Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 19, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35004 | |
Entity Registrant Name | FleetCor Technologies, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 72-1074903 | |
Entity Address, Address Line One | 5445 Triangle Parkway | |
Entity Address, City or Town | Peachtree Corners | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30092 | |
City Area Code | 770 | |
Local Phone Number | 449-0479 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 86,567,921 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FLT | |
Security Exchange Name | NYSE | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001175454 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | [1] | Dec. 31, 2018 | |
Current assets: | ||||
Cash and cash equivalents | $ 1,170,339 | $ 1,031,145 | [2] | |
Restricted cash | 318,287 | 333,748 | ||
Accounts and other receivables (less allowance for doubtful accounts of $68,334 at June 30, 2019 and $59,963 at December 31, 2018) | 1,727,183 | 1,425,815 | ||
Securitized accounts receivable—restricted for securitization investors | 974,000 | 886,000 | ||
Prepaid expenses and other current assets | 196,549 | 199,278 | ||
Total current assets | 4,386,358 | 3,875,986 | ||
Property and equipment, net | 190,215 | 186,201 | ||
Goodwill | 4,720,471 | 4,542,074 | ||
Other intangibles, net | 2,417,188 | 2,407,910 | ||
Investments | 26,635 | 42,674 | ||
Other assets | 234,725 | 147,632 | ||
Total assets | 11,975,592 | 11,202,477 | ||
Current liabilities: | ||||
Accounts payable | 1,523,862 | 1,117,649 | ||
Accrued expenses | 269,913 | 261,594 | ||
Customer deposits | 870,217 | 926,685 | ||
Securitization facility | 974,000 | 886,000 | ||
Current portion of notes payable and lines of credit | 958,394 | 1,184,616 | ||
Other current liabilities | 152,824 | 118,669 | ||
Total current liabilities | 4,749,210 | 4,495,213 | ||
Notes payable and other obligations, less current portion | 2,676,374 | 2,748,431 | ||
Deferred income taxes | 452,113 | 491,946 | ||
Other noncurrent liabilities | 254,523 | 126,707 | ||
Total noncurrent liabilities | 3,383,010 | 3,367,084 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Common stock, $0.001 par value; 475,000,000 shares authorized; 123,754,485 shares issued and 86,535,000 shares outstanding at June 30, 2019; and 123,035,859 shares issued and 85,845,344 shares outstanding at December 31, 2018 | 123 | 123 | ||
Additional paid-in capital | 2,427,640 | 2,306,843 | ||
Retained earnings | 4,251,414 | 3,817,656 | ||
Accumulated other comprehensive loss | (928,197) | (913,858) | ||
Less treasury stock, 37,219,485 shares at June 30, 2019 and 37,190,515 shares at December 31, 2018 | (1,907,608) | (1,870,584) | ||
Total stockholders’ equity | 3,843,372 | 3,340,180 | ||
Total liabilities and stockholders’ equity | $ 11,975,592 | $ 11,202,477 | ||
[1] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using a modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. | |||
[2] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using the modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 68,334 | $ 59,963 |
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) | 123,754,485 | 123,035,859 |
Common stock, shares outstanding (in shares) | 86,535,000 | 85,845,344 |
Treasury stock, shares (in shares) | 37,219,485 | 37,190,515 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | [1] | Jun. 30, 2019 | Jun. 30, 2018 | [1] | ||
Income Statement [Abstract] | |||||||
Revenues, net | $ 647,094 | $ 584,985 | $ 1,268,919 | $ 1,170,484 | |||
Expenses: | |||||||
Processing | 120,458 | 111,201 | 249,572 | 227,686 | |||
Selling | 51,856 | 44,009 | 101,117 | 91,120 | |||
General and administrative | 106,784 | 96,431 | 199,568 | 186,800 | |||
Depreciation and amortization | 70,908 | 68,610 | 138,353 | 140,112 | |||
Other operating, net | (229) | (49) | (1,184) | (104) | |||
Operating income | 297,317 | 264,783 | 581,493 | 524,870 | |||
Investment loss | 0 | 0 | 15,660 | [2] | 0 | ||
Other expense, net | 528 | 458 | 748 | 161 | |||
Interest expense, net | 39,529 | 33,150 | 78,584 | 64,215 | |||
Total other expense | 40,057 | 33,608 | 94,992 | 64,376 | |||
Income before income taxes | 257,260 | 231,175 | 486,501 | 460,494 | |||
(Benefit from) provision for income taxes | (4,391) | 54,323 | 52,743 | 108,705 | |||
Net income | $ 261,651 | $ 176,852 | $ 433,758 | [2] | $ 351,789 | ||
Earnings per share: | |||||||
Basic earnings per share (in dollars per share) | $ 3.03 | $ 1.98 | $ 5.03 | $ 3.93 | |||
Diluted earnings per share (in dollars per share) | $ 2.90 | $ 1.91 | $ 4.84 | $ 3.78 | |||
Weighted average shares outstanding: | |||||||
Basic (in shares) | 86,360 | 89,169 | 86,159 | 89,466 | |||
Diluted (in shares) | 90,131 | 92,702 | 89,694 | 92,970 | |||
[1] | Reflects reclassifications from previously disclosed amounts to conform to current presentation. | ||||||
[2] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using the modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Statement of Comprehensive Income [Abstract] | |||||||
Net income | $ 261,651 | $ 176,852 | [1] | $ 433,758 | [2] | $ 351,789 | [1] |
Other comprehensive income (loss): | |||||||
Foreign currency translation gains (losses), net of tax | 31,662 | (362,085) | 32,035 | (318,831) | |||
Net change in derivative contracts, net of tax | (25,667) | (46,374) | |||||
Net change in derivative contracts, net of tax | 0 | 0 | |||||
Total other comprehensive income (loss) | 5,995 | (362,085) | (14,339) | (318,831) | |||
Total comprehensive income (loss) | $ 267,646 | $ (185,233) | $ 419,419 | $ 32,958 | |||
[1] | Reflects reclassifications from previously disclosed amounts to conform to current presentation. | ||||||
[2] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using the modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | ||
Stockholders' Equity beginning balance at Dec. 31, 2017 | $ 3,676,522 | $ 122 | $ 2,214,224 | $ 2,958,921 | $ (551,857) | $ (944,888) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 174,937 | 174,937 | ||||||
Other comprehensive income from currency, net of tax | 43,254 | 43,254 | ||||||
Acquisition of common stock | (88,292) | (88,292) | ||||||
Share-based compensation | 14,403 | 14,403 | ||||||
Issuance of common stock | 19,976 | 1 | 19,975 | |||||
Stockholders' Equity ending balance at Mar. 31, 2018 | 3,888,052 | 123 | 2,248,602 | 3,181,110 | (508,603) | (1,033,180) | ||
Stockholders' Equity beginning balance at Dec. 31, 2017 | 3,676,522 | 122 | 2,214,224 | 2,958,921 | (551,857) | (944,888) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | [1] | 351,789 | ||||||
Stockholders' Equity ending balance at Jun. 30, 2018 | 3,439,085 | 123 | 2,277,227 | 3,357,962 | (870,688) | (1,325,539) | ||
Stockholders' Equity beginning balance at Mar. 31, 2018 | 3,888,052 | 123 | 2,248,602 | 3,181,110 | (508,603) | (1,033,180) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 176,852 | [1] | 176,852 | |||||
Other comprehensive income from currency, net of tax | (362,085) | (362,085) | ||||||
Acquisition of common stock | (292,359) | (292,359) | ||||||
Share-based compensation | 19,102 | 19,102 | ||||||
Issuance of common stock | 9,523 | 9,523 | ||||||
Stockholders' Equity ending balance at Jun. 30, 2018 | 3,439,085 | 123 | 2,277,227 | 3,357,962 | (870,688) | (1,325,539) | ||
Stockholders' Equity beginning balance at Dec. 31, 2018 | 3,340,180 | 123 | 2,306,843 | 3,817,656 | (913,858) | (1,870,584) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 172,107 | 172,107 | ||||||
Other comprehensive income from currency, net of tax | (20,334) | (20,334) | ||||||
Acquisition of common stock | (3,322) | 33,000 | (36,322) | |||||
Share-based compensation | 12,541 | 12,541 | ||||||
Issuance of common stock | 29,795 | 29,795 | ||||||
Stockholders' Equity ending balance at Mar. 31, 2019 | 3,530,967 | 123 | 2,382,179 | 3,989,763 | (934,192) | (1,906,906) | ||
Stockholders' Equity beginning balance at Dec. 31, 2018 | 3,340,180 | 123 | 2,306,843 | 3,817,656 | (913,858) | (1,870,584) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | [2] | 433,758 | ||||||
Stockholders' Equity ending balance at Jun. 30, 2019 | 3,843,372 | [3] | 123 | 2,427,640 | 4,251,414 | (928,197) | (1,907,608) | |
Stockholders' Equity beginning balance at Mar. 31, 2019 | 3,530,967 | 123 | 2,382,179 | 3,989,763 | (934,192) | (1,906,906) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 261,651 | 261,651 | ||||||
Other comprehensive income from currency, net of tax | 5,995 | 5,995 | ||||||
Acquisition of common stock | (702) | (702) | ||||||
Share-based compensation | 18,306 | 18,306 | ||||||
Issuance of common stock | 27,155 | 27,155 | ||||||
Stockholders' Equity ending balance at Jun. 30, 2019 | $ 3,843,372 | [3] | $ 123 | $ 2,427,640 | $ 4,251,414 | $ (928,197) | $ (1,907,608) | |
[1] | Reflects reclassifications from previously disclosed amounts to conform to current presentation. | |||||||
[2] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using the modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. | |||||||
[3] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using a modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Other comprehensive income, from currency, tax | $ 0 | $ 0 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019 | [1] | Jun. 30, 2018 | ||
Operating activities | ||||
Net income | $ 433,758 | $ 351,789 | [2] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 30,640 | 25,033 | ||
Stock-based compensation | 30,847 | 33,505 | ||
Provision for losses on accounts receivable | 40,142 | 26,495 | ||
Amortization of deferred financing costs and discounts | 2,428 | 2,678 | ||
Amortization of intangible assets and premium on receivables | 107,713 | 115,079 | ||
Deferred income taxes | (64,883) | (6,473) | ||
Investment loss | 15,660 | 0 | [2] | |
Other non-cash operating income | (1,579) | (104) | ||
Changes in operating assets and liabilities (net of acquisitions/dispositions): | ||||
Accounts and other receivables | (418,806) | (519,527) | ||
Prepaid expenses and other current assets | 8,154 | (20,440) | ||
Other assets | (17,286) | (15,418) | ||
Accounts payable, accrued expenses and customer deposits | 383,233 | 282,472 | ||
Net cash provided by operating activities | 550,021 | 275,089 | ||
Investing activities | ||||
Acquisitions, net of cash acquired | (250,926) | (3,811) | ||
Purchases of property and equipment | (31,975) | (34,614) | ||
Other | 0 | (11,192) | ||
Net cash used in investing activities | (282,901) | (49,617) | ||
Financing activities | ||||
Proceeds from issuance of common stock | 56,950 | 29,498 | ||
Repurchase of common stock | (4,024) | (380,651) | ||
Borrowings on securitization facility, net | 88,000 | 128,000 | ||
Deferred financing costs paid and debt discount | (352) | 0 | ||
Principal payments on notes payable | (64,875) | (69,000) | ||
Borrowings from revolver | 765,709 | 774,019 | ||
Payments on revolver | (1,027,468) | (600,109) | ||
Borrowings on swing line of credit, net | 34,639 | 13,632 | ||
Other | (125) | (149) | ||
Net cash used in financing activities | (151,546) | (104,760) | ||
Effect of foreign currency exchange rates on cash | 8,159 | (66,144) | ||
Net increase in cash and cash equivalents and restricted cash | 123,733 | 54,568 | ||
Cash and cash equivalents and restricted cash, beginning of period | 1,364,893 | 1,130,870 | ||
Cash and cash equivalents and restricted cash, end of period | 1,488,626 | 1,185,438 | ||
Supplemental cash flow information | ||||
Cash paid for interest | 90,559 | 73,303 | ||
Cash paid for income taxes | $ 100,396 | $ 112,982 | ||
[1] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using the modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. | |||
[2] | Reflects reclassifications from previously disclosed amounts to conform to current presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 . Foreign Currency Translation Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at the period-end rates of exchange. The related translation adjustments are made directly to accumulated other comprehensive loss. Income and expenses are translated at the average monthly rates of exchange 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 $0.3 million and $0.2 million for the three months ended June 30, 2019 and 2018 , respectively. The Company recognized foreign exchange losses of $0.3 million and foreign exchange gains of $0.4 million for the six months ended June 30, 2019 and 2018 , respectively. The Company recorded foreign currency gains on long-term intra-entity transactions of $43.7 million and foreign currency losses on long-term intra-entity transactions of $132.2 million for the three months ended June 30, 2019 and 2018 , respectively, and losses of $33.3 million and $156.5 million for the six months ended June 30, 2019 and 2018 included as a component of foreign currency translation gains (losses), net of tax, on the Unaudited Consolidated Statements of Comprehensive Income (Loss). Reclassification The Company reclassified certain amounts on the Unaudited Consolidated Statements of Income from general and administrative to other operating, net in order to conform to current presentation. Derivatives The Company uses derivatives to (a) minimize its exposures related to changes in interest rates and (b) facilitate cross-currency corporate payments by writing derivatives to customers. The Company is exposed to the risk of increasing interest rates because our borrowings are subject to variable interest rates. In order to mitigate this risk, the Company utilizes derivative instruments. Interest rate swap contracts designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recorded in other assets or other noncurrent liabilities and offset against accumulated other comprehensive income/loss, net of tax. Cash flow hedges hedge a portion of the Company's variable rate debt. Derivative fair value changes that are recorded in accumulated other comprehensive income/loss are reclassified to earnings in the same period or periods that the hedged item affects earnings, to the extent the derivative is effective in offsetting the change in cash flows attributable to the hedged risk. The portions of the change in fair value that are either considered ineffective or are excluded from the measure of effectiveness are recognized immediately in interest expense, net in the Unaudited Consolidated Statements of Income. At Cambridge Global Payments ("Cambridge"), the majority of revenue is from exchanges of currency at spot rates, which enables customers to make cross-currency payments. In addition, Cambridge also writes foreign currency forward and option contracts for its customers to facilitate future payments. Cambridge also uses derivatives to facilitate cross-currency corporate payments by writing derivatives to customers, which are not designated as hedging instruments. 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 economically hedges the net currency risks by entering into offsetting derivatives with established financial institution counterparties. The changes in fair value related to these derivatives are recorded in revenues, net 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. Refer to footnote 14. Cash, Cash Equivalents, and Restricted Cash Cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less. Restricted cash represents customer deposits repayable on demand. Revenue 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. Revenues from contracts with customers, within the scope of ASC 606, represent approximately 80% of total consolidated revenues, net, for the three and six months ended June 30, 2019 . The Company accounts for remaining revenues comprised of 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. 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 was as follows: Revenues, net by Product* Three Months Ended June 30, Six Months Ended June 30, 2019 % 2018 % 2019 % 2018 % Fuel 1 295 45 % 278 48 % 578 46 % 544 46 % Corporate Payments 127 20 % 100 17 % 237 19 % 194 17 % Tolls 1 86 13 % 80 14 % 175 14 % 170 14 % Lodging 50 8 % 45 8 % 92 7 % 84 7 % Gift 36 6 % 33 6 % 84 7 % 82 7 % Other 1 53 8 % 49 8 % 102 8 % 97 8 % Consolidated Revenues, net 647 100 % 585 100 % 1,269 100 % 1,170 100 % 1 Reflects certain reclassifications of revenue between product categories: 1) as the Company realigned its Brazil business into product lines, resulting in refinement of revenue classified as fuel versus tolls and 2) shifted the E-Cash/OnRoad product to fuel from other. *Columns may not calculate due to rounding. Revenue by geography (in millions) for the three and six months ended June 30 was as follows: Revenues, net by Geography* Three Months Ended June 30, Six Months Ended June 30, 2019 % 2018 % 2019 % 2018 % United States 389 60 % 348 59 % 760 60 % 691 59 % Brazil 103 16 % 96 16 % 209 16 % 203 17 % United Kingdom 70 11 % 65 11 % 137 11 % 130 11 % Other 85 13 % 76 13 % 163 13 % 146 12 % Consolidated Revenues, net 647 100 % 585 100 % 1,269 100 % 1,170 100 % *Columns may not calculate due to rounding. Contract Liabilities Deferred revenue contract liabilities for customers subject to ASC 606 were $72.4 million and $30.6 million as of June 30, 2019 and December 31, 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, 2019 that was included in the deferred revenue contract liability as of December 31, 2018 was approximately $6.7 million and $23.9 million , respectively. Spot Trade Offsetting The Company uses spot trades to facilitate cross-currency corporate payments in its Cambridge business. Timing in the receipt of cash from the customer results in intermediary balances in the receivable from the customer and the payment to the customer's counterparty. In accordance with ASC Subtopic 210-20, "Offsetting," the Company applies offsetting to spot trade assets and liabilities associated with contracts that include master netting agreements, as a right of setoff exists, which the Company believes to be enforceable. As such, the Company has netted the Company's exposure with these customer's counterparties, with the receivables from the customer. The Company recognizes all spot trade assets, net in accounts receivable and all spot trade liabilities, net in accounts payable, each net at the customer level, in its Consolidated Balance Sheets at their fair value. The following table presents the Company’s spot trade assets and liabilities at their fair value at June 30, 2019 and December 31, 2018 , (in millions). June 30, 2019 December 31, 2018 Gross Assets Offset on the Balance Sheet Net Assets Gross Assets Offset on the Balance Sheet Net Assets Assets Accounts Receivable $ 465.3 $ (421.2 ) $ 44.1 $ 815.7 $ (745.2 ) $ 70.5 Gross Liabilities Offset on the Balance Sheet Net Liabilities Gross Liabilities Offset on the Balance Sheet Net Liabilities Liabilities Accounts Payable $ 452.0 $ (421.2 ) $ 30.8 $ 760.8 $ (745.2 ) $ 15.6 Adoption of New Accounting Standards Accounting for Leases In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), 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. Effective January 1, 2019, the Company adopted Topic 842 using a modified retrospective approach, as discussed further in Footnote 2. 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. The Company adopted this guidance on January 1, 2019, which did not have a material impact on the Company's results of operations, financial condition, or cash flows. The guidance did simplify the Company's accounting for interest rate swap hedges, allowing more time for the initial hedge effectiveness documentation and a qualitative hedge effectiveness assessment at each quarter end. In October 2018, the FASB issued ASU 2018-16, "Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate, Overnight Index Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes," which amends the hedge accounting to add overnight index swap rates based on the secured overnight financing rate as a fifth U.S. benchmark interest rate. The Company adopted this guidance on January 1, 2019, which did not have a material impact on the Company's 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. The Company adopted this guidance on January 1, 2019 and elected to not reclassify any items to retained earnings. 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 Company adopted this guidance on January 1, 2019, which had no impact on the Company's results of operations, financial condition, or cash flows. Pending Adoption of Recently Issued Accounting Standards Cloud Computing Arrangements On August 29, 2018, the FASB issued ASU 2018-15, "Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", that provides guidance on implementation costs incurred in a cloud computing arrangement (CCA) that is a service contract. The ASU, which was released in response to a consensus reached by the EITF at its June 2018 meeting, aligns the accounting for such costs with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, the ASU amends ASC 350 to include in its scope implementation costs of a CCA that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in such a CCA. The guidance is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods. The guidance should be applied either retrospectively or prospectively to all implementation costs incurred after the date 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. Fair Value Measurement On August 28, 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement", which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC 820. The guidance is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The guidance on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other guidance should be applied retrospectively to all periods presented upon their effective date. The Company is permitted to early adopt any removed or modified disclosures upon issuance of this guidance and delay adoption of the additional disclosures until their effective date. Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which changes how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including trade receivables) that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. The ASU is effective for the Company on January 1, 2020. Early adoption is permitted for periods beginning on or after January 1, 2019. The Company is evaluating the effect of ASU 2016-13 on its consolidated financial statements. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Effective January 1, 2019, the Company adopted Topic 842 using a modified retrospective method. Under this transition method, the Company has not restated comparative periods, and prior comparative periods will continue to be reported in conformity with ASC 840. On January 1, 2019, based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recognized right-of-use (“ROU”) assets of $55.9 million and lease liabilities for operating leases of $65.5 million . At June 30, 2019 , other assets includes a ROU asset of $74.5 million , other current liabilities includes short term operating lease liabilities of $15.2 million , and other non-current liabilities includes long term lease liabilities of $72.8 million . Finance leases are immaterial. The Company primarily leases office space, data centers, vehicles, and equipment. Some of our leases contain variable lease payments, typically payments based on an index. The Company’s leases have remaining lease terms of one year to thirty years , some of which include options to extend from one to five years or more. The exercise of lease renewal options is typically at the Company's sole discretion; therefore, the majority of renewals to extend the lease terms are not reasonably certain to exercise and are not included in ROU assets and lease liabilities. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement, for the purposes of transition, the rate in effect at January 1, 2019. Additional payments based on the change in an index or rate are recorded as a period expense when incurred. Lease modifications result in remeasurement of the lease liability as of the modification date. For contracts entered into on or after the effective date or at the inception of a contract, the Company assessed whether the contract is, or contains, a lease. The assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether the Company has the right to direct the use of the asset. The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases. Therefore, leases entered into prior to January 1, 2019, are accounted for under the prior accounting standard and were not reassessed. The Company has also elected not to recognize ROU assets and lease liabilities for short-term leases that have a term of twelve months or less. The effect of short-term leases would not be material to the ROU assets and lease liabilities. Under ASC 842, a Company discounts future lease obligations by the rate implicit in the contract, unless the rate cannot be readily determined. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. In determining the borrowing rate, the Company considered the applicable lease terms, the Company's cost of borrowing, and for leases denominated in a foreign currency, the collateralized borrowing rate that the Company would obtain to borrow in the same currency in which the lease is denominated. Total lease costs for the three and six months ended June 30, 2019 were $5.1 million and $9.5 million , respectively. The supplementary cash and non-cash disclosures for the six months ended June 30, 2019 are as follows (in thousands): Six Months Ended June 30, 2019 Cash paid for operating lease liabilities $ 9,447 Right-of-use assets obtained in exchange for new operating lease obligations 1 $ 82,814 Weighted-average remaining lease term (years) 7.7 Weighted-average discount rate 3.57 % 1 Includes $55.9 million for operating leases existing on January 1, 2019 Maturities of lease liabilities as of June 30, 2019 were as follows (in thousands): 2020 $ 17,487 2021 16,370 2022 12,499 2023 11,208 2024 9,946 Thereafter 35,059 Total lease payments 102,569 Less imputed interest (14,535 ) Present value of lease liabilities $ 88,034 |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The Company’s accounts receivable and securitized accounts receivable include the following at June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Gross domestic accounts receivable $ 816,328 $ 668,154 Gross domestic securitized accounts receivable 974,000 886,000 Gross foreign receivables 979,189 817,624 Total gross receivables 2,769,517 2,371,778 Less allowance for doubtful accounts (68,334 ) (59,963 ) Net accounts and securitized accounts receivable $ 2,701,183 $ 2,311,815 The Company maintains a $1.2 billion 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, without recourse, on a revolving basis, up to $1.2 billion 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. 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): 2019 2018 Allowance for doubtful accounts beginning of period $ 59,963 $ 46,031 Provision for bad debts 40,142 26,495 Write-offs (31,771 ) (24,281 ) Allowance for doubtful accounts end of period $ 68,334 $ 48,245 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 , (in thousands). Fair Value Level 1 Level 2 Level 3 June 30, 2019 Assets: Repurchase agreements $ 716,155 $ — $ 716,155 $ — Money market 51,151 — 51,151 — Certificates of deposit 28,455 — 28,455 — Foreign exchange derivative contracts 44,513 — 44,513 — Total assets $ 840,274 $ — $ 840,274 $ — Cash collateral for foreign exchange derivative contracts $ 6,123 $ — $ — $ — Liabilities: Interest rate swaps $ 61,632 $ — $ 61,632 Foreign exchange derivative contracts 43,576 — 43,576 — Total liabilities $ 105,208 $ — $ 105,208 $ — Cash collateral obligation for foreign exchange derivative contracts $ 7,123 $ — $ — $ — December 31, 2018 Assets: Repurchase agreements $ 581,293 $ — $ 581,293 $ — Money market 50,644 — 50,644 — Certificates of deposit 22,412 — 22,412 — Foreign exchange derivative contracts 68,814 21 68,793 — Total assets $ 723,163 $ 21 $ 723,142 $ — Cash collateral for foreign exchange derivative contracts $ 9,644 $ — $ — $ — Liabilities: Foreign exchange derivative contracts $ 72,125 $ — $ 72,125 $ — Total liabilities $ 72,125 $ — $ 72,125 $ — Cash collateral obligation for foreign exchange derivative contracts $ 73,140 $ — $ — $ — 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. Cash collateral paid for foreign exchange derivatives is recorded within restricted cash in the Company's Unaudited Consolidated Balance Sheet. The carrying value of interest rate swap contracts is at fair value, which is determined based on current and forward interest rates as of the balance sheet date and is classified within Level 2. 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 2019 and 2018 . 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. For derivatives accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective and the strategy for undertaking the hedge transaction. The Company formally assesses, both at the inception and at least quarterly thereafter, whether the financial instruments used in hedging transactions are effective at offsetting changes in cash flows of the related underlying exposures. Any ineffective portion of a financial instrument's change in fair value is immediately recognized into earnings. The Company determines the fair values of its derivatives based on quoted market prices or pricing models using current market rates. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange rates, commodity rates or other financial indices. The Company's derivatives are over-the-counter instruments with liquid markets. The Company regularly evaluates the carrying value of its investments and during the first quarter of 2019, determined that the fair value of its telematics investment was below cost and recorded an impairment of the investment of $15.7 million based on observable price changes. Since initial date of investments, the Company has recorded cumulative impairment losses of $136.3 million . 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 that are not recorded at fair value 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, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The Company's Board of Directors has approved a stock repurchase program (the "Program") under which the Company may purchase up to an aggregate of $2.1 billion of its common stock over an 18 month period ending February 1, 2020. The Program was updated most recently on January 23, 2019, with an authorized increase in the size of the program by an additional $500 million . With the increase and giving effect to the Company's $1.6 billion of previous repurchases, the Company may repurchase up to $545 million in shares of its common stock. 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. On December 14, 2018, as part of the Program, the Company entered an accelerated stock repurchase agreement ("2018 ASR Agreement") with a third-party financial institution to repurchase $220 million of its common stock. Pursuant to the 2018 ASR Agreement, the Company delivered $220 million in cash and received 1,057,035 shares based on a stock price of $176.91 on December 14, 2018. The 2018 ASR Agreement was completed on January 29, 2019, at which time the Company received 117,751 additional shares based on a final weighted average per share purchase price during the repurchase period of $187.27 . The Company accounted for the ASR Agreement as two separate transactions: (i) as shares of reacquired common stock for the shares delivered to the Company upon effectiveness of each ASR agreement and (ii) as a forward contract indexed to the Company's common stock for the undelivered shares. The initial delivery of shares was included in treasury stock at cost and results in an immediate reduction of the outstanding shares used to calculate the weighted average common shares outstanding for basic and diluted earnings per share. The forward contracts indexed to the Company's own common stock met the criteria for equity classification, and these amounts were initially recorded in additional paid-in capital. Since the beginning of the Program, 9,054,512 shares for an aggregate purchase price of $1.6 billion |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has Stock Incentive Plans (the Plans) pursuant to which the Company’s board of directors may grant stock options or restricted stock to employees. The table below summarizes the expense related to share-based payments recognized in the three and six months ended June 30 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Stock options $ 9,698 $ 11,352 $ 19,863 $ 22,051 Restricted stock 8,608 7,750 10,984 11,454 Stock-based compensation $ 18,306 $ 19,102 $ 30,847 $ 33,505 The tax benefits recorded on stock based compensation were $23.1 million and $18.9 million for the six months ended June 30, 2019 and 2018 , respectively. The following table summarizes the Company’s total unrecognized compensation cost related to stock-based compensation as of June 30, 2019 (cost in thousands): Unrecognized Compensation Cost Weighted Average Period of Expense Recognition (in Years) Stock options $ 59,483 1.59 Restricted stock 26,932 1.38 Total $ 86,415 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 months ended June 30, 2019 (shares/options 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, 2018 7,616 $ 117.58 5,174 $ 98.39 $ 518,954 Granted 419 243.19 $ 57.51 Exercised (617 ) 96.08 114,085 Forfeited (49 ) 149.92 Outstanding at June 30, 2019 7,369 $ 126.32 5,061 $ 102.96 $ 1,138,765 Expected to vest as of June 30, 2019 2,308 $ 177.52 The aggregate intrinsic value of stock options exercisable at June 30, 2019 was $900.3 million . The weighted average remaining contractual term of options exercisable at June 30, 2019 was 5.1 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 months ended June 30, 2019 and 2018 : June 30, 2019 2018 Risk-free interest rate 2.42 % 2.55 % Dividend yield — — Expected volatility 26.40 % 26.96 % Expected life (in years) 3.7 3.9 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 four 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, 2019 (shares in thousands): Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 174 $ 190.73 Granted 164 235.43 Vested (112 ) 200.29 Canceled or forfeited (28 ) 218.58 Outstanding at June 30, 2019 198 $ 233.20 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2019 Acquisitions NvoicePay On April 1, 2019, the Company completed the acquisition of NvoicePay, a provider of full accounts payable automation for businesses. The aggregate purchase price of this acquisition was approximately $219 million , net of cash acquired of $3.6 million . The purpose of this acquisition is to further expand the Company's corporate payments product. The Company financed the acquisition using a combination of available cash and borrowings under its existing credit facility. The results from NvoicePay are reported in the North America segment. Acquisition accounting for NvoicePay is preliminary as the Company is still completing the valuation for goodwill, identifiable intangible assets, income taxes, noncompete agreements, and evaluation of acquired contingencies. The following table summarizes the preliminary acquisition accounting for NvoicePay (in thousands): Trade and other receivables 1,513 Prepaid expenses and other current assets 469 Property, plant and equipment 1,030 Other long term assets 5,612 Goodwill 141,644 Intangibles 92,672 Liabilities (4,415 ) Other noncurrent liabilities (6,130 ) Deferred tax liabilities (13,669 ) Aggregate purchase price $ 218,726 Other On April 1, 2019, the Company acquired a small international business. The aggregate purchase price of the acquisition was approximately $32 million . The accounting for this acquisition is preliminary as the Company is still completing the valuation of goodwill, intangible assets, income taxes and evaluation of acquired contingencies. 2018 Acquisitions On December 27, 2018, the Company completed an acquisition of an online gift card solution provider with an aggregate purchase price of $16.8 million , net of cash acquired of $11.0 million and made deferred payments of $3.9 million related to acquisitions occurring in prior years. The accounting for this acquisition is preliminary as the Company is still completing the evaluation of acquired intangible assets, contingencies and net working capital adjustments. The following table summarizes the condensed preliminary acquisition accounting (in thousands): Trade and other receivables $ 10,214 Other short and long term assets 563 Goodwill 19,099 Customer relationships and other identifiable intangible assets 8,735 Liabilities assumed (19,423 ) Deferred tax liabilities (2,376 ) Aggregate purchase price $ 16,812 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 Tradename and trademarks 15 $ 1,923 Proprietary technology 5 $ 938 Customer relationships 20 $ 5,874 $ 8,735 Along with the Company's acquisition, the Company signed noncompete agreements with certain parties with an estimated fair value of $0.4 million . During 2018, the Company made investments in other businesses of $4.2 million and payments on a seller note for a prior acquisition of $1.6 million |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 Acquisitions Acquisition Accounting Adjustments Foreign Currency June 30, 2019 Segment North America $ 3,087,875 $ 141,644 $ 2,914 $ 6,130 $ 3,238,563 International 1,454,199 18,613 — 9,096 1,481,908 $ 4,542,074 $ 160,257 $ 2,914 $ 15,226 $ 4,720,471 As of June 30, 2019 and December 31, 2018 , other intangible assets consisted of the following (in thousands): June 30, 2019 December 31, 2018 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 16.8 $ 2,732,332 $ (863,392 ) $ 1,868,940 $ 2,625,270 $ (776,383 ) $ 1,848,887 Trade names and trademarks—indefinite lived N/A 481,741 — 481,741 479,555 — 479,555 Trade names and trademarks—other 14.4 4,949 (2,641 ) 2,308 2,957 (2,501 ) 456 Software 5.9 214,272 (166,505 ) 47,767 212,733 (152,416 ) 60,317 Non-compete agreements 4.1 48,939 (32,507 ) 16,432 47,009 (28,314 ) 18,695 Total other intangibles $ 3,482,233 $ (1,065,045 ) $ 2,417,188 $ 3,367,524 $ (959,614 ) $ 2,407,910 Changes in foreign exchange rates resulted in a $9.6 million increase to the carrying values of other intangible assets in the six months ended June 30, 2019 . Amortization expense related to intangible assets for the six months ended June 30, 2019 and 2018 was $105.4 million and $112.5 million |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 Term Loan A note payable (a), net of discounts $ 2,453,464 $ 2,515,519 Term Loan B note payable (a), net of discounts 342,512 344,180 Revolving line of credit A Facility(a) 395,000 655,000 Revolving line of credit B Facility(a) 344,656 345,446 Revolving line of credit C Facility(a) 35,000 35,000 Revolving line of credit B Facility - foreign swing line (a) 33,622 — Other debt(c) 30,514 37,902 Total notes payable and other obligations 3,634,768 3,933,047 Securitization Facility(b) 974,000 886,000 Total notes payable, credit agreements and Securitization Facility $ 4,608,768 $ 4,819,047 Current portion $ 1,932,394 $ 2,070,616 Long-term portion 2,676,374 2,748,431 Total notes payable, credit agreements and Securitization Facility $ 4,608,768 $ 4,819,047 ______________________ (a) The Company has a Credit Agreement that provides for senior secured credit facilities consisting of a revolving credit facility in the amount of $1.285 billion , a term loan A facility in the amount of $2.525 billion and a term loan B facility in the amount of $350 million as of June 30, 2019 . 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 with borrowings in U.S. Dollars, Euros, British Pounds, Japanese Yen or other currency as agreed in advance, and a sublimit for swing line loans, and (c) a revolving C facility in the amount of $35 million for borrowings in U.S. Dollars, 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, revolver A or revolver B debt. Proceeds from the credit facilities may be used for working capital purposes, acquisitions, and other general corporate purposes. The maturity date for the term A loan and revolving credit facilities is December 19, 2023. The maturity date for the term B loan is August 2, 2024 . 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 or the Base Rate plus 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. At June 30, 2019 , the interest rate on the term A loan, revolving A facility and revolving C facility was 3.90% , the interest rate on the the revolving B facility U.S. Dollar borrowings ( $45 million ) was 3.94% , the interest rate on the revolving B facility British Pounds borrowings ( £236 million ) was 2.23% , the interest rate on the term B loan was 4.40% and the interest rate on the foreign swing line loan was 2.17% . The unused credit facility fee was 0.30% for all revolving facilities at June 30, 2019 . (b) The Company is party to a $1.2 billion receivables purchase agreement (Securitization Facility) that was amended on February 8, 2019 and April 22, 2019. 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 2.42% plus 0.88% as of June 30, 2019 and 2.52% plus 0.89% as of December 31, 2018 . The unused facility fee is payable at a rate of 0.40% per annum as of June 30, 2019 and December 31, 2018 . (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, 2019 . The Company has entered into interest rate swap cash flow contracts with U.S. dollar notional amounts in order to reduce the variability of cash flows in the previously unhedged interest payments associated with $2.0 billion |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's tax provision or benefit from income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. The Company's quarterly tax provision and quarterly estimate of its annual effective tax rate, are subject to variation due to several factors, including variability in accurately predicting the Company's pre-tax and taxable income and loss and the mix of jurisdictions to which they relate. Additionally, the Company's 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 the Company's effective tax rate is greater when its pre-tax income is lower. The provision for income taxes differs from amounts computed by applying the U.S. federal tax rate of 21% for 2019 and 2018 to income before income taxes for the three months ended June 30, 2019 and 2018 due to the following (in thousands): 2019 2018 Computed “expected” tax expense $ 54,025 21.0 % $ 48,547 21.0 % Changes resulting from: Foreign income tax differential (3,185 ) (1.2 )% 1,907 0.8 % Excess tax benefit related to stock-based compensation (8,097 ) (3.2 )% (5,946 ) (2.6 )% State taxes net of federal benefits 2,982 1.2 % 3,396 1.5 % Foreign-sourced nontaxable income 145 0.1 % (6,291 ) (2.7 )% Foreign withholding 5,098 1.9 % 5,426 2.4 % GILTI, net of foreign tax credits 3,284 1.3 % 4,921 2.1 % Change in valuation allowance and remeasurement of related deferred tax asset (64,880 ) (25.2 )% — — % Other 6,237 2.4 % 2,363 1.0 % Provision for income taxes $ (4,391 ) (1.7 )% $ 54,323 23.5 % Provision for income taxes The Company provides for income taxes during interim periods based on an estimate of its effective tax rate for the year. Discrete items and changes in the estimate of the annual tax rate are recorded in the period they occur. The decrease in the provision for taxes and effective tax rate was due primarily to the sale of our investment in Masternaut, which will allow the Company to carryback the capital loss on its investment in Masternaut and offset it against a previously recorded capital gain from the sale of Nextraq in the third quarter of 2017. In prior periods, the capital loss was not realizable based upon the available sources of taxable income and a valuation allowance was recorded against the deferred tax asset. The valuation allowance was reversed during the three months ended June 30, 2019 resulting in a recognized tax benefit. The Company pays taxes in various taxing jurisdictions, including the U.S., most U.S. states and many non-U.S. jurisdictions. The tax rates in certain non-U.S. taxing jurisdictions are different than the U.S. tax rate. Consequently, as our earnings fluctuate between taxing jurisdictions, our effective tax rate fluctuates. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
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 months ended June 30 , 2019 and 2018 is as follows (in thousands, except per share data): Three Months Ended Six Months Ended 2019 2018 2019 2018 Net income $ 261,651 $ 176,852 $ 433,758 $ 351,789 Denominator for basic earnings per share 86,360 89,169 86,159 89,466 Dilutive securities 3,771 3,533 3,535 3,504 Denominator for diluted earnings per share 90,131 92,702 89,694 92,970 Basic earnings per share $ 3.03 $ 1.98 $ 5.03 $ 3.93 Diluted earnings per share $ 2.90 $ 1.91 $ 4.84 $ 3.78 Diluted earnings per share for the three months ended June 30, 2019 and 2018 excludes the effect of 0.1 million shares of common stock, for both periods, 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 shares of performance based restricted stock for which the performance criteria have not yet been achieved for both the three month periods ended June 30, 2019 and 2018 |
Segments
Segments | 6 Months Ended |
Jun. 30, 2019 | |
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 , 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenues, net: North America $ 417,941 $ 370,949 $ 814,840 $ 735,218 International 229,153 214,036 454,079 435,266 $ 647,094 $ 584,985 $ 1,268,919 $ 1,170,484 Operating income: North America $ 184,198 $ 161,376 $ 356,609 $ 317,326 International 113,119 103,407 224,884 207,544 $ 297,317 $ 264,783 $ 581,493 $ 524,870 Depreciation and amortization: North America $ 41,875 $ 38,317 $ 80,167 $ 76,992 International 29,033 30,293 58,186 63,120 $ 70,908 $ 68,610 $ 138,353 $ 140,112 Capital expenditures: North America $ 11,306 $ 11,685 $ 19,683 $ 20,096 International 6,164 7,715 12,292 14,518 $ 17,470 $ 19,400 $ 31,975 $ 34,614 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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 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. On July 17, 2019, the court granted plaintiff's motion for class certification. The complaint seeks 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. On September 20, 2018, the court entered an order deferring the case pending a ruling on the parties’ anticipated motions for summary judgment in the shareholder class action, or until otherwise agreed to by the parties. On January 9, 2019, a similar shareholder derivative complaint was filed in the Superior Court of Gwinnett County, Georgia, which is stayed pending a ruling on the parties’ anticipated motions for summary judgment in the shareholder class action, or until otherwise agreed by the parties. The defendants dispute the allegations in the derivative complaints and intend to vigorously defend against the claims. On February 1, 2019, Schultz Transfer Systems, Inc. filed a complaint against Fleetcor Technologies Operating Company, LLC (“Fleetcor LLC”) in the United States District Court for the Northern District of Georgia. The complaint alleges that it is a Fleetcor LLC customer and member of the Fuelman program, and that Fleetcor LLC overcharged the plaintiff for fees and fuel through the Fuelman program. Based on these allegations, the complaint asserts claims for breach of contract, breach of the covenant of good faith and fair dealing, fraud, fraudulent concealment, money had and received, and unjust enrichment. The complaint seeks to represent a class defined as all persons, including corporate entities, who were enrolled in the Fuelman program between June 2016 and the present. On April 1, 2019, the Company filed a motion to compel arbitration and to dismiss the case, which was granted without prejudice on July 8, 2019. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult and requires an extensive degree of judgment, particularly where 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, we are 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. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities Foreign Currency Derivatives 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, 2019 and December 31, 2018 (in millions) is presented in the table below. Notional June 30, 2019 December 31, 2018 Foreign exchange contracts: Swaps $ 288.5 $ 929.5 Futures, forwards and spot 3,926.3 3,249.9 Written options 4,574.7 3,688.8 Purchased options 3,699.4 2,867.2 Total $ 12,488.9 $ 10,735.4 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. 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 foreign currency derivatives reported in the Unaudited Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 (in millions): June 30, 2019 December 31, 2018 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: Foreign exchange contracts 96.9 96.0 44.5 43.6 109.5 112.9 68.8 72.1 Cash collateral 6.1 7.1 6.1 7.1 9.6 73.1 9.6 73.1 Total net of cash collateral $ 90.8 $ 88.9 $ 38.4 $ 36.5 $ 99.9 $ 39.8 $ 59.2 $ (1.0 ) The fair values of derivative assets and liabilities associated with contracts, which include netting terms that the Company believes to be enforceable have been recorded net within the Unaudited Consolidated Balance Sheets. 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 change in fair value of derivative contracts is recognized immediately within revenues, net in the Unaudited Consolidated Statements of Income. 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. The Company does not offset fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral. Cash Flow Hedges On January 22, 2019, the Company entered into three interest rate swap cash flow contracts (swap contracts). The objective of these swap contracts is to reduce the variability of cash flows in the previously unhedged interest payments associated with $2.0 billion of variable rate debt, the sole source of which is due to changes in the LIBOR benchmark interest rate. As of June 30, 2019 , the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk (in millions): Notional Amount as of June 30, 2019 Fixed Rates Maturity Date Interest Rate Derivative: Interest Rate Swap $ 1,000 2.56% January 31, 2022 Interest Rate Swap 500 2.56% January 31, 2023 Interest Rate Swap 500 2.55% December 19, 2023 These swap contracts qualify as hedging instruments and have been designated as cash flow hedges. For each of these swap contracts, the Company will pay a fixed monthly rate and receive one month LIBOR. The table below presents the fair value of the Company’s interest rate swap contracts, as well as their classification on the Unaudited Consolidated Balance Sheets, as of June 30, 2019 (in millions). See Note 4 for additional information on the fair value of the Company’s swap contracts. As of June 30, 2019 Balance Sheet Location Fair Value Derivatives designated as cash flow hedges: Swap contracts Other liabilities $ 61.6 The table below displays the effect of the Company’s derivative financial instruments in the Unaudited Consolidated Statement of Income and other comprehensive loss for the six months ended June 30, 2019 (in millions): 2019 Interest Rate Swaps: Amount of loss recognized in other comprehensive income on derivatives, net of tax of $15.2 million $ 46.4 Amount of loss reclassified from accumulated other comprehensive income into interest expense 0.4 The estimated net amount of the existing losses expected to be reclassified into earnings within the next 12 months is approximately $14.5 million at June 30, 2019 . |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisitions On July 5, 2019, the Company acquired SOLE Financial, a payroll card provider. The aggregate purchase price of this acquisition is approximately $74 million . This acquisition is not expected to be material to the financial results of the Company. Credit Facility On August 2, 2019, the Company entered into the sixth amendment to the Credit Agreement, which included an incremental Term A Loan in the amount of $700 million and changes to the consolidated leverage ratio definition and negative covenant related to indebtedness. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 |
Foreign Currency Translation | Foreign Currency Translation |
Reclassification | Reclassification The Company reclassified certain amounts on the Unaudited Consolidated Statements of Income from general and administrative to other operating, net in order to conform to current presentation. |
Derivatives | Derivatives The Company uses derivatives to (a) minimize its exposures related to changes in interest rates and (b) facilitate cross-currency corporate payments by writing derivatives to customers. The Company is exposed to the risk of increasing interest rates because our borrowings are subject to variable interest rates. In order to mitigate this risk, the Company utilizes derivative instruments. Interest rate swap contracts designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recorded in other assets or other noncurrent liabilities and offset against accumulated other comprehensive income/loss, net of tax. Cash flow hedges hedge a portion of the Company's variable rate debt. Derivative fair value changes that are recorded in accumulated other comprehensive income/loss are reclassified to earnings in the same period or periods that the hedged item affects earnings, to the extent the derivative is effective in offsetting the change in cash flows attributable to the hedged risk. The portions of the change in fair value that are either considered ineffective or are excluded from the measure of effectiveness are recognized immediately in interest expense, net in the Unaudited Consolidated Statements of Income. At Cambridge Global Payments ("Cambridge"), the majority of revenue is from exchanges of currency at spot rates, which enables customers to make cross-currency payments. In addition, Cambridge also writes foreign currency forward and option contracts for its customers to facilitate future payments. Cambridge also uses derivatives to facilitate cross-currency corporate payments by writing derivatives to customers, which are not designated as hedging instruments. 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 economically hedges the net currency risks by entering into offsetting derivatives with established financial institution counterparties. The changes in fair value related to these derivatives are recorded in revenues, net in the Unaudited Consolidated Statements of Income. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less. Restricted cash represents customer deposits repayable on demand. |
Revenue | Revenue 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. Revenues from contracts with customers, within the scope of ASC 606, represent approximately 80% of total consolidated revenues, net, for the three and six months ended June 30, 2019 . The Company accounts for remaining revenues comprised of 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. 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 was as follows: Revenues, net by Product* Three Months Ended June 30, Six Months Ended June 30, 2019 % 2018 % 2019 % 2018 % Fuel 1 295 45 % 278 48 % 578 46 % 544 46 % Corporate Payments 127 20 % 100 17 % 237 19 % 194 17 % Tolls 1 86 13 % 80 14 % 175 14 % 170 14 % Lodging 50 8 % 45 8 % 92 7 % 84 7 % Gift 36 6 % 33 6 % 84 7 % 82 7 % Other 1 53 8 % 49 8 % 102 8 % 97 8 % Consolidated Revenues, net 647 100 % 585 100 % 1,269 100 % 1,170 100 % 1 Reflects certain reclassifications of revenue between product categories: 1) as the Company realigned its Brazil business into product lines, resulting in refinement of revenue classified as fuel versus tolls and 2) shifted the E-Cash/OnRoad product to fuel from other. *Columns may not calculate due to rounding. Revenue by geography (in millions) for the three and six months ended June 30 was as follows: Revenues, net by Geography* Three Months Ended June 30, Six Months Ended June 30, 2019 % 2018 % 2019 % 2018 % United States 389 60 % 348 59 % 760 60 % 691 59 % Brazil 103 16 % 96 16 % 209 16 % 203 17 % United Kingdom 70 11 % 65 11 % 137 11 % 130 11 % Other 85 13 % 76 13 % 163 13 % 146 12 % Consolidated Revenues, net 647 100 % 585 100 % 1,269 100 % 1,170 100 % *Columns may not calculate due to rounding. Contract Liabilities Deferred revenue contract liabilities for customers subject to ASC 606 were $72.4 million and $30.6 million as of June 30, 2019 and December 31, 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, 2019 that was included in the deferred revenue contract liability as of December 31, 2018 was approximately $6.7 million and $23.9 million , respectively. |
Spot Trade Offsetting | Spot Trade Offsetting |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Accounting for Leases In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), 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. Effective January 1, 2019, the Company adopted Topic 842 using a modified retrospective approach, as discussed further in Footnote 2. 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. The Company adopted this guidance on January 1, 2019, which did not have a material impact on the Company's results of operations, financial condition, or cash flows. The guidance did simplify the Company's accounting for interest rate swap hedges, allowing more time for the initial hedge effectiveness documentation and a qualitative hedge effectiveness assessment at each quarter end. In October 2018, the FASB issued ASU 2018-16, "Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate, Overnight Index Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes," which amends the hedge accounting to add overnight index swap rates based on the secured overnight financing rate as a fifth U.S. benchmark interest rate. The Company adopted this guidance on January 1, 2019, which did not have a material impact on the Company's 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. The Company adopted this guidance on January 1, 2019 and elected to not reclassify any items to retained earnings. 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 Company adopted this guidance on January 1, 2019, which had no impact on the Company's results of operations, financial condition, or cash flows. Pending Adoption of Recently Issued Accounting Standards Cloud Computing Arrangements On August 29, 2018, the FASB issued ASU 2018-15, "Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", that provides guidance on implementation costs incurred in a cloud computing arrangement (CCA) that is a service contract. The ASU, which was released in response to a consensus reached by the EITF at its June 2018 meeting, aligns the accounting for such costs with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, the ASU amends ASC 350 to include in its scope implementation costs of a CCA that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in such a CCA. The guidance is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods. The guidance should be applied either retrospectively or prospectively to all implementation costs incurred after the date 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. Fair Value Measurement On August 28, 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement", which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC 820. The guidance is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The guidance on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other guidance should be applied retrospectively to all periods presented upon their effective date. The Company is permitted to early adopt any removed or modified disclosures upon issuance of this guidance and delay adoption of the additional disclosures until their effective date. Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which changes how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including trade receivables) that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. The ASU is effective for the Company on January 1, 2020. Early adoption is permitted for periods beginning on or after January 1, 2019. The Company is evaluating the effect of ASU 2016-13 on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [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 was as follows: Revenues, net by Product* Three Months Ended June 30, Six Months Ended June 30, 2019 % 2018 % 2019 % 2018 % Fuel 1 295 45 % 278 48 % 578 46 % 544 46 % Corporate Payments 127 20 % 100 17 % 237 19 % 194 17 % Tolls 1 86 13 % 80 14 % 175 14 % 170 14 % Lodging 50 8 % 45 8 % 92 7 % 84 7 % Gift 36 6 % 33 6 % 84 7 % 82 7 % Other 1 53 8 % 49 8 % 102 8 % 97 8 % Consolidated Revenues, net 647 100 % 585 100 % 1,269 100 % 1,170 100 % 1 Reflects certain reclassifications of revenue between product categories: 1) as the Company realigned its Brazil business into product lines, resulting in refinement of revenue classified as fuel versus tolls and 2) shifted the E-Cash/OnRoad product to fuel from other. *Columns may not calculate due to rounding. Revenue by geography (in millions) for the three and six months ended June 30 was as follows: Revenues, net by Geography* Three Months Ended June 30, Six Months Ended June 30, 2019 % 2018 % 2019 % 2018 % United States 389 60 % 348 59 % 760 60 % 691 59 % Brazil 103 16 % 96 16 % 209 16 % 203 17 % United Kingdom 70 11 % 65 11 % 137 11 % 130 11 % Other 85 13 % 76 13 % 163 13 % 146 12 % Consolidated Revenues, net 647 100 % 585 100 % 1,269 100 % 1,170 100 % *Columns may not calculate due to rounding. |
Schedule of Derivative Assets at Fair Value | June 30, 2019 December 31, 2018 Gross Assets Offset on the Balance Sheet Net Assets Gross Assets Offset on the Balance Sheet Net Assets Assets Accounts Receivable $ 465.3 $ (421.2 ) $ 44.1 $ 815.7 $ (745.2 ) $ 70.5 Gross Liabilities Offset on the Balance Sheet Net Liabilities Gross Liabilities Offset on the Balance Sheet Net Liabilities Liabilities Accounts Payable $ 452.0 $ (421.2 ) $ 30.8 $ 760.8 $ (745.2 ) $ 15.6 |
Schedule of Derivative Liabilities at Fair Value | The following table presents the Company’s spot trade assets and liabilities at their fair value at June 30, 2019 and December 31, 2018 , (in millions). June 30, 2019 December 31, 2018 Gross Assets Offset on the Balance Sheet Net Assets Gross Assets Offset on the Balance Sheet Net Assets Assets Accounts Receivable $ 465.3 $ (421.2 ) $ 44.1 $ 815.7 $ (745.2 ) $ 70.5 Gross Liabilities Offset on the Balance Sheet Net Liabilities Gross Liabilities Offset on the Balance Sheet Net Liabilities Liabilities Accounts Payable $ 452.0 $ (421.2 ) $ 30.8 $ 760.8 $ (745.2 ) $ 15.6 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The supplementary cash and non-cash disclosures for the six months ended June 30, 2019 are as follows (in thousands): Six Months Ended June 30, 2019 Cash paid for operating lease liabilities $ 9,447 Right-of-use assets obtained in exchange for new operating lease obligations 1 $ 82,814 Weighted-average remaining lease term (years) 7.7 Weighted-average discount rate 3.57 % 1 Includes $55.9 million for operating leases existing on January 1, 2019 |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of June 30, 2019 were as follows (in thousands): 2020 $ 17,487 2021 16,370 2022 12,499 2023 11,208 2024 9,946 Thereafter 35,059 Total lease payments 102,569 Less imputed interest (14,535 ) Present value of lease liabilities $ 88,034 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Gross domestic accounts receivable $ 816,328 $ 668,154 Gross domestic securitized accounts receivable 974,000 886,000 Gross foreign receivables 979,189 817,624 Total gross receivables 2,769,517 2,371,778 Less allowance for doubtful accounts (68,334 ) (59,963 ) Net accounts and securitized accounts receivable $ 2,701,183 $ 2,311,815 |
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): 2019 2018 Allowance for doubtful accounts beginning of period $ 59,963 $ 46,031 Provision for bad debts 40,142 26,495 Write-offs (31,771 ) (24,281 ) Allowance for doubtful accounts end of period $ 68,334 $ 48,245 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 , (in thousands). Fair Value Level 1 Level 2 Level 3 June 30, 2019 Assets: Repurchase agreements $ 716,155 $ — $ 716,155 $ — Money market 51,151 — 51,151 — Certificates of deposit 28,455 — 28,455 — Foreign exchange derivative contracts 44,513 — 44,513 — Total assets $ 840,274 $ — $ 840,274 $ — Cash collateral for foreign exchange derivative contracts $ 6,123 $ — $ — $ — Liabilities: Interest rate swaps $ 61,632 $ — $ 61,632 Foreign exchange derivative contracts 43,576 — 43,576 — Total liabilities $ 105,208 $ — $ 105,208 $ — Cash collateral obligation for foreign exchange derivative contracts $ 7,123 $ — $ — $ — December 31, 2018 Assets: Repurchase agreements $ 581,293 $ — $ 581,293 $ — Money market 50,644 — 50,644 — Certificates of deposit 22,412 — 22,412 — Foreign exchange derivative contracts 68,814 21 68,793 — Total assets $ 723,163 $ 21 $ 723,142 $ — Cash collateral for foreign exchange derivative contracts $ 9,644 $ — $ — $ — Liabilities: Foreign exchange derivative contracts $ 72,125 $ — $ 72,125 $ — Total liabilities $ 72,125 $ — $ 72,125 $ — Cash collateral obligation for foreign exchange derivative contracts $ 73,140 $ — $ — $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Expense Related to Share-Based Payments | The table below summarizes the expense related to share-based payments recognized in the three and six months ended June 30 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Stock options $ 9,698 $ 11,352 $ 19,863 $ 22,051 Restricted stock 8,608 7,750 10,984 11,454 Stock-based compensation $ 18,306 $ 19,102 $ 30,847 $ 33,505 |
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, 2019 (cost in thousands): Unrecognized Compensation Cost Weighted Average Period of Expense Recognition (in Years) Stock options $ 59,483 1.59 Restricted stock 26,932 1.38 Total $ 86,415 |
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 months ended June 30, 2019 (shares/options 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, 2018 7,616 $ 117.58 5,174 $ 98.39 $ 518,954 Granted 419 243.19 $ 57.51 Exercised (617 ) 96.08 114,085 Forfeited (49 ) 149.92 Outstanding at June 30, 2019 7,369 $ 126.32 5,061 $ 102.96 $ 1,138,765 Expected to vest as of June 30, 2019 2,308 $ 177.52 |
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 months ended June 30, 2019 and 2018 : June 30, 2019 2018 Risk-free interest rate 2.42 % 2.55 % Dividend yield — — Expected volatility 26.40 % 26.96 % Expected life (in years) 3.7 3.9 |
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, 2019 (shares in thousands): Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 174 $ 190.73 Granted 164 235.43 Vested (112 ) 200.29 Canceled or forfeited (28 ) 218.58 Outstanding at June 30, 2019 198 $ 233.20 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Summary of Acquisition Accounting | The following table summarizes the preliminary acquisition accounting for NvoicePay (in thousands): Trade and other receivables 1,513 Prepaid expenses and other current assets 469 Property, plant and equipment 1,030 Other long term assets 5,612 Goodwill 141,644 Intangibles 92,672 Liabilities (4,415 ) Other noncurrent liabilities (6,130 ) Deferred tax liabilities (13,669 ) Aggregate purchase price $ 218,726 Trade and other receivables $ 10,214 Other short and long term assets 563 Goodwill 19,099 Customer relationships and other identifiable intangible assets 8,735 Liabilities assumed (19,423 ) Deferred tax liabilities (2,376 ) Aggregate purchase price $ 16,812 |
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 Tradename and trademarks 15 $ 1,923 Proprietary technology 5 $ 938 Customer relationships 20 $ 5,874 $ 8,735 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 Acquisitions Acquisition Accounting Adjustments Foreign Currency June 30, 2019 Segment North America $ 3,087,875 $ 141,644 $ 2,914 $ 6,130 $ 3,238,563 International 1,454,199 18,613 — 9,096 1,481,908 $ 4,542,074 $ 160,257 $ 2,914 $ 15,226 $ 4,720,471 |
Schedule of Other Intangible Assets | As of June 30, 2019 and December 31, 2018 , other intangible assets consisted of the following (in thousands): June 30, 2019 December 31, 2018 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 16.8 $ 2,732,332 $ (863,392 ) $ 1,868,940 $ 2,625,270 $ (776,383 ) $ 1,848,887 Trade names and trademarks—indefinite lived N/A 481,741 — 481,741 479,555 — 479,555 Trade names and trademarks—other 14.4 4,949 (2,641 ) 2,308 2,957 (2,501 ) 456 Software 5.9 214,272 (166,505 ) 47,767 212,733 (152,416 ) 60,317 Non-compete agreements 4.1 48,939 (32,507 ) 16,432 47,009 (28,314 ) 18,695 Total other intangibles $ 3,482,233 $ (1,065,045 ) $ 2,417,188 $ 3,367,524 $ (959,614 ) $ 2,407,910 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 Term Loan A note payable (a), net of discounts $ 2,453,464 $ 2,515,519 Term Loan B note payable (a), net of discounts 342,512 344,180 Revolving line of credit A Facility(a) 395,000 655,000 Revolving line of credit B Facility(a) 344,656 345,446 Revolving line of credit C Facility(a) 35,000 35,000 Revolving line of credit B Facility - foreign swing line (a) 33,622 — Other debt(c) 30,514 37,902 Total notes payable and other obligations 3,634,768 3,933,047 Securitization Facility(b) 974,000 886,000 Total notes payable, credit agreements and Securitization Facility $ 4,608,768 $ 4,819,047 Current portion $ 1,932,394 $ 2,070,616 Long-term portion 2,676,374 2,748,431 Total notes payable, credit agreements and Securitization Facility $ 4,608,768 $ 4,819,047 ______________________ (a) The Company has a Credit Agreement that provides for senior secured credit facilities consisting of a revolving credit facility in the amount of $1.285 billion , a term loan A facility in the amount of $2.525 billion and a term loan B facility in the amount of $350 million as of June 30, 2019 . 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 with borrowings in U.S. Dollars, Euros, British Pounds, Japanese Yen or other currency as agreed in advance, and a sublimit for swing line loans, and (c) a revolving C facility in the amount of $35 million for borrowings in U.S. Dollars, 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, revolver A or revolver B debt. Proceeds from the credit facilities may be used for working capital purposes, acquisitions, and other general corporate purposes. The maturity date for the term A loan and revolving credit facilities is December 19, 2023. The maturity date for the term B loan is August 2, 2024 . 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 or the Base Rate plus 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. At June 30, 2019 , the interest rate on the term A loan, revolving A facility and revolving C facility was 3.90% , the interest rate on the the revolving B facility U.S. Dollar borrowings ( $45 million ) was 3.94% , the interest rate on the revolving B facility British Pounds borrowings ( £236 million ) was 2.23% , the interest rate on the term B loan was 4.40% and the interest rate on the foreign swing line loan was 2.17% . The unused credit facility fee was 0.30% for all revolving facilities at June 30, 2019 . (b) The Company is party to a $1.2 billion receivables purchase agreement (Securitization Facility) that was amended on February 8, 2019 and April 22, 2019. 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 2.42% plus 0.88% as of June 30, 2019 and 2.52% plus 0.89% as of December 31, 2018 . The unused facility fee is payable at a rate of 0.40% per annum as of June 30, 2019 and December 31, 2018 . (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, 2019 | |
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 2019 and 2018 to income before income taxes for the three months ended June 30, 2019 and 2018 due to the following (in thousands): 2019 2018 Computed “expected” tax expense $ 54,025 21.0 % $ 48,547 21.0 % Changes resulting from: Foreign income tax differential (3,185 ) (1.2 )% 1,907 0.8 % Excess tax benefit related to stock-based compensation (8,097 ) (3.2 )% (5,946 ) (2.6 )% State taxes net of federal benefits 2,982 1.2 % 3,396 1.5 % Foreign-sourced nontaxable income 145 0.1 % (6,291 ) (2.7 )% Foreign withholding 5,098 1.9 % 5,426 2.4 % GILTI, net of foreign tax credits 3,284 1.3 % 4,921 2.1 % Change in valuation allowance and remeasurement of related deferred tax asset (64,880 ) (25.2 )% — — % Other 6,237 2.4 % 2,363 1.0 % Provision for income taxes $ (4,391 ) (1.7 )% $ 54,323 23.5 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 months ended June 30 , 2019 and 2018 is as follows (in thousands, except per share data): Three Months Ended Six Months Ended 2019 2018 2019 2018 Net income $ 261,651 $ 176,852 $ 433,758 $ 351,789 Denominator for basic earnings per share 86,360 89,169 86,159 89,466 Dilutive securities 3,771 3,533 3,535 3,504 Denominator for diluted earnings per share 90,131 92,702 89,694 92,970 Basic earnings per share $ 3.03 $ 1.98 $ 5.03 $ 3.93 Diluted earnings per share $ 2.90 $ 1.91 $ 4.84 $ 3.78 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 , 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenues, net: North America $ 417,941 $ 370,949 $ 814,840 $ 735,218 International 229,153 214,036 454,079 435,266 $ 647,094 $ 584,985 $ 1,268,919 $ 1,170,484 Operating income: North America $ 184,198 $ 161,376 $ 356,609 $ 317,326 International 113,119 103,407 224,884 207,544 $ 297,317 $ 264,783 $ 581,493 $ 524,870 Depreciation and amortization: North America $ 41,875 $ 38,317 $ 80,167 $ 76,992 International 29,033 30,293 58,186 63,120 $ 70,908 $ 68,610 $ 138,353 $ 140,112 Capital expenditures: North America $ 11,306 $ 11,685 $ 19,683 $ 20,096 International 6,164 7,715 12,292 14,518 $ 17,470 $ 19,400 $ 31,975 $ 34,614 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2019 , the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk (in millions): Notional Amount as of June 30, 2019 Fixed Rates Maturity Date Interest Rate Derivative: Interest Rate Swap $ 1,000 2.56% January 31, 2022 Interest Rate Swap 500 2.56% January 31, 2023 Interest Rate Swap 500 2.55% December 19, 2023 The aggregate equivalent U.S. dollar notional amount of foreign exchange derivative customer contracts held by the Company as of June 30, 2019 and December 31, 2018 (in millions) is presented in the table below. Notional June 30, 2019 December 31, 2018 Foreign exchange contracts: Swaps $ 288.5 $ 929.5 Futures, forwards and spot 3,926.3 3,249.9 Written options 4,574.7 3,688.8 Purchased options 3,699.4 2,867.2 Total $ 12,488.9 $ 10,735.4 |
Schedule of Derivative Assets at Fair Value | The following table summarizes the fair value of foreign currency derivatives reported in the Unaudited Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 (in millions): June 30, 2019 December 31, 2018 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: Foreign exchange contracts 96.9 96.0 44.5 43.6 109.5 112.9 68.8 72.1 Cash collateral 6.1 7.1 6.1 7.1 9.6 73.1 9.6 73.1 Total net of cash collateral $ 90.8 $ 88.9 $ 38.4 $ 36.5 $ 99.9 $ 39.8 $ 59.2 $ (1.0 ) |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The table below presents the fair value of the Company’s interest rate swap contracts, as well as their classification on the Unaudited Consolidated Balance Sheets, as of June 30, 2019 (in millions). See Note 4 for additional information on the fair value of the Company’s swap contracts. As of June 30, 2019 Balance Sheet Location Fair Value Derivatives designated as cash flow hedges: Swap contracts Other liabilities $ 61.6 |
Derivative Instruments, Gain (Loss) | The table below displays the effect of the Company’s derivative financial instruments in the Unaudited Consolidated Statement of Income and other comprehensive loss for the six months ended June 30, 2019 (in millions): 2019 Interest Rate Swaps: Amount of loss recognized in other comprehensive income on derivatives, net of tax of $15.2 million $ 46.4 Amount of loss reclassified from accumulated other comprehensive income into interest expense 0.4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Foreign exchange gains (losses) | $ (0.3) | $ (0.2) | $ (0.3) | $ 0.4 | |
Deferred revenue contract liability | 72.4 | $ 72.4 | $ 30.6 | ||
Performance obligation timing | We expect to recognize substantially all of these amounts in revenues within approximately 12 months. | ||||
Deferred revenue recognized | $ 6.7 | $ 23.9 | |||
Maximum | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Derivative term of contract | 1 year | ||||
Sales Revenue | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Consolidated revenues, net (percent) | 100.00% | 100.00% | 100.00% | 100.00% | |
Contracts with customers | Sales Revenue | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Consolidated revenues, net (percent) | 80.00% | 80.00% | |||
Intra-entity Transactions | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Foreign exchange gains (losses) | $ 43.7 | $ (132.2) | $ (33.3) | $ (156.5) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | $ 647,094 | $ 584,985 | [1] | $ 1,268,919 | $ 1,170,484 | [1] |
Fuel | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | 295,000 | 278,000 | 578,000 | 544,000 | ||
Corporate Payments | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | 127,000 | 100,000 | 237,000 | 194,000 | ||
Tolls | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | 86,000 | 80,000 | 175,000 | 170,000 | ||
Lodging | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | 50,000 | 45,000 | 92,000 | 84,000 | ||
Gift | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | 36,000 | 33,000 | 84,000 | 82,000 | ||
Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | $ 53,000 | $ 49,000 | $ 102,000 | $ 97,000 | ||
Sales Revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 100.00% | 100.00% | 100.00% | 100.00% | ||
Sales Revenue | Fuel | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 45.00% | 48.00% | 46.00% | 46.00% | ||
Sales Revenue | Corporate Payments | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 20.00% | 17.00% | 19.00% | 17.00% | ||
Sales Revenue | Tolls | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 13.00% | 14.00% | 14.00% | 14.00% | ||
Sales Revenue | Lodging | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 8.00% | 8.00% | 7.00% | 7.00% | ||
Sales Revenue | Gift | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 6.00% | 6.00% | 7.00% | 7.00% | ||
Sales Revenue | Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 8.00% | 8.00% | 8.00% | 8.00% | ||
United States | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | $ 389,000 | $ 348,000 | $ 760,000 | $ 691,000 | ||
United States | Sales Revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 60.00% | 59.00% | 60.00% | 59.00% | ||
Brazil | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | $ 103,000 | $ 96,000 | $ 209,000 | $ 203,000 | ||
Brazil | Sales Revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 16.00% | 16.00% | 16.00% | 17.00% | ||
United Kingdom | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | $ 70,000 | $ 65,000 | $ 137,000 | $ 130,000 | ||
United Kingdom | Sales Revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 11.00% | 11.00% | 11.00% | 11.00% | ||
Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues, net | $ 85,000 | $ 76,000 | $ 163,000 | $ 146,000 | ||
Other | Sales Revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Consolidated revenues, net (percent) | 13.00% | 13.00% | 13.00% | 12.00% | ||
[1] | Reflects reclassifications from previously disclosed amounts to conform to current presentation. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Spot Trades (Details) - Spot Trade - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable | ||
Assets: | ||
Gross Assets | $ 465.3 | $ 815.7 |
Offset on the Balance Sheet | (421.2) | (745.2) |
Net Assets | 44.1 | 70.5 |
Accounts Payable | ||
Liabilities: | ||
Gross Liabilities | 452 | 760.8 |
Offset on the Balance Sheet | (421.2) | (745.2) |
Net Liabilities | $ 30.8 | $ 15.6 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use asset, net | $ 74,500 | $ 74,500 | |
Operating lease liability | 88,034 | 88,034 | |
Current operating lease liability | 15,200 | 15,200 | |
Noncurrent operating lease liability | 72,800 | 72,800 | |
Lease cost | $ 5,100 | $ 9,500 | |
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use asset, net | $ 55,900 | ||
Operating lease liability | $ 65,500 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Renewal term | 1 year | 1 year | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 30 years | ||
Renewal term | 5 years | 5 years |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Lease Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 9,447 | |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 82,814 | |
Weighted-average remaining lease term (years) | 7 years 8 months 12 days | |
Weighted-average discount rate | 3.57% | |
Lessee, Lease, Description [Line Items] | ||
Right-of-use asset, net | $ 74,500 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use asset, net | $ 55,900 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 17,487 |
2021 | 16,370 |
2022 | 12,499 |
2023 | 11,208 |
2024 | 9,946 |
Thereafter | 35,059 |
Total lease payments | 102,569 |
Less imputed interest | (14,535) |
Present value of lease liabilities | $ 88,034 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Maximum undivided ownership interest pooled accounts receivable amount sold | $ 1,200,000,000 |
Securitization Facility | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Securitized accounts receivable facility | $ 1,200,000,000 |
Accounts Receivable - Company's
Accounts Receivable - Company's Accounts Receivable and Securitized Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross receivables | $ 2,769,517 | $ 2,371,778 | ||
Less allowance for doubtful accounts | (68,334) | (59,963) | $ (48,245) | $ (46,031) |
Net accounts and securitized accounts receivable | 2,701,183 | 2,311,815 | ||
Gross domestic accounts receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross receivables | 816,328 | 668,154 | ||
Gross domestic securitized accounts receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross receivables | 974,000 | 886,000 | ||
Gross foreign receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross receivables | $ 979,189 | $ 817,624 |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for Doubtful Accounts Related to Accounts Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for doubtful accounts beginning of period | $ 59,963 | $ 46,031 | |
Provision for bad debts | 40,142 | [1] | 26,495 |
Write-offs | (31,771) | (24,281) | |
Allowance for doubtful accounts end of period | $ 68,334 | $ 48,245 | |
[1] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using the modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Assets: | |||
Total assets | $ 840,274 | $ 723,163 | |
Liabilities: | |||
Total liabilities | 105,208 | 72,125 | |
Interest rate swaps | |||
Liabilities: | |||
Foreign exchange derivative contracts | 61,632 | ||
Foreign exchange derivative contracts | |||
Assets: | |||
Foreign exchange derivative contracts | 44,513 | 68,814 | |
Cash collateral for foreign exchange derivative contracts | 6,123 | 9,644 | |
Liabilities: | |||
Foreign exchange derivative contracts | 43,576 | 72,125 | |
Cash collateral obligation for foreign exchange derivative contracts | 7,123 | 73,140 | |
Repurchase agreements | |||
Assets: | |||
Total assets | 716,155 | 581,293 | |
Money market | |||
Assets: | |||
Total assets | 51,151 | 50,644 | |
Certificates of deposit | |||
Assets: | |||
Total assets | 28,455 | 22,412 | |
Level 1 | |||
Assets: | |||
Total assets | 0 | 21 | |
Liabilities: | |||
Total liabilities | 0 | 0 | |
Level 1 | Foreign exchange derivative contracts | |||
Assets: | |||
Foreign exchange derivative contracts | 0 | 21 | |
Liabilities: | |||
Foreign exchange derivative contracts | 0 | 0 | |
Level 2 | |||
Assets: | |||
Total assets | 840,274 | 723,142 | |
Liabilities: | |||
Total liabilities | 105,208 | 72,125 | |
Level 2 | Interest rate swaps | |||
Liabilities: | |||
Foreign exchange derivative contracts | 61,632 | ||
Level 2 | Foreign exchange derivative contracts | |||
Assets: | |||
Foreign exchange derivative contracts | 44,513 | 68,793 | |
Liabilities: | |||
Foreign exchange derivative contracts | 43,576 | 72,125 | |
Level 2 | Repurchase agreements | |||
Assets: | |||
Total assets | 716,155 | 581,293 | |
Level 2 | Money market | |||
Assets: | |||
Total assets | 51,151 | 50,644 | |
Level 2 | Certificates of deposit | |||
Assets: | |||
Total assets | 28,455 | $ 22,412 | |
Telematics | |||
Liabilities: | |||
Impairment of investment | $ 15,700 | ||
Accumulated impairment on investment | $ 136,300 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase Program (Details) | Jan. 29, 2019shares | Dec. 14, 2018USD ($)$ / sharesshares | Jan. 29, 2019$ / shares | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018transaction | Jan. 22, 2019USD ($) | Jun. 30, 2019USD ($)shares | Jan. 23, 2019USD ($) | |
Class of Stock [Line Items] | ||||||||||||||
Shares repurchased | $ 702,000 | $ 3,322,000 | $ 292,359,000 | $ 88,292,000 | ||||||||||
Repurchase of common stock | $ 4,024,000 | [1] | $ 380,651,000 | |||||||||||
Shares repurchased (in shares) | shares | 117,751 | 1,057,035 | ||||||||||||
Initial price paid (in dollars per share) | $ / shares | $ 176.91 | |||||||||||||
Final price paid (in dollars per share) | $ / shares | $ 187.27 | |||||||||||||
Number of transactions | transaction | 2 | |||||||||||||
Common Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock repurchase program, approved amount | 2,100,000,000 | $ 2,100,000,000 | $ 2,100,000,000 | |||||||||||
Stock repurchase program, authorized time period | 18 months | |||||||||||||
Increase in authorized amount to be repurchased | $ 500,000,000 | |||||||||||||
Remaining authorized repurchase amount | $ 545,000,000 | $ 545,000,000 | 545,000,000 | |||||||||||
Repurchase agreements | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Shares repurchased | $ 1,600,000,000 | $ 1,600,000,000 | ||||||||||||
Repurchase of common stock | $ 220,000,000 | |||||||||||||
Shares repurchased (in shares) | shares | 9,054,512 | |||||||||||||
Repurchase agreements | Common Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock repurchase program, approved amount | $ 220,000,000 | |||||||||||||
[1] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using the modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Tax benefits recorded on stock based compensation | $ 23.1 | $ 18.9 |
Aggregate intrinsic value of options exercisable | $ 900.3 | |
Weighted average remaining contractual term of options exercisable (in years) | 5 years 1 month 6 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) | 4 years |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 18,306 | $ 19,102 | $ 30,847 | $ 33,505 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 9,698 | 11,352 | 19,863 | 22,051 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 8,608 | $ 7,750 | $ 10,984 | $ 11,454 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Total Unrecognized Compensation Cost Related to Stock-Based Compensation (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 86,415 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 59,483 |
Weighted Average Period of Expense Recognition (in Years) | 1 year 7 months 2 days |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 26,932 |
Weighted Average Period of Expense Recognition (in Years) | 1 year 4 months 17 days |
Stock-Based Compensation - Su_3
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, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares at beginning of period (in shares) | 7,616 | |
Granted (in shares) | 419 | |
Exercised (in shares) | (617) | |
Forfeited (in shares) | (49) | |
Shares at end of period (in shares) | 7,369 | |
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) | $ 117.58 | |
Weighted average exercise price, granted (in dollars per share) | 243.19 | |
Weighted average exercise price, exercised (in dollars per share) | 96.08 | |
Weighted average exercise price, forfeitures (in dollars per share) | 149.92 | |
Weighted average exercise price, end of period (in dollars per share) | $ 126.32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Expected to vest (in shares) | 2,308 | |
Weighted average exercise price, expected to vest (in dollars per share) | $ 177.52 | |
Options exercisable at beginning of period (in shares) | 5,061 | 5,174 |
Weighted average exercise price of exercisable options (in dollars per share) | $ 102.96 | $ 98.39 |
Weighted average exercise price of granted options (in dollars per share) | $ 57.51 | |
Aggregate intrinsic value | $ 1,138,765 | $ 518,954 |
Aggregate intrinsic value, exercised | $ 114,085 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Weighted-Average Assumptions (Details) - Stock options | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.42% | 2.55% |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 26.40% | 26.96% |
Expected life (in years) | 3 years 8 months 12 days | 3 years 10 months 24 days |
Stock-Based Compensation - Su_4
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, 2019$ / sharesshares | |
Shares | |
Shares outstanding, beginning of period (in shares) | shares | 174 |
Granted (in shares) | shares | 164 |
Vested (in shares) | shares | (112) |
Canceled (in shares) | shares | (28) |
Shares outstanding, end of period (in shares) | shares | 198 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning of period (in dollars per share) | $ / shares | $ 190.73 |
Weighted average grant date fair value, granted (in dollars per share) | $ / shares | 235.43 |
Weighted average grant date fair value, vested (in dollars per share) | $ / shares | 200.29 |
Weighted average grant date fair value, canceled (in dollars per share) | $ / shares | 218.58 |
Weighted average grant date fair value, end of period (in dollars per share) | $ / shares | $ 233.20 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Dec. 27, 2018 | Jun. 30, 2019 | [1] | Jun. 30, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Deferred payments for acquisitions in previous years | $ 250,926 | $ 3,811 | ||||
Investments in other businesses | $ 4,200 | |||||
Repayments of notes payable | $ 1,600 | |||||
NvoicePay | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate purchase price | $ 219,000 | |||||
Cash acquired from acquisition | 3,600 | |||||
International Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate purchase price | $ 32,000 | |||||
Online Gift Card Solution | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate purchase price | $ 16,800 | |||||
Cash acquired from acquisition | 11,000 | |||||
Deferred payments for acquisitions in previous years | 3,900 | |||||
Non-compete agreements | Online Gift Card Solution | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets | $ 400 | |||||
[1] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using the modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Acquisition - Summary of Purcha
Acquisition - Summary of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | [1] | Apr. 01, 2019 | Dec. 31, 2018 | Dec. 27, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 4,720,471 | $ 4,542,074 | |||
NvoicePay | |||||
Business Acquisition [Line Items] | |||||
Trade and other receivables | $ 1,513 | ||||
Prepaid expenses and other current assets | 469 | ||||
Property, plant and equipment | 1,030 | ||||
Other long term assets | 5,612 | ||||
Goodwill | 141,644 | ||||
Intangibles | 92,672 | ||||
Liabilities assumed | (4,415) | ||||
Other noncurrent liabilities | (6,130) | ||||
Deferred tax liabilities | (13,669) | ||||
Aggregate purchase price | $ 218,726 | ||||
Online Gift Card Solution | |||||
Business Acquisition [Line Items] | |||||
Trade and other receivables | $ 10,214 | ||||
Prepaid expenses and other current assets | 563 | ||||
Goodwill | 19,099 | ||||
Intangibles | 8,735 | ||||
Liabilities assumed | (19,423) | ||||
Deferred tax liabilities | (2,376) | ||||
Aggregate purchase price | $ 16,812 | ||||
[1] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using a modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
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 | Dec. 27, 2018 | Jun. 30, 2019 | Apr. 01, 2019 |
Tradename and trademarks | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 14 years 4 months 24 days | ||
NvoicePay | |||
Business Acquisition [Line Items] | |||
Other intangible assets | $ 92,672 | ||
Online Gift Card Solution | |||
Business Acquisition [Line Items] | |||
Other intangible assets | $ 8,735 | ||
Online Gift Card Solution | Tradename and trademarks | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 15 years | ||
Finite-lived intangible assets | $ 1,923 | ||
Online Gift Card Solution | Proprietary technology | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 5 years | ||
Finite-lived intangible assets | $ 938 | ||
Online Gift Card Solution | Customer relationships | |||
Business Acquisition [Line Items] | |||
Useful Lives (in Years) | 20 years | ||
Finite-lived intangible assets | $ 5,874 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Goodwill by Reportable Business Segment (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 4,542,074 | |
Acquisitions | 160,257 | |
Acquisition Accounting Adjustments | 2,914 | |
Foreign Currency | 15,226 | |
Goodwill, ending balance | 4,720,471 | [1] |
North America | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 3,087,875 | |
Acquisitions | 141,644 | |
Acquisition Accounting Adjustments | 2,914 | |
Foreign Currency | 6,130 | |
Goodwill, ending balance | 3,238,563 | |
International | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,454,199 | |
Acquisitions | 18,613 | |
Acquisition Accounting Adjustments | 0 | |
Foreign Currency | 9,096 | |
Goodwill, ending balance | $ 1,481,908 | |
[1] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using a modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amounts | $ 3,482,233 | $ 3,367,524 | |
Accumulated Amortization | (1,065,045) | (959,614) | |
Net Carrying Amount | 2,417,188 | [1] | 2,407,910 |
Trade names and trademarks—indefinite lived | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amounts | 481,741 | 479,555 | |
Accumulated Amortization | 0 | 0 | |
Net Carrying Amount | $ 481,741 | 479,555 | |
Customer and vendor relationships | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Weighted- Avg Useful Lives (Years) | 16 years 9 months 18 days | ||
Gross Carrying Amounts | $ 2,732,332 | 2,625,270 | |
Accumulated Amortization | (863,392) | (776,383) | |
Net Carrying Amount | $ 1,868,940 | 1,848,887 | |
Trade names and trademarks—other | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Weighted- Avg Useful Lives (Years) | 14 years 4 months 24 days | ||
Gross Carrying Amounts | $ 4,949 | 2,957 | |
Accumulated Amortization | (2,641) | (2,501) | |
Net Carrying Amount | $ 2,308 | 456 | |
Software | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Weighted- Avg Useful Lives (Years) | 5 years 10 months 24 days | ||
Gross Carrying Amounts | $ 214,272 | 212,733 | |
Accumulated Amortization | (166,505) | (152,416) | |
Net Carrying Amount | $ 47,767 | 60,317 | |
Non-compete agreements | |||
Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Weighted- Avg Useful Lives (Years) | 4 years 1 month 6 days | ||
Gross Carrying Amounts | $ 48,939 | 47,009 | |
Accumulated Amortization | (32,507) | (28,314) | |
Net Carrying Amount | $ 16,432 | $ 18,695 | |
[1] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using a modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impact of foreign exchange rates on intangible assets | $ 9.6 | |
Amortization expense of intangible assets | $ 105.4 | $ 112.5 |
Debt - Summary of Debt Instrume
Debt - Summary of Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Other debt | $ 30,514 | $ 37,902 | |
Total notes payable and other obligations | 3,634,768 | 3,933,047 | |
Securitization facility | 974,000 | [1] | 886,000 |
Total notes payable, credit agreements and Securitization Facility | 4,608,768 | 4,819,047 | |
Current portion | 1,932,394 | 2,070,616 | |
Long-term portion | 2,676,374 | [1] | 2,748,431 |
Term Loan A | |||
Debt Instrument [Line Items] | |||
Term note payable—domestic, net of discounts | 2,453,464 | 2,515,519 | |
Term Loan B | |||
Debt Instrument [Line Items] | |||
Term note payable—domestic, net of discounts | 342,512 | 344,180 | |
Revolving line of credit A Facility | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | 395,000 | 655,000 | |
Revolving B Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | 344,656 | 345,446 | |
Revolving C Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | 35,000 | 35,000 | |
Revolving line of credit B Facility—foreign swing line | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | $ 33,622 | $ 0 | |
[1] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using a modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Debt - Summary of Debt Instru_2
Debt - Summary of Debt Instruments Narrative (Details) £ in Millions | Jun. 30, 2019GBP (£) | Dec. 31, 2018USD ($) | Jun. 30, 2019GBP (£) | Dec. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jan. 22, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Unused facility fee, as percentage of unused portion | 0.30% | |||||
Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amended securitization facility | $ 1,200,000,000 | |||||
Unused facility fee, as percentage of unused portion | 0.40% | 0.40% | ||||
Program fee | one month LIBOR | |||||
Term Loan B | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 4.40% | |||||
Revolving C Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving line of credit | $ 35,000,000 | $ 35,000,000 | 35,000,000 | |||
Revolving line of credit A Facility | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.90% | |||||
Revolving line of credit | 655,000,000 | 655,000,000 | 395,000,000 | |||
Revolving line of credit B Facility—foreign | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 2.23% | |||||
Revolving line of credit B Facility—foreign | US Dollar Borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Revolving line of credit | 45,000,000 | |||||
Revolving line of credit B Facility—foreign | GBP Borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.94% | |||||
Revolving line of credit | £ | £ 236 | £ 236 | ||||
Revolving line of credit B Facility—foreign swing line | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 2.17% | |||||
Revolving line of credit | $ 0 | $ 0 | 33,622,000 | |||
Commercial Paper | Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.89% | 0.80% | ||||
Program fee rate | 2.42% | 2.52% | ||||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Additional borrowing capacity | 750,000,000 | |||||
Secured Debt | Term A Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amended securitization facility | 1,285,000,000 | |||||
Secured Debt | Term Loan A | ||||||
Debt Instrument [Line Items] | ||||||
Amended securitization facility | 2,525,000,000 | |||||
Secured Debt | Term Loan B | ||||||
Debt Instrument [Line Items] | ||||||
Amended securitization facility | 350,000,000 | |||||
Secured Debt | Revolving A Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amended securitization facility | 800,000,000 | |||||
Secured Debt | Revolving B Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amended securitization facility | 450,000,000 | |||||
Secured Debt | Revolving C Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amended securitization facility | 35,000,000 | |||||
Variable Rate Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 2,000,000,000 | $ 2,000,000,000 | ||||
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 | 0.88% | |||||
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) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense at federal statutory rate, rate | 21.00% | 21.00% |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | [1] | ||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount [Abstract] | ||||||
Computed “expected” tax expense | $ 54,025 | $ 48,547 | ||||
Foreign income tax differential | (3,185) | 1,907 | ||||
Excess tax benefit related to stock-based compensation | (8,097) | (5,946) | ||||
State taxes net of federal benefits | 2,982 | 3,396 | ||||
Foreign-sourced nontaxable income | 145 | (6,291) | ||||
Foreign tax credit/transition tax - federal only | 5,098 | 5,426 | ||||
GILTI, net of foreign tax credits | 3,284 | 4,921 | ||||
Change in valuation allowance and remeasurement of related deferred tax asset | (64,880) | 0 | ||||
Other | 6,237 | 2,363 | ||||
Provision for income taxes | $ (4,391) | $ 54,323 | [1] | $ 52,743 | $ 108,705 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||
Computed “expected” tax expense | 21.00% | 21.00% | ||||
Foreign income tax differential | (1.20%) | 0.80% | ||||
Excess tax benefit related to stock-based compensation | (3.20%) | (2.60%) | ||||
State taxes net of federal benefits | 1.20% | 1.50% | ||||
Foreign-sourced nontaxable income | 0.10% | (2.70%) | ||||
Foreign tax credit/transition tax - federal only | 1.90% | 2.40% | ||||
GILTI, net of foreign tax credits | 1.30% | 2.10% | ||||
Change in valuation allowance and remeasurement of related deferred tax asset | (25.20%) | 0.00% | ||||
Other | 2.40% | 1.00% | ||||
Provision for income taxes | (1.70%) | 23.50% | ||||
[1] | Reflects reclassifications from previously disclosed amounts to conform to current presentation. |
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, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Earnings Per Share [Abstract] | |||||||||
Net income | $ 261,651 | $ 172,107 | $ 176,852 | [1] | $ 174,937 | $ 433,758 | [2] | $ 351,789 | [1] |
Denominator for basic earnings per share (in shares) | 86,360 | 89,169 | [1] | 86,159 | 89,466 | [1] | |||
Dilutive securities (in shares) | 3,771 | 3,533 | 3,535 | 3,504 | |||||
Denominator for diluted earnings per share (in shares) | 90,131 | 92,702 | [1] | 89,694 | 92,970 | [1] | |||
Basic earnings per share (in dollars per share) | $ 3.03 | $ 1.98 | [1] | $ 5.03 | $ 3.93 | [1] | |||
Diluted earnings per share (in dollars per share) | $ 2.90 | $ 1.91 | [1] | $ 4.84 | $ 3.78 | [1] | |||
[1] | Reflects reclassifications from previously disclosed amounts to conform to current presentation. | ||||||||
[2] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using the modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earnings per share (in shares) | 0.1 | 0.1 |
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 | 0.1 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | [1] | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | [1] | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 2 | |||||
Intersegment sales | $ 647,094,000 | $ 584,985,000 | $ 1,268,919,000 | $ 1,170,484,000 | ||
Intersegment Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Intersegment sales | $ 0 | |||||
[1] | Reflects reclassifications from previously disclosed amounts to conform to current presentation. |
Segments - Schedule of Company'
Segments - Schedule of Company's Segment Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | $ 647,094 | $ 584,985 | [1] | $ 1,268,919 | $ 1,170,484 | [1] | |
Operating income | 297,317 | 264,783 | [1] | 581,493 | 524,870 | [1] | |
Depreciation and amortization | 70,908 | 68,610 | [1] | 138,353 | 140,112 | [1] | |
Capital expenditures | 17,470 | 19,400 | 31,975 | [2] | 34,614 | ||
North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | 417,941 | 370,949 | 814,840 | 735,218 | |||
Operating income | 184,198 | 161,376 | 356,609 | 317,326 | |||
Depreciation and amortization | 41,875 | 38,317 | 80,167 | 76,992 | |||
Capital expenditures | 11,306 | 11,685 | 19,683 | 20,096 | |||
International | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues, net | 229,153 | 214,036 | 454,079 | 435,266 | |||
Operating income | 113,119 | 103,407 | 224,884 | 207,544 | |||
Depreciation and amortization | 29,033 | 30,293 | 58,186 | 63,120 | |||
Capital expenditures | $ 6,164 | $ 7,715 | $ 12,292 | $ 14,518 | |||
[1] | Reflects reclassifications from previously disclosed amounts to conform to current presentation. | ||||||
[2] | Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019, using the modified retrospective transition method. Under this method, financial results reported in periods prior to 2019 are unchanged. Refer to footnote 2. |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities Schedule of Notional Amounts (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Foreign exchange contracts | $ 12,488.9 | $ 10,735.4 |
Swaps | ||
Derivative [Line Items] | ||
Foreign exchange contracts | 288.5 | 929.5 |
Futures, forwards and spot | ||
Derivative [Line Items] | ||
Foreign exchange contracts | 3,926.3 | 3,249.9 |
Written options | ||
Derivative [Line Items] | ||
Foreign exchange contracts | 4,574.7 | 3,688.8 |
Purchased options | ||
Derivative [Line Items] | ||
Foreign exchange contracts | $ 3,699.4 | $ 2,867.2 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities Schedule of Fair Value by Balance Sheet Location (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Gross Assets | $ 96.9 | $ 109.5 |
Cash collateral | 6.1 | 9.6 |
Derivative asset, fair value, gross, net of cash collateral | 90.8 | 99.9 |
Gross Liabilities | 96 | 112.9 |
Cash collateral | 7.1 | 73.1 |
Derivative liabilities, fair value, gross, net of cash collateral | 88.9 | 39.8 |
Foreign exchange derivative contracts | 44.5 | 68.8 |
Derivative assets, net | 38.4 | 59.2 |
Foreign exchange derivative contracts | 43.6 | 72.1 |
Derivative liabilities, net | $ 36.5 | $ (1) |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Narrative (Details) $ in Millions | Jun. 30, 2019USD ($) | Jan. 22, 2019USD ($)derivative |
Derivative [Line Items] | ||
Number of cash flow hedges entered into | derivative | 3 | |
Gain (loss) to be reclassified during next 12 months | $ (14.5) | |
Variable Rate Debt | ||
Derivative [Line Items] | ||
Long-term debt | $ 2,000 | $ 2,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities - Schedule of Cash Flow Hedge Notional Amounts (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 22, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | |||
Foreign exchange contracts | $ 12,488.9 | $ 10,735.4 | |
Designated as Hedging Instrument | Interest rate swaps | |||
Derivative [Line Items] | |||
Foreign exchange contracts | $ 1,000 | ||
Fixed Rates | 2.56% | ||
Designated as Hedging Instrument | Interest Rate Swap 2 | |||
Derivative [Line Items] | |||
Foreign exchange contracts | $ 500 | ||
Fixed Rates | 2.56% | ||
Designated as Hedging Instrument | Interest Rate Swap 3 | |||
Derivative [Line Items] | |||
Foreign exchange contracts | $ 500 | ||
Fixed Rates | 2.55% |
Derivative Financial Instrume_7
Derivative Financial Instruments and Hedging Activities - Schedule of Fair Value and Balance Sheet Location (Details) - Interest rate swaps $ in Thousands | Jun. 30, 2019USD ($) |
Derivative [Line Items] | |
Foreign exchange derivative contracts | $ 61,632 |
Other Liabilities | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Foreign exchange derivative contracts | $ 61,600 |
Derivative Financial Instrume_8
Derivative Financial Instruments and Hedging Activities - Schedule of Gain (Loss) (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swaps $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Derivative [Line Items] | |
Amount of loss recognized in other comprehensive income on derivatives, net of tax of $15.2 million | $ 46.4 |
Tax on income (loss) recognized in other comprehensive income on derivatives | 15.2 |
Amount of loss reclassified from accumulated other comprehensive income into interest expense | $ 0.4 |
Subsequent Events - Narrative
Subsequent Events - Narrative (Details) - USD ($) | Jul. 05, 2019 | Aug. 02, 2019 | Jun. 30, 2019 |
SOLE Financial | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Aggregate purchase price | $ 74,000,000 | ||
Term Loan A | Secured Debt | |||
Subsequent Event [Line Items] | |||
Amended securitization facility | $ 2,525,000,000 | ||
Term Loan A | Secured Debt | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Amended securitization facility | $ 700,000,000 |
Uncategorized Items - flt10-q06
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 47,252,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 47,252,000 |