporting date.

The following tables provide information for the assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2021 and December 31, 2020:


			Fair Value Measurements at
			June 30, 2021 Using
	Balance at
	June 30,
	2021		Level 1		Level 2		Level 3

	(in millions)
Mutual funds ⁽¹⁾	$	26.9	$	26.9	$	—	$	—
Corporate bonds ⁽¹⁾		662.1		—		662.1		—
Marketable securities ⁽²⁾		247.3		48.9		198.4		—
Derivative instruments ⁽³⁾		0.9		—		0.9		—
Total assets measured at fair value	$	937.2	$	75.8	$	861.4	$	—

Derivative instruments ⁽³⁾	$	1.1	$	—	$	1.1	$	—
Total liabilities measured at fair value	$	1.1	$	—	$	1.1	$	—


			Fair Value Measurements at
			December 31, 2020 Using
	Balance at
	December 31,
	2020		Level 1		Level 2		Level 3

	(in millions)
Mutual funds ⁽¹⁾	$	26.9	$	26.9	$	—	$	—
Corporate bonds ⁽¹⁾		611.2		—		611.2		—
Marketable securities ⁽²⁾		225.4		34.2		191.2		—
Derivative instruments ⁽³⁾		0.4		—		0.4		—
Total assets measured at fair value	$	863.9	$	61.1	$	802.8	$	—

Derivative instruments ⁽³⁾	$	1.5	$	—	$	1.5	$	—
Total liabilities measured at fair value	$	1.5	$	—	$	1.5	$	—

(1)	Amounts are included in redemption settlement assets in the unaudited condensed consolidated balance sheets.

(2)	Amounts are included in other current assets and other non-current assets in the unaudited condensed consolidated balance sheets.

(3)	Amounts are included in other current assets and other current liabilities in the unaudited condensed consolidated balance sheets.

Financial Instruments Disclosed but Not Carried at Fair Value

The following tables provide assets and liabilities disclosed but not carried at fair value as of June 30, 2021 and December 31, 2020:


	Fair Value Measurements at
	June 30, 2021
	Total		Level 1		Level 2		Level 3

	(in millions)
Financial assets:
Credit card and loan receivables, net	$	16,149.0	$	—	$	—	$	16,149.0
Total	$	16,149.0	$	—	$	—	$	16,149.0

Financial liabilities:
Deposits	$	9,785.2	$	—	$	9,785.2	$	—
Non-recourse borrowings of consolidated securitization entities		4,645.8		—		4,645.8		—
Long-term and other debt		2,844.2		—		2,844.2		—
Total	$	17,275.2	$	—	$	17,275.2	$	—


	Fair Value Measurements at
	December 31, 2020
	Total		Level 1		Level 2		Level 3

	(in millions)
Financial assets:
Credit card and loan receivables, net	$	17,301.2	$	—	$	—	$	17,301.2
Total	$	17,301.2	$	—	$	—	$	17,301.2

Financial liabilities:
Deposits	$	10,015.9	$	—	$	10,015.9	$	—
Non-recourse borrowings of consolidated securitization entities		5,783.4		—		5,783.4		—
Long-term and other debt		2,875.1		—		2,875.1		—
Total	$	18,674.4	$	—	$	18,674.4	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

INCOME TAXES

6 Months Ended

Jun. 30, 2021

INCOME TAXES

INCOME TAXES

18. INCOME TAXES

For the three months ended June 30, 2021 and 2020, the Company utilized an effective tax rate of 26.4% and 18.3%, respectively, to calculate its provision for income taxes. For the six months ended June 30, 2021 and 2020, the Company utilized an effective tax rate of 26.9% and 5.5%, respectively, to calculate its provision for income taxes.

The increase in the effective tax rate for the three months ended June 30, 2021 as compared to the three months ended June 30, 2020 was primarily due to a discrete tax benefit related to the expiration of a statute of limitations in the prior year. The increase in the effective tax rate for the six months ended June 30, 2021 as compared to the six months ended June 30, 2020 was due to discrete tax benefits related to the expiration of a statute of limitations and a favorable tax settlement recorded in the prior year.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2021

SEGMENT INFORMATION

SEGMENT INFORMATION

19. SEGMENT INFORMATION

Operating segments are defined by ASC 280, “Segment Reporting,” as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The operating segments are reviewed separately because each operating segment represents a strategic business unit that generally offers different products and services.

The Company operates in the LoyaltyOne and Card Services reportable segments, which consist of the following:

●

LoyaltyOne provides coalition and short-term loyalty programs through the Company’s Canadian AIR MILES Reward Program and BrandLoyalty; and

●

Card Services provides private label, co-brand, general purpose and business credit card programs, digital payments, including Bread, and Comenity-branded financial services. Card Services provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services.

Corporate and other consists of corporate overhead not allocated to either of the Company’s segments.

Effective with the first quarter of 2021, the Company changed its measure of segment operating profit from adjusted EBITDA and adjusted EBITDA, net to income before income taxes, as income before income taxes is now the primary performance metric utilized by the chief operating decision maker to allocate resources and assess performance of the segments. Income taxes are not allocated to the segments in the computation of segment operating profit for internal evaluation purposes. Segment operating results for the three and six months ended June 30, 2020 have been presented to align with the current year presentation. This change had no impact on previously reported financial information.


					Corporate/
Three Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Revenues	$	150.9	$	861.5	$	—	$	1,012.4
Other operating expenses		117.1		377.4		27.2		521.7
Provision for loan loss		—		(14.1)		—		(14.1)
Depreciation and amortization		9.4		21.5		0.6		31.5
Operating income (loss)		24.4		476.7		(27.8)		473.3
Interest expense, net		(0.1)		72.2		29.6		101.7
Income (loss) before income taxes	$	24.5	$	404.5	$	(57.4)	$	371.6


					Corporate/
Three Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Revenues	$	151.1	$	828.2	$	—	$	979.3
Other operating expenses		108.9		384.1		20.2		513.2
Provision for loan loss		—		250.1		—		250.1
Depreciation and amortization		18.4		22.1		0.8		41.3
Operating income (loss)		23.8		171.9		(21.0)		174.7
Interest expense, net		(0.2)		101.6		26.3		127.7
Income (loss) before income taxes	$	24.0	$	70.3	$	(47.3)	$	47.0


					Corporate/
Six Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Revenues	$	327.5	$	1,769.8	$	—	$	2,097.3
Other operating expenses		253.0		739.1		44.0		1,036.1
Provision for loan loss		—		19.3		—		19.3
Depreciation and amortization		18.5		45.8		1.2		65.5
Operating income (loss)		56.0		965.6		(45.2)		976.4
Interest expense, net		(0.2)		151.3		59.2		210.3
Income (loss) before income taxes	$	56.2	$	814.3	$	(104.4)	$	766.1


					Corporate/
Six Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Revenues	$	349.2	$	2,011.9	$	—	$	2,361.1
Other operating expenses		242.3		749.9		44.2		1,036.4
Provision for loan loss		—		906.0		—		906.0
Depreciation and amortization		36.6		41.8		1.7		80.1
Operating income (loss)		70.3		314.2		(45.9)		338.6
Interest expense, net		(0.3)		211.8		54.7		266.2
Income (loss) before income taxes	$	70.6	$	102.4	$	(100.6)	$	72.4

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

SUPPLEMENTAL CASH FLOW INFORMATION

6 Months Ended

Jun. 30, 2021

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

20. SUPPLEMENTAL CASH FLOW INFORMATION

The following table provides a reconciliation of cash and cash equivalents to the total of the amounts reported in the unaudited condensed consolidated statements of cash flows:


	June 30,		June 30,
	2021		2020

	(in millions)
Cash and cash equivalents	$	3,001.9	$	4,960.0
Restricted cash included within other current assets ⁽¹⁾		309.1		441.2
Restricted cash included within redemption settlement assets, restricted⁽²⁾		56.1		49.9
Total cash, cash equivalents and restricted cash	$	3,367.1	$	5,451.1

(1)

Includes cash restricted for principal and interest repayments of non-recourse borrowings of consolidated securitized debt and other restricted cash within other current assets. At June 30, 2021, restricted cash included $253.1 million in principal accumulation for the repayment of non-recourse borrowings of consolidated securitized debt that matures in September 2021 and October 2021. At June 30, 2020, restricted cash included $415.1 million in principal accumulation for the repayment of non-recourse borrowings of consolidated securitized debt that matured in August 2020.

(2)

See Note 9, “Redemption Settlement Assets,” for additional information regarding the nature of restrictions on redemption settlement assets.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared by Alliance Data Systems Corporation (“ADSC” or, including its consolidated subsidiaries and variable interest entities (“VIEs”), the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Planned Spinoff of the LoyaltyOne segment	Planned Spinoff of the LoyaltyOne segment In May 2021, the Company announced its intention to spin off its LoyaltyOne segment, comprised of its Canadian AIR MILES^® Reward Program and Netherlands-based BrandLoyalty business, into a new, independent, publicly traded company (“SpinCo”) through a distribution of 81% of SpinCo’s shares to the stockholders of ADSC. The transaction is expected to qualify as a tax-free reorganization and a tax-free distribution to the Company and its stockholders for U.S. federal income tax purposes. The spinoff is expected to be completed in the fourth quarter of 2021, subject to market and certain other conditions. At the time of the spinoff, the Company expects to retain a 19% interest in SpinCo and the historical results of the LoyaltyOne segment will be reflected as discontinued operations in the Company’s consolidated financial statements.
Recently Issued and Adopted Accounting Standards	Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. This ASU is elective and is effective upon issuance for all entities. The Company is evaluating the impact that adoption of ASU 2020-04 will have on its consolidated financial statements. Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.” ASU 2019-12 eliminated certain exceptions within Accounting Standards Codification (“ASC”) 740, “Income Taxes,” and clarified certain aspects of ASC 740 to promote consistency among reporting entities. Most amendments within the standard were required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company’s adoption of this standard on January 1, 2021 did not have a material impact on its consolidated financial statements.

REVENUE (Tables)

6 Months Ended

Jun. 30, 2021

REVENUE

Schedule of disaggregation of revenue by major source and geographic region


					Corporate/
Three Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Major Source:

Coalition loyalty program	$	68.5	$	—	$	—	$	68.5
Short-term loyalty programs		76.6		—		—		76.6
Servicing fees, net		—		(51.4)		—		(51.4)
Other		2.4		—		—		2.4
Revenue from contracts with customers	$	147.5	$	(51.4)	$	—	$	96.1

Finance charges, net		—		912.9		—		912.9
Investment income		3.4		—		—		3.4
Total	$	150.9	$	861.5	$	—	$	1,012.4


					Corporate/
Three Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Major Source:

Coalition loyalty program	$	61.6	$	—	$	—	$	61.6
Short-term loyalty programs		84.8		—		—		84.8
Servicing fees, net		—		(28.5)		—		(28.5)
Other		1.6		—		—		1.6
Revenue from contracts with customers	$	148.0	$	(28.5)	$	—	$	119.5

Finance charges, net		—		856.7		—		856.7
Investment income		3.1		—		—		3.1
Total	$	151.1	$	828.2	$	—	$	979.3


					Corporate/
Six Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Major Source:

Coalition loyalty program	$	135.3	$	—	$	—	$	135.3
Short-term loyalty programs		182.9		—		—		182.9
Servicing fees, net		—		(83.8)		—		(83.8)
Other		2.4		—		—		2.4
Revenue from contracts with customers	$	320.6	$	(83.8)	$	—	$	236.8

Finance charges, net		—		1,853.6		—		1,853.6
Investment income		6.9		—		—		6.9
Total	$	327.5	$	1,769.8	$	—	$	2,097.3


					Corporate/
Six Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Major Source:

Coalition loyalty program	$	132.9	$	—	$	—	$	132.9
Short-term loyalty programs		205.1		—		—		205.1
Servicing fees, net		—		(59.1)		—		(59.1)
Other		4.9		—		—		4.9
Revenue from contracts with customers	$	342.9	$	(59.1)	$	—	$	283.8

Finance charges, net		—		2,071.0		—		2,071.0
Investment income		6.3		—		—		6.3
Total	$	349.2	$	2,011.9	$	—	$	2,361.1


					Corporate/
Three Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Geographic Region:

United States	$	1.5	$	861.5	$	—	$	863.0
Canada		73.6		—		—		73.6
Europe, Middle East and Africa		52.5		—		—		52.5
Asia Pacific		19.8		—		—		19.8
Other		3.5		—		—		3.5
Total	$	150.9	$	861.5	$	—	$	1,012.4


					Corporate/
Three Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Geographic Region:

United States	$	4.2	$	828.2	$	—	$	832.4
Canada		64.7		—		—		64.7
Europe, Middle East and Africa		50.7		—		—		50.7
Asia Pacific		13.4		—		—		13.4
Other		18.1		—		—		18.1
Total	$	151.1	$	828.2	$	—	$	979.3


					Corporate/
Six Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Geographic Region:

United States	$	2.5	$	1,769.7	$	—	$	1,772.2
Canada		153.5		0.1		—		153.6
Europe, Middle East and Africa		131.9		—		—		131.9
Asia Pacific		34.7		—		—		34.7
Other		4.9		—		—		4.9
Total	$	327.5	$	1,769.8	$	—	$	2,097.3


					Corporate/
Six Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Disaggregation of Revenue by Geographic Region:

United States	$	6.3	$	2,011.9	$	—	$	2,018.2
Canada		143.8		—		—		143.8
Europe, Middle East and Africa		119.3		—		—		119.3
Asia Pacific		50.4		—		—		50.4
Other		29.4		—		—		29.4
Total	$	349.2	$	2,011.9	$	—	$	2,361.1

Schedule of reconciliation of contract liabilities for the AIR MILES Reward Program


	Deferred Revenue
	Service		Redemption		Total

	(in millions)
Balance at January 1, 2021	$	247.2	$	756.8	$	1,004.0
Cash proceeds		84.8		137.1		221.9
Revenue recognized ⁽¹⁾		(100.3)		(110.9)		(211.2)
Other		—		0.7		0.7
Effects of foreign currency translation		6.6		20.8		27.4
Balance at June 30, 2021	$	238.3	$	804.5	$	1,042.8
Amounts recognized in the consolidated balance sheets:
Deferred revenue (current)	$	137.7	$	804.5	$	942.2
Deferred revenue (non-current)	$	100.6	$	—	$	100.6

(1)

Reported on a gross basis herein.

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2021

EARNINGS PER SHARE

Schedule of computation of basic and diluted net income per share

The following table sets forth the computation of basic and diluted net income per share of common stock:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020

	(in millions, except per share amounts)
Numerator:
Net income	$	273.5	$	38.4	$	559.7	$	68.4

Denominator:
Weighted average shares, basic		49.7		47.6		49.7		47.6
Weighted average effect of dilutive securities:
Net effect of dilutive unvested restricted stock ⁽¹⁾		0.3		0.1		0.2		0.1
Denominator for diluted calculation		50.0		47.7		49.9		47.7

Basic net income per share:	$	5.50	$	0.81	$	11.26	$	1.44
Diluted net income per share:	$	5.47	$	0.81	$	11.21	$	1.43

(1)

ACQUISITION (Tables)

6 Months Ended

Jun. 30, 2021

ACQUISITION

Summary of the fair values of the assets acquired and liabilities assumed


	As of December 3, 2020
	(in millions)
Installment loan receivables	$	111.7
Accounts receivable		0.2
Other current assets		0.6
Property and equipment		0.3
Developed technology		90.7
Right of use assets - operating		3.6
Deferred tax asset, net		7.0
Intangible assets		11.3
Goodwill		369.6
Total assets acquired		595.0

Accounts payable		2.0
Accrued expenses		2.9
Operating lease liabilities		3.5
Non-recourse borrowings of consolidated securitization entities		95.6
Total liabilities assumed		104.0

Net assets acquired, net of cash and restricted cash	$	491.0

DISPOSITION (Tables)

6 Months Ended

Jun. 30, 2021

DISPOSITION

Schedule of information related to disposition of business


	January 10,
	2020
	(in millions)
Total consideration ⁽¹⁾	$	43.8
Net carrying value of assets and liabilities (including other comprehensive income)		26.8
Allocation of goodwill		3.2
Strategic transaction costs		5.8
Pre-tax gain on sale of business, net of strategic transaction costs	$	8.0

(1)	Consideration as defined included cash associated with the sold Precima entities, which was $10.8 million.

CREDIT CARD AND LOAN RECEIVABLES (Tables)

6 Months Ended

Jun. 30, 2021

CREDIT CARD AND LOAN RECEIVABLES

Schedule of components of total credit card and loan receivables


	June 30,		December 31,
	2021		2020

	(in millions)
Credit card receivables	$	15,313.7	$	16,376.4
Installment loan receivables		152.1		118.0
Other		258.0		290.0
Total credit card and loan receivables		15,723.8		16,784.4
Less: Credit card and loan receivables – restricted for securitization investors		10,419.8		11,208.5
Other credit card and loan receivables	$	5,304.0	$	5,575.9

Schedule of Company's group similar risk characteristics and estimated life


	Estimated Life
	(in months)
Group A (Current, risk score - high)		14
Group B (Current, risk score - low)		19
Group C (Delinquent, risk score - high)		17
Group D (Delinquent, risk score - low)		26

Schedule of Company's allowance for loan loss


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021 ⁽¹⁾		2020		2021 ⁽¹⁾		2020

	(in millions)
Balance at beginning of period	$	1,843.3	$	2,150.8	$	2,008.0	$	1,171.1
Adoption of ASC 326 ⁽²⁾		—		—		—		644.0
Provision for loan loss		(14.1)		250.1		19.3		906.0
Recoveries		40.8		56.9		91.7		124.8
Principal charge-offs		(234.7)		(361.5)		(483.7)		(749.6)
Balance at end of period	$	1,635.3	$	2,096.3	$	1,635.3	$	2,096.3

(1)

(2)

Recorded January 1, 2020 through a cumulative-effect adjustment to retained earnings, net of taxes.

Schedule of aging analysis of total credit card and loan receivables at amortized cost basis


	Aging Analysis of Delinquent Amortized Cost Credit Card and Loan Receivables ⁽¹⁾
	31 to 60 days delinquent		61 to 90 days delinquent		91 or more days delinquent		Total delinquent		Current		Total

	(in millions)
As of June 30, 2021	$	214.9	$	135.4	$	294.3	$	644.6	$	14,821.2	$	15,465.8

As of December 31, 2020	$	272.5	$	203.3	$	439.8	$	915.6	$	15,578.8	$	16,494.4

(1)

As the amount of the installment loans and associated delinquencies were immaterial, the amounts were included in the above table for both the period ended June 30, 2021 and December 31, 2020.

Schedule of information on credit card and loan receivables that are considered troubled debt restructurings, which entered into a modification program

Three Months Ended June 30, 2021

Six Months Ended June 30, 2021

Pre-modification

Post-modification

Pre-modification

Post-modification

Number of

Outstanding

Number of

Outstanding

Restructurings

Balance

Restructurings

Balance

(Dollars in millions)

Troubled debt restructurings – credit card receivables

33,061

52.0

96,689

145.2

145.0

Three Months Ended June 30, 2020

Six Months Ended June 30, 2020

Pre-modification

Post-modification

Pre-modification

Post-modification

Number of

Outstanding

Number of

Outstanding

Restructurings

Balance

Restructurings

Balance

(Dollars in millions)

Troubled debt restructurings – credit card receivables

95,454

156.1

155.8

170,519

268.9

268.5

The table below summarizes troubled debt restructurings that have defaulted in the specified periods where the default occurred within 12 months of their modification date:


	Three Months Ended			Six Months Ended
	June 30, 2021			June 30, 2021
	Number of	Outstanding		Number of	Outstanding
	Restructurings	Balance		Restructurings	Balance

	(Dollars in millions)
Troubled debt restructurings that subsequently defaulted – credit card receivables	31,727	$	42.4	82,736	$	109.4


	Three Months Ended			Six Months Ended
	June 30, 2020			June 30, 2020
	Number of	Outstanding		Number of	Outstanding
	Restructurings	Balance		Restructurings	Balance

	(Dollars in millions)
Troubled debt restructurings that subsequently defaulted – credit card receivables	21,606	$	31.2	53,276	$	75.3

Schedule of composition of obligor credit quality


	Amortized Cost Revolving Credit Card Receivables
	June 30, 2021				December 31, 2020
			Percentage of				Percentage of
			Amortized				Amortized
Probability of an Account Becoming 91 or More Days Past	Amortized		Cost Basis		Amortized		Cost Basis
Due or Becoming Charged-off (within the next 12 months)	Cost Basis		Outstanding		Cost Basis		Outstanding

	(in millions, except percentages)
No Score	$	171.2	1.1	%	$	204.1	1.2	%
27.1% and higher		954.4	6.2			1,390.4	8.5
17.1% - 27.0%		754.2	4.9			848.8	5.2
12.6% - 17.0%		834.6	5.4			937.0	5.7
3.7% - 12.5%		6,729.0	43.9			7,305.5	44.6
1.9% - 3.6%		2,857.8	18.7			2,939.5	17.9
Lower than 1.9%		3,012.5	19.8			2,751.1	16.9
Total	$	15,313.7	100.0	%	$	16,376.4	100.0	%

Schedule of distribution of the Company's credit card receivables by credit score


	June 30,		December 31,
	2021		2020
Greater than 660	64.5	%	59.8	%
601-660	25.9		27.8
600 or below	9.6		12.4
Total ⁽¹⁾	100.0	%	100.0	%

⁽¹⁾	Balances for which no credit score is available have been excluded from the table above and represent 0.1% of the credit card receivable balances as of both June 30, 2021 and December 31, 2020, respectively.

Schedule of securitized credit card receivables, delinquencies and net charge-offs


	June 30,		December 31,
	2021		2020

	(in millions)
Total credit card and loan receivables – restricted for securitization investors	$	10,419.8	$	11,208.5
Principal amount of credit card and loan receivables – restricted for securitization investors, 91 days or more past due	$	127.5	$	200.8


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(in millions)
Net charge-offs of securitized principal	$	125.1	$	215.1	$	256.2	$	454.6

OTHER INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2021

OTHER INVESTMENTS

Schedule of principal components of other investments, which are carried at fair value


	June 30, 2021								December 31, 2020
	Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value

	(in millions)
Marketable securities	$	243.2	$	5.0	$	(0.9)	$	247.3	$	219.0	$	6.4	$	—	$	225.4
Total	$	243.2	$	5.0	$	(0.9)	$	247.3	$	219.0	$	6.4	$	—	$	225.4

Schedule of unrealized losses and fair value for investments that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position


	June 30, 2021
	Less than 12 months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

	(in millions)
Marketable securities	$	46.1	$	(0.9)	$	—	$	—	$	46.1	$	(0.9)
Total	$	46.1	$	(0.9)	$	—	$	—	$	46.1	$	(0.9)

Schedule of securities by contractual maturity date


	Amortized		Estimated
	Cost		Fair Value

	(in millions)
Due in one year or less ⁽¹⁾	$	68.0	$	68.0
Due after one year through five years		0.7		0.7
Due after five years through ten years		—		—
Due after ten years		174.5		178.6
Total	$	243.2	$	247.3

REDEMPTION SETTLEMENT ASSETS (Tables)

6 Months Ended

Jun. 30, 2021

REDEMPTION SETTLEMENT ASSETS

Schedule of redemption settlement assets


	June 30, 2021								December 31, 2020
		Amortized	Unrealized		Unrealized					Amortized	Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value

	(in millions)
Restricted cash	$	56.1	$	—	$	—	$	56.1	$	55.4	$	—	$	—	$	55.4
Mutual funds		26.9		—		—		26.9		26.9		—		—		26.9
Corporate bonds		651.6		12.5		(2.0)		662.1		592.3		19.1		(0.2)		611.2
Total	$	734.6	$	12.5	$	(2.0)	$	745.1	$	674.6	$	19.1	$	(0.2)	$	693.5


	June 30, 2021
	Less than 12 months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

	(in millions)
Corporate bonds	$	184.5	$	(2.0)	$	—	$	—	$	184.5	$	(2.0)
Total	$	184.5	$	(2.0)	$	—	$	—	$	184.5	$	(2.0)


	December 31, 2020
	Less than 12 months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

	(in millions)
Corporate bonds	$	46.2	$	(0.1)	$	10.3	$	(0.1)	$	56.5	$	(0.2)
Total	$	46.2	$	(0.1)	$	10.3	$	(0.1)	$	56.5	$	(0.2)

Schedule of redemption settlement assets by contractual maturity date


	Amortized		Estimated
	Cost		Fair Value

	(in millions)
Due in one year or less ⁽¹⁾	$	169.8	$	170.8
Due after one year through five years		489.7		499.4
Due after five year through ten years		19.0		18.8
Total	$	678.5	$	689.0

(1)

Includes mutual funds, which do not have a stated maturity.

LEASES (Tables)

6 Months Ended

Jun. 30, 2021

LEASES

Schedule of lease cost


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(in millions)
Operating lease cost	$	10.8	$	9.9	$	22.0	$	20.2
Short-term lease cost		0.1		0.2		0.3		0.5
Variable lease cost		1.5		2.9		3.1		3.1
Total	$	12.4	$	13.0	$	25.4	$	23.8

Other information related to leases was as follows:


	June 30,		June 30,
	2021		2020
Weighted-average remaining lease term (in years):
Operating leases		10.5		11.2
Weighted-average discount rate:
Operating leases		5.3%		5.2%

Supplemental cash flow information related to leases was as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10.1	$	11.3	$	24.4	$	25.7
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	2.6	$	0.2	$	4.3	$	2.8

Schedule of maturities of lease liabilities


	Operating
Year	Leases
	(in millions)
2021 (excluding the six months ended June 30, 2021)	$	16.1
2022		38.8
2023		37.4
2024		35.7
2025		35.0
Thereafter		207.8
Total undiscounted lease liabilities		370.8
Less: Amount representing interest		(89.8)
Total present value of minimum lease payments	$	281.0

Amounts recognized in the June 30, 2021 consolidated balance sheet:
Current operating lease liabilities	$	21.8
Long-term operating lease liabilities		259.2
Total	$	281.0

INTANGIBLE ASSETS AND GOODWILL (Tables)

6 Months Ended

Jun. 30, 2021

INTANGIBLE ASSETS AND GOODWILL

Schedule of intangible assets


	June 30, 2021
	Gross		Accumulated
	Assets		Amortization		Net		Amortization Life and Method

	(in millions)
Definite-Lived Assets
Customer contracts and lists	$	8.8	$	(1.7)	$	7.1	3 years—straight line
Premium on purchased credit card portfolios		138.8		(83.8)		55.0	1-13 years—straight line
Collector database		56.5		(56.2)		0.3	5 years—straight line
Tradenames		34.0		(29.9)		4.1	4-15 years—straight line
Non-compete agreements		2.2		(0.3)		1.9	5 years—straight line
	$	240.3	$	(171.9)	$	68.4
Indefinite-Lived Assets
Tradename		1.2		—		1.2	Indefinite life
Total intangible assets	$	241.5	$	(171.9)	$	69.6


	December 31, 2020
	Gross		Accumulated
	Assets		Amortization		Net		Amortization Life and Method

	(in millions)
Definite-Lived Assets
Customer contracts and lists	$	363.0	$	(354.5)	$	8.5	3-7 years—straight line
Premium on purchased credit card portfolios		137.2		(72.8)		64.4	3-13 years—straight line
Collector database		55.0		(54.5)		0.5	5 years—straight line
Tradenames		35.0		(30.1)		4.9	4-15 years—straight line
Non-compete agreements		2.2		—		2.2	5 years—straight line
	$	592.4	$	(511.9)	$	80.5
Indefinite-Lived Assets
Tradename		1.2		—		1.2	Indefinite life
Total intangible assets	$	593.6	$	(511.9)	$	81.7

Schedule of estimated amortization expense related to intangible assets


	For the Years Ending
	December 31,
	(in millions)
2021 (excluding the six months ended June 30, 2021)	$	13.4
2022		21.4
2023		16.1
2024		11.2
2025		2.4
Thereafter		3.9

Schedule of changes in carrying amount of goodwill



	LoyaltyOne		Card Services		Total

	(in millions)
Balance at January 1, 2021	$	736.0	$	633.6	$	1,369.6
Effects of foreign currency translation		(10.3)		—		(10.3)
Balance at June 30, 2021	$	725.7	$	633.6	$	1,359.3

DEBT (Tables)

6 Months Ended

Jun. 30, 2021

DEBT

Schedule of debt


	June 30,		December 31,
Description	2021		2020		Maturity	Interest Rate

	(Dollars in millions)
Long-term and other debt:
2017 revolving line of credit	$	—	$	—	December 2022	⁽¹⁾
2017 term loans		1,433.6		1,484.3	December 2022	⁽²⁾
BrandLoyalty credit agreement		—		—	April 2024	⁽³⁾
Senior notes due 2024		850.0		850.0	December 2024	4.750%
Senior notes due 2026		500.0		500.0	January 2026	7.000%
Total long-term and other debt		2,783.6		2,834.3
Less: Unamortized debt issuance costs		23.5		28.6
Less: Current portion		101.5		101.4
Long-term portion	$	2,658.6	$	2,704.3

Deposits:
Certificates of deposit	$	5,211.6	$	6,014.9	Various – Jul 2021 to Jun 2026	0.15% to 3.75%
Money market deposits		4,417.5		3,790.2	Non-maturity	⁽⁴⁾
Total deposits		9,629.1		9,805.1
Less: Unamortized debt issuance costs		9.3		12.5
Less: Current portion		6,964.2		6,553.9
Long-term portion	$	2,655.6	$	3,238.7

Non-recourse borrowings of consolidated securitization entities:
Fixed rate asset-backed term note securities	$	2,216.3	$	3,423.8	Various – Sep 2021 to Sep 2022	2.21% to 3.95%
Conduit asset-backed securities		2,370.0		2,205.1	Various – Aug 2022 to Oct 2023	⁽⁵⁾
Secured loan facility		21.0		86.3	November 2022	⁽⁶⁾
Total non-recourse borrowings of consolidated securitization entities		4,607.3		5,715.2
Less: Unamortized debt issuance costs		4.0		5.3
Less: Current portion		1,561.2		1,850.7
Long-term portion	$	3,042.1	$	3,859.2

(1)	The interest rate is based upon LIBOR plus an applicable margin.

(2)	The interest rate is based upon LIBOR plus an applicable margin. The weighted average interest rate for the term loans was 1.85% and 1.90% at June 30, 2021 and December 31, 2020, respectively.

(3)	The interest rate is based upon the Euro Interbank Offered Rate plus an applicable margin.

(4)	The interest rates are primarily based on the Federal Funds rate plus an applicable margin. At June 30, 2021, the interest rates ranged from 0.39% to 3.50%. At December 31, 2020, the interest rates ranged from 0.38% to 3.50%.

(5)	The interest rate is based upon LIBOR or the asset-backed commercial paper costs of each individual conduit provider plus an applicable margin. At June 30, 2021, the interest rates ranged from 0.85% to 0.94%. At December 31, 2020, the interest rates ranged from 1.39% to 1.89%.

(6)	The interest rate is based upon LIBOR plus an applicable margin. The weighted average interest rate for the secured loan facility was 3.90% at each of June 30, 2021 and December 31, 2020, respectively.

STOCKHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2021

STOCKHOLDERS' EQUITY

Schedule of stock-based compensation expense


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(in millions)
Cost of operations	$	5.5	$	3.3	$	9.5	$	6.1
General and administrative		3.7		2.9		6.5		4.9
Total	$	9.2	$	6.2	$	16.0	$	11.0

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

6 Months Ended

Jun. 30, 2021

ACCUMULATED OTHER COMPREHENSIVE LOSS.

Schedule of changes in each component of accumulated comprehensive income (loss), net of tax effects


	Net		Net Unrealized		Net Unrealized		Foreign		Accumulated
	Unrealized		Gains (Losses)		Gains (Losses)		Currency		Other
	Gains (Losses)		on Cash		on Net		Translation		Comprehensive
Three Months Ended June 30, 2021	on Securities		Flow Hedges		Investment Hedge		Adjustments ⁽¹⁾		Loss

	(in millions)
Balance at March 31, 2021	$	14.9	$	0.2	$	(7.5)	$	(49.9)	$	(42.3)
Changes in other comprehensive income (loss)		(1.2)		(0.1)		—		10.5		9.2
Balance at June 30, 2021	$	13.7	$	0.1	$	(7.5)	$	(39.4)	$	(33.1)


	Net		Net Unrealized		Net Unrealized		Foreign		Accumulated
	Unrealized		Gains (Losses)		Gains (Losses)		Currency		Other
	Gains (Losses)		on Cash		on Net		Translation		Comprehensive
Three Months Ended June 30, 2020	on Securities		Flow Hedges		Investment Hedge		Adjustments ⁽¹⁾		Loss

	(in millions)
Balance at March 31, 2020	$	4.1	$	0.2	$	(7.5)	$	(114.9)	$	(118.1)
Changes in other comprehensive income (loss)		13.4		(0.8)		—		18.0		30.6
Balance at June 30, 2020	$	17.5	$	(0.6)	$	(7.5)	$	(96.9)	$	(87.5)


	Net		Net Unrealized		Net Unrealized		Foreign		Accumulated
	Unrealized		Gains (Losses)		Gains (Losses)		Currency		Other
	Gains (Losses)		on Cash		on Net		Translation		Comprehensive
Six Months Ended June 30, 2021	on Securities		Flow Hedges		Investment Hedge		Adjustments ⁽¹⁾		Loss

	(in millions)
Balance at December 31, 2020	$	23.2	$	(0.7)	$	(7.5)	$	(20.0)	$	(5.0)
Changes in other comprehensive income (loss)		(9.5)		0.8		—		(19.4)		(28.1)
Balance at June 30, 2021	$	13.7	$	0.1	$	(7.5)	$	(39.4)	$	(33.1)


	Net		Net Unrealized		Net Unrealized		Foreign		Accumulated
	Unrealized		Gains (Losses)		Gains (Losses)		Currency		Other
	Gains (Losses)		on Cash		on Net		Translation		Comprehensive
Six Months Ended June 30, 2020	on Securities		Flow Hedges		Investment Hedge		Adjustments ⁽¹⁾		Loss

	(in millions)
Balance at December 31, 2019	$	2.5	$	(0.1)	$	(7.5)	$	(94.8)	$	(99.9)
Changes in other comprehensive income (loss)		15.0		(0.5)		—		(5.9)		8.6
Recognition resulting from the sale of Precima's foreign subsidiaries		—		—		—		3.8		3.8
Balance at June 30, 2020	$	17.5	$	(0.6)	$	(7.5)	$	(96.9)	$	(87.5)

(1)

Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates.

FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2021

FINANCIAL INSTRUMENTS

Schedule of estimated fair value of Company's financial instruments


	June 30, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value

	(in millions)
Financial assets
Credit card and loan receivables, net	$	14,088.5	$	16,149.0	$	14,776.4	$	17,301.2
Redemption settlement assets, restricted		745.1		745.1		693.5		693.5
Other investments		247.3		247.3		225.4		225.4
Derivative instruments		0.9		0.9		0.4		0.4
Financial liabilities
Derivative instruments		1.1		1.1		1.5		1.5
Deposits		9,619.8		9,785.2		9,792.6		10,015.9
Non-recourse borrowings of consolidated securitization entities		4,603.3		4,645.8		5,709.9		5,783.4
Long-term and other debt		2,760.1		2,844.2		2,805.7		2,875.1

Schedule of assets and liabilities carried at fair value measured on recurring basis


			Fair Value Measurements at
			June 30, 2021 Using
	Balance at
	June 30,
	2021		Level 1		Level 2		Level 3

	(in millions)
Mutual funds ⁽¹⁾	$	26.9	$	26.9	$	—	$	—
Corporate bonds ⁽¹⁾		662.1		—		662.1		—
Marketable securities ⁽²⁾		247.3		48.9		198.4		—
Derivative instruments ⁽³⁾		0.9		—		0.9		—
Total assets measured at fair value	$	937.2	$	75.8	$	861.4	$	—

Derivative instruments ⁽³⁾	$	1.1	$	—	$	1.1	$	—
Total liabilities measured at fair value	$	1.1	$	—	$	1.1	$	—


			Fair Value Measurements at
			December 31, 2020 Using
	Balance at
	December 31,
	2020		Level 1		Level 2		Level 3

	(in millions)
Mutual funds ⁽¹⁾	$	26.9	$	26.9	$	—	$	—
Corporate bonds ⁽¹⁾		611.2		—		611.2		—
Marketable securities ⁽²⁾		225.4		34.2		191.2		—
Derivative instruments ⁽³⁾		0.4		—		0.4		—
Total assets measured at fair value	$	863.9	$	61.1	$	802.8	$	—

Derivative instruments ⁽³⁾	$	1.5	$	—	$	1.5	$	—
Total liabilities measured at fair value	$	1.5	$	—	$	1.5	$	—

(1)	Amounts are included in redemption settlement assets in the unaudited condensed consolidated balance sheets.

(2)	Amounts are included in other current assets and other non-current assets in the unaudited condensed consolidated balance sheets.

(3)	Amounts are included in other current assets and other current liabilities in the unaudited condensed consolidated balance sheets.

Schedule of assets and liabilities disclosed but not carried at fair value


	Fair Value Measurements at
	June 30, 2021
	Total		Level 1		Level 2		Level 3

	(in millions)
Financial assets:
Credit card and loan receivables, net	$	16,149.0	$	—	$	—	$	16,149.0
Total	$	16,149.0	$	—	$	—	$	16,149.0

Financial liabilities:
Deposits	$	9,785.2	$	—	$	9,785.2	$	—
Non-recourse borrowings of consolidated securitization entities		4,645.8		—		4,645.8		—
Long-term and other debt		2,844.2		—		2,844.2		—
Total	$	17,275.2	$	—	$	17,275.2	$	—


	Fair Value Measurements at
	December 31, 2020
	Total		Level 1		Level 2		Level 3

	(in millions)
Financial assets:
Credit card and loan receivables, net	$	17,301.2	$	—	$	—	$	17,301.2
Total	$	17,301.2	$	—	$	—	$	17,301.2

Financial liabilities:
Deposits	$	10,015.9	$	—	$	10,015.9	$	—
Non-recourse borrowings of consolidated securitization entities		5,783.4		—		5,783.4		—
Long-term and other debt		2,875.1		—		2,875.1		—
Total	$	18,674.4	$	—	$	18,674.4	$	—

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2021

SEGMENT INFORMATION

Schedule of segment information


					Corporate/
Three Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Revenues	$	150.9	$	861.5	$	—	$	1,012.4
Other operating expenses		117.1		377.4		27.2		521.7
Provision for loan loss		—		(14.1)		—		(14.1)
Depreciation and amortization		9.4		21.5		0.6		31.5
Operating income (loss)		24.4		476.7		(27.8)		473.3
Interest expense, net		(0.1)		72.2		29.6		101.7
Income (loss) before income taxes	$	24.5	$	404.5	$	(57.4)	$	371.6


					Corporate/
Three Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Revenues	$	151.1	$	828.2	$	—	$	979.3
Other operating expenses		108.9		384.1		20.2		513.2
Provision for loan loss		—		250.1		—		250.1
Depreciation and amortization		18.4		22.1		0.8		41.3
Operating income (loss)		23.8		171.9		(21.0)		174.7
Interest expense, net		(0.2)		101.6		26.3		127.7
Income (loss) before income taxes	$	24.0	$	70.3	$	(47.3)	$	47.0


					Corporate/
Six Months Ended June 30, 2021	LoyaltyOne		Card Services		Other		Total

	(in millions)
Revenues	$	327.5	$	1,769.8	$	—	$	2,097.3
Other operating expenses		253.0		739.1		44.0		1,036.1
Provision for loan loss		—		19.3		—		19.3
Depreciation and amortization		18.5		45.8		1.2		65.5
Operating income (loss)		56.0		965.6		(45.2)		976.4
Interest expense, net		(0.2)		151.3		59.2		210.3
Income (loss) before income taxes	$	56.2	$	814.3	$	(104.4)	$	766.1


					Corporate/
Six Months Ended June 30, 2020	LoyaltyOne		Card Services		Other		Total

	(in millions)
Revenues	$	349.2	$	2,011.9	$	—	$	2,361.1
Other operating expenses		242.3		749.9		44.2		1,036.4
Provision for loan loss		—		906.0		—		906.0
Depreciation and amortization		36.6		41.8		1.7		80.1
Operating income (loss)		70.3		314.2		(45.9)		338.6
Interest expense, net		(0.3)		211.8		54.7		266.2
Income (loss) before income taxes	$	70.6	$	102.4	$	(100.6)	$	72.4

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

6 Months Ended

Jun. 30, 2021

SUPPLEMENTAL CASH FLOW INFORMATION

Schedule of reconciliation of cash and cash equivalents


	June 30,		June 30,
	2021		2020

	(in millions)
Cash and cash equivalents	$	3,001.9	$	4,960.0
Restricted cash included within other current assets ⁽¹⁾		309.1		441.2
Restricted cash included within redemption settlement assets, restricted⁽²⁾		56.1		49.9
Total cash, cash equivalents and restricted cash	$	3,367.1	$	5,451.1

(1)

(2)

See Note 9, “Redemption Settlement Assets,” for additional information regarding the nature of restrictions on redemption settlement assets.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Planned Spinoff of the LoyaltyOne segment (Details) - Forecast	3 Months Ended
	Dec. 31, 2021
SpinCo
Planned Spinoff of the LoyaltyOne segment
Expected percentage of ownership interest at the time of the spinoff	19.00%
SpinCo
Planned Spinoff of the LoyaltyOne segment
Percentage of shares distributed as part of spinoff	81.00%

REVENUE (Details) $ in Millions	3 Months Ended		6 Months Ended
REVENUE (Details) $ in Millions	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) item	Jun. 30, 2020 USD ($)
Disaggregation of revenue
Number of segments \| item			2
Revenue from contracts with customers	$ 96.1	$ 119.5	$ 236.8	$ 283.8
Finance charges, net	912.9	856.7	1,853.6	2,071.0
Investment income	3.4	3.1	6.9	6.3
Total revenue	1,012.4	979.3	2,097.3	2,361.1
Coalition loyalty program
Disaggregation of revenue
Revenue from contracts with customers	68.5	61.6	135.3	132.9
Short-term loyalty programs
Disaggregation of revenue
Revenue from contracts with customers	76.6	84.8	182.9	205.1
Servicing fees, net
Disaggregation of revenue
Revenue from contracts with customers	(51.4)	(28.5)	(83.8)	(59.1)
Other
Disaggregation of revenue
Revenue from contracts with customers	2.4	1.6	2.4	4.9
United States
Disaggregation of revenue
Total revenue	863.0	832.4	1,772.2	2,018.2
Canada
Disaggregation of revenue
Total revenue	73.6	64.7	153.6	143.8
Europe, Middle East and Africa
Disaggregation of revenue
Total revenue	52.5	50.7	131.9	119.3
Asia Pacific
Disaggregation of revenue
Total revenue	19.8	13.4	34.7	50.4
Other
Disaggregation of revenue
Total revenue	3.5	18.1	4.9	29.4
Operating segment \| LoyaltyOne
Disaggregation of revenue
Revenue from contracts with customers	147.5	148.0	320.6	342.9
Investment income	3.4	3.1	6.9	6.3
Total revenue	150.9	151.1	327.5	349.2
Operating segment \| LoyaltyOne \| Coalition loyalty program
Disaggregation of revenue
Revenue from contracts with customers	68.5	61.6	135.3	132.9
Operating segment \| LoyaltyOne \| Short-term loyalty programs
Disaggregation of revenue
Revenue from contracts with customers	76.6	84.8	182.9	205.1
Operating segment \| LoyaltyOne \| Other
Disaggregation of revenue
Revenue from contracts with customers	2.4	1.6	2.4	4.9
Operating segment \| LoyaltyOne \| United States
Disaggregation of revenue
Total revenue	1.5	4.2	2.5	6.3
Operating segment \| LoyaltyOne \| Canada
Disaggregation of revenue
Total revenue	73.6	64.7	153.5	143.8
Operating segment \| LoyaltyOne \| Europe, Middle East and Africa
Disaggregation of revenue
Total revenue	52.5	50.7	131.9	119.3
Operating segment \| LoyaltyOne \| Asia Pacific
Disaggregation of revenue
Total revenue	19.8	13.4	34.7	50.4
Operating segment \| LoyaltyOne \| Other
Disaggregation of revenue
Total revenue	3.5	18.1	4.9	29.4
Operating segment \| Card Services
Disaggregation of revenue
Revenue from contracts with customers	(51.4)	(28.5)	(83.8)	(59.1)
Finance charges, net	912.9	856.7	1,853.6	2,071.0
Total revenue	861.5	828.2	1,769.8	2,011.9
Operating segment \| Card Services \| Servicing fees, net
Disaggregation of revenue
Revenue from contracts with customers	(51.4)	(28.5)	(83.8)	(59.1)
Operating segment \| Card Services \| United States
Disaggregation of revenue
Total revenue	$ 861.5	$ 828.2	1,769.7	$ 2,011.9
Operating segment \| Card Services \| Canada
Disaggregation of revenue
Total revenue			$ 0.1

REVENUE - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jan. 01, 2021	Dec. 31, 2020
Change in Contract with Customer, Liability
Deferred revenue	$ 1,042.8		$ 1,004.0
Cash proceeds	221.9
Revenue recognized	(211.2)
Other	0.7
Effects of foreign currency translation	27.4
Amounts recognized in the consolidated balance sheets:
Deferred revenue (current)	942.2		898.5
Deferred revenue (non-current)	$ 100.6		105.5
Period for which interest and fee income accrue until balance, interest and fees paid or charged off	180 days
LoyaltyOne \| Other current liabilities
Change in Contract with Customer, Liability
Deferred revenue	$ 75.2	$ 66.9
Revenue recognized	(156.3)
Service
Change in Contract with Customer, Liability
Deferred revenue	238.3		247.2
Cash proceeds	84.8
Revenue recognized	(100.3)
Effects of foreign currency translation	6.6
Amounts recognized in the consolidated balance sheets:
Deferred revenue (current)	137.7
Deferred revenue (non-current)	100.6
Redemption
Change in Contract with Customer, Liability
Deferred revenue	804.5		756.8
Cash proceeds	137.1
Revenue recognized	(110.9)
Other	0.7
Effects of foreign currency translation	20.8
Amounts recognized in the consolidated balance sheets:
Deferred revenue (current)	804.5
Card Services
Amounts recognized in the consolidated balance sheets:
Unamortized contract costs	$ 365.1		$ 311.1

REVENUE - Performance Obligation (Details) - LoyaltyOne $ in Millions	Jun. 30, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, expected timing of satisfaction of remaining performance	6 months
Revenue, remaining performance obligation	$ 83.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, expected timing of satisfaction of remaining performance	12 months
Revenue, remaining performance obligation	$ 96.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, expected timing of satisfaction of remaining performance	12 months
Revenue, remaining performance obligation	$ 49.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, expected timing of satisfaction of remaining performance	12 months
Revenue, remaining performance obligation	$ 9.6

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net income	$ 273.5	$ 38.4	$ 559.7	$ 68.4
Denominator:
Weighted average shares, basic	49.7	47.6	49.7	47.6
Weighted average effect of dilutive securities:
Net effect of dilutive stock options and unvested restricted stock (in shares)	0.3	0.1	0.2	0.1
Denominator for diluted calculations (in shares)	50.0	47.7	49.9	47.7
Basic income per share:
Net income per share (in dollars per share)	$ 5.50	$ 0.81	$ 11.26	$ 1.44
Diluted income per share:
Net income per share (in dollars per share)	$ 5.47	$ 0.81	$ 11.21	$ 1.43
Restricted stock units
Weighted average effect of dilutive securities:
Anti-dilutive shares excluded from the calculation of net income per share (in shares)		0.3		0.3

ACQUISITION (Details) - USD ($) shares in Millions, $ in Millions	Dec. 03, 2020	Sep. 28, 2020	Jun. 30, 2021	Dec. 31, 2020
Fair values of assets acquired and liabilities assumed in acquisition
Goodwill			$ 1,359.3	$ 1,369.6
Bread
Acquisition
Number of shares initially acquired		3.5
Percentage of interest acquired		6.00%
Total acquisition percentage	100.00%
Equity consideration shares of common stock	1.9
Cash consideration	$ 275.0	$ 25.0
Equity consideration	149.2
Deferred consideration	75.0
Gain (loss) recognized on remeasurement	0.0
Total consideration, net of cash and restricted cash acquired	491.0
Fair values of assets acquired and liabilities assumed in acquisition
Installment loan receivables	111.7
Accounts receivable	0.2
Other current assets	0.6
Property and equipment	0.3
Developed technology	90.7
Right of use assets - operating	3.6
Deferred tax asset, net	7.0
Intangible assets	11.3
Goodwill	369.6
Total assets acquired	595.0
Accounts payable	2.0
Accrued expenses	2.9
Operating lease liabilities	3.5
Non-recourse borrowings of consolidated securitization entities	95.6
Total liabilities assumed	104.0
Net assets acquired, net of cash and restricted cash	$ 491.0
Equity consideration shares of common stock	1.9

DISPOSITION (Details) $ in Millions		1 Months Ended
DISPOSITION (Details) $ in Millions	Jan. 10, 2020 USD ($) item	Sep. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Earnout payments received		$ 5.0
Disposal Group, Estimated Fair Value of Remaining Contingent Purchase Price			$ 1.5
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Precima
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total consideration	$ 43.8
Contingent consideration	$ 10.0
Number of earnout determination dates \| item	2
Net carrying value of assets and liabilities (including other comprehensive income)	$ 26.8
Allocation of goodwill	3.2
Strategic transaction costs	5.8
Pre-tax gain on sale of business, net of strategic transaction costs	8.0
Cash associated with Precima, included in total consideration	$ 10.8

CREDIT CARD AND LOAN RECEIVABLES - Allowance for Loan Loss and Delinquencies (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) item	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) item	Jun. 30, 2021 USD ($) item	Dec. 31, 2020 USD ($)
Total credit card and loan receivables						$ 15,723.8	$ 16,784.4
Less: Credit card and loan receivables - restricted for securitization investors						10,419.8	11,208.5
Other credit card and loan receivables						5,304.0	5,575.9
Unbilled finance charges						206.2	219.4
Allowance for loan loss	$ 1,843.3	$ 2,096.3	$ 2,008.0	$ 2,096.3	$ 1,171.1	$ 1,635.3	2,008.0
Allowance for Loan Loss
Number of credit card and loan receivable groups \| item						4
Payments allocated to future purchase activity						$ 0.0
Balance at beginning of period	1,843.3	2,150.8	2,008.0	1,171.1	1,171.1
Provision for loan loss	(14.1)	250.1	19.3	906.0
Recoveries	40.8	56.9	91.7	124.8
Principal charge-offs	(234.7)	(361.5)	(483.7)	(749.6)
Balance at end of period	1,635.3	2,096.3	$ 1,635.3	2,096.3	$ 2,008.0
Number of days a loan is contractually past due before resulting in charge-off			180 days
Number of days after notification of creditor's bankruptcy or death when an account is charged-off			60 days
Principal charge-offs, net of recoveries	193.9	304.6	$ 392.0	624.8
Actual charge-offs for unpaid interest and fees	113.9	197.7	$ 244.5	429.6
Period for which interest and fee income accrue until balance, interest and fees paid or charged off			180 days
Period an account becomes past due before a proprietary collection scoring algorithm automatically scores the risk of an account becoming further delinquent			30 days
Amortized cost of receivables balances contractually delinquent:
Total delinquent						644.6	915.6
Modified Credit Card Receivables
Impaired credit card and loan receivables						$ 369.3	$ 489.8
Maximum percentage of credit card receivables to total portfolio						3.00%	3.00%
Average recorded investment in impaired credit card receivables	415.4	387.5	$ 448.5	351.1
Interest income on modified credit card receivables	7.1	7.1	$ 15.9	12.6
Maximum
Allowance for Loan Loss
Number of days after notification of creditor's bankruptcy or death when an account is charged-off			180 days
ASU 2016-13
Allowance for loan loss		644.0		644.0
Allowance for Loan Loss
Balance at end of period		$ 644.0		$ 644.0
Group A (Current, risk score - high)
Allowance for Loan Loss
Estimated Life (in months)			14 months
Group B (Current, risk score - low)
Allowance for Loan Loss
Estimated Life (in months)			19 months
Group C (Delinquent, risk score - high)
Allowance for Loan Loss
Estimated Life (in months)			17 months
Group D (Delinquent, risk score - low)
Allowance for Loan Loss
Estimated Life (in months)			26 months
Credit Card and Loan Receivables
Receivables						$ 15,313.7	$ 16,376.4
Modified Credit Card Receivables
Number of short term forbearance programs \| item			2		2
Short-term forbearance programs						23.1	67.3
Deferred forbearance programs						77.9	157.4
Duration of short term program one			3 months
Duration of short term program two			6 months
Outstanding Balance						17.8	39.9
Maximum period of time temporary programs' concessions remain in place			12 months
Installment Loan Receivables
Receivables						152.1	118.0
Allowance for loan loss	7.6		$ 5.7		$ 5.7	7.6	5.7
Allowance for Loan Loss
Balance at beginning of period			5.7
Balance at end of period	$ 7.6		$ 7.6		$ 5.7
Period for which interest and fee income accrue until balance, interest and other fees are paid or charged off on installment loan receivables			120 days
Other
Receivables						$ 258.0	$ 290.0

CREDIT CARD AND LOAN RECEIVABLES - Amortized Cost Basis Credit Card and Loan Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total delinquent	$ 644.6	$ 915.6
Current	14,821.2	15,578.8
Total	15,465.8	16,494.4
31 to 60 days delinquent
Financing Receivable, Past Due [Line Items]
Total delinquent	214.9	272.5
61 to 90 days delinquent
Financing Receivable, Past Due [Line Items]
Total delinquent	135.4	203.3
91 or more days delinquent
Financing Receivable, Past Due [Line Items]
Total delinquent	$ 294.3	$ 439.8

CREDIT CARD AND LOAN RECEIVABLES - Troubled Debt Restructurings (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) item	Jun. 30, 2020 USD ($) item	Jun. 30, 2021 USD ($) item	Jun. 30, 2020 USD ($) item
Credit Card Receivables
Modifications related to troubled debt restructurings within credit card and loan receivables
Number of Restructurings \| item	33,061	95,454	96,689	170,519
Pre-modification Outstanding Balance	$ 52.0	$ 156.1	$ 145.2	$ 268.9
Post-modification Outstanding Balance	$ 52.0	$ 155.8	$ 145.0	$ 268.5
Troubled debt restructurings that subsequently defaulted - credit card receivables
Modifications related to troubled debt restructurings within credit card and loan receivables
Number of Restructurings \| item	31,727	21,606	82,736	53,276
Post-modification Outstanding Balance	$ 42.4	$ 31.2	$ 109.4	$ 75.3

CREDIT CARD AND LOAN RECEIVABLES - Credit Quality on Amortized Cost Basis (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Credit Quality
Amortized Cost Basis of Receivables Outstanding	$ 15,313.7	$ 16,376.4
Percentage of amortized cost basis of credit card receivables outstanding	100.00%	100.00%
No Score
Credit Quality
Amortized Cost Basis of Receivables Outstanding	$ 171.2	$ 204.1
Percentage of amortized cost basis of credit card receivables outstanding	1.10%	1.20%
27.1% and higher
Credit Quality
Amortized Cost Basis of Receivables Outstanding	$ 954.4	$ 1,390.4
Percentage of amortized cost basis of credit card receivables outstanding	6.20%	8.50%
17.1% - 27.0%
Credit Quality
Amortized Cost Basis of Receivables Outstanding	$ 754.2	$ 848.8
Percentage of amortized cost basis of credit card receivables outstanding	4.90%	5.20%
12.6% - 17.0%
Credit Quality
Amortized Cost Basis of Receivables Outstanding	$ 834.6	$ 937.0
Percentage of amortized cost basis of credit card receivables outstanding	5.40%	5.70%
3.7% - 12.5%
Credit Quality
Amortized Cost Basis of Receivables Outstanding	$ 6,729.0	$ 7,305.5
Percentage of amortized cost basis of credit card receivables outstanding	43.90%	44.60%
1.9% - 3.6%
Credit Quality
Amortized Cost Basis of Receivables Outstanding	$ 2,857.8	$ 2,939.5
Percentage of amortized cost basis of credit card receivables outstanding	18.70%	17.90%
Lower than 1.9%
Credit Quality
Amortized Cost Basis of Receivables Outstanding	$ 3,012.5	$ 2,751.1
Percentage of amortized cost basis of credit card receivables outstanding	19.80%	16.90%
Installment Loan Receivables
Credit Quality
Amortized Cost Basis of Receivables Outstanding	$ 152.1	$ 118.0
Installment Loan Receivables \| FICO Score, From 660 and Above
Credit Quality
Percentage of total amortized cost basis of revolving loan receivables outstanding	84	86
Installment Loan Receivables \| FICO Score, From 660 and Below
Credit Quality
Percentage of total amortized cost basis of revolving loan receivables outstanding	16
Installment Loan Receivables \| FICO Score Below 660
Credit Quality
Percentage of total amortized cost basis of revolving loan receivables outstanding		14

CREDIT CARD AND LOAN RECEIVABLES - Credit Card Receivables By Credit Score (Details) - Credit Card Receivable	Jun. 30, 2021	Dec. 31, 2020
Credit Quality
Credit card receivables by credit score, percentage	100.00%	100.00%
Credit card receivables with no score available, percentage	0.10%	0.10%
Credit Score, Greater than 660
Credit Quality
Credit card receivables by credit score, percentage	64.50%	59.80%
Credit Score, From 601 to 660
Credit Quality
Credit card receivables by credit score, percentage	25.90%	27.80%
Credit Score, From 600 and Below
Credit Quality
Credit card receivables by credit score, percentage	9.60%	12.40%

CREDIT CARD AND LOAN RECEIVABLES - Securitized Credit Card Receivables (Details) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2021 USD ($) item	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Portfolio Held For Sale
Proceeds from sale of credit card portfolio					$ 289.5
Portfolio Acquisitions
Number of credit card portfolios acquired \| item	1
Purchase price of credit card portfolio	$ 31.5			$ 31.5
Purchase price of credit card receivables portfolio	29.9
Purchase price of credit card receivables portfolio, intangible assets	$ 1.6
Securitized Credit Card and Loan Receivables
Total credit card and loan receivables - restricted for securitization investors		$ 10,419.8		10,419.8		$ 11,208.5
Principal amount of credit card receivables - restricted for securitization investors, 91 days or more past due		127.5		127.5		$ 200.8
Net charge-offs of securitized principal		$ 125.1	$ 215.1	$ 256.2	$ 454.6

INVENTORIES, NET (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
INVENTORIES, NET
Inventories, net	$ 162.3	$ 164.3

OTHER INVESTMENTS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
OTHER INVESTMENTS (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Marketable securities
Amortized Cost	$ 243.2		$ 243.2		$ 219.0
Unrealized Gains	5.0		5.0		6.4
Unrealized Losses	(0.9)		(0.9)
Fair Value	247.3		247.3		225.4
Other Investments, Total
Amortized Cost	243.2		243.2		219.0
Unrealized Gains	5.0		5.0		6.4
Unrealized Losses	(0.9)		(0.9)
Fair Value	247.3		247.3		$ 225.4
Fair Value, Marketable securities
Less than 12 months	46.1		46.1
Total	46.1		46.1
Unrealized Losses, Marketable securities
Less than 12 months	(0.9)		(0.9)
Total	(0.9)		(0.9)
Amortized Cost
Due in one year or less	68.0		68.0
Due after one year through five years	0.7		0.7
Due after ten years	174.5		174.5
Total	243.2		243.2
Fair Value
Due in one year or less	68.0		68.0
Due after one year through five years	0.7		0.7
Due after ten years	178.6		178.6
Fair Value	247.3		247.3
Realized gains or losses
Realized gains or losses from the sale of investment securities	$ 0.0	$ 0.0	$ 0.0	$ 0.0

REDEMPTION SETTLEMENT ASSETS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	$ 734.6		$ 734.6		$ 674.6
Unrealized Gains	12.5		12.5		19.1
Unrealized Losses	(2.0)		(2.0)		(0.2)
Fair Value	745.1		745.1		693.5
Fair Value
Less than 12 months	184.5		184.5		46.2
12 Months or Greater					10.3
Total	184.5		184.5		56.5
Unrealized Losses
Less than 12 months	(2.0)		(2.0)		(0.1)
12 Months or Greater					(0.1)
Total	(2.0)		(2.0)		(0.2)
Amortized cost of the redemption settlement assets by contractual maturity
Due in one year or less	169.8		169.8
Due after one year through five years	489.7		489.7
Due after five year through ten years	19.0		19.0
Total	678.5		678.5
Estimated fair value of the redemption settlement assets by contractual maturity
Due in one year or less	170.8		170.8
Due after one year through five years	499.4		499.4
Due after five year through ten years	18.8		18.8
Total	689.0		689.0
Realized gains or losses from the sale of investment securities	0.2	$ 0.0	0.2	$ 0.0
Restricted cash
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	56.1		56.1		55.4
Fair Value	56.1		56.1		55.4
Mutual funds
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	26.9		26.9		26.9
Fair Value	26.9		26.9		26.9
Corporate bonds
REDEMPTION SETTLEMENT ASSETS
Amortized Cost	651.6		651.6		592.3
Unrealized Gains	12.5		12.5		19.1
Unrealized Losses	(2.0)		(2.0)		(0.2)
Fair Value	662.1		662.1		611.2
Fair Value
Less than 12 months	184.5		184.5		46.2
12 Months or Greater					10.3
Total	184.5		184.5		56.5
Unrealized Losses
Less than 12 months	(2.0)		(2.0)		(0.1)
12 Months or Greater					(0.1)
Total	$ (2.0)		$ (2.0)		$ (0.2)

LEASES (Details)	6 Months Ended
LEASES (Details)	Jun. 30, 2021
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	17 years

LEASES - Lease expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
LEASES - Lease expense (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lease expense
Operating lease cost	$ 10.8	$ 9.9	$ 22.0	$ 20.2
Short-term lease cost	0.1	0.2	0.3	0.5
Variable lease cost	1.5	2.9	3.1	3.1
Total	$ 12.4	$ 13.0	$ 25.4	$ 23.8
Remaining lease term - operating leases	10 years 6 months	11 years 2 months 12 days	10 years 6 months	11 years 2 months 12 days
Discount rate - operating leases	5.30%	5.20%	5.30%	5.20%
Supplemental cash flow information related to leases was as follows:
Operating cash flows from operating leases	$ 10.1	$ 11.3	$ 24.4	$ 25.7
Operating leases - Right-of-use assets obtained in exchange for lease obligations	$ 2.6	$ 0.2	$ 4.3	$ 2.8

LEASES - Maturities of lease liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Lease liabilities
2021 (excluding the six months ended June 30, 2021)	$ 16.1
2022	38.8
2023	37.4
2024	35.7
2025	35.0
Thereafter	207.8
Total undiscounted lease liabilities	370.8
Less: Amount representing interest	(89.8)
Total present value of minimum lease payments	281.0
Amounts recognized in the June 30, 2021 consolidated balance sheet:
Current operating lease liabilities	21.8	$ 23.6
Long-term operating lease liabilities	259.2	$ 276.4
Total present value of minimum lease payments	$ 281.0

INTANGIBLE ASSETS AND GOODWILL - Finite Lived Assets and Indefinite Lived Assets (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 240.3	$ 592.4
Accumulated Amortization	(171.9)	(511.9)
Finite lived assets, net	68.4	80.5
Total Intangible Assets
Gross Assets	241.5	593.6
Accumulated Amortization	(171.9)	(511.9)
Net	69.6	81.7
Tradenames
Indefinite Lived Assets
Indefinite lived assets	1.2	1.2
Customer contracts and lists
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	8.8	363.0
Accumulated Amortization	(1.7)	(354.5)
Finite lived assets, net	$ 7.1	8.5
Amortization Life and Method
Useful life	3 years
Total Intangible Assets
Accumulated Amortization	$ (1.7)	$ (354.5)
Customer contracts and lists \| Minimum
Amortization Life and Method
Useful life		3 years
Customer contracts and lists \| Maximum
Amortization Life and Method
Useful life		7 years
Premium on purchased credit card portfolios
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	138.8	$ 137.2
Accumulated Amortization	(83.8)	(72.8)
Finite lived assets, net	55.0	64.4
Total Intangible Assets
Accumulated Amortization	$ (83.8)	$ (72.8)
Premium on purchased credit card portfolios \| Minimum
Amortization Life and Method
Useful life	1 year	3 years
Premium on purchased credit card portfolios \| Maximum
Amortization Life and Method
Useful life	13 years	13 years
Collector database
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 56.5	$ 55.0
Accumulated Amortization	(56.2)	(54.5)
Finite lived assets, net	$ 0.3	$ 0.5
Amortization Life and Method
Useful life	5 years	5 years
Total Intangible Assets
Accumulated Amortization	$ (56.2)	$ (54.5)
Tradenames
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	34.0	35.0
Accumulated Amortization	(29.9)	(30.1)
Finite lived assets, net	4.1	4.9
Total Intangible Assets
Accumulated Amortization	$ (29.9)	$ (30.1)
Tradenames \| Minimum
Amortization Life and Method
Useful life	4 years	4 years
Tradenames \| Maximum
Amortization Life and Method
Useful life	15 years	15 years
Noncompete agreements
Schedule of Finite and Indefinite-lived Intangible Assets
Finite lived assets, gross	$ 2.2	$ 2.2
Accumulated Amortization	(0.3)
Finite lived assets, net	$ 1.9	$ 2.2
Amortization Life and Method
Useful life	5 years	5 years
Total Intangible Assets
Accumulated Amortization	$ (0.3)

INTANGIBLE ASSETS AND GOODWILL - Maturity Schedule (Details) $ in Millions	Jun. 30, 2021 USD ($)
Estimated amortization expense related to intangible assets for the next five years and thereafter
2021 (excluding the six months ended June 30, 2021)	$ 13.4
2022	21.4
2023	16.1
2024	11.2
2025	2.4
Thereafter	$ 3.9

INTANGIBLE ASSETS AND GOODWILL - Goodwill Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Goodwill
Beginning Balance	$ 1,369.6
Effects of foreign currency translation	(10.3)
Ending Balance	1,359.3
Operating segment \| LoyaltyOne
Goodwill
Beginning Balance	736.0
Effects of foreign currency translation	(10.3)
Ending Balance	725.7
Operating segment \| Card Services
Goodwill
Beginning Balance	633.6
Ending Balance	$ 633.6

DEBT (Details) $ in Millions	1 Months Ended
DEBT (Details) $ in Millions	Jun. 30, 2021 USD ($) item	Feb. 28, 2021 USD ($)	Jul. 31, 2021	May 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Debt
Less: Current portion	$ 6,964.2				$ 6,553.9
Long-term portion	2,655.6				3,238.7
Less: Current portion	1,561.2				1,850.7
Long-term portion	$ 3,042.1				3,859.2
Debt Instrument, Maturity Extended, Percentage			86.00%
Number of conduit facilities \| item	3
Series 2018-A asset backed term notes
Debt
Debt repaid by the company		$ 591.5
Retained amount of subordinated class of notes		$ 66.5
Series 2016 A asset backed term notes
Debt
Debt repaid by the company	$ 866.7
Retained amount of subordinated class of notes	184.2
Total deposits
Debt
Deposits	9,629.1				9,805.1
Less: Unamortized debt issuance costs	9.3				12.5
Less: Current portion	6,964.2				6,553.9
Long-term portion	2,655.6				3,238.7
Certificates of deposit
Debt
Deposits	$ 5,211.6				6,014.9
Certificates of deposit \| Minimum
Debt
Interest Rate (as a percent)	0.15%
Certificates of deposit \| Maximum
Debt
Interest Rate (as a percent)	3.75%
Money market deposits
Debt
Money market deposits	$ 4,417.5				$ 3,790.2
Money market deposits \| Minimum
Debt
Interest Rate (as a percent)	0.39%				0.38%
Money market deposits \| Maximum
Debt
Interest Rate (as a percent)	3.50%				3.50%
Non-recourse borrowings of consolidated securitization entities
Debt
Less: Unamortized debt issuance costs	$ 4.0				$ 5.3
Total non-recourse borrowings of consolidated securitization entities	4,607.3				5,715.2
Less: Current portion	1,561.2				1,850.7
Long-term portion	3,042.1				3,859.2
Fixed rate asset-backed term note securities
Debt
Total non-recourse borrowings of consolidated securitization entities	$ 2,216.3				3,423.8
Fixed rate asset-backed term note securities \| Minimum
Debt
Interest Rate (as a percent)	2.21%
Fixed rate asset-backed term note securities \| Maximum
Debt
Interest Rate (as a percent)	3.95%
Secured Loan Facility
Debt
Total non-recourse borrowings of consolidated securitization entities	$ 21.0				$ 86.3
Weighted average interest rate (as a percent)	3.90%				3.90%
Conduit asset-backed securities
Debt
Maximum borrowing capacity	$ 4,500.0
Total non-recourse borrowings of consolidated securitization entities	2,370.0				$ 2,205.1
Line of credit amount outstanding	$ 2,400.0
Conduit asset-backed securities \| Minimum
Debt
Interest Rate (as a percent)	0.85%				1.39%
Conduit asset-backed securities \| Maximum
Debt
Interest Rate (as a percent)	0.94%				1.89%
2009-VFN conduit facility under World Financial Capital Credit Card Master Trust I
Debt
Maximum borrowing capacity	$ 2,750.0			$ 1,000.0
2009-VFC conduit facility under World Financial Network Credit Card Master Trust III
Debt
Maximum borrowing capacity	225.0			$ 700.0
Long-term and other debt
Debt
Total long-term and other debt	2,783.6				$ 2,834.3
Less: Unamortized discount and debt issuance costs	23.5				28.6
Less: Current portion	101.5				101.4
Long-term and other debt	2,658.6				2,704.3
Senior Notes Due 2024
Debt
Total long-term and other debt	$ 850.0				$ 850.0
Interest Rate (as a percent)	4.75%				4.75%
Senior Notes Due 2026
Debt
Total long-term and other debt	$ 500.0				$ 500.0
Interest Rate (as a percent)	7.00%				7.00%
2017 Credit Agreement
Debt
Total availability under Credit Facility	$ 750.0
2017 revolving line of credit
Debt
Total long-term and other debt	0.0				$ 0.0
2017 Term Loans
Debt
Total long-term and other debt	$ 1,433.6				$ 1,484.3
Weighted average interest rate (as a percent)	1.85%				1.90%
BrandLoyalty credit agreement
Debt
Total long-term and other debt	$ 0.0				$ 0.0

DERIVATIVE INSTRUMENTS - Activity and Location of Outstanding Derivatives (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Notional amount, fair value and classification of the company's outstanding derivative contracts
Unrealized (loss) gain on cash flow hedges, net of tax	$ (0.1)	$ (0.8)	$ 0.8	$ (0.5)
Foreign currency exchange forward contracts \| Other current assets
Notional amount, fair value and classification of the company's outstanding derivative contracts
Derivative instruments, fair value	0.9		0.9		$ 0.4
Foreign currency exchange forward contracts \| Other current liabilities
Notional amount, fair value and classification of the company's outstanding derivative contracts
Derivative instruments, fair value	$ 1.1		$ 1.1		$ 1.5

COMMITMENTS AND CONTINGENCIES - Regulatory Matters and Cardholders (Details) - Epsilon - Discontinued Operations, Disposed of by Sale $ in Millions		1 Months Ended
	Jan. 19, 2021 USD ($) item	Jan. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Contingencies
Loss contingency, total	$ 150.0
Number of installment payments \| item	2
Loss contingency accrual			$ 75.0	$ 150.0
Loss contingency, payment		$ 75.0

STOCKHOLDERS' EQUITY - Restricted Stock Unit Awards and Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions							3 Months Ended			6 Months Ended
	Jul. 30, 2021	Jul. 29, 2021	Jun. 18, 2021	Apr. 29, 2021	Mar. 18, 2021	Jan. 28, 2021	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Stock Compensation Plans
Common stock dividends declared (in dollars per share)		$ 0.21		$ 0.21		$ 0.21	$ 0.21	$ 0.21	$ 0.63	$ 0.21
Dividends paid			$ 10.4		$ 10.4					$ 21.1	$ 40.4
Payments related to dividend equivalent rights										$ 0.2
Treasury stock, shares retired	67,400,000
Performance-based restricted stock unit awards
Stock Compensation Plans
Shares granted (in shares)										95,762
Weighted average grant-date fair value (in dollars per share)							92.62			$ 92.62
Percentage of stock units on which restrictions will lapse in February 2024										100.00%
Performance-based restricted stock unit awards \| Minimum
Stock Compensation Plans
Percentage of stock units to vest										0.00%
Performance-based restricted stock unit awards \| Maximum
Stock Compensation Plans
Percentage of stock units to vest										170.00%
Service-based restricted stock unit awards
Stock Compensation Plans
Shares granted (in shares)										632,050
Weighted average grant-date fair value (in dollars per share)							$ 87.81			$ 87.81
Award vesting period										3 years

STOCKHOLDERS' EQUITY - Stock Compensation Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense	$ 9.2	$ 6.2	$ 16.0	$ 11.0
Cost of operations.
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense	5.5	3.3	9.5	6.1
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs
Stock-based compensation expense	$ 3.7	$ 2.9	$ 6.5	$ 4.9

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income
Balance	$ 1,764.3	$ 1,087.7	$ 1,521.6	$ 1,588.3
Changes in other comprehensive income (loss)	9.2	30.6	(28.1)	12.4
Recognition of foreign currency translation adjustments upon sale of business				3.8
Balance	2,047.9	1,154.6	2,047.9	1,154.6
Precima
Accumulated Other Comprehensive Income
Recognition of foreign currency translation adjustments upon sale of business				3.8
Net Unrealized Gains (Losses) on Securities
Accumulated Other Comprehensive Income
Balance	14.9	4.1	23.2	2.5
Changes in other comprehensive income (loss)	(1.2)	13.4	(9.5)
Changes in other comprehensive income (loss)				15.0
Balance	13.7	17.5	13.7	17.5
Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income
Balance	0.2	0.2	(0.7)	(0.1)
Changes in other comprehensive income (loss)	(0.1)	(0.8)	0.8
Changes in other comprehensive income (loss)				(0.5)
Balance	0.1	(0.6)	0.1	(0.6)
Net Unrealized Gains (Losses) on Net Investment Hedge
Accumulated Other Comprehensive Income
Balance	(7.5)	(7.5)	(7.5)	(7.5)
Balance	(7.5)	(7.5)	(7.5)	(7.5)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income
Balance	(49.9)	(114.9)	(20.0)	(94.8)
Changes in other comprehensive income (loss)	10.5	18.0	(19.4)
Changes in other comprehensive income (loss)				(5.9)
Recognition of foreign currency translation adjustments upon sale of business				3.8
Balance	(39.4)	(96.9)	(39.4)	(96.9)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income
Balance	(42.3)	(118.1)	(5.0)	(99.9)
Changes in other comprehensive income (loss)	9.2	30.6	(28.1)
Changes in other comprehensive income (loss)				8.6
Recognition of foreign currency translation adjustments upon sale of business				3.8
Balance	(33.1)	(87.5)	(33.1)	(87.5)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income
Balance	(42.3)	(118.1)	(5.0)	(99.9)
Changes in other comprehensive income (loss)	9.2	30.6	(28.1)	12.4
Balance	$ (33.1)	$ (87.5)	$ (33.1)	$ (87.5)

FINANCIAL INSTRUMENTS - Fair Value of Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Financial assets
Credit card and loan receivables, net	$ 14,088.5	$ 14,776.4
Redemption settlement assets, restricted	745.1	693.5
Other investments	247.3	225.4
Financial liabilities
Deposits	9,785.2	10,015.9
Non-recourse borrowings of consolidated securitization entities	4,645.8	5,783.4
Long-term and other debt	2,844.2	2,875.1
Carrying Amount
Financial assets
Credit card and loan receivables, net	14,088.5	14,776.4
Redemption settlement assets, restricted	745.1	693.5
Other investments	247.3	225.4
Derivative instruments, fair value	0.9	0.4
Financial liabilities
Derivative instruments, fair value	1.1	1.5
Deposits	9,619.8	9,792.6
Non-recourse borrowings of consolidated securitization entities	4,603.3	5,709.9
Long-term and other debt	2,760.1	2,805.7
Fair Value.
Financial assets
Credit card and loan receivables, net	16,149.0	17,301.2
Redemption settlement assets, restricted	745.1	693.5
Other investments	247.3	225.4
Derivative instruments, fair value	0.9	0.4
Financial liabilities
Derivative instruments, fair value	1.1	1.5
Deposits	9,785.2	10,015.9
Non-recourse borrowings of consolidated securitization entities	4,645.8	5,783.4
Long-term and other debt	$ 2,844.2	$ 2,875.1

FINANCIAL INSTRUMENTS - Fair Value Level Disclosure (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets disclosed at fair value
Marketable securities	$ 247.3	$ 225.4
Total assets measured at fair value	16,149.0	17,301.2
Liabilities disclosed at fair value
Total liabilities measured at fair value	17,275.2	18,674.4
Level 2
Liabilities disclosed at fair value
Total liabilities measured at fair value	17,275.2	18,674.4
Level 3
Assets disclosed at fair value
Total assets measured at fair value	16,149.0	17,301.2
Recurring
Assets disclosed at fair value
Mutual funds	26.9	26.9
Corporate bonds	662.1	611.2
Marketable securities	247.3	225.4
Derivative instruments, fair value	0.9	0.4
Total assets measured at fair value	937.2	863.9
Liabilities disclosed at fair value
Derivative instruments, fair value	1.1	1.5
Total liabilities measured at fair value	1.1	1.5
Recurring \| Level 1
Assets disclosed at fair value
Mutual funds	26.9	26.9
Marketable securities	48.9	34.2
Total assets measured at fair value	75.8	61.1
Recurring \| Level 2
Assets disclosed at fair value
Corporate bonds	662.1	611.2
Marketable securities	198.4	191.2
Derivative instruments, fair value	0.9	0.4
Total assets measured at fair value	861.4	802.8
Liabilities disclosed at fair value
Derivative instruments, fair value	1.1	1.5
Total liabilities measured at fair value	$ 1.1	$ 1.5

FINANCIAL INSTRUMENTS - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Financial assets
Credit card and loan receivables, net	$ 16,149.0	$ 17,301.2
Total assets measured at fair value	16,149.0	17,301.2
Financial liabilities
Deposits	9,785.2	10,015.9
Non-recourse borrowings of consolidated securitization entities	4,645.8	5,783.4
Long-term and other debt	2,844.2	2,875.1
Total liabilities measured at fair value	17,275.2	18,674.4
Level 2
Financial liabilities
Deposits	9,785.2	10,015.9
Non-recourse borrowings of consolidated securitization entities	4,645.8	5,783.4
Long-term and other debt	2,844.2	2,875.1
Total liabilities measured at fair value	17,275.2	18,674.4
Level 3
Financial assets
Credit card and loan receivables, net	16,149.0	17,301.2
Total assets measured at fair value	$ 16,149.0	$ 17,301.2

FINANCIAL INSTRUMENTS - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) $ in Millions	6 Months Ended
	Jun. 30, 2020 USD ($)
FINANCIAL INSTRUMENTS
Asset Impairment Charges	$ 34.2

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
INCOME TAXES (Details)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
INCOME TAXES
Effective tax rate utilized (as a percent)	26.40%	18.30%	26.90%	5.50%

SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment information
Revenues	$ 1,012.4	$ 979.3	$ 2,097.3	$ 2,361.1
Other operating expenses	521.7	513.2	1,036.1	1,036.4
Provision for loan loss	(14.1)	250.1	19.3	906.0
Depreciation and amortization	31.5	41.3	65.5	80.1
Operating income (loss)	473.3	174.7	976.4	338.6
Interest expense, net	101.7	127.7	210.3	266.2
Income (loss) before income taxes	371.6	47.0	766.1	72.4
Operating segment \| LoyaltyOne
Segment information
Revenues	150.9	151.1	327.5	349.2
Other operating expenses	117.1	108.9	253.0	242.3
Depreciation and amortization	9.4	18.4	18.5	36.6
Operating income (loss)	24.4	23.8	56.0	70.3
Interest expense, net	(0.1)	(0.2)	(0.2)	(0.3)
Income (loss) before income taxes	24.5	24.0	56.2	70.6
Operating segment \| Card Services
Segment information
Revenues	861.5	828.2	1,769.8	2,011.9
Other operating expenses	377.4	384.1	739.1	749.9
Provision for loan loss	(14.1)	250.1	19.3	906.0
Depreciation and amortization	21.5	22.1	45.8	41.8
Operating income (loss)	476.7	171.9	965.6	314.2
Interest expense, net	72.2	101.6	151.3	211.8
Income (loss) before income taxes	404.5	70.3	814.3	102.4
Corporate/Other
Segment information
Other operating expenses	27.2	20.2	44.0	44.2
Depreciation and amortization	0.6	0.8	1.2	1.7
Operating income (loss)	(27.8)	(21.0)	(45.2)	(45.9)
Interest expense, net	29.6	26.3	59.2	54.7
Income (loss) before income taxes	$ (57.4)	$ (47.3)	$ (104.4)	$ (100.6)

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
SUPPLEMENTAL CASH FLOW INFORMATION
Cash and cash equivalents	$ 3,001.9		$ 4,960.0
Restricted cash included within other current assets	309.1		441.2
Restricted cash included within redemption settlement assets, restricted	56.1		49.9
Total cash, cash equivalents and restricted cash	3,367.1	$ 3,463.2	5,451.1	$ 3,958.1
Restricted cash in principal accumulation for repayment	$ 253.1		$ 415.1