Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 24, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FLT | |
Entity Registrant Name | FLEETCOR TECHNOLOGIES INC | |
Entity Central Index Key | 1,175,454 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 92,257,881 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 546,560 | $ 475,018 |
Restricted cash | 188,433 | 168,752 |
Accounts receivable (less allowance for doubtful accounts of $40,985 and $32,506 at March 31, 2017 and December 31, 2016, respectively) | 1,360,833 | 1,202,009 |
Securitized accounts receivable—restricted for securitization investors | 676,000 | 591,000 |
Prepaid expenses and other current assets | 110,265 | 90,914 |
Total current assets | 2,882,091 | 2,527,693 |
Property and equipment | 271,534 | 253,361 |
Less accumulated depreciation and amortization | (122,497) | (110,857) |
Net property and equipment | 149,037 | 142,504 |
Goodwill | 4,227,472 | 4,195,150 |
Other intangibles, net | 2,633,651 | 2,653,233 |
Investments | 40,763 | 36,200 |
Other assets | 76,940 | 71,952 |
Total assets | 10,009,954 | 9,626,732 |
Current liabilities: | ||
Accounts payable | 1,246,182 | 1,151,432 |
Accrued expenses | 213,999 | 238,812 |
Customer deposits | 589,387 | 530,787 |
Securitization facility | 676,000 | 591,000 |
Current portion of notes payable and other obligations | 731,708 | 745,506 |
Other current liabilities | 43,389 | 38,781 |
Total current liabilities | 3,500,665 | 3,296,318 |
Notes payable and other obligations, less current portion | 2,460,629 | 2,521,727 |
Deferred income taxes | 666,572 | 668,580 |
Other noncurrent liabilities | 40,276 | 56,069 |
Total noncurrent liabilities | 3,167,477 | 3,246,376 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 475,000,000 shares authorized; 121,680,903 shares issued and 92,257,881 shares outstanding at March 31, 2017; and 121,259,960 shares issued and 91,836,938 shares outstanding at December 31, 2016 | 122 | 121 |
Additional paid-in capital | 2,114,560 | 2,074,094 |
Retained earnings | 2,342,414 | 2,218,721 |
Accumulated other comprehensive loss | (572,789) | (666,403) |
Less treasury stock 29,423,022 shares at March 31, 2017 and December 31, 2016, respectively | (542,495) | (542,495) |
Total stockholders’ equity | 3,341,812 | 3,084,038 |
Total liabilities and stockholders’ equity | $ 10,009,954 | $ 9,626,732 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 40,985 | $ 32,506 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, shares issued (in shares) | 121,680,903 | 121,259,960 |
Common stock, shares outstanding (in shares) | 92,257,881 | 91,836,938 |
Treasury stock, shares (in shares) | 29,423,022 | 29,423,022 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | [1] | |
Income Statement [Abstract] | |||
Revenues, net | $ 520,433 | $ 414,262 | |
Expenses: | |||
Merchant commissions | 24,384 | 28,233 | |
Processing | 101,824 | 79,814 | |
Selling | 38,837 | 26,553 | |
General and administrative | 95,434 | 67,594 | |
Depreciation and amortization | 64,866 | 36,328 | |
Other operating, net | 20 | (215) | |
Operating income | 195,068 | 175,955 | |
Equity method investment loss | 2,377 | 2,193 | |
Other expense, net | 2,196 | 659 | |
Interest expense, net | 23,127 | 16,191 | |
Total other expense | 27,700 | 19,043 | |
Income before income taxes | 167,368 | 156,912 | |
Provision for income taxes | 43,675 | 45,822 | |
Net income | $ 123,693 | $ 111,090 | |
Earnings per share: | |||
Basic earnings per share (in dollars per share) | $ 1.34 | $ 1.20 | |
Diluted earnings per share (in dollars per share) | $ 1.31 | $ 1.17 | |
Weighted average shares outstanding: | |||
Basic weighted average shares outstanding (in shares) | 92,108 | 92,516 | |
Diluted weighted average shares outstanding (in shares) | 94,560 | 95,030 | |
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based compensation, including the income tax consequences. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 123,693 | $ 111,090 | [1] |
Other comprehensive income: | |||
Foreign currency translation gains, net of tax | 93,614 | 31,202 | |
Total other comprehensive income | 93,614 | 31,202 | |
Total comprehensive income | $ 217,307 | $ 142,292 | |
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based compensation, including the income tax consequences. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Operating activities | |||
Net income | $ 123,693 | $ 111,090 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 10,667 | 7,976 | |
Stock-based compensation | 23,093 | 15,186 | |
Provision for losses on accounts receivable | 12,988 | 6,836 | |
Amortization of deferred financing costs and discounts | 1,914 | 1,822 | |
Amortization of intangible assets | 52,654 | 27,362 | |
Amortization of premium on receivables | 1,544 | 990 | |
Deferred income taxes | (3,453) | (2,128) | |
Equity method investment loss | 2,377 | 2,193 | [1] |
Other non-cash operating income | 0 | (215) | |
Changes in operating assets and liabilities (net of acquisitions): | |||
Restricted cash | (19,283) | 23,743 | |
Accounts receivable | (236,564) | (182,761) | |
Prepaid expenses and other current assets | (16,453) | (2,086) | |
Other assets | (2,673) | (11,696) | |
Accounts payable, accrued expenses and customer deposits | 103,711 | 124,311 | |
Net cash provided by operating activities | 54,215 | 122,623 | |
Investing activities | |||
Acquisitions, net of cash acquired | 0 | (4,092) | |
Purchases of property and equipment | (14,796) | (11,739) | |
Other | (6,327) | (4,914) | |
Net cash used in investing activities | (21,123) | (20,745) | |
Financing activities | |||
Proceeds from issuance of common stock | 15,230 | 387 | |
Borrowings (payments) on securitization facility, net | 85,000 | (63,000) | |
Principal payments on notes payable | (33,363) | (25,875) | |
Borrowings from revolver – A Facility | 90,000 | 40,000 | |
Payments on revolver – A Facility | (159,949) | (110,000) | |
Borrowings on swing line of credit, net | 21,639 | 0 | |
Other | 537 | (19) | |
Net cash provided by (used in) financing activities | 19,094 | (158,507) | |
Effect of foreign currency exchange rates on cash | 19,356 | 8,795 | |
Net increase (decrease) in cash and cash equivalents | 71,542 | (47,834) | |
Cash and cash equivalents, beginning of period | 475,018 | 447,152 | |
Cash and cash equivalents, end of period | 546,560 | 399,318 | |
Supplemental cash flow information | |||
Cash paid for interest | 33,190 | 15,310 | |
Cash paid for income taxes | $ 88,503 | $ 11,824 | |
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based compensation, including the income tax consequences. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Throughout this report, the terms “our,” “we,” “us,” and the “Company” refers to FleetCor Technologies, Inc. and its subsidiaries. The Company prepared the accompanying interim consolidated financial statements in accordance with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”). The unaudited consolidated financial statements reflect all adjustments considered necessary for fair presentation. These adjustments consist primarily of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Actual results may differ from these estimates. Operating results for the three month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Foreign Currency Translation Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at the rates of exchange in effect at period-end. The related translation adjustments are made directly to accumulated other comprehensive income. Income and expenses are translated at the average monthly rates of exchange in effect during the period. Gains and losses from foreign currency transactions of these subsidiaries are included in net income. The Company recognized foreign exchange losses of $1.5 million and $0.7 million for the three months ended March 31, 2017 and 2016 , respectively, which are recorded within other expense, net in the Unaudited Consolidated Statements of Income. The Company recognized net gains on intra-entity foreign currency transactions that are of a long-term-investment nature of approximately $36 million and $19 million in the three months ended March 31, 2017 and 2016, respectively, in the statements of comprehensive income. Adoption of New Accounting Standards Revenue Recognition In May 2014, the FASB issued Accounting Standards Codification ("ASC") 606, “Revenue from Contracts with Customers”, which amends the guidance in former ASC 605, Revenue Recognition. This amended guidance requires revenue to be recognized in an amount that reflects the consideration to which the company expects to be entitled for those goods and services when the performance obligation has been satisfied. This amended guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and related cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date”, which defers the effective date of the new revenue recognition standard by one year. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, which clarifies how an entity should identify the unit of accounting for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. In April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing", which clarifies the accounting for intellectual property licenses and identifying performance obligations. In May 2016, the FASB issued ASU 2016-11, "Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting", which rescinds certain SEC guidance in response to announcements made by the SEC staff at the EITF's March 3, 2016 meeting and ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients", which clarifies the guidance on collectibility, non-cash consideration, the presentation of sales and other similar taxes collected from customers and contract modifications and completed contracts at transition. Additionally, ASU 2016-12 clarifies that entities electing the full retrospective transition method would no longer be required to disclose the effect of the change in accounting principle on the period of adoption; however, entities would still be required to disclose the effects on preadoption periods that were retrospectively adjusted. These ASUs are effective for the Company for reporting periods beginning after December 15, 2017, but permit companies the option to adopt as of the original effective date. In the first quarter of 2017, the Company continued its assessment of the new standard with a focus on identifying the performance obligations included within its revenue arrangements with customers and evaluating its methods of estimating the amount of and timing of variable consideration. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company anticipates selecting the modified retrospective method, which would result in an adjustment to retained earnings for the cumulative effect, if any, of applying the standard to contracts in process as of the adoption date. Under this method, the Company would not restate the prior financial statements presented; therefore the new standard requires the Company to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period during 2018, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any. The Company continues its assessment to evaluate the impact of the provisions of ASC 606 on the results of operations, financial condition, and cash flows. Based upon our assessment to date, which is ongoing, we have not identified significant changes to our current processes, systems and revenue recognition practices. Accounting for Leases In February 2016, the FASB issued ASU 2016-02, “Leases”, which requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. This ASU also requires disclosures to provide additional information about the amounts recorded in the financial statements. This ASU is effective for the Company for annual periods beginning after December 15, 2018 and interim periods therein. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance for leases that exist or are entered into after the beginning of the earliest comparative period presented. The Company is currently evaluating the impact of this ASU on the results of operations, financial condition, or cash flows. Accounting for Employee Stock-Based Payment In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting", which requires excess tax benefits recognized on stock-based compensation expense be reflected in the consolidated statements of operations as a component of the provision for income taxes on a prospective basis. ASU 2016-09 also requires excess tax benefits recognized on stock-based compensation expense be classified as an operating activity in the consolidated statements of cash flows rather than a financing activity. Companies can elect to apply this provision retrospectively or prospectively. ASU 2016-09 also requires entities to elect whether to account for forfeitures as they occur or estimate expected forfeitures over the course of a vesting period. This ASU is effective for the Company for annual periods beginning after December 15, 2016. Early adoption is permitted. During the third quarter of 2016, the Company elected to early adopt ASU 2016-09. The adoption of this ASU resulted in excess tax benefits being recorded as a reduction of income tax expense prospectively for all periods during 2016, rather than additional paid in capital, and an increase in the number of dilutive shares outstanding at the end of each period, which resulted in an increase to diluted earnings per share during the respective period. As required by ASU 2016-09, excess tax benefits recognized on stock-based compensation expense are classified as an operating activity in our consolidated statements of cash flows on a prospective basis within changes in accounts payable, accrued expenses and customer deposits. In accordance with ASU 2016-09, prior periods related to the classification of excess tax benefits have not been adjusted. The Company also elected to account for forfeitures as they occur, rather than estimate expected forfeitures over the course of a vesting period. As a result of the adoption of ASU 2016-09, the net cumulative effect of this change was not material. The following table shows the impact of retrospectively applying ASU 2016-09 to the previously issued consolidated statements of operations for the three month period ended March 31 (in thousands, except per share amounts): Three Months Ended March 31, 2016 As Previously Reported Adjustments As Recast Income before income taxes $ 156,912 $ — $ 156,912 Provision for income taxes 46,940 (1,118 ) 45,822 Net income $ 109,972 $ 1,118 $ 111,090 Earnings per share: Basic earnings per share $ 1.19 $ 0.01 $ 1.20 Diluted earnings per share $ 1.17 $ — $ 1.17 Weighted average common shares outstanding: Basic 92,516 — 92,516 Diluted 94,329 701 95,030 The following table shows the impact of retrospectively applying this guidance to the Consolidated Statement of Cash flows for the three months ended March 31, 2016 (in thousands): Three Months Ended March 31, 2016 As Previously Reported Adjustments As Recast Net cash provided by operating activities $ 121,505 $ 1,118 $ 122,623 Net cash used in investing activities (20,745 ) — (20,745 ) Net cash used in financing activities (157,389 ) (1,118 ) (158,507 ) Effect of foreign currency exchange rates on cash 8,795 — 8,795 Net (decrease) increase in cash $ (47,834 ) $ — $ (47,834 ) Accounting for Breakage In March 2016, the FASB issued ASU 2016-04, “Liabilities-Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products”, which requires entities that sell prepaid stored value products redeemable for goods, services or cash at third-party merchants to derecognize liabilities related to those products for breakage. This ASU is effective for the Company for reporting periods beginning after December 15, 2017. Early adoption is permitted. The ASU must be adopted using either a modified retrospective approach with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption or a full retrospective approach. The Company’s adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows. Cash Flow Classification In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments", which amends the guidance in ASC 230, Statement of Cash Flows. This amended guidance reduces the diversity in practice that has resulted from the lack of consistent principles related to the classification of certain cash receipts and payments in the statement of cash flows. This ASU is effective for the Company for reporting periods beginning after December 15, 2017. Early adoption is permitted. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively from the earliest date practicable if retrospective application would be impracticable. The Company’s adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash", which amends the guidance in ASC 230, Statement of Cash Flows, on the classification and presentation of restricted cash in the statement of cash flows. This ASU is effective for the Company for reporting periods beginning after December 15, 2017. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in this ASU should be applied using a retrospective transition method to each period presented. The Company’s adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows. Intangibles - Goodwill and Other Impairment In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on Step 1). The standard has tiered effective dates, starting in 2020 for calendar-year public business entities that meet the definition of an SEC filer. Early adoption is permitted for interim and annual goodwill impairment testing dates after January 1, 2017. The Company’s adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows. Definition of a Business In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business", which amends the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the set of transferred assets and activities is not a business.The guidance also requires a business to include at least one substantive process and narrows the definition of outputs.The guidance is effective for the Company for reporting periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. The Company’s adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The Company maintains a $950 million revolving trade accounts receivable Securitization Facility. Accounts receivable collateralized within our Securitization Facility relate to trade receivables resulting from charge card activity. Pursuant to the terms of the Securitization Facility, the Company transfers certain of its domestic receivables, on a revolving basis, to FleetCor Funding LLC (Funding) a wholly-owned bankruptcy remote subsidiary. In turn, Funding sells, without recourse, on a revolving basis, up to $950 million of undivided ownership interests in this pool of accounts receivable to a multi-seller, asset-backed commercial paper conduit (Conduit). Funding maintains a subordinated interest, in the form of over-collateralization, in a portion of the receivables sold to the Conduit. Purchases by the Conduit are financed with the sale of highly-rated commercial paper. The Company utilizes proceeds from the sale of its accounts receivable as an alternative to other forms of financing to reduce its overall borrowing costs. The Company has agreed to continue servicing the sold receivables for the financial institution at market rates, which approximates the Company’s cost of servicing. The Company retains a residual interest in the accounts receivable sold as a form of credit enhancement. The residual interest’s fair value approximates carrying value due to its short-term nature. Funding determines the level of funding achieved by the sale of trade accounts receivable, subject to a maximum amount. The Company’s consolidated balance sheets and statements of income reflect the activity related to securitized accounts receivable and the corresponding securitized debt, including interest income, fees generated from late payments, provision for losses on accounts receivable and interest expense. The cash flows from borrowings and repayments, associated with the securitized debt, are presented as cash flows from financing activities. The Company’s accounts receivable and securitized accounts receivable include the following at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Gross domestic accounts receivable $ 629,629 $ 529,885 Gross domestic securitized accounts receivable 676,000 591,000 Gross foreign receivables 772,189 704,630 Total gross receivables 2,077,818 1,825,515 Less allowance for doubtful accounts (40,985 ) (32,506 ) Net accounts and securitized accounts receivable $ 2,036,833 $ 1,793,009 A rollforward of the Company’s allowance for doubtful accounts related to accounts receivable for three months ended March 31 is as follows (in thousands): 2017 2016 Allowance for doubtful accounts beginning of period $ 32,506 $ 21,903 Provision for bad debts 12,988 6,836 Write-offs (4,509 ) (4,706 ) Allowance for doubtful accounts end of period $ 40,985 $ 24,033 Foreign receivables are not included in the Company’s accounts receivable securitization program. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is a market-based measurement that reflects assumptions that market participants would use in pricing an asset or liability. GAAP discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. As the basis for evaluating such inputs, a three-tier value hierarchy prioritizes the inputs used in measuring fair value as follows: • Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets. • Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following table presents the Company’s financial assets and liabilities which are measured at fair values on a recurring basis as of March 31, 2017 and December 31, 2016 , (in thousands). Fair Value Level 1 Level 2 Level 3 March 31, 2017 Assets: Repurchase agreements $ 286,921 $ — $ 286,921 $ — Money market 50,254 — 50,254 — Certificates of deposit 3,549 — 3,549 — Total cash equivalents $ 340,724 $ — $ 340,724 $ — December 31, 2016 Assets: Repurchase agreements $ 232,131 $ — $ 232,131 $ — Money market 50,179 — 50,179 — Certificates of deposit 48 — 48 — Total cash equivalents $ 282,358 $ — $ 282,358 $ — The Company has highly liquid investments classified as cash equivalents, with original maturities of 90 days or less, included in our Consolidated Balance Sheets. The Company utilizes Level 2 fair value determinations derived from directly or indirectly observable (market based) information to determine the fair value of these highly liquid investments. The Company has certain cash and cash equivalents that are invested on an overnight basis in repurchase agreements, money markets and certificates of deposit. The value of overnight repurchase agreements is determined based upon the quoted market prices for the treasury securities associated with the repurchase agreements. The value of money market instruments is the financial institutions' month-end statement, as these instruments are not tradeable and must be settled directly by us with the respective financial institution. Certificates of deposit are valued at cost, plus interest accrued. Given the short term nature of these instruments, the carrying value approximates fair value. The level within the fair value hierarchy and the measurement technique are reviewed quarterly. Transfers between levels are deemed to have occurred at the end of the quarter. There were no transfers between fair value levels during the periods presented for 2017 and 2016 . The Company’s nonfinancial assets that are measured at fair value on a nonrecurring basis and are evaluated with periodic testing for impairment include property, plant and equipment, investments, goodwill and other intangible assets. Estimates of the fair value of assets acquired and liabilities assumed in business combinations are generally developed using key inputs such as management’s projections of cash flows on a held-and-used basis (if applicable), discounted as appropriate, management’s projections of cash flows upon disposition and discount rates. Accordingly, these fair value measurements are in Level 3 of the fair value hierarchy. The fair value of the Company’s cash, accounts receivable, securitized accounts receivable and related facility, prepaid expenses and other current assets, accounts payable, accrued expenses, customer deposits and short-term borrowings approximate their respective carrying values due to the short-term maturities of the instruments. The carrying value of the Company’s debt obligations approximates fair value as the interest rates on the debt are variable market based interest rates that reset on a quarterly basis. These are each Level 2 fair value measurements, except for cash, which is a Level 1 fair value measurement. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity On February 4, 2016, the Company's Board of Directors approved a stock repurchase program (the "Program") under which the Company may begin purchasing up to an aggregate of $500 million of its common stock over the following 18 month period. Any stock repurchases may be made at times and in such amounts as deemed appropriate. The timing and amount of stock repurchases, if any, will depend on a variety of factors including the stock price, market conditions, corporate and regulatory requirements, and any additional constraints related to material inside information the Company may possess. Any repurchases have been and are expected to be funded by available cash flow from the business and working capital. Since the beginning of the Program, 1,670,311 shares, for an aggregate purchase price of $240.1 million have been repurchased. There were no shares repurchased under the Program during the three months ended March 31, 2017 . In May 2017, the Company repurchased 411,166 common shares totaling $52.4 million under the Program. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has Stock Incentive Plans (the Plans) pursuant to which the Company’s board of directors may grant stock options or restricted stock to employees. The table below summarizes the expense recognized related to share-based payments recognized for the three month periods ended March 31 (in thousands): Three Months Ended 2017 2016 Stock options $ 12,089 $ 9,244 Restricted stock 11,004 5,942 Stock-based compensation $ 23,093 $ 15,186 The tax benefits recorded on stock based compensation were $15.0 million and $6.2 million for the three month periods ended March 31, 2017 and 2016 , respectively. The following table summarizes the Company’s total unrecognized compensation cost related to stock-based compensation as of March 31, 2017 (cost in thousands): Unrecognized Compensation Cost Weighted Average Period of Expense Recognition (in Years) Stock options $ 101,535 1.60 Restricted stock 26,310 0.76 Total $ 127,845 Stock Options Stock options are granted with an exercise price estimated to be equal to the fair market value of the Company's stock on the date of grant as authorized by the Company’s board of directors. Options granted have vesting provisions ranging from one to six years and vesting of the options is generally based on the passage of time or performance. Stock option grants are subject to forfeiture if employment terminates prior to vesting. The following summarizes the changes in the number of shares of common stock under option for the three month period ended March 31, 2017 (shares and aggregate intrinsic value in thousands): Shares Weighted Average Exercise Price Options Exercisable at End of Period Weighted Average Exercise Price of Exercisable Options Weighted Average Fair Value of Options Granted During the Period Aggregate Intrinsic Value Outstanding at December 31, 2016 6,146 $ 91.20 3,429 $ 55.00 $ 309,238 Granted 1,598 150.85 $ 37.58 Exercised (236 ) 64.65 20,443 Forfeited (17 ) 142.33 Outstanding at March 31, 2017 7,491 $ 104.65 3,833 $ 65.23 $ 350,477 Expected to vest as of March 31, 2017 7,491 $ 104.65 The aggregate intrinsic value of stock options exercisable at March 31, 2017 was $330.4 million . The weighted average remaining contractual term of options exercisable at March 31, 2017 was 5.4 years. The fair value of stock option awards granted was estimated using the Black-Scholes option pricing model during the three months ended March 31, 2017 and 2016 , with the following weighted-average assumptions for grants or modifications during the period: March 31 2017 2016 Risk-free interest rate 1.83 % 1.11 % Dividend yield — — Expected volatility 27.31 % 27.36 % Expected life (in years) 4.2 3.3 Restricted Stock Awards of restricted stock and restricted stock units are independent of stock option grants and are subject to forfeiture if employment terminates prior to vesting. The vesting of shares granted is generally based on the passage of time or performance, or a combination of these. Shares vesting based on the passage of time have vesting provisions of one year. The following table summarizes the changes in the number of shares of restricted stock and restricted stock units for the three months ended March 31, 2017 (shares in thousands): Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 379 $ 140.39 Granted 129 153.94 Vested (203 ) 136.77 Cancelled (31 ) 152.71 Outstanding at March 31, 2017 274 $ 158.06 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2017 Acquisitions On April 28, 2017, the Company signed a definitive agreement to acquire Cambridge Global Payments (“Cambridge”) for approximately $675 million , a leading business to business (B2B) international payments provider. Cambridge processes over $20 billion in B2B cross-border payments annually, helping 13,000 business clients make international payments to suppliers and employees. The purpose of this acquisition is to further expand the Company's corporate payments footprint. This acquisition is expected to be completed in third quarter of 2017. 2016 Acquisitions STP On August 31, 2016, the Company acquired all of the outstanding stock of Serviços e Tecnologia de Pagamentos S.A. (“STP”), for approximately $1.23 billion , net of cash acquired of $40.2 million . STP is an electronic toll payments company in Brazil and provides cardless fuel payments at a number of Shell sites throughout Brazil. The purpose of this acquisition was to expand the Company's presence in the toll market in Brazil.The Company financed the acquisition using a combination of existing cash and borrowings under its existing credit facility. Results from the acquired business have been reported in the Company's international segment since the date of acquisition. The following table summarizes the preliminary acquisition accounting for STP (in thousands): Trade and other receivables $ 243,157 Prepaid expenses and other 6,998 Deferred tax assets 9,365 Property and equipment 38,732 Other long term assets 14,280 Goodwill 645,766 Customer relationships and other identifiable intangible assets 584,274 Liabilities assumed (315,082 ) Aggregate purchase price $ 1,227,490 The estimated fair value of intangible assets acquired and the related estimated useful lives consisted of the following (in thousands): Useful Lives (in Years) Value Customer relationships 8.5-17 $ 349,310 Trade names and trademarks - indefinite N/A 189,547 Technology 6 45,417 $ 584,274 In connection with the STP acquisition, the Company recorded contingent liabilities aggregating $13.5 million in the consolidated balance sheet, recorded within other noncurrent liabilities and accrued expenses in the consolidated balance sheet at the date of acquisition. A portion of these acquired liabilities have been indemnified by the respective sellers. As a result, an indemnification asset of $13.0 million was recorded within prepaid and other current assets and other long term assets in the consolidated balance sheet. The contingent liabilities and the indemnification asset are included in the preliminary acquisition accounting for STP at the date of acquisition. The potential range of acquisition related contingent liabilities that the Company estimates would be incurred and ultimately recoverable is $13.5 million to $18.6 million . Along with the Company's acquisition of STP, the Company signed noncompete agreements with certain parties for approximately $21.6 million . The purchase price allocation related to this acquisition is preliminary as the Company is still completing the valuation for intangible assets, income taxes, certain acquired contingencies and the working capital adjustment period remains open. Goodwill recognized is comprised primarily of expected synergies from combining the operations of the Company and STP and assembled workforce. The allocation of the goodwill to the reporting units has not been completed. The goodwill and definite lived intangibles acquired with this business is expected to be deductible for tax purposes. Other During 2016, the Company acquired additional fuel card portfolios in the U.S. and the United Kingdom, additional Shell fuel card markets in Europe and Travelcard in the Netherlands totaling approximately $76.7 million , net of cash acquired of $11.1 million . The following table summarizes the preliminary acquisition accounting for these acquisitions (in thousands): Trade and other receivables $ 27,810 Prepaid expenses and other 5,097 Property and equipment 992 Goodwill 28,540 Other intangible assets 61,823 Deferred tax asset 146 Liabilities assumed (42,550 ) Deferred tax liabilities (5,123 ) Aggregate purchase prices $ 76,735 The estimated fair value of intangible assets acquired and the related estimated useful lives consisted of the following (in thousands): Useful Lives (in Years) Value Customer relationships and other identifiable intangible assets 10-18 $ 61,823 $ 61,823 The other 2016 acquisitions were not material individually or in the aggregate to the Company’s consolidated financial statements. The accounting for certain of these acquisitions is preliminary as the Company is still completing the valuation of intangible assets, income taxes and evaluation of acquired contingencies. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets A summary of changes in the Company’s goodwill by reportable business segment is as follows (in thousands): December 31, 2016 Acquisitions/ Dispositions Acquisition Accounting Adjustments Foreign Currency March 31, 2017 Segment North America $ 2,640,409 $ — $ — $ — $ 2,640,409 International 1,554,741 (13,522 ) 45,844 1,587,063 $ 4,195,150 $ — $ (13,522 ) $ 45,844 $ 4,227,472 As of March 31, 2017 and December 31, 2016 , other intangible assets consisted of the following (in thousands): March 31, 2017 December 31, 2016 Weighted- Avg Useful Lives (Years) Gross Carrying Amounts Accumulated Amortization Net Carrying Amount Gross Carrying Amounts Accumulated Amortization Net Carrying Amount Customer and vendor agreements 16.9 $ 2,471,625 $ (499,199 ) $ 1,972,426 $ 2,449,389 $ (458,118 ) $ 1,991,271 Trade names and trademarks—indefinite lived N/A 518,505 — 518,505 510,952 — 510,952 Trade names and trademarks—other 14.7 2,757 (2,056 ) 701 2,746 (2,021 ) 725 Software 5.3 213,289 (94,968 ) 118,321 211,331 (85,167 ) 126,164 Non-compete agreements 5.0 36,505 (12,807 ) 23,698 35,191 (11,070 ) 24,121 Total other intangibles $ 3,242,681 $ (609,030 ) $ 2,633,651 $ 3,209,609 $ (556,376 ) $ 2,653,233 Changes in foreign exchange rates resulted in a $33.1 million increase to the carrying values of other intangible assets in the three months ended March 31, 2017 . Amortization expense related to intangible assets for the three months ended March 31, 2017 and 2016 was $52.7 million and $27.4 million , respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s debt instruments consist primarily of term notes, revolving lines of credit and a Securitization Facility as follows (in thousands): March 31, 2017 December 31, 2016 Term notes payable—domestic(a), net of discounts $ 2,606,684 $ 2,639,279 Revolving line of credit A Facility—domestic(a) 425,000 465,000 Revolving line of credit A Facility—foreign(a) 94,907 123,412 Revolving line of credit A Facility—swing line(a) 48,577 26,608 Other debt(c) 17,169 12,934 Total notes payable and other obligations 3,192,337 3,267,233 Securitization Facility(b) 676,000 591,000 Total notes payable, credit agreements and Securitization Facility $ 3,868,337 $ 3,858,233 Current portion $ 1,407,708 $ 1,336,506 Long-term portion 2,460,629 2,521,727 Total notes payable, credit agreements and Securitization Facility $ 3,868,337 $ 3,858,233 ______________________ (a) On October 24, 2014, the Company entered into a $3.36 billion Credit Agreement, which provides for senior secured credit facilities consisting of (a) a revolving A credit facility in the amount of $1.0 billion , with sublimits for letters of credit, swing line loans and multi-currency borrowings, (b) a revolving B facility in the amount of $35 million for loans in Australian Dollars or New Zealand Dollars, (c) a term loan A facility in the amount of $2.02 billion and (d) a term loan B facility in the amount of $300 million . On August 22, 2016, the Company entered into the first Amendment to the existing Credit Agreement, which established an incremental term A loan in the amount of $600 million under the Credit Agreement accordion feature. The proceeds from the additional $600 million in term A loans were used to partially finance the STP acquisition. The Amendment also established an accordion feature for borrowing an additional $500 million in term A, term B or revolver A debt. On January 20, 2017 , the Company entered into the second amendment to the Credit Agreement, which established a new term B loan (Term B-2 loan) in the amount of $245.0 million to replace the existing Term B loan. Interest on the Term B-2 loan facility accrues based on the Eurocurrency Rate or the Base Rate, except that the applicable margin is fixed at 2.25% for Eurocurrency Loans and at 1.25% for Base Rate Loans. In addition, the Company pays a quarterly commitment fee at a rate per annum ranging from 0.20% to 0.40% of the daily unused portion of the credit facility. The stated maturity dates for the term A loans, revolving loans, and letters of credit under the Credit Agreement is November 14, 2019 and November 14, 2021 for the term loan B. The Company has unamortized debt discounts of $5.6 million related to the term A facility and $0.9 million related to the term B facility at March 31, 2017 . (b) The Company is party to a $950 million receivables purchase agreement (Securitization Facility) that was amended and restated on December 1, 2015. There is a program fee equal to one month LIBOR and the Commercial Paper Rate of 0.98% plus 0.90% and 0.85% plus 0.90% as of March 31, 2017 and December 31, 2016 , respectively. The unused facility fee is payable at a rate of 0.40% per annum as of March 31, 2017 and December 31, 2016 . (c) Other debt includes the long-term portion of contingent consideration and deferred payments associated with certain of our businesses. The Company was in compliance with all financial and non-financial covenants at March 31, 2017 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes differs from amounts computed by applying the U.S. federal tax rate of 35% to income before income taxes for the three months ended March 31, 2017 and 2016 due to the following (in thousands): 2017 2016 Computed tax expense at the U.S. federal tax rate $ 58,579 35.0 % $ 54,919 35.0 % Changes resulting from: Foreign income tax differential (5,843 ) (3.5 )% (4,769 ) (3.0 )% Excess tax benefits related to stock-based compensation (8,721 ) (5.2 )% (1,118 ) (0.7 )% State taxes net of federal benefits 1,607 1.0 % 1,832 1.1 % Foreign-sourced nontaxable income (603 ) (0.4 )% (2,178 ) (1.4 )% Other (1,344 ) (0.8 )% (2,864 ) (1.8 )% Provision for income taxes $ 43,675 26.1 % $ 45,822 29.2 % The adoption of ASU 2016-09, "Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting" resulted in excess tax benefits being recorded as a reduction of income tax expense beginning January 1, 2016 , rather than additional paid in capital as discussed in the summary of significant accounting policies footnote. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company reports basic and diluted earnings per share. Basic earnings per share is computed by dividing net income attributable to shareholders of the Company by the weighted average number of common shares outstanding during the reported period. Diluted earnings per share reflect the potential dilution related to equity-based incentives using the treasury stock method. The calculation and reconciliation of basic and diluted earnings per share for the three months ended March 31 (in thousands, except per share data) follows: Three Months Ended 2017 2016 Net income $ 123,693 $ 111,090 Denominator for basic earnings per share 92,108 92,516 Dilutive securities 2,452 2,514 Denominator for diluted earnings per share 94,560 95,030 Basic earnings per share $ 1.34 $ 1.20 Diluted earnings per share $ 1.31 $ 1.17 There were 0.8 million antidilutive shares during the three month period ended March 31, 2017 . Diluted earnings per share for the three month period ended March 31, 2016 excludes the effect of 1.8 million shares of common stock that may be issued upon the exercise of employee stock options because such effect would be antidilutive. Diluted earnings per share also excludes the effect of 0.2 million and 0.3 million shares of performance based restricted stock for which the performance criteria have not yet been achieved for the three month period ended March 31, 2017 and 2016 , respectively. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company reports information about its operating segments in accordance with the authoritative guidance related to segments. The Company’s reportable segments represent components of the business for which separate financial information is evaluated regularly by the chief operating decision maker in determining how to allocate resources and in assessing performance. The Company operates in two reportable segments, North America and International. There were no inter-segment sales. The Company’s segment results are as follows for the three month periods ended March 31 (in thousands): Three Months Ended 2017 2016 Revenues, net: North America $ 329,948 $ 303,548 International 190,485 110,714 $ 520,433 $ 414,262 Operating income: North America $ 120,972 $ 113,850 International 74,096 62,105 $ 195,068 $ 175,955 Depreciation and amortization: North America $ 33,177 $ 31,432 International 31,689 4,896 $ 64,866 $ 36,328 Capital expenditures: North America $ 9,632 $ 7,942 International 5,164 3,797 $ 14,796 $ 11,739 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, the Company is involved in various pending or threatened legal actions. The Company has recorded reserves for certain legal proceedings. The amounts recorded are estimated and as additional information becomes available, the Company will reassess the potential liability related to legal actions and revise its estimate in the period that information becomes known. In the opinion of management, the amount of ultimate liability, if any, with respect to these actions will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. |
Assets Held for Sale (Notes)
Assets Held for Sale (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale On March 3, 2017, the Company signed a definitive agreement to contribute our Stored Value Solutions (SVS) prepaid card services and gift card program management assets into a venture with First Data’s core gift card business, Transactions Wireless, Inc. and Gyft, that will consolidate these various gift solutions to drive new value for clients. First Data will own 57.5% percent of the joint venture and the Company will own 42.5% percent once the venture closes, which is expected in the second half of 2017, subject to customary regulatory approvals. At March 31, 2017, the carrying value of current assets, goodwill and intangibles at SVS is approximately $54.7 million , $183.9 million and $218.0 million , respectively. SVS revenues were $48 million and $42 million in the three months ended March 31, 2017 and 2016. The results of the SVS businesses are included in our North America segment. The results of operations associated with the SVS assets will remain in continuing operations as the contribution of assets does not represent a significant shift in our corporate strategy and does not have a major effect on our operations and financial results. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Throughout this report, the terms “our,” “we,” “us,” and the “Company” refers to FleetCor Technologies, Inc. and its subsidiaries. The Company prepared the accompanying interim consolidated financial statements in accordance with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”). The unaudited consolidated financial statements reflect all adjustments considered necessary for fair presentation. These adjustments consist primarily of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Actual results may differ from these estimates. Operating results for the three month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at the rates of exchange in effect at period-end. The related translation adjustments are made directly to accumulated other comprehensive income. Income and expenses are translated at the average monthly rates of exchange in effect during the period. Gains and losses from foreign currency transactions of these subsidiaries are included in net income. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Revenue Recognition In May 2014, the FASB issued Accounting Standards Codification ("ASC") 606, “Revenue from Contracts with Customers”, which amends the guidance in former ASC 605, Revenue Recognition. This amended guidance requires revenue to be recognized in an amount that reflects the consideration to which the company expects to be entitled for those goods and services when the performance obligation has been satisfied. This amended guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and related cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date”, which defers the effective date of the new revenue recognition standard by one year. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, which clarifies how an entity should identify the unit of accounting for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. In April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing", which clarifies the accounting for intellectual property licenses and identifying performance obligations. In May 2016, the FASB issued ASU 2016-11, "Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting", which rescinds certain SEC guidance in response to announcements made by the SEC staff at the EITF's March 3, 2016 meeting and ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients", which clarifies the guidance on collectibility, non-cash consideration, the presentation of sales and other similar taxes collected from customers and contract modifications and completed contracts at transition. Additionally, ASU 2016-12 clarifies that entities electing the full retrospective transition method would no longer be required to disclose the effect of the change in accounting principle on the period of adoption; however, entities would still be required to disclose the effects on preadoption periods that were retrospectively adjusted. These ASUs are effective for the Company for reporting periods beginning after December 15, 2017, but permit companies the option to adopt as of the original effective date. In the first quarter of 2017, the Company continued its assessment of the new standard with a focus on identifying the performance obligations included within its revenue arrangements with customers and evaluating its methods of estimating the amount of and timing of variable consideration. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company anticipates selecting the modified retrospective method, which would result in an adjustment to retained earnings for the cumulative effect, if any, of applying the standard to contracts in process as of the adoption date. Under this method, the Company would not restate the prior financial statements presented; therefore the new standard requires the Company to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period during 2018, as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any. The Company continues its assessment to evaluate the impact of the provisions of ASC 606 on the results of operations, financial condition, and cash flows. Based upon our assessment to date, which is ongoing, we have not identified significant changes to our current processes, systems and revenue recognition practices. Accounting for Leases In February 2016, the FASB issued ASU 2016-02, “Leases”, which requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. This ASU also requires disclosures to provide additional information about the amounts recorded in the financial statements. This ASU is effective for the Company for annual periods beginning after December 15, 2018 and interim periods therein. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance for leases that exist or are entered into after the beginning of the earliest comparative period presented. The Company is currently evaluating the impact of this ASU on the results of operations, financial condition, or cash flows. Accounting for Employee Stock-Based Payment In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting", which requires excess tax benefits recognized on stock-based compensation expense be reflected in the consolidated statements of operations as a component of the provision for income taxes on a prospective basis. ASU 2016-09 also requires excess tax benefits recognized on stock-based compensation expense be classified as an operating activity in the consolidated statements of cash flows rather than a financing activity. Companies can elect to apply this provision retrospectively or prospectively. ASU 2016-09 also requires entities to elect whether to account for forfeitures as they occur or estimate expected forfeitures over the course of a vesting period. This ASU is effective for the Company for annual periods beginning after December 15, 2016. Early adoption is permitted. During the third quarter of 2016, the Company elected to early adopt ASU 2016-09. The adoption of this ASU resulted in excess tax benefits being recorded as a reduction of income tax expense prospectively for all periods during 2016, rather than additional paid in capital, and an increase in the number of dilutive shares outstanding at the end of each period, which resulted in an increase to diluted earnings per share during the respective period. As required by ASU 2016-09, excess tax benefits recognized on stock-based compensation expense are classified as an operating activity in our consolidated statements of cash flows on a prospective basis within changes in accounts payable, accrued expenses and customer deposits. In accordance with ASU 2016-09, prior periods related to the classification of excess tax benefits have not been adjusted. The Company also elected to account for forfeitures as they occur, rather than estimate expected forfeitures over the course of a vesting period. As a result of the adoption of ASU 2016-09, the net cumulative effect of this change was not material. The following table shows the impact of retrospectively applying ASU 2016-09 to the previously issued consolidated statements of operations for the three month period ended March 31 (in thousands, except per share amounts): Three Months Ended March 31, 2016 As Previously Reported Adjustments As Recast Income before income taxes $ 156,912 $ — $ 156,912 Provision for income taxes 46,940 (1,118 ) 45,822 Net income $ 109,972 $ 1,118 $ 111,090 Earnings per share: Basic earnings per share $ 1.19 $ 0.01 $ 1.20 Diluted earnings per share $ 1.17 $ — $ 1.17 Weighted average common shares outstanding: Basic 92,516 — 92,516 Diluted 94,329 701 95,030 The following table shows the impact of retrospectively applying this guidance to the Consolidated Statement of Cash flows for the three months ended March 31, 2016 (in thousands): Three Months Ended March 31, 2016 As Previously Reported Adjustments As Recast Net cash provided by operating activities $ 121,505 $ 1,118 $ 122,623 Net cash used in investing activities (20,745 ) — (20,745 ) Net cash used in financing activities (157,389 ) (1,118 ) (158,507 ) Effect of foreign currency exchange rates on cash 8,795 — 8,795 Net (decrease) increase in cash $ (47,834 ) $ — $ (47,834 ) Accounting for Breakage In March 2016, the FASB issued ASU 2016-04, “Liabilities-Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products”, which requires entities that sell prepaid stored value products redeemable for goods, services or cash at third-party merchants to derecognize liabilities related to those products for breakage. This ASU is effective for the Company for reporting periods beginning after December 15, 2017. Early adoption is permitted. The ASU must be adopted using either a modified retrospective approach with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption or a full retrospective approach. The Company’s adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows. Cash Flow Classification In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments", which amends the guidance in ASC 230, Statement of Cash Flows. This amended guidance reduces the diversity in practice that has resulted from the lack of consistent principles related to the classification of certain cash receipts and payments in the statement of cash flows. This ASU is effective for the Company for reporting periods beginning after December 15, 2017. Early adoption is permitted. Entities must apply the guidance retrospectively to all periods presented but may apply it prospectively from the earliest date practicable if retrospective application would be impracticable. The Company’s adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash", which amends the guidance in ASC 230, Statement of Cash Flows, on the classification and presentation of restricted cash in the statement of cash flows. This ASU is effective for the Company for reporting periods beginning after December 15, 2017. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in this ASU should be applied using a retrospective transition method to each period presented. The Company’s adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows. Intangibles - Goodwill and Other Impairment In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on Step 1). The standard has tiered effective dates, starting in 2020 for calendar-year public business entities that meet the definition of an SEC filer. Early adoption is permitted for interim and annual goodwill impairment testing dates after January 1, 2017. The Company’s adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows. Definition of a Business In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business", which amends the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the set of transferred assets and activities is not a business.The guidance also requires a business to include at least one substantive process and narrows the definition of outputs.The guidance is effective for the Company for reporting periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. The Company’s adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Prior Period Adjustments | The following table shows the impact of retrospectively applying ASU 2016-09 to the previously issued consolidated statements of operations for the three month period ended March 31 (in thousands, except per share amounts): Three Months Ended March 31, 2016 As Previously Reported Adjustments As Recast Income before income taxes $ 156,912 $ — $ 156,912 Provision for income taxes 46,940 (1,118 ) 45,822 Net income $ 109,972 $ 1,118 $ 111,090 Earnings per share: Basic earnings per share $ 1.19 $ 0.01 $ 1.20 Diluted earnings per share $ 1.17 $ — $ 1.17 Weighted average common shares outstanding: Basic 92,516 — 92,516 Diluted 94,329 701 95,030 The following table shows the impact of retrospectively applying this guidance to the Consolidated Statement of Cash flows for the three months ended March 31, 2016 (in thousands): Three Months Ended March 31, 2016 As Previously Reported Adjustments As Recast Net cash provided by operating activities $ 121,505 $ 1,118 $ 122,623 Net cash used in investing activities (20,745 ) — (20,745 ) Net cash used in financing activities (157,389 ) (1,118 ) (158,507 ) Effect of foreign currency exchange rates on cash 8,795 — 8,795 Net (decrease) increase in cash $ (47,834 ) $ — $ (47,834 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Company's Accounts Receivable and Securitized Accounts Receivable | The Company’s accounts receivable and securitized accounts receivable include the following at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Gross domestic accounts receivable $ 629,629 $ 529,885 Gross domestic securitized accounts receivable 676,000 591,000 Gross foreign receivables 772,189 704,630 Total gross receivables 2,077,818 1,825,515 Less allowance for doubtful accounts (40,985 ) (32,506 ) Net accounts and securitized accounts receivable $ 2,036,833 $ 1,793,009 |
Allowance for Doubtful Accounts Related to Accounts Receivable | A rollforward of the Company’s allowance for doubtful accounts related to accounts receivable for three months ended March 31 is as follows (in thousands): 2017 2016 Allowance for doubtful accounts beginning of period $ 32,506 $ 21,903 Provision for bad debts 12,988 6,836 Write-offs (4,509 ) (4,706 ) Allowance for doubtful accounts end of period $ 40,985 $ 24,033 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value | The following table presents the Company’s financial assets and liabilities which are measured at fair values on a recurring basis as of March 31, 2017 and December 31, 2016 , (in thousands). Fair Value Level 1 Level 2 Level 3 March 31, 2017 Assets: Repurchase agreements $ 286,921 $ — $ 286,921 $ — Money market 50,254 — 50,254 — Certificates of deposit 3,549 — 3,549 — Total cash equivalents $ 340,724 $ — $ 340,724 $ — December 31, 2016 Assets: Repurchase agreements $ 232,131 $ — $ 232,131 $ — Money market 50,179 — 50,179 — Certificates of deposit 48 — 48 — Total cash equivalents $ 282,358 $ — $ 282,358 $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Expense Related to Share-Based Payments | The table below summarizes the expense recognized related to share-based payments recognized for the three month periods ended March 31 (in thousands): Three Months Ended 2017 2016 Stock options $ 12,089 $ 9,244 Restricted stock 11,004 5,942 Stock-based compensation $ 23,093 $ 15,186 |
Summary of Total Unrecognized Compensation Cost Related to Stock-Based Compensation | The following table summarizes the Company’s total unrecognized compensation cost related to stock-based compensation as of March 31, 2017 (cost in thousands): Unrecognized Compensation Cost Weighted Average Period of Expense Recognition (in Years) Stock options $ 101,535 1.60 Restricted stock 26,310 0.76 Total $ 127,845 |
Summary of Changes in Number of Shares of Common Stock Under Option | The following summarizes the changes in the number of shares of common stock under option for the three month period ended March 31, 2017 (shares and aggregate intrinsic value in thousands): Shares Weighted Average Exercise Price Options Exercisable at End of Period Weighted Average Exercise Price of Exercisable Options Weighted Average Fair Value of Options Granted During the Period Aggregate Intrinsic Value Outstanding at December 31, 2016 6,146 $ 91.20 3,429 $ 55.00 $ 309,238 Granted 1,598 150.85 $ 37.58 Exercised (236 ) 64.65 20,443 Forfeited (17 ) 142.33 Outstanding at March 31, 2017 7,491 $ 104.65 3,833 $ 65.23 $ 350,477 Expected to vest as of March 31, 2017 7,491 $ 104.65 |
Schedule of Weighted-Average Assumptions | The fair value of stock option awards granted was estimated using the Black-Scholes option pricing model during the three months ended March 31, 2017 and 2016 , with the following weighted-average assumptions for grants or modifications during the period: March 31 2017 2016 Risk-free interest rate 1.83 % 1.11 % Dividend yield — — Expected volatility 27.31 % 27.36 % Expected life (in years) 4.2 3.3 |
Summary of Changes in Number of Shares of Restricted Stock and Restricted Stock Units | The following table summarizes the changes in the number of shares of restricted stock and restricted stock units for the three months ended March 31, 2017 (shares in thousands): Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2016 379 $ 140.39 Granted 129 153.94 Vested (203 ) 136.77 Cancelled (31 ) 152.71 Outstanding at March 31, 2017 274 $ 158.06 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Acquisition Accounting | The following table summarizes the preliminary acquisition accounting for STP (in thousands): Trade and other receivables $ 243,157 Prepaid expenses and other 6,998 Deferred tax assets 9,365 Property and equipment 38,732 Other long term assets 14,280 Goodwill 645,766 Customer relationships and other identifiable intangible assets 584,274 Liabilities assumed (315,082 ) Aggregate purchase price $ 1,227,490 The following table summarizes the preliminary acquisition accounting for these acquisitions (in thousands): Trade and other receivables $ 27,810 Prepaid expenses and other 5,097 Property and equipment 992 Goodwill 28,540 Other intangible assets 61,823 Deferred tax asset 146 Liabilities assumed (42,550 ) Deferred tax liabilities (5,123 ) Aggregate purchase prices $ 76,735 |
Summary of Preliminary Estimated Fair Value of Intangible Assets Acquired and the Related Estimated Useful Lives | The estimated fair value of intangible assets acquired and the related estimated useful lives consisted of the following (in thousands): Useful Lives (in Years) Value Customer relationships and other identifiable intangible assets 10-18 $ 61,823 $ 61,823 The estimated fair value of intangible assets acquired and the related estimated useful lives consisted of the following (in thousands): Useful Lives (in Years) Value Customer relationships 8.5-17 $ 349,310 Trade names and trademarks - indefinite N/A 189,547 Technology 6 45,417 $ 584,274 |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill by Reportable Business Segment | A summary of changes in the Company’s goodwill by reportable business segment is as follows (in thousands): December 31, 2016 Acquisitions/ Dispositions Acquisition Accounting Adjustments Foreign Currency March 31, 2017 Segment North America $ 2,640,409 $ — $ — $ — $ 2,640,409 International 1,554,741 (13,522 ) 45,844 1,587,063 $ 4,195,150 $ — $ (13,522 ) $ 45,844 $ 4,227,472 |
Schedule of Other Intangible Assets | As of March 31, 2017 and December 31, 2016 , other intangible assets consisted of the following (in thousands): March 31, 2017 December 31, 2016 Weighted- Avg Useful Lives (Years) Gross Carrying Amounts Accumulated Amortization Net Carrying Amount Gross Carrying Amounts Accumulated Amortization Net Carrying Amount Customer and vendor agreements 16.9 $ 2,471,625 $ (499,199 ) $ 1,972,426 $ 2,449,389 $ (458,118 ) $ 1,991,271 Trade names and trademarks—indefinite lived N/A 518,505 — 518,505 510,952 — 510,952 Trade names and trademarks—other 14.7 2,757 (2,056 ) 701 2,746 (2,021 ) 725 Software 5.3 213,289 (94,968 ) 118,321 211,331 (85,167 ) 126,164 Non-compete agreements 5.0 36,505 (12,807 ) 23,698 35,191 (11,070 ) 24,121 Total other intangibles $ 3,242,681 $ (609,030 ) $ 2,633,651 $ 3,209,609 $ (556,376 ) $ 2,653,233 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Debt Instruments | The Company’s debt instruments consist primarily of term notes, revolving lines of credit and a Securitization Facility as follows (in thousands): March 31, 2017 December 31, 2016 Term notes payable—domestic(a), net of discounts $ 2,606,684 $ 2,639,279 Revolving line of credit A Facility—domestic(a) 425,000 465,000 Revolving line of credit A Facility—foreign(a) 94,907 123,412 Revolving line of credit A Facility—swing line(a) 48,577 26,608 Other debt(c) 17,169 12,934 Total notes payable and other obligations 3,192,337 3,267,233 Securitization Facility(b) 676,000 591,000 Total notes payable, credit agreements and Securitization Facility $ 3,868,337 $ 3,858,233 Current portion $ 1,407,708 $ 1,336,506 Long-term portion 2,460,629 2,521,727 Total notes payable, credit agreements and Securitization Facility $ 3,868,337 $ 3,858,233 ______________________ (a) On October 24, 2014, the Company entered into a $3.36 billion Credit Agreement, which provides for senior secured credit facilities consisting of (a) a revolving A credit facility in the amount of $1.0 billion , with sublimits for letters of credit, swing line loans and multi-currency borrowings, (b) a revolving B facility in the amount of $35 million for loans in Australian Dollars or New Zealand Dollars, (c) a term loan A facility in the amount of $2.02 billion and (d) a term loan B facility in the amount of $300 million . On August 22, 2016, the Company entered into the first Amendment to the existing Credit Agreement, which established an incremental term A loan in the amount of $600 million under the Credit Agreement accordion feature. The proceeds from the additional $600 million in term A loans were used to partially finance the STP acquisition. The Amendment also established an accordion feature for borrowing an additional $500 million in term A, term B or revolver A debt. On January 20, 2017 , the Company entered into the second amendment to the Credit Agreement, which established a new term B loan (Term B-2 loan) in the amount of $245.0 million to replace the existing Term B loan. Interest on the Term B-2 loan facility accrues based on the Eurocurrency Rate or the Base Rate, except that the applicable margin is fixed at 2.25% for Eurocurrency Loans and at 1.25% for Base Rate Loans. In addition, the Company pays a quarterly commitment fee at a rate per annum ranging from 0.20% to 0.40% of the daily unused portion of the credit facility. The stated maturity dates for the term A loans, revolving loans, and letters of credit under the Credit Agreement is November 14, 2019 and November 14, 2021 for the term loan B. The Company has unamortized debt discounts of $5.6 million related to the term A facility and $0.9 million related to the term B facility at March 31, 2017 . (b) The Company is party to a $950 million receivables purchase agreement (Securitization Facility) that was amended and restated on December 1, 2015. There is a program fee equal to one month LIBOR and the Commercial Paper Rate of 0.98% plus 0.90% and 0.85% plus 0.90% as of March 31, 2017 and December 31, 2016 , respectively. The unused facility fee is payable at a rate of 0.40% per annum as of March 31, 2017 and December 31, 2016 . (c) Other debt includes the long-term portion of contingent consideration and deferred payments associated with certain of our businesses. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes and U.S. Federal Tax Rate | The provision for income taxes differs from amounts computed by applying the U.S. federal tax rate of 35% to income before income taxes for the three months ended March 31, 2017 and 2016 due to the following (in thousands): 2017 2016 Computed tax expense at the U.S. federal tax rate $ 58,579 35.0 % $ 54,919 35.0 % Changes resulting from: Foreign income tax differential (5,843 ) (3.5 )% (4,769 ) (3.0 )% Excess tax benefits related to stock-based compensation (8,721 ) (5.2 )% (1,118 ) (0.7 )% State taxes net of federal benefits 1,607 1.0 % 1,832 1.1 % Foreign-sourced nontaxable income (603 ) (0.4 )% (2,178 ) (1.4 )% Other (1,344 ) (0.8 )% (2,864 ) (1.8 )% Provision for income taxes $ 43,675 26.1 % $ 45,822 29.2 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share, Basic and Diluted | The calculation and reconciliation of basic and diluted earnings per share for the three months ended March 31 (in thousands, except per share data) follows: Three Months Ended 2017 2016 Net income $ 123,693 $ 111,090 Denominator for basic earnings per share 92,108 92,516 Dilutive securities 2,452 2,514 Denominator for diluted earnings per share 94,560 95,030 Basic earnings per share $ 1.34 $ 1.20 Diluted earnings per share $ 1.31 $ 1.17 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Company's Segment Results | The Company’s segment results are as follows for the three month periods ended March 31 (in thousands): Three Months Ended 2017 2016 Revenues, net: North America $ 329,948 $ 303,548 International 190,485 110,714 $ 520,433 $ 414,262 Operating income: North America $ 120,972 $ 113,850 International 74,096 62,105 $ 195,068 $ 175,955 Depreciation and amortization: North America $ 33,177 $ 31,432 International 31,689 4,896 $ 64,866 $ 36,328 Capital expenditures: North America $ 9,632 $ 7,942 International 5,164 3,797 $ 14,796 $ 11,739 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Income before income taxes | $ 167,368 | $ 156,912 | [1] |
Provision for income taxes | 43,675 | 45,822 | [1] |
Net income | $ 123,693 | $ 111,090 | [1] |
Earnings per share: | |||
Basic earnings per share (in dollars per share) | $ 1.34 | $ 1.20 | [1] |
Diluted earnings per share (in dollars per share) | $ 1.31 | $ 1.17 | [1] |
Weighted average common shares outstanding: | |||
Basic weighted average shares outstanding (in shares) | 92,108 | 92,516 | [1] |
Diluted weighted average shares outstanding (in shares) | 94,560 | 95,030 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net cash provided by operating activities | $ 54,215 | $ 122,623 | |
Net cash used in investing activities | (21,123) | (20,745) | |
Net cash provided by (used in) financing activities | 19,094 | (158,507) | |
Effect of foreign currency exchange rates on cash | 19,356 | 8,795 | |
Net increase (decrease) in cash and cash equivalents | 71,542 | (47,834) | |
Foreign exchange gain (loss) recognized | (1,500) | (700) | |
Reclassification from other comprehensive income (loss), foreign currency transaction | $ 36,000 | 19,000 | |
As Previously Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Income before income taxes | 156,912 | ||
Provision for income taxes | 46,940 | ||
Net income | $ 109,972 | ||
Earnings per share: | |||
Basic earnings per share (in dollars per share) | $ 1.19 | ||
Diluted earnings per share (in dollars per share) | $ 1.17 | ||
Weighted average common shares outstanding: | |||
Basic weighted average shares outstanding (in shares) | 92,516 | ||
Diluted weighted average shares outstanding (in shares) | 94,329 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net cash provided by operating activities | $ 121,505 | ||
Net cash used in investing activities | (20,745) | ||
Net cash provided by (used in) financing activities | (157,389) | ||
Effect of foreign currency exchange rates on cash | 8,795 | ||
Net increase (decrease) in cash and cash equivalents | (47,834) | ||
Accounting Standards Update 2016-09 | Adjustments | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Income before income taxes | 0 | ||
Provision for income taxes | (1,118) | ||
Net income | $ 1,118 | ||
Earnings per share: | |||
Basic earnings per share (in dollars per share) | $ 0.01 | ||
Diluted earnings per share (in dollars per share) | $ 0 | ||
Weighted average common shares outstanding: | |||
Basic weighted average shares outstanding (in shares) | 0 | ||
Diluted weighted average shares outstanding (in shares) | 701 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net cash provided by operating activities | $ 1,118 | ||
Net cash used in investing activities | 0 | ||
Net cash provided by (used in) financing activities | (1,118) | ||
Effect of foreign currency exchange rates on cash | 0 | ||
Net increase (decrease) in cash and cash equivalents | $ 0 | ||
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based compensation, including the income tax consequences. |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Maximum undivided ownership interest pooled accounts receivable amount sold | $ 950,000,000 |
Securitization Facility | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Securitized accounts receivable facility | $ 950,000,000 |
Accounts Receivable - Company's
Accounts Receivable - Company's Accounts Receivable and Securitized Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | $ 2,077,818 | $ 1,825,515 | ||
Gross domestic securitized accounts receivable | 676,000 | 591,000 | ||
Less allowance for doubtful accounts | (40,985) | (32,506) | $ (24,033) | $ (21,903) |
Net accounts and securitized accounts receivable | 2,036,833 | 1,793,009 | ||
Gross domestic accounts receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 629,629 | 529,885 | ||
Gross foreign receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | $ 772,189 | $ 704,630 |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for Doubtful Accounts Related to Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Allowance for doubtful accounts beginning of period | $ 32,506 | $ 21,903 |
Provision for bad debts | 12,988 | 6,836 |
Write-offs | (4,509) | (4,706) |
Allowance for doubtful accounts end of period | $ 40,985 | $ 24,033 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 340,724 | $ 282,358 |
Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 286,921 | 232,131 |
Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 50,254 | 50,179 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 3,549 | 48 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 340,724 | 282,358 |
Level 2 | Repurchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 286,921 | 232,131 |
Level 2 | Money market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 50,254 | 50,179 |
Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 3,549 | $ 48 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase Program (Details) - USD ($) | May 08, 2017 | Feb. 04, 2016 | Mar. 31, 2017 | Mar. 31, 2017 |
Class of Stock [Line Items] | ||||
Shares repurchased (in shares) | 0 | 1,670,311 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, approved amount | $ 500,000,000 | |||
Stock repurchase program, authorized time period | 18 months | |||
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Shares repurchased (in shares) | 411,166 | |||
Repurchase agreements | ||||
Class of Stock [Line Items] | ||||
Shares repurchased | $ 240,100,000 | |||
Repurchase agreements | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Shares repurchased | $ 52,400,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Expense Related to Share-Based Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 23,093 | $ 15,186 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 12,089 | 9,244 |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 11,004 | $ 5,942 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Tax benefits recorded on stock based compensation | $ 15 | $ 6.2 |
Aggregate intrinsic value of options exercisable | $ 330.4 | |
Weighted average remaining contractual term of options exercisable (in years) | 5 years 4 months 24 days | |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period of vesting provisions (in years) | 1 year | |
Minimum | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period of vesting provisions (in years) | 1 year | |
Maximum | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period of vesting provisions (in years) | 6 years |
Stock-Based Compensation - Su39
Stock-Based Compensation - Summary of Total Unrecognized Compensation Cost Related to Stock-Based Compensation (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 127,845 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 101,535 |
Weighted Average Period of Expense Recognition (in Years) | 1 year 7 months 6 days |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 26,310 |
Weighted Average Period of Expense Recognition (in Years) | 9 months 4 days |
Stock-Based Compensation - Su40
Stock-Based Compensation - Summary of Changes in Number of Shares of Common Stock Under Option (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares at beginning of period (in shares) | 6,146 | |
Granted (in shares) | 1,598 | |
Exercised (in shares) | (236) | |
Forfeited (in shares) | (17) | |
Shares at end of period (in shares) | 7,491 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted average exercise price, beginning of period (in dollars per share) | $ 91.20 | |
Weighted average exercise price, granted (in dollars per share) | 150.85 | |
Weighted average exercise price, exercised (in dollars per share) | 64.65 | |
Weighted average exercise price, forfeitures (in dollars per share) | 142.33 | |
Weighted average exercise price, end of period (in dollars per share) | $ 104.65 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Expected to vest (in shares) | 7,491 | |
Weighted average exercise price, expected to vest (in dollars per share) | $ 104.65 | |
Options exercisable at beginning of period (in shares) | 3,833 | 3,429 |
Weighted average exercise price of exercisable options, beginning of period (in dollars per share) | $ 65.23 | $ 55 |
Weighted average exercise price of granted options (in dollars per share) | $ 37.58 | |
Aggregate intrinsic value | $ 350,477 | $ 309,238 |
Aggregate intrinsic value, exercised | $ 20,443 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Weighted-Average Assumptions (Details) - Stock options | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.83% | 1.11% |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 27.31% | 27.36% |
Expected life (in years) | 4 years 2 months 12 days | 3 years 3 months 18 days |
Stock-Based Compensation - Su42
Stock-Based Compensation - Summary of Changes in Number of Shares of Restricted Stock and Restricted Stock Units (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Shares | |
Shares outstanding, beginning of period (in shares) | shares | 379 |
Granted (in shares) | shares | 129 |
Vested (in shares) | shares | (203) |
Canceled (in shares) | shares | (31) |
Shares outstanding, end of period (in shares) | shares | 274 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning of period (in dollars per share) | $ / shares | $ 140.39 |
Weighted average grant date fair value, granted (in dollars per share) | $ / shares | 153.94 |
Weighted average grant date fair value, vested (in dollars per share) | $ / shares | 136.77 |
Weighted average grant date fair value, canceled (in dollars per share) | $ / shares | 152.71 |
Weighted average grant date fair value, end of period (in dollars per share) | $ / shares | $ 158.06 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) client in Thousands, $ in Thousands | Apr. 28, 2017USD ($)client | Aug. 31, 2016USD ($) | Dec. 31, 2016USD ($) |
STP | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price | $ 1,230,000 | ||
Cash acquired from acquisition | 40,200 | ||
Customer relationships and other identifiable intangible assets | 584,274 | ||
Contingent liabilities | 13,500 | ||
Indemnification assets | 13,000 | ||
Contingent consideration minimum possible value | 13,500 | ||
Contingent consideration maximum possible value | 18,600 | ||
Other | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price | $ 76,700 | ||
Cash acquired from acquisition | 11,100 | ||
Customer relationships and other identifiable intangible assets | $ 61,823 | ||
Non-compete agreements | STP | |||
Business Acquisition [Line Items] | |||
Customer relationships and other identifiable intangible assets | $ 21,600 | ||
Subsequent Event | Cambridge | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price | $ 675,000 | ||
Amount of cross boarder payments processed annually | $ 20,000,000 | ||
Number of clients | client | 13 |
Acquisition - Summary of Purcha
Acquisition - Summary of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 4,227,472 | $ 4,195,150 | |
STP | |||
Business Acquisition [Line Items] | |||
Trade and other receivables | $ 243,157 | ||
Prepaid expenses and other | 6,998 | ||
Deferred tax assets | 9,365 | ||
Property and equipment | 38,732 | ||
Other long term assets | 14,280 | ||
Goodwill | 645,766 | ||
Customer relationships and other identifiable intangible assets | 584,274 | ||
Deferred tax liabilities | (315,082) | ||
Aggregate purchase price | $ 1,227,490 | ||
Other | |||
Business Acquisition [Line Items] | |||
Trade and other receivables | 27,810 | ||
Prepaid expenses and other | 5,097 | ||
Property and equipment | 992 | ||
Goodwill | 28,540 | ||
Customer relationships and other identifiable intangible assets | 61,823 | ||
Other intangible assets | 61,823 | ||
Deferred tax asset | 146 | ||
Liabilities assumed | (42,550) | ||
Deferred tax liabilities | (5,123) | ||
Aggregate purchase price | $ 76,735 |
Acquisition - Summary of Prelim
Acquisition - Summary of Preliminary Estimated Fair Value of Intangible Assets Acquired and the Related Estimated Useful Lives (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2016 | |
STP | |||
Business Acquisition [Line Items] | |||
Customer relationships and other identifiable intangible assets | $ 584,274 | ||
STP | Customer relationships and other identifiable intangible assets | |||
Business Acquisition [Line Items] | |||
Customer relationships and other identifiable intangible assets | 349,310 | ||
STP | Customer relationships and other identifiable intangible assets | Minimum | |||
Business Acquisition [Line Items] | |||
Useful Lives | 8 years 6 months | ||
STP | Customer relationships and other identifiable intangible assets | Maximum | |||
Business Acquisition [Line Items] | |||
Useful Lives | 17 years | ||
STP | Technology | |||
Business Acquisition [Line Items] | |||
Useful Lives | 6 years | ||
Customer relationships and other identifiable intangible assets | 45,417 | ||
Other | |||
Business Acquisition [Line Items] | |||
Customer relationships and other identifiable intangible assets | $ 61,823 | ||
Other | Customer relationships and other identifiable intangible assets | |||
Business Acquisition [Line Items] | |||
Customer relationships and other identifiable intangible assets | $ 61,823 | ||
Other | Customer relationships and other identifiable intangible assets | Minimum | |||
Business Acquisition [Line Items] | |||
Useful Lives | 10 years | ||
Other | Customer relationships and other identifiable intangible assets | Maximum | |||
Business Acquisition [Line Items] | |||
Useful Lives | 18 years | ||
Trade names and trademarks—indefinite lived | STP | |||
Business Acquisition [Line Items] | |||
Trade names and trademarks - indefinite | $ 189,547 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets - Summary of Changes in Goodwill by Reportable Business Segment (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 4,195,150 |
Acquisitions/ Dispositions | 0 |
Acquisition Accounting Adjustments | (13,522) |
Foreign Currency | 45,844 |
Goodwill, ending balance | 4,227,472 |
North America | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 2,640,409 |
Acquisitions/ Dispositions | 0 |
Acquisition Accounting Adjustments | 0 |
Foreign Currency | 0 |
Goodwill, ending balance | 2,640,409 |
International | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,554,741 |
Acquisitions/ Dispositions | |
Acquisition Accounting Adjustments | (13,522) |
Foreign Currency | 45,844 |
Goodwill, ending balance | $ 1,587,063 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amounts | $ 3,242,681 | $ 3,209,609 |
Accumulated Amortization | (609,030) | (556,376) |
Net Carrying Amount | 2,633,651 | 2,653,233 |
Trade names and trademarks—indefinite lived | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amounts | 518,505 | 510,952 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | $ 518,505 | 510,952 |
Customer and vendor agreements | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Weighted- Avg Useful Lives | 16 years 10 months 24 days | |
Gross Carrying Amounts | $ 2,471,625 | 2,449,389 |
Accumulated Amortization | (499,199) | (458,118) |
Net Carrying Amount | $ 1,972,426 | 1,991,271 |
Trade names and trademarks—other | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Weighted- Avg Useful Lives | 14 years 8 months 12 days | |
Gross Carrying Amounts | $ 2,757 | 2,746 |
Accumulated Amortization | (2,056) | (2,021) |
Net Carrying Amount | $ 701 | 725 |
Software | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Weighted- Avg Useful Lives | 5 years 3 months 18 days | |
Gross Carrying Amounts | $ 213,289 | 211,331 |
Accumulated Amortization | (94,968) | (85,167) |
Net Carrying Amount | $ 118,321 | 126,164 |
Non-compete agreements | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Weighted- Avg Useful Lives | 5 years | |
Gross Carrying Amounts | $ 36,505 | 35,191 |
Accumulated Amortization | (12,807) | (11,070) |
Net Carrying Amount | $ 23,698 | $ 24,121 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impact of foreign exchange rates on intangible assets | $ 33,100 | |
Amortization expense of intangible assets | $ 52,654 | $ 27,362 |
Debt - Summary of Debt Instrume
Debt - Summary of Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Term note payable—domestic, net of discounts | $ 2,606,684 | $ 2,639,279 |
Other debt | 17,169 | 12,934 |
Total notes payable and other obligations | 3,192,337 | 3,267,233 |
Securitization facility | 676,000 | 591,000 |
Total notes payable, credit agreements and Securitization Facility | 3,868,337 | 3,858,233 |
Current portion | 1,407,708 | 1,336,506 |
Long-term portion | 2,460,629 | 2,521,727 |
Revolving line of credit A Facility—domestic | ||
Debt Instrument [Line Items] | ||
Revolving line of credit | 425,000 | 465,000 |
Revolving line of credit A Facility—foreign | ||
Debt Instrument [Line Items] | ||
Revolving line of credit | 94,907 | 123,412 |
Revolving line of credit A Facility—swing line | ||
Debt Instrument [Line Items] | ||
Revolving line of credit | $ 48,577 | $ 26,608 |
Debt - Summary of Debt Instru50
Debt - Summary of Debt Instruments Narrative (Details) - USD ($) | Oct. 24, 2014 | Mar. 31, 2017 | Dec. 31, 2016 | Jan. 20, 2017 | Aug. 22, 2016 |
Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | $ 950,000,000 | ||||
Unused facility fee, as percentage of unused portion | 0.40% | 0.40% | |||
Program fee | one month LIBOR | ||||
Term Loan A | |||||
Debt Instrument [Line Items] | |||||
Additional borrowing capacity | $ 600,000,000 | ||||
Debt maturity date | Nov. 14, 2019 | ||||
Line of credit facility initial borrowing, unamortized debt discount | $ 5,600,000 | ||||
Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Debt maturity date | Nov. 14, 2021 | ||||
Line of credit facility initial borrowing, unamortized debt discount | $ 900,000 | ||||
Commercial Paper | Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.90% | 0.90% | |||
Program fee rate | 0.98% | 0.85% | |||
Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | $ 3,360,000,000 | ||||
Additional borrowing capacity | 500,000,000 | ||||
Secured Debt | Revolving A Facility | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | 1,000,000,000 | ||||
Secured Debt | Revolving B Facility | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | 35,000,000 | ||||
Secured Debt | Term Loan A | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | 2,020,000,000 | ||||
Secured Debt | Term B-2 Loan | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | $ 245,000,000 | ||||
Secured Debt | Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | $ 300,000,000 | ||||
Eurodollar | Secured Debt | Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 2.25% | ||||
Base Rate | Secured Debt | Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 1.25% | ||||
Minimum | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Unused facility fee, as percentage of unused portion | 0.20% | ||||
Maximum | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Unused facility fee, as percentage of unused portion | 0.40% |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense at federal statutory rate, rate | 35.00% | 35.00% |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes and U.S. Federal Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount [Abstract] | |||
Computed “expected” tax expense | $ 58,579 | $ 54,919 | |
Foreign income tax differential | (5,843) | (4,769) | |
Excess tax benefits related to stock-based compensation | (8,721) | (1,118) | |
State taxes net of federal benefits | 1,607 | 1,832 | |
Foreign-sourced nontaxable income | (603) | (2,178) | |
Domestic production activities deduction | 0 | 0 | |
Other | (1,344) | (2,864) | |
Provision for income taxes | $ 43,675 | $ 45,822 | [1] |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Computed “expected” tax expense | 35.00% | 35.00% | |
Foreign income tax differential | (3.50%) | (3.00%) | |
Excess tax benefits related to stock-based compensation | (5.20%) | (0.70%) | |
State taxes net of federal benefits | 1.00% | 1.10% | |
Foreign-sourced nontaxable income | (0.40%) | (1.40%) | |
Domestic production activities deduction | (0.00%) | (0.00%) | |
Other | (0.80%) | (1.80%) | |
Provision for income taxes | 26.10% | 29.20% | |
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based compensation, including the income tax consequences. |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share, Basic and Diluted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Earnings Per Share [Abstract] | |||
Net income | $ 123,693 | $ 111,090 | [1] |
Denominator for basic earnings per share (in shares) | 92,108 | 92,516 | [1] |
Dilutive securities (in shares) | 2,452 | 2,514 | |
Denominator for diluted earnings per share (in shares) | 94,560 | 95,030 | [1] |
Basic earnings per share (in dollars per share) | $ 1.34 | $ 1.20 | [1] |
Diluted earnings per share (in dollars per share) | $ 1.31 | $ 1.17 | [1] |
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based compensation, including the income tax consequences. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Diluted earnings per share excludes antidilutive effect | 0.8 | 1.8 |
Performance Based Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Diluted earnings per share excludes antidilutive effect | 0.2 | 0.3 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | [1] | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Revenues, net | $ 520,433,000 | $ 414,262,000 | |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | $ 0 | ||
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based compensation, including the income tax consequences. |
Segments - Schedule of Company'
Segments - Schedule of Company's Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Revenues, net | $ 520,433 | $ 414,262 | [1] |
Operating income | 195,068 | 175,955 | [1] |
Depreciation and amortization | 64,866 | 36,328 | [1] |
Capital expenditures | 14,796 | 11,739 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 329,948 | 303,548 | |
Operating income | 120,972 | 113,850 | |
Depreciation and amortization | 33,177 | 31,432 | |
Capital expenditures | 9,632 | 7,942 | |
International | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 190,485 | 110,714 | |
Operating income | 74,096 | 62,105 | |
Depreciation and amortization | 31,689 | 4,896 | |
Capital expenditures | $ 5,164 | $ 3,797 | |
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based compensation, including the income tax consequences. |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 06, 2017 | |
Stored Value Solutions (SVS) Joint Venture | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Ownership percentage | 42.50% | ||
First Data | Stored Value Solutions (SVS) Joint Venture | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Ownership percentage by noncontrolling owners | 57.50% | ||
Stored Value Solutions | Held-for-sale | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
SVS current assets | $ 54.7 | ||
SVS goodwill | 183.9 | ||
SVS intangible assets | 218 | ||
SVS revenue | $ 48 | $ 42 |