Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 01, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 88,388,545 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | [1] | Dec. 31, 2017 | |
Current assets: | ||||
Cash and cash equivalents | $ 919,662 | $ 913,595 | [2] | |
Restricted cash | 265,776 | 217,275 | ||
Accounts and other receivables (less allowance for doubtful accounts of $48,245 at June 30, 2018 and $46,031 at December 31, 2017) | 1,716,937 | 1,420,011 | ||
Securitized accounts receivable—restricted for securitization investors | 939,000 | 811,000 | ||
Prepaid expenses and other current assets | 207,832 | 187,820 | ||
Total current assets | 4,049,207 | 3,549,701 | ||
Property and equipment, net | 179,096 | 180,057 | ||
Goodwill | 4,556,206 | 4,715,823 | ||
Other intangibles, net | 2,515,232 | 2,724,957 | ||
Investments | 39,859 | 32,859 | ||
Other assets | 145,533 | 114,962 | ||
Total assets | 11,485,133 | 11,318,359 | ||
Current liabilities: | ||||
Accounts payable | 1,532,741 | 1,437,314 | ||
Accrued expenses | 214,682 | 238,472 | ||
Customer deposits | 852,617 | 732,171 | ||
Securitization facility | 939,000 | 811,000 | ||
Current portion of notes payable and lines of credit | 976,685 | 805,512 | ||
Other current liabilities | 85,789 | 71,033 | ||
Total current liabilities | 4,601,514 | 4,095,502 | ||
Notes payable and other obligations, less current portion | 2,832,316 | 2,902,104 | ||
Deferred income taxes | 498,918 | 518,912 | ||
Other noncurrent liabilities | 113,300 | 125,319 | ||
Total noncurrent liabilities | 3,444,534 | 3,546,335 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Common stock, $0.001 par value; 475,000,000 shares authorized; 122,551,794 shares issued and 88,376,611 shares outstanding at June 30, 2018; and 122,083,059 shares issued and 89,803,982 shares outstanding at December 31, 2017 | 123 | 122 | ||
Additional paid-in capital | 2,277,227 | 2,214,224 | ||
Retained earnings | 3,357,962 | 2,958,921 | ||
Accumulated other comprehensive loss | (870,688) | (551,857) | ||
Less treasury stock (34,175,183 shares at June 30, 2018 and 32,279,077 shares at December 31, 2017) | (1,325,539) | (944,888) | ||
Total stockholders’ equity | 3,439,085 | 3,676,522 | ||
Total liabilities and stockholders’ equity | $ 11,485,133 | $ 11,318,359 | ||
[1] | Reflects the January 1, 2018 adoption of Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (Topic 606)" and related cost capitalization guidance using the modified retrospective transition method. The adoption of Topic 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of Topic 606. See footnote 1. | |||
[2] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 48,245 | $ 46,031 |
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) | 122,551,794 | 122,083,059 |
Common stock, shares outstanding (in shares) | 88,376,611 | 89,803,982 |
Treasury stock, shares (in shares) | 34,175,183 | 32,279,077 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | [1] | Jun. 30, 2017 | Jun. 30, 2018 | [1] | Jun. 30, 2017 | ||
Income Statement [Abstract] | |||||||
Revenues, net | $ 584,985 | $ 541,237 | $ 1,170,484 | $ 1,061,670 | |||
Expenses: | |||||||
Merchant commissions | 0 | 30,619 | 0 | 55,003 | |||
Processing | 111,201 | 103,322 | 227,686 | 205,146 | |||
Selling | 44,009 | 38,957 | 91,120 | 77,794 | |||
General and administrative | 96,382 | 87,587 | 186,696 | 183,041 | |||
Depreciation and amortization | 68,610 | 64,709 | 140,112 | 129,575 | |||
Operating income | 264,783 | 216,043 | 524,870 | 411,111 | |||
Investment loss | 0 | 2,354 | 0 | [2] | 4,731 | [2] | |
Other expense (income), net | 458 | (551) | 161 | 1,645 | |||
Interest expense, net | 33,150 | 23,851 | 64,215 | 46,978 | |||
Total other expense | 33,608 | 25,654 | 64,376 | 53,354 | |||
Income before income taxes | 231,175 | 190,389 | 460,494 | 357,757 | |||
Provision for income taxes | 54,323 | 59,402 | 108,705 | 103,077 | |||
Net income | $ 176,852 | $ 130,987 | $ 351,789 | [2] | $ 254,680 | [2] | |
Earnings per share: | |||||||
Basic earnings per share (in dollars per share) | $ 1.98 | $ 1.42 | $ 3.93 | $ 2.77 | |||
Diluted earnings per share (in dollars per share) | $ 1.91 | $ 1.39 | $ 3.78 | $ 2.70 | |||
Weighted average shares outstanding: | |||||||
Basic weighted average shares outstanding (in shares) | 89,169 | 92,013 | 89,466 | 92,060 | |||
Diluted weighted average shares outstanding (in shares) | 92,702 | 94,223 | 92,970 | 94,392 | |||
[1] | Reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of ASC 606. See footnote 1, "Summary of Significant Accounting Policies", in the accompanying notes to the unaudited consolidated financial statements. | ||||||
[2] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Statement of Comprehensive Income [Abstract] | |||||||
Net income | $ 176,852 | [1] | $ 130,987 | $ 351,789 | [1],[2] | $ 254,680 | [2] |
Other comprehensive (loss) income: | |||||||
Foreign currency translation (losses) gains, net of tax | (362,085) | (37,260) | (318,831) | 56,354 | |||
Total other comprehensive (loss) income | (362,085) | (37,260) | (318,831) | 56,354 | |||
Total comprehensive (loss) income | $ (185,233) | $ 93,727 | $ 32,958 | $ 311,034 | |||
[1] | Reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of ASC 606. See footnote 1, "Summary of Significant Accounting Policies", in the accompanying notes to the unaudited consolidated financial statements. | ||||||
[2] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |||||
Operating activities | |||||||||
Net income | $ 176,852 | [1] | $ 130,987 | $ 351,789 | [1],[2] | $ 254,680 | [2] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation | [2] | 25,033 | 21,593 | ||||||
Stock-based compensation | [2] | 33,505 | 44,243 | ||||||
Provision for losses on accounts receivable | [2] | 26,495 | 27,648 | ||||||
Amortization of deferred financing costs and discounts | [2] | 2,678 | 3,800 | ||||||
Amortization of intangible assets | [2] | 112,540 | 104,894 | ||||||
Amortization of premium on receivables | [2] | 2,539 | 3,088 | ||||||
Deferred income taxes | [2] | (6,473) | (32,660) | ||||||
Investment loss | 0 | [1] | 2,354 | 0 | [1],[2] | 4,731 | [2] | ||
Other non-cash operating income | [2] | (104) | 0 | ||||||
Changes in operating assets and liabilities (net of acquisitions): | |||||||||
Accounts and other receivables | [2] | (519,527) | (380,196) | ||||||
Prepaid expenses and other current assets | [2] | (20,440) | (18,778) | ||||||
Other assets | [2] | (15,418) | (15,050) | ||||||
Accounts payable, accrued expenses and customer deposits | [2] | 282,472 | 189,750 | ||||||
Net cash provided by operating activities | [2] | 275,089 | 207,743 | ||||||
Investing activities | |||||||||
Acquisitions, net of cash acquired | [2] | (3,811) | (3,580) | ||||||
Purchases of property and equipment | (19,400) | (17,804) | (34,614) | [2] | (32,600) | [2] | |||
Other | (11,192) | [2] | (6,327) | [2] | $ (39,000) | ||||
Net cash used in investing activities | [2] | (49,617) | (42,507) | ||||||
Financing activities | |||||||||
Proceeds from issuance of common stock | [2] | 29,498 | 16,432 | ||||||
Repurchase of common stock | [2] | (380,651) | (52,393) | ||||||
Borrowings on securitization facility, net | [2] | 128,000 | 150,000 | ||||||
Principal payments on notes payable | [2] | (69,000) | (66,725) | ||||||
Borrowings from revolver | [2] | 774,019 | 90,000 | ||||||
Payments on revolver | [2] | (600,109) | (215,901) | ||||||
Borrowings on swing line of credit, net | [2] | 13,632 | 10,245 | ||||||
Other | [2] | (149) | 537 | ||||||
Net cash used in financing activities | [2] | (104,760) | (67,805) | ||||||
Effect of foreign currency exchange rates on cash | [2] | (66,144) | 24,416 | ||||||
Net increase in cash and cash equivalents and restricted cash | [2] | 54,568 | 121,847 | ||||||
Cash and cash equivalents and restricted cash, beginning of period | [2] | 1,130,870 | 643,770 | 643,770 | |||||
Cash and cash equivalents and restricted cash, end of period | [2] | $ 1,185,438 | $ 765,617 | 1,185,438 | 765,617 | $ 1,130,870 | |||
Supplemental cash flow information | |||||||||
Cash paid for interest | [2] | 73,303 | 68,431 | ||||||
Cash paid for income taxes | [2] | $ 112,982 | $ 188,157 | ||||||
[1] | Reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of ASC 606. See footnote 1, "Summary of Significant Accounting Policies", in the accompanying notes to the unaudited consolidated financial statements. | ||||||||
[2] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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 of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Actual results may differ from these estimates. 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, 2017 . 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 $0.2 million and foreign exchange gains of $0.8 million in the three months ended June 30, 2018 and 2017 , respectively, which are recorded within other (income) expense, net in the Unaudited Consolidated Statements of Income. The Company recognized foreign exchange gains of $0.4 million and foreign exchange losses of $0.8 million in the six months ended June 30, 2018 and 2017 , respectively. Derivatives The Company, through its Cambridge Global Payments ("Cambridge") subsidiary, facilitates cross-currency corporate payments by writing derivatives to customers, which are not designated as hedging instruments. The majority of this business' revenue is from exchanges of currency at spot rates, which enable customers to make cross-currency payments. In addition, the Company also writes foreign currency forward and option contracts for its customers to facilitate future payments. The duration of these derivative contracts at inception is generally less than one year. The Company aggregates its foreign exchange exposures arising from customer contracts, including forwards, options and spot exchanges of currency, and hedges (economic hedge) the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties. The changes in fair value related to these contracts are recorded in the Unaudited Consolidated Statements of Income. The Company recognizes all derivatives in "prepaid expenses and other current assets" and "other current liabilities" in the accompanying Unaudited Consolidated Balance Sheets at their fair value. All cash flows associated with derivatives are included in cash flows from operating activities in the Unaudited Consolidated Statements of Cash Flows. Adoption of New Accounting Standards Impact of Adoption of ASC 606 In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. ASU 2014-09, as amended by ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", is effective for years beginning after December 15, 2017, including interim periods, with early adoption permitted for years beginning after December 15, 2016. Since the issuance of ASU 2014-09, the FASB has issued additional interpretive guidance, including new accounting standard updates, which clarifies certain points of the standard and modifies certain requirements. Effective January 1, 2018, we adopted ASC 606 using the modified retrospective method, for contracts that were not completed as of the date of initial application, resulting in a cumulative effect adjustment to retained earnings on January 1, 2018. For contracts that were modified before January 1, 2018, the Company has not retrospectively restated contracts for those modifications but instead reflected the aggregate effect of these modifications when identifying the satisfied and unsatisfied performance obligations, as allowed within the transition practical expedients. The cumulative impact to our retained earnings at January 1, 2018 was $30.9 million , due to the capitalization of costs to acquire contracts under the new standard, with a corresponding increase to prepaid expense and other current assets of $10.2 million , other assets of $30.3 million and deferred income taxes (liabilities) of $9.6 million . Additionally, under the new standard certain costs (e.g., merchant commissions and fees paid to credit card associations) will be presented net in revenues as the amounts represent payments to our customers that are not considered in exchange for a distinct good or service that the customer transfers to the Company. The impact to the Company's revenue, operating expenses, income from continuing operations after taxes, net income and basic and diluted earnings per share (EPS) for the three and six months ended June 30, 2018 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 As Reported Impact of ASC 606 2018 Prior to Adoption 2018 As Reported Impact of ASC 606 2018 Prior to Adoption Revenues, net $ 584,985 $ 23,336 $ 608,321 $ 1,170,484 $ 47,554 $ 1,218,038 Expenses: Merchant commissions — 26,387 26,387 — 53,290 53,290 Processing 111,201 (2,713 ) 108,488 227,686 (4,784 ) 222,902 Selling 44,009 397 44,406 91,120 2,517 93,637 General and administrative 96,382 — 96,382 186,696 — 186,696 Depreciation and amortization 68,610 — 68,610 140,112 — 140,112 Operating income 264,783 (735 ) 264,048 524,870 (3,469 ) 521,401 Total other expense 33,608 — 33,608 64,376 — 64,376 Income before income taxes 231,175 (735 ) 230,440 460,494 (3,469 ) 457,025 Provision for income taxes 54,323 (91 ) 54,232 108,705 (848 ) 107,857 Net income $ 176,852 $ (644 ) $ 176,208 $ 351,789 $ (2,621 ) $ 349,168 Basic earnings per share $ 1.98 $ (0.01 ) $ 1.98 $ 3.93 $ (0.03 ) $ 3.90 Diluted earnings per share $ 1.91 $ (0.01 ) $ 1.90 $ 3.78 $ (0.03 ) $ 3.76 The adoption of ASC 606 did not impact our accounting for revenues derived from late fees, finance charges, and certain other charge card fees or certain of our foreign currency contracts, which continue to be accounted for under existing authoritative guidance, as discussed further below. 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. On July 31, 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements”, which provides (1) an optional transition method that entities can use when adopting ASC 842 and (2) a practical expedient that permits lessors to not separate nonlease components from the associated lease component if certain conditions are met. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. If the new transition method in ASU 2018-11 is not elected, 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 ASU 2016-02 on our consolidated financial statements, is in the process of evaluating software tools to assist with implementation and is gathering leases for evaluation under the new standard. The Company expects to recognize right of use assets and liabilities for its operating leases in the consolidated balance sheet upon adoption and using the optional transition method recently issued. 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. 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 adopted this guidance on January 1, 2018, which did not have a material impact on the Company's results of operations, financial condition, or cash flows. Intra-Entity Transfers In October 2016, the FASB issued ASU 2016-16 “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The new guidance requires the recognition of the income tax consequences of an intercompany asset transfer, other than transfers of inventory, when the transfer occurs. For intercompany transfers of inventory, the income tax effects will continue to be deferred until the inventory has been sold to a third party. The Company adopted this ASU on January 1, 2018, which resulted in an increase of approximately $17.1 million to retained earnings and deferred tax assets net of valuation allowances. 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. 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 adopted this new guidance on January 1, 2018. The adoption of this new guidance did not 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 and changes due to adoption are applied using a retrospective transition method to each period presented. The Company adopted this new guidance on January 1, 2018, and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. 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 adoption of this ASU on January 1, 2018 is not expected to have a material impact on the results of operations, financial condition, or cash flows, unless a goodwill impairment is identified. 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. The Company adopted this new guidance on January 1, 2018. The adoption of this new guidance did not have a material impact on the results of operations, financial condition, or cash flows. Accounting for Modifications to Stock-Based Compensation In May 2017, the FASB issued ASU 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting", which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions and classification of the awards are the same immediately before and after the modification. The guidance is effective for the Company for reporting periods beginning after December 15, 2017, and interim periods within those years. The Company adopted this new guidance on January 1, 2018. The adoption of this new guidance did not have a material impact on the results of operations, financial condition, or cash flows. Accounting for Derivative Financial Instruments In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", which amends the hedge accounting recognition and presentation requirements in ASC 815. The FASB issued accounting guidance to better align hedge accounting with a company’s risk management activities, simplify the application of hedge accounting and improve the disclosures of hedging arrangements. The guidance is effective for the Company for reporting periods beginning after December 15, 2018, 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. Comprehensive Income Classification In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", that gives entities the option to reclassify to retained earnings tax effects related to items that have been stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (the "Tax Act"). An entity that elects to reclassify these amounts must reclassify stranded tax effects related to the Tax Act’s change in U.S. federal tax rate for all items accounted for in other comprehensive income. These entities can also elect to reclassify other stranded effects that relate to the Tax Act but do not directly relate to the change in the federal rate. For all entities, the guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issues or made available for issuance. Entities can choose whether to apply the amendments retrospectively to each period in which the effect of the Tax Act is recognized or to apply the amendments in the period of adoption. 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. Non-Employee Share-Based Payments In June 2018, the FASB issued ASU 2018-07, "Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting", that supersedes ASC 505-50 and expands the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from both non-employees and employees. Under the new guidance, the existing employee guidance will apply to non-employee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of non-employee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for non-employee awards. The guidance is effective for the Company for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, including in interim periods, but no earlier than an entity’s adoption of ASC 606. 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. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company provides payment solutions to our business, merchant, consumer and payment network customers. Our payment solutions are primarily focused on specific commercial spend categories, including fuel, lodging, tolls, and general corporate payments, as well as gift card solutions (stored value cards). The Company provides products that help businesses of all sizes control, simplify and secure payment of various domestic and cross-border payables using specialized payment products. The Company also provides other payment solutions for fleet maintenance, employee benefits and long haul transportation-related services. Payment Services The Company’s primary performance obligation for the majority of its payment solution products (fuel, lodging, tolls, corporate payments, among others) is to stand-ready to provide authorization and processing services ("payment services") for an unknown or unspecified quantity of transactions and the consideration received is contingent upon the customer’s use (e.g., number of transactions submitted and processed) of the related payment services. Accordingly, the total transaction price is variable. Payment services involves a series of distinct daily services that are substantially the same, with the same pattern of transfer to the customer. As a result, the Company allocates and recognizes variable consideration in the period it has the contractual right to invoice the customer. The Company records revenue for its payment services net of (i) the cost of the underlying products and services; (ii) assessments and other fees charged by the credit and debit payment networks (along with any rebates provided by them); (iii) customer rebates and other discounts; and (iv) taxes assessed (e.g. VAT and VAT-like taxes) by a government, imposed concurrent with, a revenue producing transaction. The majority of the transaction price the Company receives for fulfilling the Payment Services performance obligation are comprised of one or a combination of the following: 1) interchange fees earned from the payment networks; 2) discount fees earned from merchants; 3) fees calculated based on a number of transactions processed; and 4) fees calculated based upon a percentage of the transaction value of fuel, food, toll and transportation cards and vouchers. The Company recognizes revenue when the underlying transactions are complete and its performance obligations are satisfied. Transactions are considered complete depending upon the related payment solution but generally when the Company has authorized the transaction, validated that the transaction has no errors and accepted and posted the data to the Company’s records. The Company's performance obligation for its foreign exchange payment services is providing a foreign currency payment to a customer’s designated recipient and therefore, the Company recognizes revenue on foreign exchange payment services when the underlying payment is made. Revenues from foreign exchange and payment services are primarily comprised of the difference between the exchange rate set by the Company to the customer and the rate available in the wholesale foreign exchange market. Gift Card Products and Services The Company’s Gift product line delivers both stored value cards and card-based services primarily in the form of gift cards to retailers. These services each represent performance obligations that are separate and distinct. Revenue for stored valued cards are recognized (gross of the underlying cost of the related card) at the point in time when control passes to the Company's customer, which is generally upon shipment. Card-based services consist of transaction processing and reporting of gift card transactions where the Company recognizes revenue based on output measure of elapsed time for an unknown or unspecified quantity of transactions. As a result, the Company will allocate and recognize variable consideration over the estimated period of time over which the performance obligation is satisfied. Other The Company accounts for revenue from late fees and finance charges, in jurisdictions where permitted under local regulations, primarily in the U.S. and Canada in accordance with ASC 310, "Receivables". Such fees are recognized net of a provision for estimated uncollectible amounts, at the time the fees and finance charges are assessed and services are provided. The Company ceases billing and accruing for late fees and finance charges approximately 30 - 40 days after the customer’s balance becomes delinquent. The Company also writes foreign currency forward and option contracts for its customers to facilitate future payments in foreign currencies, and recognizes revenue in accordance with authoritative fair value and derivative accounting (ASC 815, " Derivatives"). Revenue is also derived from the sale of equipment in certain of the Company’s businesses, which is recognized at the time the device is sold and the risks and rewards of ownership have passed. This revenue is recognized gross of the cost of sales related to the equipment in "revenues, net" within the Unaudited Consolidated Statements of Income. The related cost of sales for the equipment is recorded within "processing expenses" in the Unaudited Consolidated Statements of Income. Disaggregation of Revenues The Company provides its services to customers across different payment solutions and geographies. Revenue by product (in millions) for the three and six months ended June 30, 2018 was as follows: Revenue, net by Product Category* Three Months Ended June 30, Six Months Ended June 30, 2018 % 2018 % Fuel $ 271 46 % $ 529 45 % Corporate Payments 100 17 % 194 17 % Tolls 82 14 % 173 15 % Lodging 45 8 % 84 7 % Gift 33 6 % 82 7 % Other 55 9 % 108 9 % Consolidated Revenues, net $ 585 100 % $ 1,170 100 % * Columns may not calculate due to rounding. Revenue by geography (in millions) for the three and six months ended June 30, 2018 was as follows: Revenue, net by Geography* Three Months Ended June 30, Six Months Ended June 30, 2018 % 2018 % United States $ 348 59 % 691 59 % Brazil 96 16 % 203 17 % United Kingdom 65 11 % 130 11 % Other 76 13 % 146 12 % Consolidated Revenues, net $ 585 100 % $ 1,170 100 % * Columns may not calculate due to rounding. Revenues from contracts with customers, within the scope of Topic 606, represents approximately 90% of total consolidated revenues, net, in the three and six month periods ended June 30, 2018. Contract Liabilities Deferred revenue contract liabilities for customers subject to ASC 606 were $21.5 million and $24.7 million as of June 30, 2018 and January 1, 2018, respectively. We expect to recognize substantially all of these amounts in revenues within approximately 12 months. Revenue recognized in the three and six months ended June 30, 2018, that was included in the deferred revenue contract liability as of January 1, 2018 was approximately $17.7 million and $39.1 million , respectively. Costs to Obtain or Fulfill a Contract With the adoption of ASC 606, the Company began capitalizing the incremental costs of obtaining a contract with a customer if the Company expects to recover those costs. The incremental costs of obtaining a contract are those that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, a sales commission). Costs incurred to fulfill a contract are capitalized if those costs meet all of the following criteria: a. The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify. b. The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future. c. The costs are expected to be recovered. In order to determine the appropriate amortization period for contract costs, the Company considered a combination of factors, including customer attrition rates, estimated terms of customer relationships, the useful lives of technology used by the Company to provide products and services to its customers, whether further contract renewals are expected and if there is any incremental commission to be paid on a contract renewal. Contract acquisition and fulfillment costs are amortized using the straight-line method over the expected period of benefit (ranging from five to ten years). Costs to obtain a contract with an expected period of benefit of one year or less are recognized as an expense when incurred. The amortization of contract acquisition costs associated with sales commissions that qualify for capitalization will be recorded as selling expense in the Company’s Unaudited Consolidated Statements of Income. The amortization of contract acquisition costs associated with cash payments for client incentives is included as a reduction of revenues in the Company’s Unaudited Consolidated Statements of Income. During the three and six months ended June 30, 2018, amortization of capitalized contract costs recorded in selling expense was $2.7 million and $6 million , respectively. Costs to obtain or fulfill a contract are classified as contract cost assets within "prepaid expenses and other current assets" and "other assets" in the Company’s Unaudited Consolidated Balance Sheets. At June 30, 2018, the Company had capitalized costs to obtain a contract of $11.4 million within prepaid expenses and $32.3 million within "other assets" in the Company’s Unaudited Consolidated Balance Sheets, respectively. Practical Expedients ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations; however, as allowed by ASC 606, the Company has elected to exclude this disclosure for any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. As described above, the Company's most significant performance obligations consist of variable consideration under a stand-ready series of distinct days of service. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material. The Company has elected to exclude all sales taxes and other similar taxes from the transaction price. Accordingly, the Company presents all collections from customers for these taxes on a net basis, rather than having to assess whether the Company is acting as an agent or a principal in each taxing jurisdiction. In certain arrangements with customers, the Company has determined that certain promised services and products are immaterial in the context of the contract, both quantitatively and qualitatively. As a practical expedient, the Company is not required to adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised service or product to a customer and when the customer pays for the service or product will be one year or less. As of June 30, 2018, the Company’s contracts with customers did not contain a significant financing component. The Company adopted Topic 606 as of January 1, 2018, using the modified retrospective method for all contracts not completed as of the date of adoption. For contracts that were modified before the effective date, the Company utilized a practical expedient to consider the aggregate effect of all modifications when identifying performance obligations and allocating transaction price. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2018 | |
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 our U.S. 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 transfers, 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 transferred assets 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 Unaudited 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 June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Gross domestic accounts receivable $ 926,519 $ 661,677 Gross domestic securitized accounts receivable 939,000 811,000 Gross foreign receivables 838,663 804,365 Total gross receivables 2,704,182 2,277,042 Less allowance for doubtful accounts (48,245 ) (46,031 ) Net accounts and securitized accounts receivable $ 2,655,937 $ 2,231,011 A rollforward of the Company’s allowance for doubtful accounts related to accounts receivable for the six month period ended June 30 is as follows (in thousands): 2018 2017 Allowance for doubtful accounts beginning of period $ 46,031 $ 32,506 Provision for bad debts 26,495 27,648 Write-offs (24,281 ) (12,318 ) Allowance for doubtful accounts end of period $ 48,245 $ 47,836 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
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 at June 30, 2018 and December 31, 2017 , (in thousands). Fair Value Level 1 Level 2 Level 3 June 30, 2018 Assets: Repurchase agreements $ 500,824 $ — $ 500,824 $ — Money market 50,187 — 50,187 — Certificates of deposit 15,037 — 15,037 — Foreign exchange contracts 43,000 — 43,000 — Total cash equivalents $ 609,048 $ — $ 609,048 $ — Cash collateral for foreign exchange contracts $ 40,084 $ — $ — $ — Liabilities: Foreign exchange contracts $ 40,969 $ — $ 40,969 — Total liabilities $ 40,969 $ — $ 40,969 $ — Cash collateral obligation for foreign exchange contracts $ 9,917 $ — $ — $ — December 31, 2017 Assets: Repurchase agreements $ 420,838 $ — $ 420,838 $ — Money market 50,423 — 50,423 — Certificates of deposit 7,417 — 7,417 — Foreign exchange contracts 39,045 10 39,035 — Total cash equivalents $ 517,723 $ 10 $ 517,713 $ — Cash collateral for foreign exchange contracts $ 12,540 $ — $ — $ — Liabilities: Foreign exchange contracts $ 26,888 $ 67 $ 26,821 $ — Total liabilities $ 26,888 $ 67 $ 26,821 $ — Cash collateral obligation for foreign exchange contracts $ 10,882 $ — $ — $ — The Company has highly-liquid investments classified as cash equivalents, with original maturities of 90 days or less, included in our Unaudited 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. Foreign exchange derivative contracts are carried at fair value, with changes in fair value recognized in the Unaudited Consolidated Statements of Income. The fair value of the Company's derivatives is derived with reference to a valuation from a derivatives dealer operating in an active market, which approximates the fair value of these instruments. The fair value represents what would be received and or paid by the Company if the contracts were terminated as of the reporting date. Cash collateral received for foreign exchange derivatives is recorded within customer deposits in the Company's Unaudited Consolidated Balance Sheet at June 30, 2018 . Cash collateral paid for foreign exchange derivatives is recorded within restricted cash in the Company's Unaudited Consolidated Balance Sheet at June 30, 2018 . 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 2018 and 2017 . The Company’s assets that are measured at fair value on a nonrecurring basis or 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 | 6 Months Ended |
Jun. 30, 2018 | |
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 purchase up to an aggregate of $500 million of its common stock over the following 18 month period. On July 27, 2017, the Company's Board of Directors authorized an increase in the size of the Program by an additional $250 million and an extension of the Program by an additional 18 months . On November 1, 2017, the Company announced that its Board of Directors had authorized an increase in the size of the Program by an additional $350 million , and on July 17, 2018, our Board of Directors authorized an additional increase of $500 million in the size of the Program resulting in total aggregate repurchases authorized under the Program of $1.6 billion . With the increase and giving effect to the Company's $970.8 million of previous repurchases, the Company may repurchase up to $629.2 million in shares of its common stock at any time prior to February 1, 2019. 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 a combination of available cash flow from the business, working capital and debt. Since the beginning of the Program, 6,010,210 shares for an aggregate purchase price of $970.8 million have been repurchased. There were 1,896,106 shares totaling $380.7 million repurchased under the Program during the six months ended June 30, 2018 . |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
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. On February 7, 2018, the stockholders of the Company approved the FleetCor Technologies, Inc. Amended and Restated 2010 Equity Incentive Plan (the "Amended Plan"). The Amended Plan was authorized and approved by the Company's Board of Directors on December 20, 2017, and Company's stockholders at a meeting held on February 7, 2018. The Amended Plan amends the Registrant’s existing 2010 Equity Incentive Plan (as amended, the "Prior Plan") to, among other things, increase the number of shares of common stock available for issuance from 13,250,000 to 16,750,000 and make certain other amendments to the Prior Plan. The table below summarizes the expense recognized related to share-based payments recognized for the three and six month periods ended June 30 (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Stock options $ 11,352 $ 13,949 $ 22,051 $ 26,038 Restricted stock 7,750 7,201 11,454 18,205 Stock-based compensation $ 19,102 $ 21,150 $ 33,505 $ 44,243 The tax benefits recorded on stock based compensation were $18.9 million and $24.3 million for the six month period ended June 30, 2018 and 2017 , respectively. The following table summarizes the Company’s total unrecognized compensation cost related to stock-based compensation as of June 30, 2018 (cost in thousands): Unrecognized Compensation Cost Weighted Average Period of Expense Recognition (in Years) Stock options $ 77,704 1.60 Restricted stock 22,109 0.71 Total $ 99,813 Stock Options Stock options are granted with an exercise price estimated to be equal to the fair market value on the date of grant as authorized by the Company’s board of directors. Options granted have vesting provisions ranging from one to five 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 six month period ended June 30, 2018 (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, 2017 8,031 $ 109.78 4,029 $ 75.80 $ 663,815 Granted 349 202.61 $ 202.68 Exercised (420 ) 73.08 57,825 Forfeited (35 ) 138.91 Outstanding at June 30, 2018 7,925 $ 115.68 4,702 $ 88.02 $ 752,617 Expected to vest as of June 30, 2018 7,925 $ 115.68 The aggregate intrinsic value of stock options exercisable at June 30, 2018 was $576.7 million . The weighted average remaining contractual term of options exercisable at June 30, 2018 was 5.3 years. The fair value of stock option awards granted was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions for grants or modifications during the six month periods ended June 30, 2018 and 2017 : June 30, 2018 2017 Risk-free interest rate 2.55 % 1.65 % Dividend yield — — Expected volatility 26.96 % 28.00 % Expected life (in years) 3.9 3.4 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, performance or market conditions, or a combination of these. Shares vesting based on the passage of time have vesting provisions of one to three years. The following table summarizes the changes in the number of shares of restricted stock and restricted stock units for the six months ended June 30, 2018 (shares in thousands): Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 365 $ 155.58 Granted 96 205.33 Vested (48 ) 158.79 Canceled or forfeited (29 ) 156.17 Outstanding at June 30, 2018 384 $ 158.01 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2018 Acquisitions During the six months ended June 2018, the Company made investments in businesses of $11.2 million and payments of $3.8 million related to acquisitions occurring in prior years. 2017 Acquisitions During 2017, the Company completed acquisitions with an aggregate purchase price of $725.1 million , net of cash acquired of $96.3 million and inclusive of notes payable of $29.3 million . During 2017, the Company made investments in other businesses of $39 million . Cambridge Global Payments On August 9, 2017, the Company acquired Cambridge, a business to business (B2B) international payments provider, for approximately $616.0 million in cash, net of cash acquired of $94.5 million and inclusive of a note payable of $23.8 million . Cambridge processes B2B cross-border payments, assisting business clients in making international payments. The purpose of this acquisition is to further expand the Company's corporate payments footprint. The Company financed the acquisition using a combination of existing cash and borrowings under its existing credit facility. The results from Cambridge are reported in its North America segment. The following table summarizes the preliminary acquisition accounting for Cambridge (in thousands): Restricted cash $ 37,666 Trade and other receivables 61,801 Prepaid expenses and other 15,190 Property and equipment 7,106 Other long term assets 10,025 Goodwill 500,169 Customer relationships and other identifiable intangible assets 271,793 Liabilities assumed (194,394 ) Deferred tax liabilities (93,364 ) Aggregate purchase price $ 615,992 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 Banking relationships 20 $ 705 Trade name and trademarks Indefinite 35,110 Technology 5 16,039 Customer relationships - excluding Accounts Payable Solutions 7-18 178,190 Customer relationships - Accounts Payable Solutions 20 41,749 $ 271,793 Along with the Company's acquisition of Cambridge, the Company signed noncompete agreements with certain parties with an estimated fair value of $5.8 million . Acquisition accounting for Cambridge is preliminary as the Company is still completing the valuation for goodwill, intangible assets, income taxes, certain acquired contingencies, derivatives and the working capital adjustment period remains open. Goodwill recorded is comprised primarily of expected synergies from combining the operations of the Company and Cambridge, as well as assembled workforce. Other During 2017, the Company acquired Creative Lodging Solutions ("CLS"), a lodging business, and a fuel card provider in Russia for approximately $109.1 million , net of cash acquired of $1.8 million and inclusive of a note payable of $5.5 million . The Company financed the acquisitions using a combination of existing cash and borrowings under its existing credit facility. The accounting for these acquisitions is preliminary as the Company is still completing the valuation of goodwill, intangible assets, income taxes and evaluation of acquired contingencies. The following table summarizes the preliminary acquisition accounting for the acquisitions (in thousands): Trade and other receivables $ 38,038 Prepaid expenses and other 1,426 Property and equipment 5,745 Goodwill 59,946 Other intangible assets 53,459 Liabilities assumed (32,274 ) Deferred tax liabilities (17,217 ) Aggregate purchase prices $ 109,123 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 Trade name and trademarks 1 $ 180 Technology 4 1,750 Customer relationships 8 51,529 $ 53,459 Along with the Company's acquisition of CLS, the Company signed noncompete agreements with certain parties with an estimated fair value of $3.9 million . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 Acquisition Accounting Adjustments Foreign Currency June 30, 2018 Segment North America $ 3,084,123 $ 3,993 $ (8,490 ) $ 3,079,626 International 1,631,700 20 (155,140 ) 1,476,580 $ 4,715,823 $ 4,013 $ (163,630 ) $ 4,556,206 As of June 30, 2018 and December 31, 2017 , other intangible assets consisted of the following (in thousands): June 30, 2018 December 31, 2017 Weighted- Avg Useful Lives (Years) Gross Carrying Amounts Accumulated Amortization Net Carrying Amount Gross Carrying Amounts Accumulated Amortization Net Carrying Amount Customer and vendor relationships 17.1 $ 2,627,119 $ (693,263 ) $ 1,933,856 $ 2,698,428 $ (605,347 ) $ 2,093,081 Trade names and trademarks—indefinite lived N/A 481,581 — 481,581 499,587 — 499,587 Trade names and trademarks—other 13.8 2,966 (2,375 ) 591 2,986 (2,207 ) 779 Software 5.9 213,563 (136,173 ) 77,390 219,019 (116,654 ) 102,365 Non-compete agreements 4.3 45,827 (24,013 ) 21,814 48,221 (19,076 ) 29,145 Total other intangibles $ 3,371,056 $ (855,824 ) $ 2,515,232 $ 3,468,241 $ (743,284 ) $ 2,724,957 Changes in foreign exchange rates resulted in a $101.0 million decrease to the carrying values of other intangible assets in the six months ended June 30, 2018 . Amortization expense related to intangible assets for the six months ended June 30, 2018 and 2017 was $112.5 million and $104.9 million , respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
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): June 30, 2018 December 31, 2017 Term notes payable—domestic(a), net of discounts $ 2,926,034 $ 2,993,667 Revolving line of credit A Facility—domestic(a) 580,000 635,000 Revolving line of credit B Facility—foreign(a) 241,695 28,334 Revolving line of credit B Facility—swing line(a) 19,626 6,879 Other debt(c) 41,646 43,736 Total notes payable and other obligations 3,809,001 3,707,616 Securitization Facility(b) 939,000 811,000 Total notes payable, credit agreements and Securitization Facility $ 4,748,001 $ 4,518,616 Current portion $ 1,915,685 $ 1,616,512 Long-term portion 2,832,316 2,902,104 Total notes payable, credit agreements and Securitization Facility $ 4,748,001 $ 4,518,616 ______________________ (a) The Company has a Credit Agreement, which has been amended multiple times and provides for senior secured credit facilities consisting of a revolving A credit facility in the amount of $1.285 billion , a term loan A facility in the amount of $2.69 billion and a term loan B facility in the amount of $350 million as of June 30, 2018. The revolving credit facility consists of (a) a revolving A credit facility in the amount of $800 million , with sublimits for letters of credit and swing line loans, (b) a revolving B facility in the amount of $450 million for swing line loans and multi-currency borrowings and, (c) a revolving C facility in the amount of $35 million for multi-currency borrowings in Australian Dollars or New Zealand Dollars. The Credit Agreement also includes an accordion feature for borrowing an additional $750 million in term A, term B or revolver A debt. Proceeds from the credit facilities may be used for working capital purposes, acquisitions, and other general corporate purposes. The maturity dates are August 2, 2022 for term A loan, revolving loans, and letters of credit under the Credit Agreement and August 2, 2024 for the term B loan. Interest on amounts outstanding under the Credit Agreement (other than the term B loan) accrues based on the British Bankers Association LIBOR Rate (the Eurocurrency Rate), plus a margin based on a leverage ratio, or our option, the Base Rate (defined as the rate equal to the highest of (a) the Federal Funds Rate plus 0.50% , (b) the prime rate announced by Bank of America, N.A., or (c) the Eurocurrency Rate plus 1.00% ) plus a margin based on a leverage ratio. Interest on the term B loan facility accrues based on the Eurocurrency Rate plus 2.00% for Eurocurrency Loans and at 1.00% 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 Company has unamortized debt discounts of $5.3 million related to the term A facility, and $0.6 million related to the term B facility and deferred financings costs of $4.6 million at June 30, 2018 . At June 30, 2018 , the interest rate on the term A loan and the domestic revolving A facility was 3.59% , the interest rate on the foreign revolving B facility was 2.01% , the interest rate on the revolving B facility foreign swing line of credit was 1.97% and the interest rate on the term B loan was 4.09% . The unused credit facility was 0.30% for all revolving facilities at June 30, 2018 . (b) The Company is party to a $950 million receivables purchase agreement (Securitization Facility) that was amended and restated on November 14, 2017. There is a program fee equal to one month LIBOR plus 0.90% or the Commercial Paper Rate plus 0.80% . The program fee was 2.15% plus 0.86% as of June 30, 2018 and 1.55% plus 0.86% as of December 31, 2017 . The unused facility fee is payable at a rate of 0.40% per annum as of June 30, 2018 and December 31, 2017 . (c) Other debt includes the long-term portion of deferred payments associated with business acquisitions. The Company was in compliance with all financial and non-financial covenants at June 30, 2018 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our quarterly tax provision and our quarterly estimate of our annual effective tax rate are subject to variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. On December 22, 2017, the U.S. government enacted tax legislation referred to as the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time Deemed Repatriation Transition Tax (“Transition Tax”) on certain unrepatriated earnings of foreign subsidiaries that can be paid over eight years; (3) a new provision designed to tax global intangible low-taxed income (GILTI), which allows for the possibility of using foreign tax credits (FTCs) and a deduction of up to 50 percent to offset the income tax liability (subject to some limitations); (4) the repeal of the domestic production activity deduction beginning January 1, 2018; (5) limitations on the deductibility of certain executive compensation; and (6) a new limitation on deductible interest expense beginning January 1, 2018. The Company has not completed its accounting for the tax effects of enactment of the Tax Act. However, the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time Transition Tax. In other cases, the Company has not been able to make a reasonable estimate and continues to account for those items based on its existing accounting under ASC 740 ("Income Taxes"), and the provisions of the tax laws that were in effect immediately prior to enactment. The SEC staff issued Staff Accounting Bulletin No. 118, "Income Tax Accounting Implications of the Tax Cuts and Jobs Act" ("SAB 118"), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. For those items for which it was able to determine a reasonable estimate, the Company recognized a provisional net tax benefit of $128.2 million during 2017. This net benefit primarily consists of a net benefit for the corporate rate reduction on the deferred tax assets and liabilities of $210 million and a net expense for the Transition Tax of $81.8 million . While the Company was able to make a reasonable estimate of the impact of the reduction in corporate rate on its net deferred tax liabilities, the impact may be affected by other analysis related to the Tax Act, including, but not limited to, the Company’s calculation of deemed repatriation of deferred foreign income. The Company was also not able to make a reasonable estimate of the impact of state taxes on adjustments made to federal temporary differences as a result of the Tax Act, or the impact of the new limitations on the deductibility of certain executive compensation. As a result, the Company continues to account for the impact of state taxes on adjustments made to federal temporary differences and the deductibility of certain executive compensation based on its existing accounting under ASC 740 and the provisions of the tax laws that were in effect immediately prior to enactment. In all cases, the Company will continue to make and refine its calculations as additional analysis is completed. We did not make any adjustments to these provisional amounts during the three months ended June 30, 2018. We are continuing to gather additional information, including, but not limited to, finalizing the calculation of post-1986 prescribed foreign E&P, finalizing foreign tax pools for foreign tax credit purposes, and finalizing the amounts held in cash or other specified assets, to complete our accounting for these items and expect to complete our accounting within the measurement period. The provision for income taxes differs from amounts computed by applying the U.S. federal tax rate of 21% for 2018 and 35% for 2017 to income before income taxes for the three months ended June 30, 2018 and 2017 due to the following (in thousands): 2018 2017 Computed tax expense at the U.S. federal tax rate $ 48,547 21.0 % $ 66,636 35.0 % Changes resulting from: Foreign income tax differential 1,907 0.8 % (7,473 ) (3.9 )% Excess tax benefits related to stock-based compensation (5,946 ) (2.6 )% (937 ) (0.5 )% State taxes net of federal benefits 3,396 1.5 % 2,360 1.2 % Foreign-sourced nontaxable income (6,291 ) (2.7 )% (1,006 ) (0.5 )% Foreign withholding taxes 5,426 2.4 % 2,381 1.3 % GILTI Tax, net of foreign tax credits 4,921 2.1 % — — % Other 2,363 1.0 % (2,559 ) (1.4 )% Provision for income taxes $ 54,323 23.5 % $ 59,402 31.2 % |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
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 and six month periods ended June 30 follows (in thousands, except per share data): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income $ 176,852 $ 130,987 $ 351,789 $ 254,680 Denominator for basic earnings per share 89,169 92,013 89,466 92,060 Dilutive securities 3,533 2,210 3,504 2,332 Denominator for diluted earnings per share 92,702 94,223 92,970 94,392 Basic earnings per share $ 1.98 $ 1.42 $ 3.93 $ 2.77 Diluted earnings per share $ 1.91 $ 1.39 $ 3.78 $ 2.70 Diluted earnings per share for the three months ended June 30, 2018 and 2017 excludes the effect of 0.1 million and 3.7 million shares of common stock, respectively, that may be issued upon the exercise of employee stock options because such effect would be anti-dilutive. Diluted earnings per share also excludes the effect of 0.1 million and 0.2 million shares of performance based restricted stock for which the performance criteria have not yet been achieved for the three month periods ended June 30, 2018 and 2017 , respectively. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2018 | |
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 and six month periods ended June 30 (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Revenues, net: 1 North America $ 370,949 $ 342,995 $ 735,218 $ 672,943 International 214,036 198,242 435,266 388,727 $ 584,985 $ 541,237 $ 1,170,484 $ 1,061,670 Operating income: 1 North America $ 161,376 $ 134,926 $ 317,326 $ 255,898 International 103,407 81,117 207,544 155,213 $ 264,783 $ 216,043 $ 524,870 $ 411,111 Depreciation and amortization: North America $ 38,317 $ 33,384 $ 76,992 $ 66,561 International 30,293 31,325 63,120 63,014 $ 68,610 $ 64,709 $ 140,112 $ 129,575 Capital expenditures: North America $ 11,685 $ 12,102 $ 20,096 $ 21,734 International 7,715 5,702 14,518 10,866 $ 19,400 $ 17,804 $ 34,614 $ 32,600 1 2018 reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect ASC 606. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
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, arbitration proceedings, claims, subpoenas, and matters relating to compliance with laws and regulations (collectively, legal proceedings). Based on our current knowledge, management presently does not believe that the liabilities arising from these legal proceedings will have a material adverse effect on our consolidated financial condition, results of operations or cash flows. However, it is possible that the ultimate resolution of these legal proceedings could have a material adverse effect on our results of operations and financial condition for any particular period. Shareholder Class Action and Derivative Lawsuits On June 14, 2017, a shareholder filed a class action complaint in the United States District Court for the Northern District of Georgia against the Company and certain of its officers and directors on behalf of all persons who purchased or otherwise acquired the Company’s stock between February 5, 2016 and May 2, 2017. On October 13, 2017, the shareholder filed an amended complaint asserting claims on behalf of a putative class of all persons who purchased or otherwise acquired the Company's common stock between February 4, 2016 and May 3, 2017. The complaint alleges that the defendants made false or misleading statements regarding fee charges and the reasons for its earnings and growth in certain press releases and other public statements in violation of the federal securities laws. Plaintiff seeks class certification, unspecified monetary damages, costs, and attorneys’ fees. The Company disputes the allegations in the complaint and intends to vigorously defend against the claims. On July 10, 2017, a shareholder derivative complaint was filed against the Company and certain of the Company’s directors and officers in the United States District Court for the Northern District of Georgia seeking recovery on behalf of the Company. The derivative complaint alleges that the defendants issued a false and misleading proxy statement in violation of the federal securities laws; that defendants breached their fiduciary duties by causing or permitting the Company to make allegedly false and misleading public statements concerning the Company’s fee charges, and financial and business prospects; and that certain defendants breached their fiduciary duties through allegedly improper sales of stock. The complaint seeks unspecified monetary damages on behalf of the Company, corporate governance reforms, disgorgement of profits, benefits and compensation by the defendants, restitution, costs, and attorneys’ and experts’ fees. The defendants dispute the allegations in the complaint and intend to vigorously defend against the claims. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult and requires an extensive degree of judgment, particularly where, as here, the matters involve indeterminate claims for monetary damages, and are in the stages of the proceedings where key factual and legal issues have not been resolved. For these reasons, the Company is currently unable to predict the ultimate timing or outcome of, or reasonably estimate the possible losses or a range of possible losses resulting from the matters described above. Unauthorized Access into a Portion of the Company’s Systems On April 26, 2018, Company personnel identified suspicious activity primarily on systems involving the Company’s Stored Value Solutions gift card business. The Company took prompt action to stop the activity and limit the improper use of accessed private label gift card information (these gift cards do not contain personally identifiable information such as consumer names, Social Security numbers, driver’s license numbers and other sensitive personal data). The Company through counsel retained three information technology forensic firms to assist in the investigation and the remediation and further enhancement of our systems to prevent future unauthorized access. The Company also contacted federal law enforcement and merchants known to be affected. The investigation has now been concluded and, based on the findings of the investigation, the unauthorized access was limited to what was reported in the Company’s quarterly report on Form 10-Q filed May 10, 2018 and we do not expect the unauthorized access to have a material impact on the Company’s results of operations. |
Asset Dispositions
Asset Dispositions | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Asset Dispositions | Asset Dispositions Telematics Businesses As part of the Company's plan to exit the telematics business, on July 27, 2017, the Company sold NexTraq, a U.S. fleet telematics business, to Michelin Group for $316 million . The Company recorded a pre-tax gain on the disposal of NexTraq of $175.0 million during the third quarter of 2017, which was net of transaction closing costs. The Company recorded tax on the gain of disposal of $65.8 million . NexTraq was historically included in the Company's North America segment. On September 30, 2017, the Company entered into an amended Masternaut investment agreement that resulted in the loss of significant influence, and the Company began accounting for the Masternaut investment by applying the cost method. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments As a result of the Cambridge acquisition during 2017, the Company writes derivatives, primarily foreign currency forward contracts, option contracts, and swaps, mostly with small and medium size enterprises that are customers and derives a currency spread from this activity. Derivative transactions include: • Forward contracts , which are commitments to buy or sell at a future date a currency at a contract price and will be settled in cash. • Option contracts, which gives the purchaser, the right, but not the obligation to buy or sell within a specified time a currency at a contracted price that may be settled in cash. • Swap contracts, which are commitments to settlement in cash at a future date or dates, usually on an overnight basis. The credit risk inherent in derivative agreements represents the possibility that a loss may occur from the nonperformance of a counterparty to the agreements. The Company performs a review of the credit risk of these counterparties at the inception of the contract and on an ongoing basis. The Company also monitors the concentration of its contracts with any individual counterparty against limits at the individual counterparty level. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements, but takes action when doubt arises about the counterparties' ability to perform. These actions may include requiring customers to post or increase collateral, and for all counterparties, the possible termination of the related contracts. The Company does not designate any of its foreign exchange derivatives as hedging instruments in accordance with ASC 815. The aggregate equivalent U.S. dollar notional amount of foreign exchange derivative customer contracts held by the Company as of June 30, 2018 and December 31, 2017 (in millions) is presented in the table below. Notional amounts do not reflect the netting of offsetting trades, although these offsetting positions may result in minimal overall market risk. Aggregate derivative notional amounts can fluctuate from period to period in the normal course of business based on market conditions, levels of customer activity and other factors. Notional June 30, 2018 December 31, 2017 Foreign exchange contracts: Swaps $ 324.2 $ 515.4 Futures, forwards and spot 3,855.9 3,274.5 Written options 3,245.7 2,934.2 Purchased options 2,800.1 2,314.1 Total $ 10,225.9 $ 9,038.1 The majority of customer foreign exchange contracts are written in currencies such as the U.S. Dollar, Canadian Dollar, British Pound, Euro and Australian Dollar. The following table summarizes the fair value of derivatives reported in the Unaudited Consolidated Balance Sheet as of June 30, 2018 and December 31, 2017 (in millions): June 30, 2018 December 31, 2017 Fair Value, Gross Fair Value, Net Fair Value, Gross Fair Value, Net Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivatives - undesignated: Over the counter $ 88.8 $ 86.8 $ 43.0 $ 41.0 $ 80.4 $ 68.2 $ 39.0 $ 26.8 Exchange traded — — — — — 0.1 — 0.1 Foreign exchange contracts 88.8 86.8 43.0 41.0 80.4 68.3 39.0 26.9 Cash collateral 40.1 9.9 40.1 9.9 12.5 10.9 12.5 10.9 Total net derivative assets and liabilities $ 48.7 $ 76.9 $ 2.9 $ 31.1 $ 67.9 $ 57.4 $ 26.5 $ 16.0 The fair values of derivative assets and liabilities associated with contracts which include netting language that the Company believes to be enforceable have been netted to present the Company's net exposure with these counterparties. The Company recognizes all derivative assets, net in prepaid expense and other current assets and all derivative liabilities, net in other current liabilities, after netting at the customer level, as right of offset exists, in its Unaudited Consolidated Balance Sheets at their fair value. The gain or loss on the fair value is recognized immediately within revenues, net in the Unaudited Consolidated Statements of Income. The Company does not offset fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral. The derivative assets and derivative liabilities in the preceding table were recorded in "other current assets" and "other current liabilities" at each balance sheet date, respectively, in the Unaudited Consolidated Balance Sheet. The Company receives cash from customers as collateral for trade exposures, which is recorded within "cash and cash equivalents: and "customer deposits" in the Unaudited Consolidated Balance Sheet. The customer has the right to recall their collateral in the event exposures move in their favor, they unwind all outstanding trades or they cease to do business with the Company. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Actual results may differ from these estimates. 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, 2017 . |
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. |
Derivatives | Derivatives The Company, through its Cambridge Global Payments ("Cambridge") subsidiary, facilitates cross-currency corporate payments by writing derivatives to customers, which are not designated as hedging instruments. The majority of this business' revenue is from exchanges of currency at spot rates, which enable customers to make cross-currency payments. In addition, the Company also writes foreign currency forward and option contracts for its customers to facilitate future payments. The duration of these derivative contracts at inception is generally less than one year. The Company aggregates its foreign exchange exposures arising from customer contracts, including forwards, options and spot exchanges of currency, and hedges (economic hedge) the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties. The changes in fair value related to these contracts are recorded in the Unaudited Consolidated Statements of Income. The Company recognizes all derivatives in "prepaid expenses and other current assets" and "other current liabilities" in the accompanying Unaudited Consolidated Balance Sheets at their fair value. All cash flows associated with derivatives are included in cash flows from operating activities in the Unaudited Consolidated Statements of Cash Flows. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Impact of Adoption of ASC 606 In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", which replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. ASU 2014-09, as amended by ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", is effective for years beginning after December 15, 2017, including interim periods, with early adoption permitted for years beginning after December 15, 2016. Since the issuance of ASU 2014-09, the FASB has issued additional interpretive guidance, including new accounting standard updates, which clarifies certain points of the standard and modifies certain requirements. Effective January 1, 2018, we adopted ASC 606 using the modified retrospective method, for contracts that were not completed as of the date of initial application, resulting in a cumulative effect adjustment to retained earnings on January 1, 2018. For contracts that were modified before January 1, 2018, the Company has not retrospectively restated contracts for those modifications but instead reflected the aggregate effect of these modifications when identifying the satisfied and unsatisfied performance obligations, as allowed within the transition practical expedients. The cumulative impact to our retained earnings at January 1, 2018 was $30.9 million , due to the capitalization of costs to acquire contracts under the new standard, with a corresponding increase to prepaid expense and other current assets of $10.2 million , other assets of $30.3 million and deferred income taxes (liabilities) of $9.6 million . Additionally, under the new standard certain costs (e.g., merchant commissions and fees paid to credit card associations) will be presented net in revenues as the amounts represent payments to our customers that are not considered in exchange for a distinct good or service that the customer transfers to the Company. The impact to the Company's revenue, operating expenses, income from continuing operations after taxes, net income and basic and diluted earnings per share (EPS) for the three and six months ended June 30, 2018 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 As Reported Impact of ASC 606 2018 Prior to Adoption 2018 As Reported Impact of ASC 606 2018 Prior to Adoption Revenues, net $ 584,985 $ 23,336 $ 608,321 $ 1,170,484 $ 47,554 $ 1,218,038 Expenses: Merchant commissions — 26,387 26,387 — 53,290 53,290 Processing 111,201 (2,713 ) 108,488 227,686 (4,784 ) 222,902 Selling 44,009 397 44,406 91,120 2,517 93,637 General and administrative 96,382 — 96,382 186,696 — 186,696 Depreciation and amortization 68,610 — 68,610 140,112 — 140,112 Operating income 264,783 (735 ) 264,048 524,870 (3,469 ) 521,401 Total other expense 33,608 — 33,608 64,376 — 64,376 Income before income taxes 231,175 (735 ) 230,440 460,494 (3,469 ) 457,025 Provision for income taxes 54,323 (91 ) 54,232 108,705 (848 ) 107,857 Net income $ 176,852 $ (644 ) $ 176,208 $ 351,789 $ (2,621 ) $ 349,168 Basic earnings per share $ 1.98 $ (0.01 ) $ 1.98 $ 3.93 $ (0.03 ) $ 3.90 Diluted earnings per share $ 1.91 $ (0.01 ) $ 1.90 $ 3.78 $ (0.03 ) $ 3.76 The adoption of ASC 606 did not impact our accounting for revenues derived from late fees, finance charges, and certain other charge card fees or certain of our foreign currency contracts, which continue to be accounted for under existing authoritative guidance, as discussed further below. 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. On July 31, 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements”, which provides (1) an optional transition method that entities can use when adopting ASC 842 and (2) a practical expedient that permits lessors to not separate nonlease components from the associated lease component if certain conditions are met. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. If the new transition method in ASU 2018-11 is not elected, 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 ASU 2016-02 on our consolidated financial statements, is in the process of evaluating software tools to assist with implementation and is gathering leases for evaluation under the new standard. The Company expects to recognize right of use assets and liabilities for its operating leases in the consolidated balance sheet upon adoption and using the optional transition method recently issued. 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. 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 adopted this guidance on January 1, 2018, which did not have a material impact on the Company's results of operations, financial condition, or cash flows. Intra-Entity Transfers In October 2016, the FASB issued ASU 2016-16 “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The new guidance requires the recognition of the income tax consequences of an intercompany asset transfer, other than transfers of inventory, when the transfer occurs. For intercompany transfers of inventory, the income tax effects will continue to be deferred until the inventory has been sold to a third party. The Company adopted this ASU on January 1, 2018, which resulted in an increase of approximately $17.1 million to retained earnings and deferred tax assets net of valuation allowances. 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. 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 adopted this new guidance on January 1, 2018. The adoption of this new guidance did not 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 and changes due to adoption are applied using a retrospective transition method to each period presented. The Company adopted this new guidance on January 1, 2018, and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. 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 adoption of this ASU on January 1, 2018 is not expected to have a material impact on the results of operations, financial condition, or cash flows, unless a goodwill impairment is identified. 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. The Company adopted this new guidance on January 1, 2018. The adoption of this new guidance did not have a material impact on the results of operations, financial condition, or cash flows. Accounting for Modifications to Stock-Based Compensation In May 2017, the FASB issued ASU 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting", which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions and classification of the awards are the same immediately before and after the modification. The guidance is effective for the Company for reporting periods beginning after December 15, 2017, and interim periods within those years. The Company adopted this new guidance on January 1, 2018. The adoption of this new guidance did not have a material impact on the results of operations, financial condition, or cash flows. Accounting for Derivative Financial Instruments In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", which amends the hedge accounting recognition and presentation requirements in ASC 815. The FASB issued accounting guidance to better align hedge accounting with a company’s risk management activities, simplify the application of hedge accounting and improve the disclosures of hedging arrangements. The guidance is effective for the Company for reporting periods beginning after December 15, 2018, 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. Comprehensive Income Classification In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", that gives entities the option to reclassify to retained earnings tax effects related to items that have been stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (the "Tax Act"). An entity that elects to reclassify these amounts must reclassify stranded tax effects related to the Tax Act’s change in U.S. federal tax rate for all items accounted for in other comprehensive income. These entities can also elect to reclassify other stranded effects that relate to the Tax Act but do not directly relate to the change in the federal rate. For all entities, the guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issues or made available for issuance. Entities can choose whether to apply the amendments retrospectively to each period in which the effect of the Tax Act is recognized or to apply the amendments in the period of adoption. 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. Non-Employee Share-Based Payments In June 2018, the FASB issued ASU 2018-07, "Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting", that supersedes ASC 505-50 and expands the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from both non-employees and employees. Under the new guidance, the existing employee guidance will apply to non-employee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of non-employee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for non-employee awards. The guidance is effective for the Company for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, including in interim periods, but no earlier than an entity’s adoption of ASC 606. 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 Accoun23
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact to the Company's revenue, operating expenses, income from continuing operations after taxes, net income and basic and diluted earnings per share (EPS) for the three and six months ended June 30, 2018 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 As Reported Impact of ASC 606 2018 Prior to Adoption 2018 As Reported Impact of ASC 606 2018 Prior to Adoption Revenues, net $ 584,985 $ 23,336 $ 608,321 $ 1,170,484 $ 47,554 $ 1,218,038 Expenses: Merchant commissions — 26,387 26,387 — 53,290 53,290 Processing 111,201 (2,713 ) 108,488 227,686 (4,784 ) 222,902 Selling 44,009 397 44,406 91,120 2,517 93,637 General and administrative 96,382 — 96,382 186,696 — 186,696 Depreciation and amortization 68,610 — 68,610 140,112 — 140,112 Operating income 264,783 (735 ) 264,048 524,870 (3,469 ) 521,401 Total other expense 33,608 — 33,608 64,376 — 64,376 Income before income taxes 231,175 (735 ) 230,440 460,494 (3,469 ) 457,025 Provision for income taxes 54,323 (91 ) 54,232 108,705 (848 ) 107,857 Net income $ 176,852 $ (644 ) $ 176,208 $ 351,789 $ (2,621 ) $ 349,168 Basic earnings per share $ 1.98 $ (0.01 ) $ 1.98 $ 3.93 $ (0.03 ) $ 3.90 Diluted earnings per share $ 1.91 $ (0.01 ) $ 1.90 $ 3.78 $ (0.03 ) $ 3.76 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company provides its services to customers across different payment solutions and geographies. Revenue by product (in millions) for the three and six months ended June 30, 2018 was as follows: Revenue, net by Product Category* Three Months Ended June 30, Six Months Ended June 30, 2018 % 2018 % Fuel $ 271 46 % $ 529 45 % Corporate Payments 100 17 % 194 17 % Tolls 82 14 % 173 15 % Lodging 45 8 % 84 7 % Gift 33 6 % 82 7 % Other 55 9 % 108 9 % Consolidated Revenues, net $ 585 100 % $ 1,170 100 % * Columns may not calculate due to rounding. Revenue by geography (in millions) for the three and six months ended June 30, 2018 was as follows: Revenue, net by Geography* Three Months Ended June 30, Six Months Ended June 30, 2018 % 2018 % United States $ 348 59 % 691 59 % Brazil 96 16 % 203 17 % United Kingdom 65 11 % 130 11 % Other 76 13 % 146 12 % Consolidated Revenues, net $ 585 100 % $ 1,170 100 % |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Company's Accounts Receivable and Securitized Accounts Receivable | The Company’s accounts receivable and securitized accounts receivable include the following at June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Gross domestic accounts receivable $ 926,519 $ 661,677 Gross domestic securitized accounts receivable 939,000 811,000 Gross foreign receivables 838,663 804,365 Total gross receivables 2,704,182 2,277,042 Less allowance for doubtful accounts (48,245 ) (46,031 ) Net accounts and securitized accounts receivable $ 2,655,937 $ 2,231,011 |
Allowance for Doubtful Accounts Related to Accounts Receivable | A rollforward of the Company’s allowance for doubtful accounts related to accounts receivable for the six month period ended June 30 is as follows (in thousands): 2018 2017 Allowance for doubtful accounts beginning of period $ 46,031 $ 32,506 Provision for bad debts 26,495 27,648 Write-offs (24,281 ) (12,318 ) Allowance for doubtful accounts end of period $ 48,245 $ 47,836 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 at June 30, 2018 and December 31, 2017 , (in thousands). Fair Value Level 1 Level 2 Level 3 June 30, 2018 Assets: Repurchase agreements $ 500,824 $ — $ 500,824 $ — Money market 50,187 — 50,187 — Certificates of deposit 15,037 — 15,037 — Foreign exchange contracts 43,000 — 43,000 — Total cash equivalents $ 609,048 $ — $ 609,048 $ — Cash collateral for foreign exchange contracts $ 40,084 $ — $ — $ — Liabilities: Foreign exchange contracts $ 40,969 $ — $ 40,969 — Total liabilities $ 40,969 $ — $ 40,969 $ — Cash collateral obligation for foreign exchange contracts $ 9,917 $ — $ — $ — December 31, 2017 Assets: Repurchase agreements $ 420,838 $ — $ 420,838 $ — Money market 50,423 — 50,423 — Certificates of deposit 7,417 — 7,417 — Foreign exchange contracts 39,045 10 39,035 — Total cash equivalents $ 517,723 $ 10 $ 517,713 $ — Cash collateral for foreign exchange contracts $ 12,540 $ — $ — $ — Liabilities: Foreign exchange contracts $ 26,888 $ 67 $ 26,821 $ — Total liabilities $ 26,888 $ 67 $ 26,821 $ — Cash collateral obligation for foreign exchange contracts $ 10,882 $ — $ — $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 and six month periods ended June 30 (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Stock options $ 11,352 $ 13,949 $ 22,051 $ 26,038 Restricted stock 7,750 7,201 11,454 18,205 Stock-based compensation $ 19,102 $ 21,150 $ 33,505 $ 44,243 |
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 June 30, 2018 (cost in thousands): Unrecognized Compensation Cost Weighted Average Period of Expense Recognition (in Years) Stock options $ 77,704 1.60 Restricted stock 22,109 0.71 Total $ 99,813 |
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 six month period ended June 30, 2018 (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, 2017 8,031 $ 109.78 4,029 $ 75.80 $ 663,815 Granted 349 202.61 $ 202.68 Exercised (420 ) 73.08 57,825 Forfeited (35 ) 138.91 Outstanding at June 30, 2018 7,925 $ 115.68 4,702 $ 88.02 $ 752,617 Expected to vest as of June 30, 2018 7,925 $ 115.68 |
Schedule of Weighted-Average Assumptions | The fair value of stock option awards granted was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions for grants or modifications during the six month periods ended June 30, 2018 and 2017 : June 30, 2018 2017 Risk-free interest rate 2.55 % 1.65 % Dividend yield — — Expected volatility 26.96 % 28.00 % Expected life (in years) 3.9 3.4 |
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 six months ended June 30, 2018 (shares in thousands): Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 365 $ 155.58 Granted 96 205.33 Vested (48 ) 158.79 Canceled or forfeited (29 ) 156.17 Outstanding at June 30, 2018 384 $ 158.01 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Summary of Acquisition Accounting | The following table summarizes the preliminary acquisition accounting for Cambridge (in thousands): Restricted cash $ 37,666 Trade and other receivables 61,801 Prepaid expenses and other 15,190 Property and equipment 7,106 Other long term assets 10,025 Goodwill 500,169 Customer relationships and other identifiable intangible assets 271,793 Liabilities assumed (194,394 ) Deferred tax liabilities (93,364 ) Aggregate purchase price $ 615,992 The following table summarizes the preliminary acquisition accounting for the acquisitions (in thousands): Trade and other receivables $ 38,038 Prepaid expenses and other 1,426 Property and equipment 5,745 Goodwill 59,946 Other intangible assets 53,459 Liabilities assumed (32,274 ) Deferred tax liabilities (17,217 ) Aggregate purchase prices $ 109,123 |
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 Trade name and trademarks 1 $ 180 Technology 4 1,750 Customer relationships 8 51,529 $ 53,459 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 Banking relationships 20 $ 705 Trade name and trademarks Indefinite 35,110 Technology 5 16,039 Customer relationships - excluding Accounts Payable Solutions 7-18 178,190 Customer relationships - Accounts Payable Solutions 20 41,749 $ 271,793 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 Acquisition Accounting Adjustments Foreign Currency June 30, 2018 Segment North America $ 3,084,123 $ 3,993 $ (8,490 ) $ 3,079,626 International 1,631,700 20 (155,140 ) 1,476,580 $ 4,715,823 $ 4,013 $ (163,630 ) $ 4,556,206 |
Schedule of Other Intangible Assets | As of June 30, 2018 and December 31, 2017 , other intangible assets consisted of the following (in thousands): June 30, 2018 December 31, 2017 Weighted- Avg Useful Lives (Years) Gross Carrying Amounts Accumulated Amortization Net Carrying Amount Gross Carrying Amounts Accumulated Amortization Net Carrying Amount Customer and vendor relationships 17.1 $ 2,627,119 $ (693,263 ) $ 1,933,856 $ 2,698,428 $ (605,347 ) $ 2,093,081 Trade names and trademarks—indefinite lived N/A 481,581 — 481,581 499,587 — 499,587 Trade names and trademarks—other 13.8 2,966 (2,375 ) 591 2,986 (2,207 ) 779 Software 5.9 213,563 (136,173 ) 77,390 219,019 (116,654 ) 102,365 Non-compete agreements 4.3 45,827 (24,013 ) 21,814 48,221 (19,076 ) 29,145 Total other intangibles $ 3,371,056 $ (855,824 ) $ 2,515,232 $ 3,468,241 $ (743,284 ) $ 2,724,957 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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): June 30, 2018 December 31, 2017 Term notes payable—domestic(a), net of discounts $ 2,926,034 $ 2,993,667 Revolving line of credit A Facility—domestic(a) 580,000 635,000 Revolving line of credit B Facility—foreign(a) 241,695 28,334 Revolving line of credit B Facility—swing line(a) 19,626 6,879 Other debt(c) 41,646 43,736 Total notes payable and other obligations 3,809,001 3,707,616 Securitization Facility(b) 939,000 811,000 Total notes payable, credit agreements and Securitization Facility $ 4,748,001 $ 4,518,616 Current portion $ 1,915,685 $ 1,616,512 Long-term portion 2,832,316 2,902,104 Total notes payable, credit agreements and Securitization Facility $ 4,748,001 $ 4,518,616 ______________________ (a) The Company has a Credit Agreement, which has been amended multiple times and provides for senior secured credit facilities consisting of a revolving A credit facility in the amount of $1.285 billion , a term loan A facility in the amount of $2.69 billion and a term loan B facility in the amount of $350 million as of June 30, 2018. The revolving credit facility consists of (a) a revolving A credit facility in the amount of $800 million , with sublimits for letters of credit and swing line loans, (b) a revolving B facility in the amount of $450 million for swing line loans and multi-currency borrowings and, (c) a revolving C facility in the amount of $35 million for multi-currency borrowings in Australian Dollars or New Zealand Dollars. The Credit Agreement also includes an accordion feature for borrowing an additional $750 million in term A, term B or revolver A debt. Proceeds from the credit facilities may be used for working capital purposes, acquisitions, and other general corporate purposes. The maturity dates are August 2, 2022 for term A loan, revolving loans, and letters of credit under the Credit Agreement and August 2, 2024 for the term B loan. Interest on amounts outstanding under the Credit Agreement (other than the term B loan) accrues based on the British Bankers Association LIBOR Rate (the Eurocurrency Rate), plus a margin based on a leverage ratio, or our option, the Base Rate (defined as the rate equal to the highest of (a) the Federal Funds Rate plus 0.50% , (b) the prime rate announced by Bank of America, N.A., or (c) the Eurocurrency Rate plus 1.00% ) plus a margin based on a leverage ratio. Interest on the term B loan facility accrues based on the Eurocurrency Rate plus 2.00% for Eurocurrency Loans and at 1.00% 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 Company has unamortized debt discounts of $5.3 million related to the term A facility, and $0.6 million related to the term B facility and deferred financings costs of $4.6 million at June 30, 2018 . At June 30, 2018 , the interest rate on the term A loan and the domestic revolving A facility was 3.59% , the interest rate on the foreign revolving B facility was 2.01% , the interest rate on the revolving B facility foreign swing line of credit was 1.97% and the interest rate on the term B loan was 4.09% . The unused credit facility was 0.30% for all revolving facilities at June 30, 2018 . (b) The Company is party to a $950 million receivables purchase agreement (Securitization Facility) that was amended and restated on November 14, 2017. There is a program fee equal to one month LIBOR plus 0.90% or the Commercial Paper Rate plus 0.80% . The program fee was 2.15% plus 0.86% as of June 30, 2018 and 1.55% plus 0.86% as of December 31, 2017 . The unused facility fee is payable at a rate of 0.40% per annum as of June 30, 2018 and December 31, 2017 . (c) Other debt includes the long-term portion of deferred payments associated with business acquisitions. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 21% for 2018 and 35% for 2017 to income before income taxes for the three months ended June 30, 2018 and 2017 due to the following (in thousands): 2018 2017 Computed tax expense at the U.S. federal tax rate $ 48,547 21.0 % $ 66,636 35.0 % Changes resulting from: Foreign income tax differential 1,907 0.8 % (7,473 ) (3.9 )% Excess tax benefits related to stock-based compensation (5,946 ) (2.6 )% (937 ) (0.5 )% State taxes net of federal benefits 3,396 1.5 % 2,360 1.2 % Foreign-sourced nontaxable income (6,291 ) (2.7 )% (1,006 ) (0.5 )% Foreign withholding taxes 5,426 2.4 % 2,381 1.3 % GILTI Tax, net of foreign tax credits 4,921 2.1 % — — % Other 2,363 1.0 % (2,559 ) (1.4 )% Provision for income taxes $ 54,323 23.5 % $ 59,402 31.2 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 and six month periods ended June 30 follows (in thousands, except per share data): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income $ 176,852 $ 130,987 $ 351,789 $ 254,680 Denominator for basic earnings per share 89,169 92,013 89,466 92,060 Dilutive securities 3,533 2,210 3,504 2,332 Denominator for diluted earnings per share 92,702 94,223 92,970 94,392 Basic earnings per share $ 1.98 $ 1.42 $ 3.93 $ 2.77 Diluted earnings per share $ 1.91 $ 1.39 $ 3.78 $ 2.70 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Company's Segment Results | The Company’s segment results are as follows for the three and six month periods ended June 30 (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Revenues, net: 1 North America $ 370,949 $ 342,995 $ 735,218 $ 672,943 International 214,036 198,242 435,266 388,727 $ 584,985 $ 541,237 $ 1,170,484 $ 1,061,670 Operating income: 1 North America $ 161,376 $ 134,926 $ 317,326 $ 255,898 International 103,407 81,117 207,544 155,213 $ 264,783 $ 216,043 $ 524,870 $ 411,111 Depreciation and amortization: North America $ 38,317 $ 33,384 $ 76,992 $ 66,561 International 30,293 31,325 63,120 63,014 $ 68,610 $ 64,709 $ 140,112 $ 129,575 Capital expenditures: North America $ 11,685 $ 12,102 $ 20,096 $ 21,734 International 7,715 5,702 14,518 10,866 $ 19,400 $ 17,804 $ 34,614 $ 32,600 1 2018 reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect ASC 606. |
Derivative Financial Instrume34
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The aggregate equivalent U.S. dollar notional amount of foreign exchange derivative customer contracts held by the Company as of June 30, 2018 and December 31, 2017 (in millions) is presented in the table below. Notional amounts do not reflect the netting of offsetting trades, although these offsetting positions may result in minimal overall market risk. Aggregate derivative notional amounts can fluctuate from period to period in the normal course of business based on market conditions, levels of customer activity and other factors. Notional June 30, 2018 December 31, 2017 Foreign exchange contracts: Swaps $ 324.2 $ 515.4 Futures, forwards and spot 3,855.9 3,274.5 Written options 3,245.7 2,934.2 Purchased options 2,800.1 2,314.1 Total $ 10,225.9 $ 9,038.1 |
Schedule of Derivative Assets at Fair Value | The following table summarizes the fair value of derivatives reported in the Unaudited Consolidated Balance Sheet as of June 30, 2018 and December 31, 2017 (in millions): June 30, 2018 December 31, 2017 Fair Value, Gross Fair Value, Net Fair Value, Gross Fair Value, Net Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivatives - undesignated: Over the counter $ 88.8 $ 86.8 $ 43.0 $ 41.0 $ 80.4 $ 68.2 $ 39.0 $ 26.8 Exchange traded — — — — — 0.1 — 0.1 Foreign exchange contracts 88.8 86.8 43.0 41.0 80.4 68.3 39.0 26.9 Cash collateral 40.1 9.9 40.1 9.9 12.5 10.9 12.5 10.9 Total net derivative assets and liabilities $ 48.7 $ 76.9 $ 2.9 $ 31.1 $ 67.9 $ 57.4 $ 26.5 $ 16.0 |
Schedule of Derivative Liabilities at Fair Value | The following table summarizes the fair value of derivatives reported in the Unaudited Consolidated Balance Sheet as of June 30, 2018 and December 31, 2017 (in millions): June 30, 2018 December 31, 2017 Fair Value, Gross Fair Value, Net Fair Value, Gross Fair Value, Net Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Derivatives - undesignated: Over the counter $ 88.8 $ 86.8 $ 43.0 $ 41.0 $ 80.4 $ 68.2 $ 39.0 $ 26.8 Exchange traded — — — — — 0.1 — 0.1 Foreign exchange contracts 88.8 86.8 43.0 41.0 80.4 68.3 39.0 26.9 Cash collateral 40.1 9.9 40.1 9.9 12.5 10.9 12.5 10.9 Total net derivative assets and liabilities $ 48.7 $ 76.9 $ 2.9 $ 31.1 $ 67.9 $ 57.4 $ 26.5 $ 16.0 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||
Foreign exchange gains (losses) | $ (200) | $ 800 | $ 400 | $ (800) | ||||
Retained earnings | 3,357,962 | [1] | 3,357,962 | [1] | $ 2,958,921 | |||
Prepaid expenses and other current assets | 207,832 | [1] | 207,832 | [1] | 187,820 | |||
Other assets | 145,533 | [1] | 145,533 | [1] | 114,962 | |||
Deferred income taxes | 498,918 | [1] | 498,918 | [1] | 518,912 | |||
Total gross receivables | $ 2,704,182 | $ 2,704,182 | 2,277,042 | |||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||
Retained earnings | $ 30,900 | |||||||
Prepaid expenses and other current assets | 10,200 | |||||||
Other assets | 30,300 | |||||||
Deferred income taxes | $ 9,600 | |||||||
Accounting Standards Update 2016-15 | ||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||
Retained earnings | 17,100 | |||||||
Deferred tax assets | $ 17,100 | |||||||
[1] | Reflects the January 1, 2018 adoption of Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (Topic 606)" and related cost capitalization guidance using the modified retrospective transition method. The adoption of Topic 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of Topic 606. See footnote 1. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Effect of Topic 606 on Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Consolidated Revenues, net | $ 584,985 | [1] | $ 541,237 | $ 1,170,484 | [1] | $ 1,061,670 | |
Expenses: | |||||||
Merchant commissions | 0 | [1] | 30,619 | 0 | [1] | 55,003 | |
Processing | 111,201 | [1] | 103,322 | 227,686 | [1] | 205,146 | |
Selling | 44,009 | [1] | 38,957 | 91,120 | [1] | 77,794 | |
General and administrative | 96,382 | [1] | 87,587 | 186,696 | [1] | 183,041 | |
Depreciation and amortization | 68,610 | [1] | 64,709 | 140,112 | [1] | 129,575 | |
Operating income | 264,783 | [1] | 216,043 | 524,870 | [1] | 411,111 | |
Total other expense | 33,608 | [1] | 25,654 | 64,376 | [1] | 53,354 | |
Income before income taxes | 231,175 | [1] | 190,389 | 460,494 | [1] | 357,757 | |
Provision for income taxes | 54,323 | [1] | 59,402 | 108,705 | [1] | 103,077 | |
Net income | $ 176,852 | [1] | $ 130,987 | $ 351,789 | [1],[2] | $ 254,680 | [2] |
Basic earnings per share (in dollars per share) | $ 1.98 | [1] | $ 1.42 | $ 3.93 | [1] | $ 2.77 | |
Diluted earnings per share (in dollars per share) | $ 1.91 | [1] | $ 1.39 | $ 3.78 | [1] | $ 2.70 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Consolidated Revenues, net | $ 23,336 | $ 47,554 | |||||
Expenses: | |||||||
Merchant commissions | 26,387 | 53,290 | |||||
Processing | (2,713) | (4,784) | |||||
Selling | 397 | 2,517 | |||||
General and administrative | 0 | 0 | |||||
Depreciation and amortization | 0 | 0 | |||||
Operating income | (735) | (3,469) | |||||
Total other expense | 0 | 0 | |||||
Income before income taxes | (735) | (3,469) | |||||
Provision for income taxes | (91) | (848) | |||||
Net income | $ (644) | $ (2,621) | |||||
Basic earnings per share (in dollars per share) | $ (0.01) | $ (0.03) | |||||
Diluted earnings per share (in dollars per share) | $ (0.01) | $ (0.03) | |||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Consolidated Revenues, net | $ 608,321 | $ 1,218,038 | |||||
Expenses: | |||||||
Merchant commissions | 26,387 | 53,290 | |||||
Processing | 108,488 | 222,902 | |||||
Selling | 44,406 | 93,637 | |||||
General and administrative | 96,382 | 186,696 | |||||
Depreciation and amortization | 68,610 | 140,112 | |||||
Operating income | 264,048 | 521,401 | |||||
Total other expense | 33,608 | 64,376 | |||||
Income before income taxes | 230,440 | 457,025 | |||||
Provision for income taxes | 54,232 | 107,857 | |||||
Net income | $ 176,208 | $ 349,168 | |||||
Basic earnings per share (in dollars per share) | $ 1.98 | $ 3.90 | |||||
Diluted earnings per share (in dollars per share) | $ 1.90 | $ 3.76 | |||||
[1] | Reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of ASC 606. See footnote 1, "Summary of Significant Accounting Policies", in the accompanying notes to the unaudited consolidated financial statements. | ||||||
[2] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Revenue Recognition - Narrativ
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue contract liability | $ 21.5 | $ 21.5 | $ 24.7 |
Contract acquisition cost amortization period | 12 months | 12 months | |
Deferred revenue recognized | $ 17.7 | $ 39.1 | |
Capitalized contract cost amortization | $ 2.7 | $ 6 | |
Minimum | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Threshold period past due Company ceases billing and accruing late fees | 30 days | ||
Capitalized contract cost amortization period | 5 years | 5 years | |
Maximum | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Threshold period past due Company ceases billing and accruing late fees | 40 days | ||
Capitalized contract cost amortization period | 10 years | 10 years | |
Prepaid Expenses | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract with customer asset | $ 11.4 | $ 11.4 | |
Other Assets | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract with customer asset | $ 32.3 | $ 32.3 | |
Sales Revenue | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Consolidated revenues, net (percent) | 100.00% | 100.00% | |
Contracts with customers | Sales Revenue | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Consolidated revenues, net (percent) | 90.00% | 90.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | $ 584,985 | [1] | $ 541,237 | $ 1,170,484 | [1] | $ 1,061,670 |
Fuel | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | 271,000 | 529,000 | ||||
Corporate Payments | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | 100,000 | 194,000 | ||||
Tolls | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | 82,000 | 173,000 | ||||
Lodging | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | 45,000 | 84,000 | ||||
Gift | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | 33,000 | 82,000 | ||||
Other | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | 55,000 | 108,000 | ||||
United States | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | 348,000 | 691,000 | ||||
Brazil | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | 96,000 | 203,000 | ||||
United Kingdom | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | 65,000 | 130,000 | ||||
Other | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated Revenues, net | $ 76,000 | $ 146,000 | ||||
Sales Revenue | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 100.00% | 100.00% | ||||
Sales Revenue | Fuel | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 46.00% | 45.00% | ||||
Sales Revenue | Corporate Payments | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 17.00% | 17.00% | ||||
Sales Revenue | Tolls | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 14.00% | 15.00% | ||||
Sales Revenue | Lodging | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 8.00% | 7.00% | ||||
Sales Revenue | Gift | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 6.00% | 7.00% | ||||
Sales Revenue | Other | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 9.00% | 9.00% | ||||
Sales Revenue | United States | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 59.00% | 59.00% | ||||
Sales Revenue | Brazil | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 16.00% | 17.00% | ||||
Sales Revenue | United Kingdom | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 11.00% | 11.00% | ||||
Sales Revenue | Other | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Consolidated revenues, net (percent) | 13.00% | 12.00% | ||||
[1] | Reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of ASC 606. See footnote 1, "Summary of Significant Accounting Policies", in the accompanying notes to the unaudited consolidated financial statements. |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Nov. 14, 2017 | |
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 | $ 950,000,000 |
Accounts Receivable - Company's
Accounts Receivable - Company's Accounts Receivable and Securitized Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross receivables | $ 2,704,182 | $ 2,277,042 | |||
Gross domestic securitized accounts receivable | 939,000 | [1] | 811,000 | ||
Less allowance for doubtful accounts | (48,245) | (46,031) | $ (47,836) | $ (32,506) | |
Net accounts and securitized accounts receivable | 2,655,937 | 2,231,011 | |||
Gross domestic accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross receivables | 926,519 | 661,677 | |||
Gross foreign receivables | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross receivables | $ 838,663 | $ 804,365 | |||
[1] | Reflects the January 1, 2018 adoption of Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (Topic 606)" and related cost capitalization guidance using the modified retrospective transition method. The adoption of Topic 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of Topic 606. See footnote 1. |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for Doubtful Accounts Related to Accounts Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for doubtful accounts beginning of period | $ 46,031 | $ 32,506 | |
Provision for bad debts | [1] | 26,495 | 27,648 |
Write-offs | (24,281) | (12,318) | |
Allowance for doubtful accounts end of period | $ 48,245 | $ 47,836 | |
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Foreign exchange contracts | $ 43,000 | $ 39,000 |
Total cash equivalents | 609,048 | 517,723 |
Cash collateral for foreign exchange contracts | 40,100 | 12,500 |
Liabilities: | ||
Foreign exchange contracts | 41,000 | 26,900 |
Total liabilities | 40,969 | 26,888 |
Cash collateral obligation for foreign exchange contracts | 9,900 | 10,900 |
Foreign exchange contracts | ||
Assets: | ||
Foreign exchange contracts | 43,000 | 39,045 |
Cash collateral for foreign exchange contracts | 40,084 | 12,540 |
Liabilities: | ||
Foreign exchange contracts | 40,969 | 26,888 |
Cash collateral obligation for foreign exchange contracts | 9,917 | 10,882 |
Repurchase agreements | ||
Assets: | ||
Total cash equivalents | 500,824 | 420,838 |
Money market | ||
Assets: | ||
Total cash equivalents | 50,187 | 50,423 |
Certificates of deposit | ||
Assets: | ||
Total cash equivalents | 15,037 | 7,417 |
Level 1 | ||
Assets: | ||
Total cash equivalents | 0 | 10 |
Liabilities: | ||
Total liabilities | 0 | 67 |
Level 1 | Foreign exchange contracts | ||
Assets: | ||
Foreign exchange contracts | 0 | 10 |
Liabilities: | ||
Foreign exchange contracts | 0 | 67 |
Level 2 | ||
Assets: | ||
Total cash equivalents | 609,048 | 517,713 |
Liabilities: | ||
Total liabilities | 40,969 | 26,821 |
Level 2 | Foreign exchange contracts | ||
Assets: | ||
Foreign exchange contracts | 43,000 | 39,035 |
Liabilities: | ||
Foreign exchange contracts | 40,969 | 26,821 |
Level 2 | Repurchase agreements | ||
Assets: | ||
Total cash equivalents | 500,824 | 420,838 |
Level 2 | Money market | ||
Assets: | ||
Total cash equivalents | 50,187 | 50,423 |
Level 2 | Certificates of deposit | ||
Assets: | ||
Total cash equivalents | $ 15,037 | $ 7,417 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase Program (Details) - USD ($) | Jul. 27, 2017 | Feb. 04, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jul. 17, 2018 | Nov. 01, 2017 | |
Class of Stock [Line Items] | ||||||||
Repurchase of common stock | [1] | $ 380,651,000 | $ 52,393,000 | |||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Stock repurchase program, approved amount | $ 500,000,000 | $ 1,600,000,000 | ||||||
Stock repurchase program, authorized time period | 18 months | |||||||
Increase in authorized amount to be repurchased | $ 250,000,000 | $ 350,000,000 | ||||||
Period in force, extension of original period | 18 months | |||||||
Remaining authorized repurchase amount | $ 629,200,000 | $ 629,200,000 | ||||||
Repurchase agreements | ||||||||
Class of Stock [Line Items] | ||||||||
Shares repurchased | $ 970,800,000 | |||||||
Shares repurchased (in shares) | 1,896,106 | 6,010,210 | ||||||
Repurchase of common stock | $ 380,700,000 | |||||||
Subsequent Event | Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Increase in authorized amount to be repurchased | $ 500,000,000 | |||||||
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Feb. 07, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Tax benefits recorded on stock based compensation | $ 18.9 | $ 24.3 | ||
Aggregate intrinsic value of options exercisable | $ 576.7 | |||
Weighted average remaining contractual term of options exercisable (in years) | 5 years 3 months 18 days | |||
Minimum | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of vesting provisions (in years) | 1 year | |||
Minimum | Restricted stock | ||||
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) | 5 years | |||
Maximum | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of vesting provisions (in years) | 3 years | |||
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 16,750,000 | 13,250,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Expense Related to Share-Based Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 19,102 | $ 21,150 | $ 33,505 | $ 44,243 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 11,352 | 13,949 | 22,051 | 26,038 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 7,750 | $ 7,201 | $ 11,454 | $ 18,205 |
Stock-Based Compensation - Su46
Stock-Based Compensation - Summary of Total Unrecognized Compensation Cost Related to Stock-Based Compensation (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 99,813 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 77,704 |
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 | $ 22,109 |
Weighted Average Period of Expense Recognition (in Years) | 8 months 16 days |
Stock-Based Compensation - Su47
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 | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares at beginning of period (in shares) | 8,031 | |
Granted (in shares) | 349 | |
Exercised (in shares) | (420) | |
Forfeited (in shares) | (35) | |
Shares at end of period (in shares) | 7,925 | |
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) | $ 109.78 | |
Weighted average exercise price, granted (in dollars per share) | 202.61 | |
Weighted average exercise price, exercised (in dollars per share) | 73.08 | |
Weighted average exercise price, forfeitures (in dollars per share) | 138.91 | |
Weighted average exercise price, end of period (in dollars per share) | $ 115.68 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Expected to vest (in shares) | 7,925 | |
Weighted average exercise price, expected to vest (in dollars per share) | $ 115.68 | |
Options exercisable at beginning of period (in shares) | 4,702 | 4,029 |
Weighted average exercise price of exercisable options, beginning of period (in dollars per share) | $ 88.02 | $ 75.80 |
Weighted average exercise price of granted options (in dollars per share) | $ 202.68 | |
Aggregate intrinsic value | $ 752,617 | $ 663,815 |
Aggregate intrinsic value, exercised | $ 57,825 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Weighted-Average Assumptions (Details) - Stock options | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.55% | 1.65% |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 26.96% | 28.00% |
Expected life (in years) | 3 years 10 months 24 days | 3 years 4 months 24 days |
Stock-Based Compensation - Su49
Stock-Based Compensation - Summary of Changes in Number of Shares of Restricted Stock and Restricted Stock Units (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Shares | |
Shares outstanding, beginning of period (in shares) | shares | 365 |
Granted (in shares) | shares | 96 |
Vested (in shares) | shares | (48) |
Canceled (in shares) | shares | (29) |
Shares outstanding, end of period (in shares) | shares | 384 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning of period (in dollars per share) | $ / shares | $ 155.58 |
Weighted average grant date fair value, granted (in dollars per share) | $ / shares | 205.33 |
Weighted average grant date fair value, vested (in dollars per share) | $ / shares | 158.79 |
Weighted average grant date fair value, canceled (in dollars per share) | $ / shares | 156.17 |
Weighted average grant date fair value, end of period (in dollars per share) | $ / shares | $ 158.01 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | Aug. 09, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |||
Business Acquisition [Line Items] | |||||||
Investments in other businesses | $ 11,192 | [1] | $ 6,327 | [1] | $ 39,000 | ||
Deferred payments for acquisitions in previous years | [1] | 3,811 | $ 3,580 | ||||
Acquisitions Prior to 2018 | |||||||
Business Acquisition [Line Items] | |||||||
Deferred payments for acquisitions in previous years | $ 3,800 | ||||||
2017 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price | 725,100 | ||||||
Cash acquired from acquisition | 96,300 | ||||||
Note payable incurred | 29,300 | ||||||
Cambridge | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price | $ 616,000 | ||||||
Cash acquired from acquisition | 94,500 | ||||||
Note payable incurred | 23,800 | ||||||
Creative Lodging Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price | 109,100 | ||||||
Cash acquired from acquisition | 1,800 | ||||||
Note payable incurred | 5,500 | ||||||
Non-compete agreements | Cambridge | |||||||
Business Acquisition [Line Items] | |||||||
Noncompete agreements | $ 5,800 | ||||||
Non-compete agreements | Creative Lodging Solutions | |||||||
Business Acquisition [Line Items] | |||||||
Noncompete agreements | $ 3,900 | ||||||
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Acquisition - Summary of Purcha
Acquisition - Summary of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | [1] | Dec. 31, 2017 | Aug. 09, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 4,556,206 | $ 4,715,823 | ||
Cambridge | ||||
Business Acquisition [Line Items] | ||||
Restricted cash | $ 37,666 | |||
Trade and other receivables | 61,801 | |||
Prepaid expenses and other | 15,190 | |||
Property and equipment | 7,106 | |||
Other long term assets | 10,025 | |||
Goodwill | 500,169 | |||
Other intangible assets | 271,793 | |||
Liabilities assumed | (194,394) | |||
Deferred tax liabilities | (93,364) | |||
Aggregate purchase price | $ 615,992 | |||
Creative Lodging Solutions | ||||
Business Acquisition [Line Items] | ||||
Trade and other receivables | 38,038 | |||
Prepaid expenses and other | 1,426 | |||
Property and equipment | 5,745 | |||
Other long term assets | 53,459 | |||
Goodwill | 59,946 | |||
Liabilities assumed | (32,274) | |||
Deferred tax liabilities | (17,217) | |||
Aggregate purchase price | $ 109,123 | |||
[1] | Reflects the January 1, 2018 adoption of Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (Topic 606)" and related cost capitalization guidance using the modified retrospective transition method. The adoption of Topic 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of Topic 606. See footnote 1. |
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 | Aug. 09, 2017 | Jun. 30, 2018 | Dec. 31, 2017 |
Trade names and trademarks—other | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 13 years 9 months 18 days | ||
Cambridge | |||
Business Acquisition [Line Items] | |||
Other intangible assets | $ 271,793 | ||
Cambridge | Banking Relationship | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 20 years | ||
Finite-lived intangible assets | $ 705 | ||
Cambridge | Customer relationships and other identifiable intangible assets | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 20 years | ||
Other intangible assets | $ 41,749 | ||
Cambridge | Technology | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 5 years | ||
Other intangible assets | $ 16,039 | ||
Cambridge | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Other intangible assets | $ 178,190 | ||
Cambridge | Customer Relationships | Minimum | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 7 years | ||
Cambridge | Customer Relationships | Maximum | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 18 years | ||
Creative Lodging Solutions | Trade names and trademarks—other | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 1 year | ||
Finite-lived intangible assets | $ 180 | ||
Creative Lodging Solutions | Customer relationships and other identifiable intangible assets | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 53,459 | ||
Creative Lodging Solutions | Technology | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 4 years | ||
Finite-lived intangible assets | $ 1,750 | ||
Creative Lodging Solutions | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 8 years | ||
Finite-lived intangible assets | $ 51,529 | ||
Trade names and trademarks—indefinite lived | Cambridge | |||
Business Acquisition [Line Items] | |||
Customer relationships—Accounts Payable Solutions | $ 35,110 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets - Summary of Changes in Goodwill by Reportable Business Segment (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 4,715,823 | |
Acquisition Accounting Adjustments | 4,013 | |
Foreign Currency | (163,630) | |
Goodwill, ending balance | 4,556,206 | [1] |
North America | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 3,084,123 | |
Acquisition Accounting Adjustments | 3,993 | |
Foreign Currency | (8,490) | |
Goodwill, ending balance | 3,079,626 | |
International | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,631,700 | |
Acquisition Accounting Adjustments | 20 | |
Foreign Currency | (155,140) | |
Goodwill, ending balance | $ 1,476,580 | |
[1] | Reflects the January 1, 2018 adoption of Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (Topic 606)" and related cost capitalization guidance using the modified retrospective transition method. The adoption of Topic 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of Topic 606. See footnote 1. |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amounts | $ 3,371,056 | $ 3,468,241 | |
Accumulated Amortization | (855,824) | (743,284) | |
Net Carrying Amount | 2,515,232 | [1] | 2,724,957 |
Trade names and trademarks—indefinite lived | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amounts | 481,581 | 499,587 | |
Accumulated Amortization | 0 | 0 | |
Net Carrying Amount | $ 481,581 | 499,587 | |
Customer and vendor relationships | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Weighted- Avg Useful Lives (Years) | 17 years 1 month 6 days | ||
Gross Carrying Amounts | $ 2,627,119 | 2,698,428 | |
Accumulated Amortization | (693,263) | (605,347) | |
Net Carrying Amount | $ 1,933,856 | 2,093,081 | |
Trade names and trademarks—other | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Weighted- Avg Useful Lives (Years) | 13 years 9 months 18 days | ||
Gross Carrying Amounts | $ 2,966 | 2,986 | |
Accumulated Amortization | (2,375) | (2,207) | |
Net Carrying Amount | $ 591 | 779 | |
Software | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Weighted- Avg Useful Lives (Years) | 5 years 10 months 24 days | ||
Gross Carrying Amounts | $ 213,563 | 219,019 | |
Accumulated Amortization | (136,173) | (116,654) | |
Net Carrying Amount | $ 77,390 | 102,365 | |
Non-compete agreements | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Weighted- Avg Useful Lives (Years) | 4 years 3 months 18 days | ||
Gross Carrying Amounts | $ 45,827 | 48,221 | |
Accumulated Amortization | (24,013) | (19,076) | |
Net Carrying Amount | $ 21,814 | $ 29,145 | |
[1] | Reflects the January 1, 2018 adoption of Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (Topic 606)" and related cost capitalization guidance using the modified retrospective transition method. The adoption of Topic 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of Topic 606. See footnote 1. |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impact of foreign exchange rates on intangible assets | $ 101,000 | ||
Amortization expense of intangible assets | [1] | $ 112,540 | $ 104,894 |
[1] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Debt - Summary of Debt Instrume
Debt - Summary of Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Term note payable—domestic, net of discounts | $ 2,926,034 | $ 2,993,667 | |
Other debt | 41,646 | 43,736 | |
Total notes payable and other obligations | 3,809,001 | 3,707,616 | |
Securitization facility | 939,000 | [1] | 811,000 |
Total notes payable, credit agreements and Securitization Facility | 4,748,001 | 4,518,616 | |
Current portion | 1,915,685 | 1,616,512 | |
Long-term portion | 2,832,316 | [1] | 2,902,104 |
Revolving line of credit A Facility—domestic | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | 580,000 | 635,000 | |
Revolving line of credit B Facility—foreign | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | 241,695 | 28,334 | |
Revolving line of credit B Facility—swing line | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | $ 19,626 | $ 6,879 | |
[1] | Reflects the January 1, 2018 adoption of Accounting Standards Update 2014-09, "Revenue from Contracts with Customers (Topic 606)" and related cost capitalization guidance using the modified retrospective transition method. The adoption of Topic 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of Topic 606. See footnote 1. |
Debt - Summary of Debt Instru57
Debt - Summary of Debt Instruments Narrative (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Nov. 14, 2017 | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Unused facility fee, as percentage of unused portion | 0.30% | ||||
Deferred finance costs | $ 4,600,000 | $ 4,600,000 | |||
Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | 950,000,000 | $ 950,000,000 | $ 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] | |||||
Line of credit facility initial borrowing, unamortized debt discount | 5,300,000 | $ 5,300,000 | |||
Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility initial borrowing, unamortized debt discount | $ 600,000 | $ 600,000 | |||
Effective interest rate | 4.09% | ||||
Revolving line of credit A Facility—domestic | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 3.59% | ||||
Revolving line of credit B Facility—foreign | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 2.01% | ||||
Revolving line of credit B Facility—swing line | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 1.97% | ||||
Commercial Paper | Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.86% | 0.80% | |||
Program fee rate | 2.1462% | 1.55% | |||
Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Additional borrowing capacity | $ 750,000,000 | $ 750,000,000 | |||
Secured Debt | Term A Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | 1,285,000,000 | 1,285,000,000 | |||
Secured Debt | Term Loan A | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | 2,690,000,000 | 2,690,000,000 | |||
Secured Debt | Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | 350,000,000 | 350,000,000 | |||
Secured Debt | Revolving A Facility | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | 800,000,000 | 800,000,000 | |||
Secured Debt | Revolving B Facility | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | 450,000,000 | 450,000,000 | |||
Secured Debt | Revolving C Facility | |||||
Debt Instrument [Line Items] | |||||
Amended securitization facility | $ 35,000,000 | $ 35,000,000 | |||
Eurodollar | Secured Debt | Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Base Rate | Secured Debt | Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
London Interbank Offered Rate (LIBOR) | Commercial Paper | Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.90% | ||||
Blended Rate Of LIBOR And Commercial Paper Rates Based On Weighted Average Advance | Commercial Paper | Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.86% | ||||
Minimum | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Unused facility fee, as percentage of unused portion | 0.20% | ||||
Minimum | Federal Funds Rate Plus | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Maximum | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Unused facility fee, as percentage of unused portion | 0.40% | ||||
Maximum | Eurodollar | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax Cuts and Jobs Act of 2017 provisional income tax expense (benefit) | $ (128.2) | ||
Change in tax rate effect on deferred tax liabilities | 210 | ||
Transition tax | $ 81.8 | ||
Income tax expense at federal statutory rate, rate | 21.00% | 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 | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | [1] | Jun. 30, 2017 | ||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount [Abstract] | ||||||
Computed tax expense at the U.S. federal tax rate | $ 48,547 | $ 66,636 | ||||
Foreign income tax differential | 1,907 | (7,473) | ||||
Excess tax benefits related to stock-based compensation | (5,946) | (937) | ||||
State taxes net of federal benefits | 3,396 | 2,360 | ||||
Foreign-sourced nontaxable income | (6,291) | (1,006) | ||||
Foreign withholding taxes | 5,426 | 2,381 | ||||
GILTI Tax, net of foreign tax credits | 4,921 | 0 | ||||
Other | 2,363 | (2,559) | ||||
Provision for income taxes | $ 54,323 | [1] | $ 59,402 | $ 108,705 | $ 103,077 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||
Computed tax expense at the U.S. federal tax rate | 21.00% | 35.00% | ||||
Foreign income tax differential | 0.80% | (3.90%) | ||||
Excess tax benefits related to stock-based compensation | (2.60%) | (0.50%) | ||||
State taxes net of federal benefits | 1.50% | 1.20% | ||||
Foreign-sourced nontaxable income | (2.70%) | (0.50%) | ||||
Foreign withholding taxes | 2.40% | 1.30% | ||||
GILTI Tax, net of foreign tax credits | 2.10% | 0.00% | ||||
Other | 1.00% | (1.40%) | ||||
Provision for income taxes | 23.50% | 31.20% | ||||
[1] | Reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of ASC 606. See footnote 1, "Summary of Significant Accounting Policies", in the accompanying notes to the unaudited consolidated financial statements. |
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 | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Earnings Per Share [Abstract] | |||||||
Net income | $ 176,852 | [1] | $ 130,987 | $ 351,789 | [1],[2] | $ 254,680 | [2] |
Denominator for basic earnings per share (in shares) | 89,169 | [1] | 92,013 | 89,466 | [1] | 92,060 | |
Dilutive securities (in shares) | 3,533 | 2,210 | 3,504 | 2,332 | |||
Denominator for diluted earnings per share (in shares) | 92,702 | [1] | 94,223 | 92,970 | [1] | 94,392 | |
Basic earnings per share (in dollars per share) | $ 1.98 | [1] | $ 1.42 | $ 3.93 | [1] | $ 2.77 | |
Diluted earnings per share (in dollars per share) | $ 1.91 | [1] | $ 1.39 | $ 3.78 | [1] | $ 2.70 | |
[1] | Reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of ASC 606. See footnote 1, "Summary of Significant Accounting Policies", in the accompanying notes to the unaudited consolidated financial statements. | ||||||
[2] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 0.1 | 3.7 |
Performance Based Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 0.1 | 0.2 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($) | [1] | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 2 | |||||
Intersegment sales | $ 584,985,000 | $ 541,237,000 | $ 1,170,484,000 | [1] | $ 1,061,670,000 | |
Intersegment Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Intersegment sales | $ 0 | |||||
[1] | Reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of ASC 606. See footnote 1, "Summary of Significant Accounting Policies", in the accompanying notes to the unaudited consolidated financial statements. |
Segments - Schedule of Company'
Segments - Schedule of Company's Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | $ 584,985 | [1] | $ 541,237 | $ 1,170,484 | [1] | $ 1,061,670 | |
Operating income | 264,783 | [1] | 216,043 | 524,870 | [1] | 411,111 | |
Depreciation and amortization | 68,610 | [1] | 64,709 | 140,112 | [1] | 129,575 | |
Capital expenditures | 19,400 | 17,804 | 34,614 | [2] | 32,600 | [2] | |
North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | 370,949 | 342,995 | 735,218 | 672,943 | |||
Operating income | 161,376 | 134,926 | 317,326 | 255,898 | |||
Depreciation and amortization | 38,317 | 33,384 | 76,992 | 66,561 | |||
Capital expenditures | 11,685 | 12,102 | 20,096 | 21,734 | |||
International | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | 214,036 | 198,242 | 435,266 | 388,727 | |||
Operating income | 103,407 | 81,117 | 207,544 | 155,213 | |||
Depreciation and amortization | 30,293 | 31,325 | 63,120 | 63,014 | |||
Capital expenditures | $ 7,715 | $ 5,702 | $ 14,518 | $ 10,866 | |||
[1] | Reflects the impact of the Company's adoption of ASC 606 and related cost capitalization guidance, which was adopted by the Company on January 1, 2018 using the modified retrospective transition method. The adoption of ASC 606 resulted in an adjustment to retained earnings in our consolidated balance sheet for the cumulative effective of applying the standard, which included costs incurred to obtain a contract, as well as presentation changes in our statements of income, including the classification of certain amounts previously classified as merchant commissions and processing expense net with revenues. As a result of the application of the modified retrospective transition method, the Company's prior period results within its annual report on Form 10-K and quarterly reports on Form 10-Q will not be restated to reflect the impact of ASC 606. See footnote 1, "Summary of Significant Accounting Policies", in the accompanying notes to the unaudited consolidated financial statements. | ||||||
[2] | Reflects the impact of the Company's adoption of Accounting Standards Update 2016-18, "Statement of Cash Flows (Topic 230)", which was adopted by the Company on January 1, 2018 and applied retrospectively to results for 2017. The adoption of Topic 230 resulted in the statement of cash flows presenting the changes in the total of cash, cash equivalents and restricted cash. As a result, the Company will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Apr. 26, 2018firm |
Commitments and Contingencies Disclosure [Abstract] | |
Number of technology forensic firms engaged | 3 |
Asset Dispositions (Details)
Asset Dispositions (Details) - NexTraq - Held-for-sale - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Jul. 27, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Consideration | $ 316 | |
Gain on disposal | $ 175 | |
Tax effect of gain from disposal | $ 65.8 |
Derivative Financial Instrume66
Derivative Financial Instruments Schedule of Notional Amounts (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Total | $ 10,225.9 | $ 9,038.1 |
Swaps | ||
Derivative [Line Items] | ||
Total | 324.2 | 515.4 |
Futures, forwards and spot | ||
Derivative [Line Items] | ||
Total | 3,855.9 | 3,274.5 |
Written options | ||
Derivative [Line Items] | ||
Total | 3,245.7 | 2,934.2 |
Purchased options | ||
Derivative [Line Items] | ||
Total | $ 2,800.1 | $ 2,314.1 |
Derivative Financial Instrume67
Derivative Financial Instruments Schedule of Fair Value by Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, gross fair value | $ 88.8 | $ 80.4 |
Cash collateral | 40.1 | 12.5 |
Derivative asset, fair value, gross, net of cash collateral | 48.7 | 67.9 |
Derivative liabilities, gross fair value | 86.8 | 68.3 |
Cash collateral | 9.9 | 10.9 |
Derivative liabilities, fair value, gross, net of cash collateral | 76.9 | 57.4 |
Foreign exchange contracts | 43 | 39 |
Derivative assets, net | 2.9 | 26.5 |
Foreign exchange contracts | 41 | 26.9 |
Derivative liabilities, net | 31.1 | 16 |
Over the counter | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, gross fair value | 88.8 | 80.4 |
Derivative liabilities, gross fair value | 86.8 | 68.2 |
Foreign exchange contracts | 43 | 39 |
Foreign exchange contracts | 41 | 26.8 |
Exchange traded | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, gross fair value | 0 | 0 |
Derivative liabilities, gross fair value | 0 | 0.1 |
Foreign exchange contracts | 0 | 0 |
Foreign exchange contracts | $ 0 | $ 0.1 |