Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 24, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'WEX | ' |
Entity Registrant Name | 'WEX INC. | ' |
Entity Central Index Key | '0001309108 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 38,750,286 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $354,772 | $361,486 |
Accounts receivable (less reserve for credit losses of $13,163 in 2014 and $10,396 in 2013) | 1,980,609 | 1,712,061 |
Available-for-sale securities | 16,058 | 15,963 |
Property, equipment and capitalized software (net of accumulated depreciation of $152,380 in 2014 and $145,400 in 2013) | 76,920 | 72,275 |
Deferred income taxes, net | 78,285 | 88,965 |
Goodwill | 828,823 | 819,892 |
Other intangible assets, net | 201,737 | 206,744 |
Other assets | 163,214 | 154,892 |
Total assets | 3,700,418 | 3,432,278 |
Liabilities and Stockholders’ Equity | ' | ' |
Accounts payable | 646,721 | 512,878 |
Accrued expenses | 86,423 | 92,335 |
Income taxes payable | 22,424 | 16,066 |
Deposits | 1,190,223 | 1,088,930 |
Revolving line-of-credit facilities and term loan | 281,250 | 285,000 |
Deferred income taxes, net | 13,444 | 13,528 |
Notes outstanding | 400,000 | 400,000 |
Amounts due under tax receivable agreement | 77,785 | 77,785 |
Fuel price derivatives, at fair value | 4,535 | 7,358 |
Other liabilities | 21,370 | 16,372 |
Total liabilities | 2,744,175 | 2,510,252 |
Commitments and contingencies (Note 13) | ' | ' |
Redeemable non-controlling interest | 19,338 | 18,729 |
Stockholders’ Equity | ' | ' |
Common stock $0.01 par value; 175,000 shares authorized; 42,971 in 2014 and 42,901 in 2013 shares issued; 38,877 in 2014 and 38,987 in 2013 shares outstanding | 430 | 429 |
Additional paid-in capital | 169,122 | 168,891 |
Non-controlling Interest | 228 | 519 |
Retained earnings | 916,061 | 879,519 |
Accumulated other comprehensive loss | -1,422 | -15,495 |
Less treasury stock at cost; 4,188 shares in 2014 and 4,007 shares in 2013 | -147,514 | -130,566 |
Total stockholders’ equity | 936,905 | 903,297 |
Total liabilities and stockholders’ equity | $3,700,418 | $3,432,278 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, reserve for credit losses | $13,163 | $10,396 |
Property, equipment and capitalized software, accumulated depreciation | $152,380 | $145,400 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 42,971,000 | 42,901,000 |
Common stock, shares outstanding | 38,877,000 | 38,987,000 |
Treasury stock, shares | 4,188,000 | 4,007,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | ' | ' |
Fleet payment solutions | $135,435 | $126,039 |
Other payment solutions | 46,633 | 39,331 |
Total revenues | 182,068 | 165,370 |
Expenses | ' | ' |
Salary and other personnel | 43,902 | 40,077 |
Service fees | 26,305 | 23,805 |
Provision for credit losses | 9,090 | 3,756 |
Technology leasing and support | 7,027 | 5,485 |
Occupancy and equipment | 4,366 | 3,805 |
Depreciation, amortization and impairment | 15,018 | 14,607 |
Operating interest expense | 1,288 | 1,147 |
Cost of hardware and equipment sold | 948 | 1,074 |
Other | 12,587 | 11,084 |
Total operating expenses | 120,531 | 104,840 |
Operating income | 61,537 | 60,530 |
Financing interest expense | -7,356 | -7,339 |
Net gain (loss) on foreign currency transactions | 1,033 | -232 |
Net realized and unrealized gain (loss) on fuel price derivatives | 1,845 | -7,755 |
Income before income taxes | 57,059 | 45,204 |
Income taxes | 20,979 | 16,627 |
Net income | 36,080 | 28,577 |
Less: Net loss attributable to non-controlling interests | -462 | -112 |
Net earnings attributable to WEX Inc. | $36,542 | $28,689 |
Net earnings attributable to WEX Inc. per share: | ' | ' |
Basic (in dollars per share) | $0.94 | $0.74 |
Diluted (in dollars per share) | $0.93 | $0.73 |
Weighted average common shares outstanding: | ' | ' |
Basic (in shares) | 38,966 | 38,888 |
Diluted (in shares) | 39,145 | 39,187 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $36,080 | $28,577 |
Changes in available-for-sale securities, net of tax effect of $(43) in 2014 and $47 in 2013 | 74 | -78 |
Foreign currency translation | 14,779 | 458 |
Comprehensive income | 50,933 | 28,957 |
Less: comprehensive income attributable to non-controlling interests | 318 | 193 |
Comprehensive income attributable to WEX Inc. | $50,615 | $28,764 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Changes in available-for-sale securities, tax effect | ($43) | $47 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Retained Earnings | Noncontrolling Interest [Member] |
In Thousands, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2012 | $817,931 | $426 | $162,470 | $37,379 | ($112,655) | $730,311 | ' |
Beginning Balance (in shares) at Dec. 31, 2012 | ' | 38,908 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock issued upon exercise of stock options (in shares) | ' | 11 | ' | ' | ' | ' | ' |
Stock issued upon exercise of stock options | 146 | 0 | 146 | ' | ' | ' | ' |
Tax benefit from stock option and restricted stock units | 5,589 | ' | 5,589 | ' | ' | ' | ' |
Stock upon vesting of restricted stock units (in shares) | ' | 221 | ' | ' | ' | ' | ' |
Stock issued upon vesting of restricted stock units | 0 | 2 | -2 | ' | ' | ' | ' |
Stock-based compensation, net of share repurchases for tax withholdings | -7,576 | ' | -7,576 | ' | ' | ' | ' |
Purchase of shares of treasury stock, Shares | ' | -241 | ' | ' | ' | ' | ' |
Purchase of shares of treasury stock | -17,911 | ' | ' | ' | -17,911 | ' | ' |
Changes in available-for-sale securities, net of tax effect of $43 in 2014 and $(47) in 2013 | -78 | ' | ' | -78 | ' | ' | ' |
Foreign currency translation | 153 | ' | ' | 153 | ' | ' | ' |
Net earnings attributable to WEX Inc. | 28,689 | ' | ' | ' | ' | 28,689 | ' |
Ending Balance at Mar. 31, 2013 | 826,943 | 428 | 160,627 | 37,454 | -130,566 | 759,000 | ' |
Ending Balance (in shares) at Mar. 31, 2013 | ' | 38,899 | ' | ' | ' | ' | ' |
Beginning Balance at Dec. 31, 2013 | 903,297 | 429 | 168,891 | -15,495 | -130,566 | 879,519 | 519 |
Beginning Balance (in shares) at Dec. 31, 2013 | ' | 38,987 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock issued upon exercise of stock options (in shares) | ' | 8 | ' | ' | ' | ' | ' |
Stock issued upon exercise of stock options | 105 | 0 | 105 | ' | ' | ' | ' |
Tax benefit from stock option and restricted stock units | 1,010 | ' | 1,010 | ' | ' | ' | ' |
Stock upon vesting of restricted stock units (in shares) | ' | 63 | ' | ' | ' | ' | ' |
Stock issued upon vesting of restricted stock units | ' | 1 | -1 | ' | ' | ' | ' |
Stock-based compensation, net of share repurchases for tax withholdings | -883 | ' | -883 | ' | ' | ' | ' |
Purchase of shares of treasury stock, Shares | ' | -181 | ' | ' | ' | ' | ' |
Purchase of shares of treasury stock | -16,948 | ' | ' | ' | -16,948 | ' | ' |
Changes in available-for-sale securities, net of tax effect of $43 in 2014 and $(47) in 2013 | 74 | ' | ' | 74 | ' | ' | ' |
Foreign currency translation | 14,003 | ' | ' | 13,999 | ' | ' | ' |
Noncontrolling Interest, Foreign Currency Translation Adjustment | ' | ' | ' | ' | ' | ' | 4 |
Net earnings attributable to WEX Inc. | 36,542 | ' | ' | ' | ' | 36,542 | ' |
Net Income (Loss) Attributable to Noncontrolling Interests, Excluding Redeemable Noncontrolling Interest | ' | ' | ' | ' | ' | ' | -295 |
Net income | 36,247 | ' | ' | ' | ' | ' | ' |
Ending Balance at Mar. 31, 2014 | $936,905 | $430 | $169,122 | ($1,422) | ($147,514) | $916,061 | $228 |
Ending Balance (in shares) at Mar. 31, 2014 | ' | 38,877 | ' | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Changes in available-for-sale securities, tax effect | $47 | ($43) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $36,080 | $28,577 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' |
Fair value change of fuel price derivatives | -2,823 | 5,882 |
Stock-based compensation | 2,423 | 2,406 |
Depreciation, amortization and impairment | 15,612 | 15,156 |
Deferred taxes | 10,066 | 9,021 |
Provision for credit losses | 9,090 | 3,756 |
Loss on disposal of property, equipment and capitalized software | 338 | 63 |
Changes in operating assets and liabilities, net of effects of acquisition: | ' | ' |
Accounts receivable | -271,782 | -228,297 |
Other assets | -8,455 | -2,971 |
Accounts payable | 131,448 | 190,068 |
Accrued expenses | -6,499 | 2,984 |
Income taxes | 5,708 | 776 |
Other liabilities | 1,038 | 1,145 |
Net cash (used for) provided by operating activities | -77,756 | 28,566 |
Cash flows from investing activities | ' | ' |
Purchases of property, equipment and capitalized software | -11,382 | -5,560 |
Purchases of available-for-sale securities | -70 | -65 |
Maturities of available-for-sale securities | 93 | 502 |
Net cash used for investing activities | -11,359 | -5,123 |
Cash flows from financing activities | ' | ' |
Excess tax benefits from equity instrument share-based payment arrangements | 1,010 | 5,589 |
Repurchase of share-based awards to satisfy tax withholdings | -3,306 | -9,985 |
Proceeds from stock option exercises | 104 | 146 |
Net change in deposits | 101,288 | 135,276 |
Net change in borrowed federal funds | 0 | -48,400 |
Other financing debt | 3,429 | 787 |
Loan origination fee | 0 | -12,023 |
Borrowings on notes outstanding | 0 | 400,000 |
Net activity on 2011 revolving line-of-credit | 0 | -438,500 |
Purchase of shares of treasury stock | -16,948 | -17,911 |
Net cash provided by financing activities | 81,827 | 128,729 |
Effect of exchange rate changes on cash and cash equivalents | 574 | -114 |
Net change in cash and cash equivalents | -6,714 | 152,058 |
Cash and cash equivalents, beginning of period | 361,486 | 197,662 |
Cash and cash equivalents, end of period | 354,772 | 349,720 |
Supplemental cash flow information | ' | ' |
Interest paid | 13,262 | 4,351 |
Income taxes paid | 4,041 | 1,226 |
2011 term loan | ' | ' |
Cash flows from financing activities | ' | ' |
Net activity on term loan | 0 | -182,500 |
2013 term loan | ' | ' |
Cash flows from financing activities | ' | ' |
Net activity on term loan | ($3,750) | $296,250 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Basis of Presentation | ' | ||
1 | Basis of Presentation | ||
The acronyms and abbreviations identified below are used in the accompanying unaudited condensed consolidated financial statements and the notes thereto. The following is provided to aid the reader and provide a reference point when reviewing the unaudited condensed consolidated financial statements. | |||
2011 Credit Agreement | Credit agreement entered into on May 23, 2011 among the Company, as borrower, WEX Card Holdings Australia Pty Ltd, a wholly-owned subsidiary of the Company, as specified designated borrower, Bank of America, N.A., as administrative agent and letter of credit issuer, and the other lenders party thereto | ||
2013 Credit Agreement | Amended and restated credit agreement entered into on January 18, 2013 by and among the Company and certain of our subsidiaries, as borrowers, and WEX Card Holdings Australia Pty Ltd, as specified designated borrower, with a lending syndicate | ||
Adjusted Net Income or ANI | A non-GAAP metric that adjusts net earnings attributable to WEX Inc. for fair value changes of derivative instruments, the amortization of purchased intangibles, expense associated with stock-based compensation, the net impact of tax rate changes on the Company’s deferred tax asset and related changes in the tax-receivable agreement, deferred loan costs associated with the extinguishment of debt, certain non-cash asset impairment charges, the gains on the extinguishment of a portion of the tax receivable agreement and adjustments attributable to non-controlling interest, as well as the related tax impacts of the adjustments | ||
ASU 2013-11 | Accounting Standards Update No. 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | ||
ASU 2014-08 | Accounting Standards Update 2014-08 Update No. 2014-08 Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | ||
Company | WEX Inc. and all entities included in the unaudited condensed consolidated financial statements | ||
Esso Card | ExxonMobil’s European commercial fuel card portfolio | ||
FASB | Financial Accounting Standards Board | ||
GAAP | Generally accepted accounting principles in the United States | ||
Indenture | The Notes were issued pursuant to an indenture dated as of January 30, 2013 among the Company, the guarantors listed therein, and The Bank of New York Mellon Trust Company, N.A., as trustee | ||
NCI | Non-controlling interest | ||
NOL | Net operating loss | ||
Notes | $400 million notes with a 4.75% fixed rate, issued on January 30, 2013 | ||
NOW deposits | Negotiable order of withdrawal deposits | ||
SEC | Securities and Exchange Commission | ||
UNIK | UNIK S.A., the Company's Brazilian 51 percent majority-owned subsidiary | ||
WEX | WEX Inc. | ||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by GAAP for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to consolidated financial statements included in the Annual Report on Form 10-K of WEX Inc. for the year ended December 31, 2013. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements that are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on February 27, 2014. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2014, are not necessarily indicative of the results that may be expected for any future quarter(s) or the year ending December 31, 2014. | |||
Fair Value of Financial Instruments | |||
The carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and other liabilities approximate their respective fair values due to the short-term nature of such instruments. The carrying values of certificates of deposit, NOW deposits, interest-bearing money market deposits, borrowed federal funds and credit agreement borrowings, approximate their respective fair values as the interest rates on these financial instruments are variable. All other financial instruments are reflected at fair value on the condensed consolidated balance sheet. | |||
The notes outstanding as of March 31, 2014, have a carrying value of $400,000 and fair value of $376,000. As of December 31, 2013, the carrying value of the $400,000 in notes outstanding had a fair value of $365,000. The fair value is based on market rates for the issuance of our debt. |
New_Accounting_Standards
New Accounting Standards | 3 Months Ended | |
Mar. 31, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ' | |
New Accounting Standards | ' | |
2 | New Accounting Standards | |
In July 2013, the FASB issued ASU 2013-11. The amendments in ASU 2013-11 require entities to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a NOL carryforward, a similar tax loss, or a tax credit carryforward except when the following exist: (i) an NOL carryforward, a similar tax loss, or a tax credit carryforward is not available as of the reporting date under the governing tax law to settle taxes that would result from the disallowance of the tax position, and (ii) the entity does not intend to use the deferred tax asset for this purpose (provided the tax law permits a choice). If either of these conditions exists, entities should present an unrecognized tax benefit in the financial statements as a liability and should not net the unrecognized tax benefit with a deferred tax asset. ASU 2013-11 is effective for interim and annual periods beginning after December 15, 2013. The adoption of ASU 2013-11 in the first quarter of 2014 did not have a material impact on the Company's results of operations. | ||
In April 2014, the FASB issued ASC 2014-08. Under the new guidance, only disposals representing a strategic shift in operations that has a major effect on the organization's operations and financial results, or a business activity classified as held for sale should be presented as discontinued operations. Additionally, these amendments expanded the disclosure requirements for discontinued operations that will provide financial statement users with more information regarding the assets, liabilities, income, and expenses of discontinued operations. This update is effective for interim and annual periods beginning after December 15, 2014. The adoption of this standard update affects presentation only and, as such, is not expected to have a material impact on the Company's consolidated financial statements. |
Business_Acquisitions
Business Acquisitions | 3 Months Ended | |
Mar. 31, 2014 | ||
Business Combinations [Abstract] | ' | |
Business Acquisitions | ' | |
3 | Business Acquisitions | |
Acquisition of FastCred | ||
On October 15, 2013, UNIK acquired all of the stock of FastCred, a provider of fleet cards to the heavy truck or over-the-road segment of the Brazilian fleet market, for approximately $12,309, net of cash acquired. The Company purchased FastCred to expand its Fleet Payment Solutions segment. During the fourth quarter of 2013, the Company preliminarily allocated $4,282 of the cost of the acquisition to goodwill and $12,594 to other intangible assets, primarily customer relationships and acquired software. During the first quarter of 2014, the Company obtained additional information to assist in determining the fair values of certain tangible and intangible assets acquired and liabilities assumed as of the FastCred acquisition date. Based on such information, the Company retrospectively adjusted the fiscal year 2013 comparative information resulting in an increase in goodwill of $1,490, a decrease in intangible assets of $2,253, a decrease in property plant and equipment of $2, and a decrease in deferred income tax liabilities of $765. There were no changes to the previously reported consolidated statements of operations or statements of cash flows. The allocation of the purchase price remains preliminary as the Company is still reviewing the intangible asset valuation. The total weighted average useful life of the intangible assets acquired from FastCred is four years for customer relationships and three years for acquired software. Goodwill recorded as a result of the FastCred acquisition is not currently deductible for income tax purposes. No pro forma information has been included in these financial statements as the operations of FastCred for the period that they were not part of the Company are not material to the Company’s revenues, net income or earnings per share. |
Reserves_for_Credit_Losses
Reserves for Credit Losses | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Reserves for Credit Losses | ' | |||||||
4 | Reserves for Credit Losses | |||||||
In general, the Company’s trade receivables provide for payment terms of 30 days or less. The Company does not extend revolving credit to its customers with respect to these receivables. The portfolio of receivables consists of a large group of smaller balance homogeneous amounts that are collectively evaluated for impairment. No customer makes up more than five percent of the outstanding receivables at March 31, 2014. | ||||||||
At March 31, 2014, approximately 96 percent of the outstanding balance of total trade accounts receivable was current and approximately 99 percent of the outstanding balance of total trade accounts receivable was less than 60 days past due. At March 31, 2013, approximately 96 percent of the outstanding balance of total trade accounts receivable was current and approximately 99 percent of the outstanding balance was less than 60 days past due.The outstanding balance is made up of receivables from a wide range of industries. | ||||||||
The following table presents changes in reserves for credit losses related to accounts receivable: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 10,396 | $ | 11,709 | ||||
Provision for credit losses | 9,090 | 3,756 | ||||||
Charge-offs | (8,107 | ) | (6,045 | ) | ||||
Recoveries of amounts previously charged-off | 1,697 | 1,377 | ||||||
Currency translation | 87 | — | ||||||
Balance, end of period | $ | 13,163 | $ | 10,797 | ||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||||||
5 | Goodwill and Other Intangible Assets | |||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
The changes in goodwill during the first three months of 2014 were as follows: | ||||||||||||||||||||||||
Fleet Payment Solutions Segment | Other | Total | ||||||||||||||||||||||
Payment | ||||||||||||||||||||||||
Solutions | ||||||||||||||||||||||||
Segment | ||||||||||||||||||||||||
Gross goodwill, January 1, 2014 | $ | 754,886 | $ | 82,514 | $ | 837,400 | ||||||||||||||||||
Impact of foreign currency translation | 7,765 | 1,166 | 8,931 | |||||||||||||||||||||
Gross goodwill, March 31, 2014 | 762,651 | 83,680 | 846,331 | |||||||||||||||||||||
Accumulated impairment, March 31, 2014 | (1,337 | ) | (16,171 | ) | (17,508 | ) | ||||||||||||||||||
Net goodwill, March 31, 2014 | $ | 761,314 | $ | 67,509 | $ | 828,823 | ||||||||||||||||||
As described in Note 3, the Company adjusted the amount of goodwill and intangible assets as of December 31, 2013 in the accompanying condensed consolidated balance sheet to account for the measurement period adjustments to the FastCred purchase price allocation. | ||||||||||||||||||||||||
The Company had no impairments to goodwill during the three months ended March 31, 2014. | ||||||||||||||||||||||||
Other Intangible Assets | ||||||||||||||||||||||||
The changes in other intangible assets during the first three months of 2014 were as follows: | ||||||||||||||||||||||||
Net | Amortization | Impact of | Net Carrying | |||||||||||||||||||||
Carrying | foreign | Amount, | ||||||||||||||||||||||
Amount, | currency | March 31, | ||||||||||||||||||||||
January 1, | translation | 2014 | ||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Definite-lived intangible assets | ||||||||||||||||||||||||
Acquired software | $ | 61,590 | $ | (1,983 | ) | $ | 653 | $ | 60,260 | |||||||||||||||
Customer relationships | 127,403 | (5,970 | ) | 2,297 | 123,730 | |||||||||||||||||||
Patent | 1,672 | (72 | ) | 60 | 1,660 | |||||||||||||||||||
Trade names | 8,835 | (262 | ) | 49 | 8,622 | |||||||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||
Trademarks and trade names | 7,244 | — | 221 | 7,465 | ||||||||||||||||||||
Total | $ | 206,744 | $ | (8,287 | ) | $ | 3,280 | $ | 201,737 | |||||||||||||||
The following table presents the estimated amortization expense related to the definite-lived intangible assets listed above for the remainder of 2014 and for each of the five succeeding fiscal years: | ||||||||||||||||||||||||
Remaining 2014 | $ | 24,622 | ||||||||||||||||||||||
2015 | $ | 29,993 | ||||||||||||||||||||||
2016 | $ | 26,385 | ||||||||||||||||||||||
2017 | $ | 22,467 | ||||||||||||||||||||||
2018 | $ | 19,279 | ||||||||||||||||||||||
2019 | $ | 15,909 | ||||||||||||||||||||||
Other intangible assets, net consist of the following: | ||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||
Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Definite-lived intangible assets | ||||||||||||||||||||||||
Acquired software | $ | 84,863 | $ | (24,603 | ) | $ | 60,260 | $ | 83,844 | $ | (22,254 | ) | $ | 61,590 | ||||||||||
Non-compete agreement | 100 | (100 | ) | — | 100 | (100 | ) | — | ||||||||||||||||
Customer relationships | 201,422 | (77,692 | ) | 123,730 | 197,424 | (70,021 | ) | 127,403 | ||||||||||||||||
Patent | 3,059 | (1,399 | ) | 1,660 | 2,935 | (1,263 | ) | 1,672 | ||||||||||||||||
Trademarks and trade names | 10,171 | (1,549 | ) | 8,622 | 10,112 | (1,277 | ) | 8,835 | ||||||||||||||||
$ | 299,615 | $ | (105,343 | ) | 194,272 | $ | 294,415 | $ | (94,915 | ) | 199,500 | |||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||
Trademarks and trade names | 7,465 | 7,244 | ||||||||||||||||||||||
Total | $ | 201,737 | $ | 206,744 | ||||||||||||||||||||
Earnings_per_Share
Earnings per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings per Share | ' | |||||||
6 | Earnings per Share | |||||||
The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations for the three months ended March 31, 2014 and 2013: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Net earnings attributable to WEX Inc. available for common stockholders – Basic and Diluted | $ | 36,542 | $ | 28,689 | ||||
Weighted average common shares outstanding – Basic | 38,966 | 38,888 | ||||||
Unvested restricted stock units | 153 | 242 | ||||||
Stock options | 26 | 57 | ||||||
Weighted average common shares outstanding – Diluted | 39,145 | 39,187 | ||||||
No shares were considered anti-dilutive during the periods reported. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||||||
7 | Derivative Instruments | ||||||||||||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is commodity price risk. The Company enters into put and call option contracts related to the Company’s commodity price risk, which are based on the wholesale price of gasoline and retail price of diesel fuel and settle on a monthly basis. These put and call option contracts, or fuel price derivative instruments, are designed to reduce the volatility of the Company’s cash flows associated with its fuel price-related earnings exposure in North America. | |||||||||||||||||||||||
Accounting guidance requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the statement of financial position. The Company’s fuel price derivative instruments do not qualify for hedge accounting treatment under current guidance, and therefore, no such hedging designation has been made. | |||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||
For derivative instruments that are not designated as hedging instruments, the gain or loss on the derivative is recognized in current earnings. As of March 31, 2014, the Company had the following put and call option contracts which settle on a monthly basis: | |||||||||||||||||||||||
Aggregate | |||||||||||||||||||||||
Notional | |||||||||||||||||||||||
Amount | |||||||||||||||||||||||
(gallons) (a) | |||||||||||||||||||||||
Fuel price derivative instruments – unleaded fuel | |||||||||||||||||||||||
Option contracts settling April 2014 – September 2015 | 39,504 | ||||||||||||||||||||||
Fuel price derivative instruments – diesel | |||||||||||||||||||||||
Option contracts settling April 2014 – September 2015 | 18,967 | ||||||||||||||||||||||
Total fuel price derivative instruments | 58,471 | ||||||||||||||||||||||
(a) | The settlement of the put and call option contracts is based upon the New York Mercantile Exchange’s New York Harbor Reformulated Gasoline Blendstock for Oxygenate Blending and the U.S. Department of Energy’s weekly retail on-highway diesel fuel price for the month. | ||||||||||||||||||||||
The following table presents information on the location and amounts of derivative fair values in the condensed consolidated balance sheets: | |||||||||||||||||||||||
Derivatives Classified as Assets | Derivatives Classified as Liabilities | ||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||
Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | ||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | ||||||||||||||||
Location | Location | Location | Location | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||
Commodity contracts | Fuel price | $ | — | Fuel price | — | Fuel price | $ | 4,535 | Fuel price | $ | 7,358 | ||||||||||||
derivatives, | derivatives, | derivatives, | derivatives, | ||||||||||||||||||||
at fair value | at fair value | at fair value | at fair value | ||||||||||||||||||||
The following tables present information on the location and amounts of derivative gains and losses in the condensed consolidated statements of income: | |||||||||||||||||||||||
Amount of Gain or (Loss) | |||||||||||||||||||||||
Recognized in | |||||||||||||||||||||||
Income on Derivative | |||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain or (Loss) | Three months ended March 31, | |||||||||||||||||||||
Recognized in | |||||||||||||||||||||||
Income on Derivative | 2014 | 2013 | |||||||||||||||||||||
Commodity contracts | Net realized and unrealized gain (loss) on fuel price derivatives | $ | 1,845 | $ | (7,755 | ) | |||||||||||||||||
Financing_Debt
Financing Debt | 3 Months Ended | |
Mar. 31, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Financing Debt | ' | |
8 | Financing Debt | |
2013 Credit Agreement | ||
On January 18, 2013, the Company entered into the 2013 Credit Agreement, among the Company and a syndicate of lenders. The 2013 Credit Agreement provides for a five-year amortizing $300,000 term loan facility, and a five-year $800,000 secured revolving credit facility with a $150,000 sub-limit for letters of credit. The 2013 Credit Agreement replaced the 2011 Credit Agreement, dated as of May 23, 2011. The 2013 Credit Agreement increased the outstanding amount of the term loan from $185,000 to $300,000 and increased the amount of the revolving loan from $700,000 to $800,000. On January 30, 2013, the revolving loan commitment under the 2013 Credit Agreement was reduced to $700,000. The reduction was required due to the completion of the $400,000, 4.75 percent senior notes due in 2023, described below. | ||
$400 Million Note Offering | ||
On January 30, 2013, the Company completed a $400,000 offering in aggregate principal amount of 4.75 percent senior notes due in 2023 at an issue price of 100.0 percent of the principal amount, plus accrued interest, from January 30, 2013, in a private placement for resale to “qualified institutional buyers” as defined in Rule 144A under the Securities Act, and in offshore transactions pursuant to Regulation S under the Securities Act. The Notes were issued pursuant to the Indenture dated as of January 30, 2013 among the Company, the guarantors listed therein, and The Bank of New York Mellon Trust Company, N.A., as trustee. The Notes will mature on February 1, 2023, and interest accrues at the rate of 4.750 percent per annum. Interest is payable semiannually in arrears on February 1 and August 1 of each year, commencing on August 1, 2013. | ||
The Company used the net proceeds of this offering to repay the outstanding amount under the revolving portion of its 2013 Credit Agreement and to pay related fees and expenses and for general corporate purposes. | ||
UNIK financing debt | ||
UNIK has approximately $11,161 of financing debt as of March 31, 2014, and $7,278 of financing debt as of December 31, 2013. This debt is classified in other liabilities on the Company’s consolidated balance sheets for the periods presented. |
Fair_Value
Fair Value | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value | ' | |||||||||||||||
9 | Fair Value | |||||||||||||||
The Company holds mortgage-backed securities, fixed income and equity securities, derivatives and certain other financial instruments which are carried at fair value. The Company determines fair value based upon quoted prices when available or through the use of alternative approaches, such as model pricing, when market quotes are not readily accessible or available. In determining the fair value of the Company’s obligations, various factors are considered, including: closing exchange or over-the-counter market price quotations; time value and volatility factors underlying options and derivatives; price activity for equivalent instruments; and the Company’s own credit standing. | ||||||||||||||||
These valuation techniques may be based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy: | ||||||||||||||||
• | Level 1 – Quoted prices for identical instruments inactive markets. | |||||||||||||||
• | Level 2 – Quoted prices for similar instruments inactive markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | |||||||||||||||
• | Level 3 – Instruments whose significant value drivers are unobservable. | |||||||||||||||
The following table presents the Company’s assets and liabilities that are measured at fair value and the related hierarchy levels as of March 31, 2014: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
at Reporting Date Using | ||||||||||||||||
31-Mar-14 | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
Assets: | ||||||||||||||||
Mortgage-backed securities | $ | 840 | $ | — | $ | 840 | $ | — | ||||||||
Asset-backed securities | 1,337 | — | 1,337 | — | ||||||||||||
Municipal bonds | 522 | — | 522 | — | ||||||||||||
Equity securities | 13,359 | 13,359 | — | — | ||||||||||||
Total available-for-sale securities | $ | 16,058 | $ | 13,359 | $ | 2,699 | $ | — | ||||||||
Executive deferred compensation plan trust (a) | $ | 5,315 | $ | 5,315 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Fuel price derivatives – unleaded fuel (b) | $ | 3,912 | $ | — | $ | 3,912 | $ | — | ||||||||
Fuel price derivatives – diesel (b) | $ | 623 | — | — | 623 | |||||||||||
Total fuel price derivatives | $ | 4,535 | — | 3,912 | 623 | |||||||||||
(a) | The fair value of these instruments is recorded in other assets. | |||||||||||||||
(b) | The balance sheet presentation combines unleaded fuel and diesel fuel positions. | |||||||||||||||
The Notes outstanding at March 31, 2014, have a carrying value of $400,000 and fair value of $376,000. As of December 31, 2013, the Notes outstanding had a carrying value of $400,000 and a fair value of $365,000.The fair value is based on market rates for the issuance of debt. | ||||||||||||||||
The following table presents the Company’s assets and liabilities that are measured at fair value and the related hierarchy levels as of December 31, 2013: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
at Reporting Date Using | ||||||||||||||||
31-Dec-13 | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Assets: | ||||||||||||||||
Mortgage-backed securities | $ | 839 | $ | — | $ | 839 | $ | — | ||||||||
Asset-backed securities | 1,391 | — | 1,391 | — | ||||||||||||
Municipal bonds | 519 | — | 519 | — | ||||||||||||
Equity securities | 13,214 | 13,214 | — | — | ||||||||||||
Total available-for-sale securities | $ | 15,963 | $ | 13,214 | $ | 2,749 | $ | — | ||||||||
Executive deferred compensation plan trust (a) | $ | 4,339 | $ | 4,339 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Fuel price derivatives – unleaded fuel (b) | $ | 5,216 | $ | — | $ | 5,216 | $ | — | ||||||||
Fuel price derivatives – diesel (b) | 2,142 | — | — | 2,142 | ||||||||||||
Total fuel price derivatives | $ | 7,358 | $ | — | $ | 5,216 | $ | 2,142 | ||||||||
(a) | The fair value of these instruments is recorded in other assets. | |||||||||||||||
(b) | The balance sheet presentation combines unleaded fuel and diesel fuel positions. | |||||||||||||||
The following table presents a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended: | ||||||||||||||||
March 31, 2014 | 31-Mar-13 | |||||||||||||||
Fuel Price | Contingent | Fuel Price | ||||||||||||||
Derivatives – | Consideration | Derivatives – | ||||||||||||||
Diesel | Diesel | |||||||||||||||
Beginning balance | $ | (2,142 | ) | $ | (313 | ) | $ | (107 | ) | |||||||
Total gains and (losses) – realized/unrealized | ||||||||||||||||
Included in earnings (a) | 1,519 | 3 | (822 | ) | ||||||||||||
Included in other comprehensive income | — | — | — | |||||||||||||
Purchases, issuances and settlements | — | — | — | |||||||||||||
Transfers (in)/out of Level 3 | — | — | — | |||||||||||||
Ending balance | $ | (623 | ) | $ | (310 | ) | $ | (929 | ) | |||||||
(a)Gains and losses (realized and unrealized) associated with fuel price derivatives, included in earnings for the three months ended March 31, 2014 and 2013, are reported in net realized and unrealized losses on fuel price derivatives on the unaudited condensed consolidated statements of income. Gains associated with contingent consideration, included in earnings for the three months ended March 31, 2013, are reported in other expenses and loss of foreign currency transactions on the unaudited condensed consolidated statements of income. | ||||||||||||||||
Available-for-sale securities and executive deferred compensation plan trust | ||||||||||||||||
When available, the Company uses quoted market prices to determine the fair value of available-for-sale securities; such items are classified in Level 1 of the fair-value hierarchy. These securities primarily consist of exchange-traded equity securities. | ||||||||||||||||
For mortgage-backed and asset-backed debt securities and bonds, the Company generally uses quoted prices for recent trading activity of assets with similar characteristics to the debt security or bond being valued. The securities and bonds priced using such methods are generally classified as Level 2. | ||||||||||||||||
Fuel price derivatives | ||||||||||||||||
The majority of derivatives entered into by the Company are executed over-the-counter and are valued using internal valuation techniques as no quoted market prices exist for such instruments. The valuation technique and inputs depend on the type of derivative and the nature of the underlying instrument. The principal technique used to value these instruments is a comparison of the spot price of the underlying instrument to its related futures curve adjusted for the Company’s assumptions of volatility and present value, where appropriate. The fair values of derivative contracts reflect the expected cash the Company will pay or receive upon settlement of the respective contracts. | ||||||||||||||||
The key inputs depend upon the type of derivative and the nature of the underlying instrument and include interest rate yield curves, the spot price of the underlying instruments, volatility, and correlation. The item is placed in either Level 2 or Level 3 depending on the observability of the significant inputs to the model. Correlation and inputs with longer tenures are generally less observable. | ||||||||||||||||
Fuel price derivatives – diesel. The assumptions used in the valuation of the diesel fuel price derivatives use both observable and unobservable inputs. There is a lack of price transparency with respect to forward prices for diesel fuel. Such unobservable inputs are significant to the diesel fuel derivative contract valuation methodology. | ||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements. The significant unobservable inputs used in the fair value measurement of the Company’s diesel fuel price derivative instruments designated as Level 3 as of March 31, 2014, are as follows: | ||||||||||||||||
Fair Value at | Valuation | Unobservable Input | Range | |||||||||||||
March 31, 2014 | Technique | $ per gallon | ||||||||||||||
Fuel price derivatives – diesel | $ | (623 | ) | Option model | Future retail price of diesel fuel after March 31, 2014 | $3.71 – 3.87 | ||||||||||
Sensitivity to Changes in Significant Unobservable Inputs. As presented in the table above, the significant unobservable inputs used in the fair value measurement of the Company’s diesel fuel price derivative instruments are the future retail price of diesel fuel from the second quarter of 2014 through the third quarter of 2015. Significant changes in these unobservable inputs in isolation would result in a significant change in the fair value measurement. | ||||||||||||||||
Contingent consideration | ||||||||||||||||
The Company had classified its liability for contingent consideration related to its acquisition of UNIK within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which include the projected revenues of UNIK over a four month period. These assumptions included assessing the probability of meeting certain milestones required to earn the contingent consideration. | ||||||||||||||||
On June 30, 2013, the Company finalized the contingent consideration amount based on current performance milestones and determined it to be approximately $511, which was paid on July 1, 2013. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||||
10 | Accumulated Other Comprehensive Income | |||||||||||||||
A reconciliation of comprehensive income for the three month period ended March 31, 2014 and 2013, is as follows: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Unrealized | Foreign | Unrealized | Foreign | |||||||||||||
Gains and | Currency | Gains and | Currency | |||||||||||||
Losses on | Items | Losses on | Items | |||||||||||||
Available- | Available- | |||||||||||||||
for-Sale | for-Sale | |||||||||||||||
Securities | Securities | |||||||||||||||
Beginning balance | $ | (433 | ) | $ | (15,062 | ) | $ | 197 | $ | 37,182 | ||||||
Other comprehensive (loss) income | 74 | 13,999 | (78 | ) | 153 | |||||||||||
Ending balance | $ | (359 | ) | $ | (1,063 | ) | $ | 119 | $ | 37,335 | ||||||
No amounts were reclassified from accumulated other comprehensive income in the periods presented. | ||||||||||||||||
The change in foreign currency items is primarily due to the foreign currency translation of non-cash assets such as goodwill and other intangible assets related to the Company's foreign subsidiaries. | ||||||||||||||||
The total tax effect on accumulated unrealized loss as of March 31, 2014 was $831 and the total tax effect on accumulated unrealized gain was $126 as of March 31, 2013. | ||||||||||||||||
Noncontrolling_interest
Noncontrolling interest | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Noncontrolling Interest [Abstract] | ' | ||||||
Noncontrolling interest | ' | ||||||
11 | Non-controlling interests | ||||||
On August 30, 2012, the Company acquired a 51 percent ownership interest in UNIK. Redeemable non-controlling interest was measured at fair value at the date of acquisition. The redeemable non-controlling interest is reported on the Company’s condensed consolidated balance sheets as “Redeemable non-controlling interest." | |||||||
A reconciliation of redeemable non-controlling interest for the three month periods ended March 31, 2014 and March 31, 2013, is as follows: | |||||||
Three months ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Balance, beginning of period | $ | 18,729 | 21,662 | ||||
Net loss attributable to non-controlling interest | (167 | ) | (112 | ) | |||
Currency translation adjustment | 776 | 305 | |||||
Ending balance | $ | 19,338 | 21,855 | ||||
On November 8, 2013, the Company announced that it plans to acquire the assets of the Esso Card program through a majority owned subsidiary, WEX Europe Services Limited. The Company formed this entity during 2013 and has 75 percent ownership. | |||||||
A reconciliation of non-controlling interest for three month period ended March 31, 2014 is as follows: | |||||||
2013 | |||||||
Balance, beginning of period | $ | 519 | |||||
Net loss attributable to non-controlling interest | (295 | ) | |||||
Currency translation adjustment | 4 | ||||||
Ending balance | $ | 228 | |||||
Income_Taxes
Income Taxes | 3 Months Ended | |
Mar. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
12 | Income Taxes | |
Undistributed earnings of certain foreign subsidiaries of the Company amounted to $6,259 at March 31, 2014, and $4,665 at December 31, 2013. These earnings are considered to be indefinitely reinvested, and accordingly, no U.S. federal and state income taxes have been provided thereon. Upon distribution of these earnings in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. The Company has determined that the amount of taxes attributable to these undistributed earnings is not practicably determinable. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
13 | Commitments and Contingencies | |
Litigation | ||
The Company is involved in pending litigation in the usual course of business. In the opinion of management, such litigation will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
14 | Segment Information | |||||||||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The operating segments are reviewed separately as each operating segment represents a strategic business unit that generally offers different products and serves different markets. | ||||||||||||||||
The Company’s chief operating decision maker evaluates the operating results of the Company’s reportable segments based upon revenues and “adjusted net income,” which is defined by the Company as net income adjusted for fair value changes of derivative instruments, the amortization of purchased intangibles, expense associated with stock-based compensation, the net impact of tax rate changes on the Company’s deferred tax asset and related changes in the tax-receivable agreement, deferred loan costs associated with the extinguishment of debt, certain non-cash asset impairment charges, the gains on the extinguishment of a portion of the tax receivable agreement and adjustments attributable to non-controlling interest. These adjustments are reflected net of the tax impact. | ||||||||||||||||
The Company operates in two reportable segments, Fleet Payment Solutions and Other Payment Solutions. The Fleet Payment Solutions segment provides customers with payment and transaction processing services specifically designed for the needs of vehicle fleet customers. This segment also provides information management services to those fleet customers. The Other Payment Solutions segment provides customers with a payment processing solution for their corporate purchasing and transaction monitoring needs. Revenue in this segment is derived from the Company’s corporate purchase cards, virtual and prepaid card products. The corporate purchase card products are used by businesses to facilitate purchases of products and to utilize the Company’s information management capabilities. | ||||||||||||||||
Financing interest expense through the Company’s corporate debt, including the term loan and bond issuance, and net realized and unrealized losses on derivative instruments are allocated to the Fleet Payment Solutions segment in the computation of segment results for internal evaluation purposes. Total assets are not allocated to the segments. | ||||||||||||||||
The following table presents the Company’s reportable segment results on an adjusted pre-tax net income before NCI basis for the three months ended March 31, 2014 and 2013: | ||||||||||||||||
Total | Operating | Depreciation | Adjusted Pre-Tax Net | |||||||||||||
Revenues | Interest | and | Income before NCI | |||||||||||||
Expense | Amortization | |||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||
Fleet payment solutions | $ | 135,435 | $ | 524 | $ | 6,377 | $ | 47,674 | ||||||||
Other payment solutions | 46,633 | 764 | 354 | 17,272 | ||||||||||||
Total | $ | 182,068 | $ | 1,288 | $ | 6,731 | $ | 64,946 | ||||||||
Three months ended March 31, 2013 | ||||||||||||||||
Fleet payment solutions | $ | 126,039 | $ | 814 | $ | 5,736 | $ | 52,176 | ||||||||
Other payment solutions | 39,331 | 333 | 492 | 10,699 | ||||||||||||
Total | $ | 165,370 | $ | 1,147 | $ | 6,228 | $ | 62,875 | ||||||||
The following table reconciles adjusted net income to net income: | ||||||||||||||||
Three months ended | ||||||||||||||||
March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Adjusted net income attributable to WEX Inc. | $ | 41,612 | $ | 39,840 | ||||||||||||
Unrealized gain (loss) on fuel price derivatives | 2,823 | (5,882 | ) | |||||||||||||
Amortization of acquired intangible assets | (8,287 | ) | (8,379 | ) | ||||||||||||
Stock-based compensation | (2,423 | ) | (2,406 | ) | ||||||||||||
Deferred loan costs associated with the extinguishment of debt | — | (1,004 | ) | |||||||||||||
ANI adjustments attributable to non-controlling interests | 185 | 346 | ||||||||||||||
Tax impact | 2,632 | 6,174 | ||||||||||||||
Net earnings attributable to WEX Inc. | $ | 36,542 | $ | 28,689 | ||||||||||||
Beginning this quarter, adjusted net income attributable to WEX Inc. excludes the expense of stock-based compensation. For comparative purposes, adjusted net income attributable to WEX Inc. for the prior period has been adjusted to reflect the exclusion of stock-based compensation and differs from the figure previously reported due to this adjustment. We believe this adjustment makes this non-GAAP measurement more comparable to our peers. | ||||||||||||||||
The tax impact of the adjustments used to calculate adjusted net income is the difference between the Company’s GAAP tax provision and a pro forma tax provision based upon the Company’s adjusted net income before taxes. The methodology utilized for calculating the Company’s adjusted net income tax provision is the same methodology utilized in calculating the Company’s GAAP tax provision. |
Reserves_for_Credit_Losses_Tab
Reserves for Credit Losses (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Changes in Reserves for Credit Losses Related to Accounts Receivable | ' | |||||||
The following table presents changes in reserves for credit losses related to accounts receivable: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 10,396 | $ | 11,709 | ||||
Provision for credit losses | 9,090 | 3,756 | ||||||
Charge-offs | (8,107 | ) | (6,045 | ) | ||||
Recoveries of amounts previously charged-off | 1,697 | 1,377 | ||||||
Currency translation | 87 | — | ||||||
Balance, end of period | $ | 13,163 | $ | 10,797 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Changes in Goodwill | ' | |||||||||||||||||||||||
The changes in goodwill during the first three months of 2014 were as follows: | ||||||||||||||||||||||||
Fleet Payment Solutions Segment | Other | Total | ||||||||||||||||||||||
Payment | ||||||||||||||||||||||||
Solutions | ||||||||||||||||||||||||
Segment | ||||||||||||||||||||||||
Gross goodwill, January 1, 2014 | $ | 754,886 | $ | 82,514 | $ | 837,400 | ||||||||||||||||||
Impact of foreign currency translation | 7,765 | 1,166 | 8,931 | |||||||||||||||||||||
Gross goodwill, March 31, 2014 | 762,651 | 83,680 | 846,331 | |||||||||||||||||||||
Accumulated impairment, March 31, 2014 | (1,337 | ) | (16,171 | ) | (17,508 | ) | ||||||||||||||||||
Net goodwill, March 31, 2014 | $ | 761,314 | $ | 67,509 | $ | 828,823 | ||||||||||||||||||
Changes in Other Intangible Assets | ' | |||||||||||||||||||||||
The changes in other intangible assets during the first three months of 2014 were as follows: | ||||||||||||||||||||||||
Net | Amortization | Impact of | Net Carrying | |||||||||||||||||||||
Carrying | foreign | Amount, | ||||||||||||||||||||||
Amount, | currency | March 31, | ||||||||||||||||||||||
January 1, | translation | 2014 | ||||||||||||||||||||||
2014 | ||||||||||||||||||||||||
Definite-lived intangible assets | ||||||||||||||||||||||||
Acquired software | $ | 61,590 | $ | (1,983 | ) | $ | 653 | $ | 60,260 | |||||||||||||||
Customer relationships | 127,403 | (5,970 | ) | 2,297 | 123,730 | |||||||||||||||||||
Patent | 1,672 | (72 | ) | 60 | 1,660 | |||||||||||||||||||
Trade names | 8,835 | (262 | ) | 49 | 8,622 | |||||||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||
Trademarks and trade names | 7,244 | — | 221 | 7,465 | ||||||||||||||||||||
Total | $ | 206,744 | $ | (8,287 | ) | $ | 3,280 | $ | 201,737 | |||||||||||||||
Estimated Amortization Expense Related to Definite Lived Intangible Assets | ' | |||||||||||||||||||||||
The following table presents the estimated amortization expense related to the definite-lived intangible assets listed above for the remainder of 2014 and for each of the five succeeding fiscal years: | ||||||||||||||||||||||||
Remaining 2014 | $ | 24,622 | ||||||||||||||||||||||
2015 | $ | 29,993 | ||||||||||||||||||||||
2016 | $ | 26,385 | ||||||||||||||||||||||
2017 | $ | 22,467 | ||||||||||||||||||||||
2018 | $ | 19,279 | ||||||||||||||||||||||
2019 | $ | 15,909 | ||||||||||||||||||||||
Other Intangible Assets | ' | |||||||||||||||||||||||
Other intangible assets, net consist of the following: | ||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||
Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Definite-lived intangible assets | ||||||||||||||||||||||||
Acquired software | $ | 84,863 | $ | (24,603 | ) | $ | 60,260 | $ | 83,844 | $ | (22,254 | ) | $ | 61,590 | ||||||||||
Non-compete agreement | 100 | (100 | ) | — | 100 | (100 | ) | — | ||||||||||||||||
Customer relationships | 201,422 | (77,692 | ) | 123,730 | 197,424 | (70,021 | ) | 127,403 | ||||||||||||||||
Patent | 3,059 | (1,399 | ) | 1,660 | 2,935 | (1,263 | ) | 1,672 | ||||||||||||||||
Trademarks and trade names | 10,171 | (1,549 | ) | 8,622 | 10,112 | (1,277 | ) | 8,835 | ||||||||||||||||
$ | 299,615 | $ | (105,343 | ) | 194,272 | $ | 294,415 | $ | (94,915 | ) | 199,500 | |||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||
Trademarks and trade names | 7,465 | 7,244 | ||||||||||||||||||||||
Total | $ | 201,737 | $ | 206,744 | ||||||||||||||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Reconciliation of Income and Share Data Used in Basic and Diluted Earnings Per Share Computations | ' | |||||||
The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations for the three months ended March 31, 2014 and 2013: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Net earnings attributable to WEX Inc. available for common stockholders – Basic and Diluted | $ | 36,542 | $ | 28,689 | ||||
Weighted average common shares outstanding – Basic | 38,966 | 38,888 | ||||||
Unvested restricted stock units | 153 | 242 | ||||||
Stock options | 26 | 57 | ||||||
Weighted average common shares outstanding – Diluted | 39,145 | 39,187 | ||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||
Put And Call Option Contracts | ' | ||||||||||||||||||||||
As of March 31, 2014, the Company had the following put and call option contracts which settle on a monthly basis: | |||||||||||||||||||||||
Aggregate | |||||||||||||||||||||||
Notional | |||||||||||||||||||||||
Amount | |||||||||||||||||||||||
(gallons) (a) | |||||||||||||||||||||||
Fuel price derivative instruments – unleaded fuel | |||||||||||||||||||||||
Option contracts settling April 2014 – September 2015 | 39,504 | ||||||||||||||||||||||
Fuel price derivative instruments – diesel | |||||||||||||||||||||||
Option contracts settling April 2014 – September 2015 | 18,967 | ||||||||||||||||||||||
Total fuel price derivative instruments | 58,471 | ||||||||||||||||||||||
(a) | The settlement of the put and call option contracts is based upon the New York Mercantile Exchange’s New York Harbor Reformulated Gasoline Blendstock for Oxygenate Blending and the U.S. Department of Energy’s weekly retail on-highway diesel fuel price for the month. | ||||||||||||||||||||||
Location and Amounts of Derivative Fair Values in Condensed Consolidated Balance Sheets | ' | ||||||||||||||||||||||
The following table presents information on the location and amounts of derivative fair values in the condensed consolidated balance sheets: | |||||||||||||||||||||||
Derivatives Classified as Assets | Derivatives Classified as Liabilities | ||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||
Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | ||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | ||||||||||||||||
Location | Location | Location | Location | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||
Commodity contracts | Fuel price | $ | — | Fuel price | — | Fuel price | $ | 4,535 | Fuel price | $ | 7,358 | ||||||||||||
derivatives, | derivatives, | derivatives, | derivatives, | ||||||||||||||||||||
at fair value | at fair value | at fair value | at fair value | ||||||||||||||||||||
Location and Amounts of Derivative Gains and Losses in Condensed Consolidated Statements of Income | ' | ||||||||||||||||||||||
The following tables present information on the location and amounts of derivative gains and losses in the condensed consolidated statements of income: | |||||||||||||||||||||||
Amount of Gain or (Loss) | |||||||||||||||||||||||
Recognized in | |||||||||||||||||||||||
Income on Derivative | |||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain or (Loss) | Three months ended March 31, | |||||||||||||||||||||
Recognized in | |||||||||||||||||||||||
Income on Derivative | 2014 | 2013 | |||||||||||||||||||||
Commodity contracts | Net realized and unrealized gain (loss) on fuel price derivatives | $ | 1,845 | $ | (7,755 | ) | |||||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assets And Liabilities Measured At Fair Value | ' | |||||||||||||||
The following table presents the Company’s assets and liabilities that are measured at fair value and the related hierarchy levels as of December 31, 2013: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
at Reporting Date Using | ||||||||||||||||
31-Dec-13 | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
Assets: | ||||||||||||||||
Mortgage-backed securities | $ | 839 | $ | — | $ | 839 | $ | — | ||||||||
Asset-backed securities | 1,391 | — | 1,391 | — | ||||||||||||
Municipal bonds | 519 | — | 519 | — | ||||||||||||
Equity securities | 13,214 | 13,214 | — | — | ||||||||||||
Total available-for-sale securities | $ | 15,963 | $ | 13,214 | $ | 2,749 | $ | — | ||||||||
Executive deferred compensation plan trust (a) | $ | 4,339 | $ | 4,339 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Fuel price derivatives – unleaded fuel (b) | $ | 5,216 | $ | — | $ | 5,216 | $ | — | ||||||||
Fuel price derivatives – diesel (b) | 2,142 | — | — | 2,142 | ||||||||||||
Total fuel price derivatives | $ | 7,358 | $ | — | $ | 5,216 | $ | 2,142 | ||||||||
(a) | The fair value of these instruments is recorded in other assets. | |||||||||||||||
(b) | The balance sheet presentation combines unleaded fuel and diesel fuel positions. | |||||||||||||||
The following table presents the Company’s assets and liabilities that are measured at fair value and the related hierarchy levels as of March 31, 2014: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
at Reporting Date Using | ||||||||||||||||
31-Mar-14 | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
Assets: | ||||||||||||||||
Mortgage-backed securities | $ | 840 | $ | — | $ | 840 | $ | — | ||||||||
Asset-backed securities | 1,337 | — | 1,337 | — | ||||||||||||
Municipal bonds | 522 | — | 522 | — | ||||||||||||
Equity securities | 13,359 | 13,359 | — | — | ||||||||||||
Total available-for-sale securities | $ | 16,058 | $ | 13,359 | $ | 2,699 | $ | — | ||||||||
Executive deferred compensation plan trust (a) | $ | 5,315 | $ | 5,315 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Fuel price derivatives – unleaded fuel (b) | $ | 3,912 | $ | — | $ | 3,912 | $ | — | ||||||||
Fuel price derivatives – diesel (b) | $ | 623 | — | — | 623 | |||||||||||
Total fuel price derivatives | $ | 4,535 | — | 3,912 | 623 | |||||||||||
(a) | The fair value of these instruments is recorded in other assets. | |||||||||||||||
(b) | The balance sheet presentation combines unleaded fuel and diesel fuel positions. | |||||||||||||||
Reconciliation Of Beginning And Ending Balances For Assets And Liabilities Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs | ' | |||||||||||||||
The following table presents a reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended: | ||||||||||||||||
March 31, 2014 | 31-Mar-13 | |||||||||||||||
Fuel Price | Contingent | Fuel Price | ||||||||||||||
Derivatives – | Consideration | Derivatives – | ||||||||||||||
Diesel | Diesel | |||||||||||||||
Beginning balance | $ | (2,142 | ) | $ | (313 | ) | $ | (107 | ) | |||||||
Total gains and (losses) – realized/unrealized | ||||||||||||||||
Included in earnings (a) | 1,519 | 3 | (822 | ) | ||||||||||||
Included in other comprehensive income | — | — | — | |||||||||||||
Purchases, issuances and settlements | — | — | — | |||||||||||||
Transfers (in)/out of Level 3 | — | — | — | |||||||||||||
Ending balance | $ | (623 | ) | $ | (310 | ) | $ | (929 | ) | |||||||
(a)Gains and losses (realized and unrealized) associated with fuel price derivatives, included in earnings for the three months ended March 31, 2014 and 2013, are reported in net realized and unrealized losses on fuel price derivatives on the unaudited condensed consolidated statements of income. Gains associated with contingent consideration, included in earnings for the three months ended March 31, 2013, are reported in other expenses and loss of foreign currency transactions on the unaudited condensed consolidated statements of income. | ||||||||||||||||
Quantitative Information About Level Three Fair Value Measurements | ' | |||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s diesel fuel price derivative instruments designated as Level 3 as of March 31, 2014, are as follows: | ||||||||||||||||
Fair Value at | Valuation | Unobservable Input | Range | |||||||||||||
March 31, 2014 | Technique | $ per gallon | ||||||||||||||
Fuel price derivatives – diesel | $ | (623 | ) | Option model | Future retail price of diesel fuel after March 31, 2014 | $3.71 – 3.87 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Reconciliation of Accumulated Other Comprehensive Income | ' | |||||||||||||||
A reconciliation of comprehensive income for the three month period ended March 31, 2014 and 2013, is as follows: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Unrealized | Foreign | Unrealized | Foreign | |||||||||||||
Gains and | Currency | Gains and | Currency | |||||||||||||
Losses on | Items | Losses on | Items | |||||||||||||
Available- | Available- | |||||||||||||||
for-Sale | for-Sale | |||||||||||||||
Securities | Securities | |||||||||||||||
Beginning balance | $ | (433 | ) | $ | (15,062 | ) | $ | 197 | $ | 37,182 | ||||||
Other comprehensive (loss) income | 74 | 13,999 | (78 | ) | 153 | |||||||||||
Ending balance | $ | (359 | ) | $ | (1,063 | ) | $ | 119 | $ | 37,335 | ||||||
No amounts were reclassified from accumulated other comprehensive income in the periods presented. | ||||||||||||||||
The change in foreign currency items is primarily due to the foreign currency translation of non-cash assets such as goodwill and other intangible assets related to the Company's foreign subsidiaries. | ||||||||||||||||
The total tax effect on accumulated unrealized loss as of March 31, 2014 was $831 and the total tax effect on accumulated unrealized gain was $126 as of March 31, 2013. | ||||||||||||||||
Noncontrolling_interest_Tables
Noncontrolling interest (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Noncontrolling Interest [Abstract] | ' | ||||||
Redeemable Noncontrolling Interest | ' | ||||||
A reconciliation of redeemable non-controlling interest for the three month periods ended March 31, 2014 and March 31, 2013, is as follows: | |||||||
Three months ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Balance, beginning of period | $ | 18,729 | 21,662 | ||||
Net loss attributable to non-controlling interest | (167 | ) | (112 | ) | |||
Currency translation adjustment | 776 | 305 | |||||
Ending balance | $ | 19,338 | 21,855 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Reportable Segment Results | ' | |||||||||||||||
The following table presents the Company’s reportable segment results on an adjusted pre-tax net income before NCI basis for the three months ended March 31, 2014 and 2013: | ||||||||||||||||
Total | Operating | Depreciation | Adjusted Pre-Tax Net | |||||||||||||
Revenues | Interest | and | Income before NCI | |||||||||||||
Expense | Amortization | |||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||
Fleet payment solutions | $ | 135,435 | $ | 524 | $ | 6,377 | $ | 47,674 | ||||||||
Other payment solutions | 46,633 | 764 | 354 | 17,272 | ||||||||||||
Total | $ | 182,068 | $ | 1,288 | $ | 6,731 | $ | 64,946 | ||||||||
Three months ended March 31, 2013 | ||||||||||||||||
Fleet payment solutions | $ | 126,039 | $ | 814 | $ | 5,736 | $ | 52,176 | ||||||||
Other payment solutions | 39,331 | 333 | 492 | 10,699 | ||||||||||||
Total | $ | 165,370 | $ | 1,147 | $ | 6,228 | $ | 62,875 | ||||||||
Reconciliation Of Adjusted Net Income To Net Income | ' | |||||||||||||||
The following table reconciles adjusted net income to net income: | ||||||||||||||||
Three months ended | ||||||||||||||||
March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Adjusted net income attributable to WEX Inc. | $ | 41,612 | $ | 39,840 | ||||||||||||
Unrealized gain (loss) on fuel price derivatives | 2,823 | (5,882 | ) | |||||||||||||
Amortization of acquired intangible assets | (8,287 | ) | (8,379 | ) | ||||||||||||
Stock-based compensation | (2,423 | ) | (2,406 | ) | ||||||||||||
Deferred loan costs associated with the extinguishment of debt | — | (1,004 | ) | |||||||||||||
ANI adjustments attributable to non-controlling interests | 185 | 346 | ||||||||||||||
Tax impact | 2,632 | 6,174 | ||||||||||||||
Net earnings attributable to WEX Inc. | $ | 36,542 | $ | 28,689 | ||||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Notes outstanding | $400,000 | $400,000 |
Notes outstanding, fair value | $376,000 | $365,000 |
Business_Acquisitions_Addition
Business Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended | ||
Oct. 15, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | ' | $828,823,000 | $819,892,000 |
Net Carrying Amount, Other Intangible Assets | ' | 201,737,000 | 206,744,000 |
Property, equipment and capitalized software (net of accumulated depreciation of $152,380 in 2014 and $145,400 in 2013) | ' | 76,920,000 | 72,275,000 |
FastCred [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Payment to Acquire Businesses, Net of Cash Acquired | 12,309,000 | ' | ' |
Goodwill | ' | ' | 4,282,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | ' | 12,594,000 | ' |
FastCred [Member] | Restatement Adjustment | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | ' | ' | 1,490,000 |
Net Carrying Amount, Other Intangible Assets | ' | ' | -2,253,000 |
Property, equipment and capitalized software (net of accumulated depreciation of $152,380 in 2014 and $145,400 in 2013) | ' | ' | -2,000 |
Deferred income tax liabilities | ' | ' | ($765,000) |
FastCred [Member] | Customer relationships | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '4 years | ' | ' |
FastCred [Member] | Acquired Software [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '3 years | ' | ' |
Reserves_for_Credit_Losses_Add
Reserves for Credit Losses - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Concentration Risk [Line Items] | ' | ' |
Trade receivable payments terms | '30 days | ' |
Percentage of Trade Receivables, Outstanding Balances Less Than 60 Days | 99.00% | 99.00% |
Trade Receivables, Current | 96.00% | 96.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 5.00% | ' |
Concentration Risk, Number of Customers | 0 | ' |
Changes_in_Reserves_for_Credit
Changes in Reserves for Credit Losses Related to Accounts Receivable (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' |
Balance, beginning of period | $10,396 | $11,709 |
Provision for credit losses | 9,090 | 3,756 |
Charge-offs | -8,107 | -6,045 |
Recoveries of amounts previously charged-off | 1,697 | 1,377 |
Currency translation | 87 | 0 |
Balance, end of period | $13,163 | $10,797 |
Changes_In_Goodwill_Detail
Changes In Goodwill (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | ' | ' |
Gross goodwill, January 1, 2014 | $837,400,000 | ' |
Impact of foreign currency translation | 8,931,000 | ' |
Gross goodwill, March 31, 2014 | 846,331,000 | ' |
Accumulated impairment, March 31, 2014 | -17,508,000 | ' |
Net goodwill, March 31, 2014 | 828,823,000 | 819,892,000 |
Fleet Payment Solutions Segment | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Gross goodwill, January 1, 2014 | 754,886,000 | ' |
Impact of foreign currency translation | 7,765,000 | ' |
Gross goodwill, March 31, 2014 | 762,651,000 | ' |
Accumulated impairment, March 31, 2014 | -1,337,000 | ' |
Net goodwill, March 31, 2014 | 761,314,000 | ' |
Other Payment Solutions Segment | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Gross goodwill, January 1, 2014 | 82,514,000 | ' |
Impact of foreign currency translation | 1,166,000 | ' |
Gross goodwill, March 31, 2014 | 83,680,000 | ' |
Accumulated impairment, March 31, 2014 | -16,171,000 | ' |
Net goodwill, March 31, 2014 | $67,509,000 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Goodwill impairment | $0 |
Changes_in_Intangible_Assets_D
Changes in Intangible Assets (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Other Intangible Assets [Line Items] | ' | ' |
Net Carrying Amount, Definite-lived intangible assets | $199,500,000 | ' |
Net Carrying Amount, Other Intangible Assets | 206,744,000 | ' |
Amortization, Definite-lived intangible assets | -8,287,000 | -8,379,000 |
Impact of foreign currency translation, Other Intangible Assets | 3,280,000 | ' |
Net Carrying Amount, Definite-lived intangible assets | 194,272,000 | ' |
Net Carrying Amount, Other Intangible Assets | 201,737,000 | ' |
Trademarks and trade names | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Net Carrying Amount, Indefinite-lived intangible assets | 7,465,000 | ' |
Impact of foreign currency translation, Indefinite-lived intangible assets | 221,000 | ' |
Net Carrying Amount, Indefinite-lived intangible assets | 7,244,000 | ' |
Acquired software | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Net Carrying Amount, Definite-lived intangible assets | 61,590,000 | ' |
Amortization, Definite-lived intangible assets | -1,983,000 | ' |
Impact of foreign currency translation, Definite-lived intangible assets | 653,000 | ' |
Net Carrying Amount, Definite-lived intangible assets | 60,260,000 | ' |
Customer relationships | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Net Carrying Amount, Definite-lived intangible assets | 127,403,000 | ' |
Amortization, Definite-lived intangible assets | -5,970,000 | ' |
Impact of foreign currency translation, Definite-lived intangible assets | 2,297,000 | ' |
Net Carrying Amount, Definite-lived intangible assets | 123,730,000 | ' |
Patent | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Net Carrying Amount, Definite-lived intangible assets | 1,672,000 | ' |
Amortization, Definite-lived intangible assets | -72,000 | ' |
Impact of foreign currency translation, Definite-lived intangible assets | 60,000 | ' |
Net Carrying Amount, Definite-lived intangible assets | 1,660,000 | ' |
Trade names | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Net Carrying Amount, Definite-lived intangible assets | 8,835,000 | ' |
Amortization, Definite-lived intangible assets | -262,000 | ' |
Impact of foreign currency translation, Definite-lived intangible assets | 49,000 | ' |
Net Carrying Amount, Definite-lived intangible assets | $8,622,000 | ' |
Estimated_Amortization_Expense
Estimated Amortization Expense Related to Definite Lived Intangible Assets (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Remaining 2014 | $24,622 |
2015 | 29,993 |
2016 | 26,385 |
2017 | 22,467 |
2018 | 19,279 |
2019 | $15,909 |
Other_Intangible_Assets_Detail
Other Intangible Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, Definite-lived intangible assets | $299,615,000 | $294,415,000 |
Accumulated Amortization, Definite-lived intangible assets | -105,343,000 | -94,915,000 |
Net Carrying Amount, Definite-lived intangible assets | 194,272,000 | 199,500,000 |
Other intangible assets, Net Carrying Amount | 201,737,000 | 206,744,000 |
Acquired software | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, Definite-lived intangible assets | 84,863,000 | 83,844,000 |
Accumulated Amortization, Definite-lived intangible assets | -24,603,000 | -22,254,000 |
Net Carrying Amount, Definite-lived intangible assets | 60,260,000 | 61,590,000 |
Non-compete agreement | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, Definite-lived intangible assets | 100,000 | 100,000 |
Accumulated Amortization, Definite-lived intangible assets | -100,000 | -100,000 |
Net Carrying Amount, Definite-lived intangible assets | 0 | 0 |
Customer relationships | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, Definite-lived intangible assets | 201,422,000 | 197,424,000 |
Accumulated Amortization, Definite-lived intangible assets | -77,692,000 | -70,021,000 |
Net Carrying Amount, Definite-lived intangible assets | 123,730,000 | 127,403,000 |
Patent | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, Definite-lived intangible assets | 3,059,000 | 2,935,000 |
Accumulated Amortization, Definite-lived intangible assets | -1,399,000 | -1,263,000 |
Net Carrying Amount, Definite-lived intangible assets | 1,660,000 | 1,672,000 |
Trademarks and trade names | ' | ' |
Other Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount, Definite-lived intangible assets | 10,171,000 | 10,112,000 |
Accumulated Amortization, Definite-lived intangible assets | -1,549,000 | -1,277,000 |
Net Carrying Amount, Definite-lived intangible assets | 8,622,000 | 8,835,000 |
Net Carrying Amount, Indefinite-lived intangible assets | $7,465,000 | $7,244,000 |
Reconciliation_of_Income_and_S
Reconciliation of Income and Share Data Used in Basic and Diluted Earnings Per Share Computations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net earnings attributable to WEX Inc. available for common stockholders – Basic and Diluted | $36,542 | $28,689 |
Weighted average common shares outstanding – Basic | 38,966 | 38,888 |
Unvested restricted stock units | 153 | 242 |
Stock options | 26 | 57 |
Weighted average common shares outstanding – Diluted | 39,145 | 39,187 |
Put_and_Call_Option_Contracts_
Put and Call Option Contracts (Detail) | 3 Months Ended | |
Mar. 31, 2014 | ||
gal | ||
Derivative [Line Items] | ' | |
Total fuel price derivative instruments, gallons | 58,471,000 | [1] |
Unleaded Fuel | ' | |
Derivative [Line Items] | ' | |
Total fuel price derivative instruments, gallons | 39,504,000 | [1] |
Diesel | ' | |
Derivative [Line Items] | ' | |
Total fuel price derivative instruments, gallons | 18,967,000 | [1] |
[1] | The settlement of the put and call option contracts is based upon the New York Mercantile Exchange’s New York Harbor Reformulated Gasoline Blendstock for Oxygenate Blending and the U.S. Department of Energy’s weekly retail on-highway diesel fuel price for the month. |
Put_and_Call_Option_Contracts_1
Put and Call Option Contracts (Parenthetical) (Detail) | Mar. 31, 2014 | |
Minimum | Unleaded Fuel | ' | |
Derivative [Line Items] | ' | |
Option contracts settlement date | '2014-04 | [1] |
Minimum | Diesel | ' | |
Derivative [Line Items] | ' | |
Option contracts settlement date | '2014-04 | [1] |
Maximum | Unleaded Fuel | ' | |
Derivative [Line Items] | ' | |
Option contracts settlement date | '2015-09 | [1] |
Maximum | Diesel | ' | |
Derivative [Line Items] | ' | |
Option contracts settlement date | '2015-09 | [1] |
[1] | The settlement of the put and call option contracts is based upon the New York Mercantile Exchange’s New York Harbor Reformulated Gasoline Blendstock for Oxygenate Blending and the U.S. Department of Energy’s weekly retail on-highway diesel fuel price for the month. |
Location_and_Amounts_of_Deriva
Location and Amounts of Derivative Fair Values in Condensed Consolidated Balance Sheets (Detail) (Derivatives Not Designated as Hedging Instruments, Commodity contracts, Fuel price derivatives, at fair value, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Fuel price derivatives, at fair value | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivatives Classified as Assets | $0 | $0 |
Derivatives Classified as Liabilities | $4,535 | $7,358 |
Location_and_Amounts_of_Deriva1
Location and Amounts of Derivative Gains and Losses in Condensed Consolidated Statements of Income (Detail) (Derivatives Not Designated as Hedging Instruments, Commodity contracts, Net realized and unrealized gains (losses) on fuel price derivatives, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Net realized and unrealized gains (losses) on fuel price derivatives | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in Income on Derivative | $1,845 | ($7,755) |
Financing_Debt_Additional_Info
Financing Debt - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Jan. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 18, 2013 | 23-May-11 | Jan. 18, 2013 | Jan. 30, 2013 | 23-May-11 | Jan. 18, 2013 | Jan. 18, 2013 | Jan. 18, 2013 |
UNIK | UNIK | Senior Notes | Senior Notes | Semi Annual Payment, First Payment | Semi Annual Payment, Second Payment | Two Thousand And Thirteen Agreements [Member] | Two Thousand And Thirteen Agreements [Member] | Two Thousand And Thirteen Agreements [Member] | Two Thousand And Thirteen Agreements [Member] | Two Thousand And Thirteen Agreements [Member] | Two Thousand And Thirteen Agreements [Member] | Amended And Restated Credit Agreement [Member] | Amended And Restated Credit Agreement [Member] | |
Senior Notes | Senior Notes | Term Loans Facility | Term Loans Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Term Loans Facility | Revolving Credit Facility | |||||
Letter of Credit | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument First Interest Payment Date | ' | ' | ' | 1-Aug-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement loan, term | ' | ' | ' | ' | ' | ' | '5 years | ' | '5 years | ' | ' | ' | ' | ' |
Credit agreement loan, maximum | ' | ' | ' | ' | ' | ' | $300,000,000 | $185,000,000 | $800,000,000 | $700,000,000 | $700,000,000 | $150,000,000 | $300,000,000 | $800,000,000 |
Debt instrument, aggregate principal amount | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate | ' | ' | 4.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Interest Rate Payment Day And Month | ' | ' | ' | ' | 1-Feb-13 | 1-Aug-13 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Issuance Price Percent Of Total | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | 1-Feb-23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of debt unpaid | $11,161,000 | $7,278,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value and Related Hierarchy Levels (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | $16,058 | $15,963 | ||
Executive deferred compensation plan trust | 5,315 | [1] | 4,339 | [1] |
Total fuel price derivatives - liabilities | 4,535 | 7,358 | ||
Mortgage-backed securities | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | 840 | 839 | ||
Asset-backed securities | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | 1,337 | 1,391 | ||
Municipal bonds | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | 522 | 519 | ||
Equity securities | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | 13,359 | 13,214 | ||
Fuel price derivatives - unleaded fuel | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total fuel price derivatives - liabilities | 3,912 | 5,216 | [2] | |
Fuel price derivatives - diesel | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total fuel price derivatives - liabilities | 623 | [2] | 2,142 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | 13,359 | 13,214 | ||
Executive deferred compensation plan trust | 5,315 | [1] | 4,339 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | 13,359 | 13,214 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fuel price derivatives - diesel | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total fuel price derivatives - liabilities | 0 | [2] | ' | |
Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | 2,699 | 2,749 | ||
Total fuel price derivatives - liabilities | 3,912 | 5,216 | ||
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | 840 | 839 | ||
Significant Other Observable Inputs (Level 2) | Asset-backed securities | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | 1,337 | 1,391 | ||
Significant Other Observable Inputs (Level 2) | Municipal bonds | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total available-for-sale securities | 522 | 519 | ||
Significant Other Observable Inputs (Level 2) | Fuel price derivatives - unleaded fuel | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total fuel price derivatives - liabilities | 3,912 | 5,216 | [2] | |
Significant Other Observable Inputs (Level 2) | Fuel price derivatives - diesel | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total fuel price derivatives - liabilities | 0 | [2] | ' | |
Significant Other Observable Inputs (Level 3) | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total fuel price derivatives - liabilities | 623 | 2,142 | ||
Significant Other Observable Inputs (Level 3) | Fuel price derivatives - diesel | ' | ' | ||
Fair Value Measurements [Line Items] | ' | ' | ||
Total fuel price derivatives - liabilities | $623 | [2] | $2,142 | [2] |
[1] | The fair value of these instruments is recorded in other assets. | |||
[2] | The balance sheet presentation combines unleaded fuel and diesel fuel positions. |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | UNIK | ||
Fair Value Measurements [Line Items] | ' | ' | ' |
Notes outstanding, carrying value | $400,000 | $400,000 | ' |
Notes outstanding, fair value | 376,000 | 365,000 | ' |
Contingent consideration | ' | ' | $511 |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Balances for Assets (Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level Three) (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Contingent Consideration | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | ' | ($313) | ||
Included in earnings (a) | ' | 3 | [1] | |
Purchases, issuances and settlements | ' | 0 | ||
Ending balance | ' | -310 | ||
Fuel price derivatives - diesel | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Beginning balance | -2,142 | -107 | ||
Included in earnings (a) | 1,519 | [1] | -822 | [1] |
Included in other comprehensive income | 0 | 0 | ||
Ending balance | ($623) | ($929) | ||
[1] | Gains and losses (realized and unrealized) associated with fuel price derivatives, included in earnings for the three months ended March 31, 2014 and 2013, are reported in net realized and unrealized losses on fuel price derivatives on the unaudited condensed consolidated statements of income. Gains associated with contingent consideration, included in earnings for the three months ended March 31, 2013, are reported in other expenses and loss of foreign currency transactions on the unaudited condensed consolidated statements of income |
Quantitative_Information_About
Quantitative Information About Level Three Fair Value Measurements (Detail) (Fuel price derivatives - diesel, USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Option Model | Option Model | ||||
Minimum | Maximum | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ($623) | ($2,142) | ($929) | ($107) | ' | ' |
Future retail price of diesel (in dollars per gallon) | ' | ' | ' | ' | 3.71 | 3.87 |
Reconciliation_of_Accumulated_
Reconciliation of Accumulated Other Comprehensive Income (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | Unrealized Gains and Losses on Available- for-Sale Securities | Unrealized Gains and Losses on Available- for-Sale Securities | Foreign Currency Items | Foreign Currency Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Tax | ' | ' | ($831) | $126 | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' | ' | ' |
Beginning balance | -1,422 | -15,495 | -433 | 197 | -15,062 | 37,182 |
Other comprehensive (loss) income | ' | ' | 74 | -78 | 13,999 | 153 |
Ending balance | ($1,422) | ($15,495) | ($359) | $119 | ($1,063) | $37,335 |
Noncontrolling_Interest_Additi
Noncontrolling Interest - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Nov. 08, 2013 | Aug. 30, 2012 |
In Thousands, unless otherwise specified | WEX Europe Services [Member] | WEX Europe Services [Member] | ||||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' | ' |
Redeemable non-controlling interest | $19,338 | $18,729 | $21,855 | $21,662 | ' | ' |
Percent of ownership interest acquired | ' | ' | ' | ' | 75.00% | 51.00% |
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interests (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reconcilliation of Redeemable Noncontrolling Interest [Roll Forward] | ' | ' |
Balance, beginning of period | $18,729 | $21,662 |
Net loss attributable to non-controlling interest | -167 | -112 |
Currency translation adjustment | 776 | 305 |
Ending balance | 19,338 | 21,855 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ' | ' |
Balance, beginning of period | 519 | ' |
Net loss attributable to non-controlling interest | 462 | 112 |
Ending balance | 228 | ' |
WEX Europe Services [Member] | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ' | ' |
Balance, beginning of period | 519 | ' |
Net loss attributable to non-controlling interest | -295 | ' |
Currency translation adjustment | 4 | ' |
Ending balance | $228 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Undistributed earnings of certain foreign subsidiaries | $6,259 | $4,665 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 2 |
Reportable_Segment_Results_Det
Reportable Segment Results (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Disclosure [Line Items] | ' | ' |
Total Revenues | $182,068 | $165,370 |
Operating Segments | ' | ' |
Segment Reporting Disclosure [Line Items] | ' | ' |
Total Revenues | 182,068 | 165,370 |
Operating Interest Expense | 1,288 | 1,147 |
Depreciation and Amortization | 6,731 | 6,228 |
Pre-tax adjusted net income | 64,946 | 62,875 |
Operating Segments | Fleet payment solutions | ' | ' |
Segment Reporting Disclosure [Line Items] | ' | ' |
Total Revenues | 135,435 | 126,039 |
Operating Interest Expense | 524 | 814 |
Depreciation and Amortization | 6,377 | 5,736 |
Pre-tax adjusted net income | 47,674 | 52,176 |
Operating Segments | Other payment solutions | ' | ' |
Segment Reporting Disclosure [Line Items] | ' | ' |
Total Revenues | 46,633 | 39,331 |
Operating Interest Expense | 764 | 333 |
Depreciation and Amortization | 354 | 492 |
Pre-tax adjusted net income | $17,272 | $10,699 |
Reconciliation_of_Adjusted_Net
Reconciliation of Adjusted Net Income to Net Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting [Abstract] | ' | ' |
Adjusted net income attributable to WEX Inc. | $41,612 | $39,840 |
Unrealized gain (loss) on fuel price derivatives | 2,823 | -5,882 |
Amortization of acquired intangible assets | -8,287 | -8,379 |
Stock-based compensation | -2,423 | -2,406 |
Deferred loan costs associated with the extinguishment of debt | 0 | -1,004 |
ANI adjustments attributable to non-controlling interests | 185 | 346 |
Tax impact | 2,632 | 6,174 |
Net earnings attributable to WEX Inc. | $36,542 | $28,689 |