Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 29, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | WEX INC. | |
Trading Symbol | WEX | |
Entity Central Index Key | 1309108 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 38,649,122 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $511,017 | $284,763 |
Accounts receivable (less reserve for credit losses of $11,513 in 2015 and $13,919 in 2014) | 1,804,688 | 1,865,538 |
Income taxes receivable | 9,506 | 6,859 |
Available-for-sale securities | 19,011 | 18,940 |
Fuel price derivatives, at fair value | 31,624 | 40,969 |
Property, equipment and capitalized software (net of accumulated depreciation of $168,224 in 2015 and $169,382 in 2014) | 108,166 | 105,596 |
Deferred income taxes, net | 10,270 | 5,764 |
Goodwill | 1,085,513 | 1,116,914 |
Other intangible assets, net | 472,062 | 498,045 |
Other assets | 201,120 | 175,506 |
Total assets | 4,252,977 | 4,118,894 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 525,263 | 425,956 |
Accrued expenses | 119,853 | 137,227 |
Deposits | 1,133,569 | 979,553 |
Revolving line-of-credit facilities and term loan | 815,872 | 901,564 |
Deferred income taxes, net | 61,235 | 43,752 |
Notes outstanding | 400,000 | 400,000 |
Other debt | 51,160 | 52,975 |
Amounts due under tax receivable agreement | 69,637 | 69,637 |
Other liabilities | 12,516 | 13,919 |
Total liabilities | 3,189,105 | 3,024,583 |
Commitments and contingencies (Note 14) | ||
Redeemable non-controlling interest | 13,647 | 16,590 |
Stockholders’ Equity | ||
Common stock $0.01 par value; 175,000 shares authorized; 43,063 shares issued in 2015 and 43,021 in 2014; 38,733 shares outstanding in 2015 and 38,897 in 2014 | 431 | 430 |
Additional paid-in capital | 179,590 | 179,077 |
Non-controlling interest | 13,644 | 17,396 |
Retained earnings | 1,104,075 | 1,081,730 |
Accumulated other comprehensive income | -75,173 | -50,581 |
Less treasury stock at cost; 4,428 shares in 2015 and 4,218 shares in 2014 | -172,342 | -150,331 |
Total stockholders’ equity | 1,050,225 | 1,077,721 |
Total liabilities and stockholders’ equity | $4,252,977 | $4,118,894 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserve for credit losses | $11,513 | $13,919 |
Property, equipment and capitalized software, accumulated depreciation | $168,224 | $169,382 |
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 | 43,063,000 | 43,021,000 |
Common stock, shares outstanding | 38,733,000 | 38,897,000 |
Treasury stock, shares | 4,428,000 | 4,218,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Fleet payment solutions | $128,490 | $135,435 |
Other payment solutions | 73,795 | 46,633 |
Total revenues | 202,285 | 182,068 |
Expenses | ||
Salary and other personnel | 58,417 | 43,902 |
Restructuring | 8,559 | 0 |
Service fees | 30,070 | 26,305 |
Provision for credit losses | 3,914 | 9,090 |
Technology leasing and support | 9,434 | 7,027 |
Occupancy and equipment | 4,997 | 4,366 |
Depreciation, amortization and impairment | 21,387 | 15,018 |
Operating interest expense | 1,579 | 1,288 |
Cost of hardware and equipment sold | 1,109 | 948 |
Other | 15,794 | 12,587 |
Gain on divestiture | -1,215 | 0 |
Total operating expenses | 154,045 | 120,531 |
Operating income | 48,240 | 61,537 |
Financing interest expense | -12,088 | -7,356 |
Net foreign currency (loss) gain | -4,376 | 1,033 |
Net realized and unrealized gain on fuel price derivative instruments | 2,749 | 1,845 |
Income before income taxes | 34,525 | 57,059 |
Income taxes | 14,492 | 20,979 |
Net income | 20,033 | 36,080 |
Less: Net loss attributable to non-controlling interests | -2,312 | -462 |
Net earnings attributable to WEX Inc. | $22,345 | $36,542 |
Net earnings attributable to WEX Inc. per share: | ||
Basic (in dollars per share) | $0.58 | $0.94 |
Diluted (in dollars per share) | $0.57 | $0.93 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 38,859 | 38,966 |
Diluted (in shares) | 38,952 | 39,145 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $20,033 | $36,080 |
Changes in available-for-sale securities, net of tax effect of $53 and $43 for the three months ended March 31, 2015 and 2014 | 91 | 74 |
Foreign currency translation | -29,066 | 14,779 |
Comprehensive (loss) income | -8,942 | 50,933 |
Less: comprehensive (loss) income attributable to non-controlling interests | -6,695 | 318 |
Comprehensive (loss) income attributable to WEX Inc. | ($2,247) | $50,615 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Changes in available-for-sale securities, tax effect | $53 | $43 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Non-controlling interest in subsidiaries [Member] |
In Thousands, unless otherwise specified | |||||||
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 (expense) from stock option and restricted stock units | 1,010 | 1,010 | |||||
Stock issued upon vesting of restricted and deferred stock units (in shares) | 63 | ||||||
Stock issued upon vesting of restricted and deferred stock units | 0 | 1 | -1 | ||||
Stock-based compensation, net of share repurchases for tax withholdings | -883 | -883 | |||||
Purchase of shares of treasury stock (in 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 $53 in 2015 | 74 | 74 | |||||
Foreign currency translation | 14,003 | 13,999 | 4 | ||||
Net income | 36,247 | 36,542 | -295 | ||||
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 | ||||||
Beginning Balance at Dec. 31, 2014 | 1,077,721 | 430 | 179,077 | -50,581 | -150,331 | 1,081,730 | 17,396 |
Beginning Balance (in shares) at Dec. 31, 2014 | 38,897 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued upon exercise of stock options (in shares) | 1 | ||||||
Stock issued upon exercise of stock options | 14 | 0 | 14 | ||||
Tax benefit (expense) from stock option and restricted stock units | -364 | -364 | |||||
Stock issued upon vesting of restricted and deferred stock units (in shares) | 45 | ||||||
Stock issued upon vesting of restricted and deferred stock units | 1 | 1 | 0 | ||||
Stock-based compensation, net of share repurchases for tax withholdings | 863 | 863 | |||||
Purchase of shares of treasury stock (in shares) | -210 | ||||||
Purchase of shares of treasury stock | -22,011 | -22,011 | |||||
Changes in available-for-sale securities, net of tax effect of $43 in 2014 and $53 in 2015 | 91 | 91 | |||||
Foreign currency translation | -26,134 | -24,683 | -1,451 | ||||
Non-controlling interest investment | 0 | 0 | |||||
Net income | 20,044 | 22,345 | -2,301 | ||||
Ending Balance at Mar. 31, 2015 | $1,050,225 | $431 | $179,590 | ($75,173) | ($172,342) | $1,104,075 | $13,644 |
Ending Balance (in shares) at Mar. 31, 2015 | 38,733 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Stockholders' Equity [Abstract] | ||
Changes in available-for-sale securities, tax effect | $53 | $43 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income | $20,033 | $36,080 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Fair value change of fuel price derivatives | 9,345 | -2,823 |
Stock-based compensation | 3,218 | 2,423 |
Depreciation, amortization and impairment | 22,155 | 15,612 |
Gain on divestiture | -1,215 | 0 |
Deferred taxes | 13,854 | 10,066 |
Foreign currency remeasurement | 15,768 | 0 |
Restructuring charge | 8,567 | 0 |
Provision for credit losses | 3,914 | 9,090 |
Loss on disposal of property, equipment and capitalized software | 145 | 338 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 17,826 | -271,782 |
Other assets | -25,512 | -8,455 |
Accounts payable | 110,331 | 131,448 |
Accrued expenses | -23,921 | -6,499 |
Income taxes | -1,558 | 5,708 |
Other liabilities | -1,303 | 1,038 |
Net cash provided by (used for) operating activities | 171,647 | -77,756 |
Cash flows from investing activities | ||
Purchases of property, equipment and capitalized software | -12,074 | -11,382 |
Purchases of available-for-sale securities | -86 | -70 |
Maturities of available-for-sale securities | 159 | 93 |
Proceeds from divestiture | 16,708 | 0 |
Net cash provided by (used for) investing activities | 4,707 | -11,359 |
Cash flows from financing activities | ||
Excess tax benefits from equity instrument share-based payment arrangements | -364 | 1,010 |
Repurchase of share-based awards to satisfy tax withholdings | -2,355 | -3,306 |
Proceeds from stock option exercises | 14 | 104 |
Net change in deposits | 155,715 | 101,288 |
Other debt | -485 | 3,429 |
Net activity on 2014 revolving credit facility | -72,431 | 0 |
Net activity on term loan | -6,875 | -3,750 |
Purchase of shares of treasury stock | -22,011 | -16,948 |
Net cash provided by financing activities | 51,208 | 81,827 |
Effect of exchange rate changes on cash and cash equivalents | -1,308 | 574 |
Net change in cash and cash equivalents | 226,254 | -6,714 |
Cash and cash equivalents, beginning of period | 284,763 | 361,486 |
Cash and cash equivalents, end of period | 511,017 | 354,772 |
Supplemental cash flow information | ||
Interest paid | 17,698 | 13,262 |
Income taxes paid | $2,745 | $4,041 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | ||
Mar. 31, 2015 | |||
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 | ||
2014 Amendment Agreement | Amendment and restatement agreement entered into on August 22, 2014, among the Company, the lenders party thereto, and Bank of America, N.A., as administrative agent | ||
2014 Credit Agreement | Second amended and restated credit agreement entered into on August 22, 2014, by and among the Company and certain of our subsidiaries, as borrowers, and WEX Card Holding Australia | ||
Adjusted Net Income or ANI | A non-GAAP metric that adjusts net earnings attributable to WEX Inc. for fair value changes of fuel-price related derivative instruments, the amortization of purchased intangibles, the expense associated with stock-based compensation, acquisition related expenses, 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, restructuring charges, gains on the extinguishment of a portion of the tax receivable agreement, gain or losses on divestitures and adjustments attributable to non-controlling interests, as well as the related tax impacts of the adjustments | ||
ASU 2014-09 | Accounting Standards Update No. 2014-09 Revenue from Contracts with Customers (Topic 606) | ||
ASU 2015-03 | Accounting Standards Update No. 2015-03 Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs | ||
ASU 2015-04 | Accounting Standards Update No. 2015-04 Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets | ||
ASU 2015-05 | Accounting Standards Update No. 2015-05 Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement | ||
Company | WEX Inc. and all entities included in the unaudited condensed consolidated financial statements | ||
European fleet business | Primarily includes our European commercial fleet card portfolio acquired by the Company from ExxonMobil on December 1, 2014 ("Esso portfolio in Europe") | ||
Evolution1 | EB Holdings Corp. and its subsidiaries which includes Evolution1, Inc., acquired by the Company on July 16, 2014 | ||
FASB | Financial Accounting Standards Board | ||
GAAP | Generally Accepted Accounting Principles in the United States | ||
Indenture | 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 interests | ||
Notes | $400 million notes with a 4.75% fixed rate, issued on January 30, 2013 | ||
NOW deposits | Negotiable order of withdrawal deposits | ||
Pacific Pride | Pacific Pride Services, LLC, previously a wholly owned subsidiary, sold on July 29, 2014 | ||
rapid! PayCard | rapid! PayCard, previously a line of business of the Company, sold on January 7, 2015 | ||
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 the consolidated financial statements included in the Annual Report on Form 10-K of WEX Inc. for the year ended December 31, 2014. 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, 2014, filed with the SEC on February 26, 2015. 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, 2015 are not necessarily indicative of the results that may be expected for any future quarter(s) or the year ending December 31, 2015. | |||
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, 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 sheets. |
New_Accounting_Standards
New Accounting Standards | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Changes and Error Corrections [Abstract] | ||
New Accounting Standards | ||
2 | New Accounting Standards | |
In May 2014, the FASB issued ASU 2014-09 related to revenue recognition, which will supersede most existing revenue recognition guidance under U.S. GAAP. The new revenue recognition standard requires entities to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In April 2015, the Board tentatively decided to defer the original effective date of interim and annual reporting periods beginning after December 15, 2016 by one year. As a result, public entities would apply the new revenue standard to annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before the original public entity effective date (that is, annual periods beginning after December 15, 2016). The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method. | ||
In April 2015, the FASB issued ASU 2015-03 related to the simplification of the presentation of debt issuance costs. The standard requires entities to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The new standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. Entities would apply the new guidance retrospectively to all prior periods and provide the applicable disclosures for a change in accounting principal: (i) the nature of and reason for the change in accounting principle; (ii) the transition method; (iii) a description of the prior-period information that has been retrospectively adjusted; and, (iv) the effect of the change on the financial statement line item. The adoption of this standard affects presentation only and, as such, is not expected to have a material impact on the Company's consolidated financial statements. | ||
In April 2015, the FASB issued ASU 2015-04 related to using a practical expedient for the measurement date of an employer’s defined benefit obligation and plan assets.The new standard gives an entity with a fiscal year-end that does not coincide with a calendar month-end the ability, as a practical expedient, to measure its defined benefit retirement obligations and related plan assets as of the month-end that is closest to its fiscal year-end. Additionally, the new standard provides guidance on accounting for (i) contributions to the plan and (ii) significant events that require a remeasurement (e.g., a plan amendment, settlement, or curtailment) that occur during the period between a month-end measurement date and the employer’s fiscal year-end. An entity should reflect the effects of those contributions or significant events in the measurement of the retirement benefit obligations and related plan assets. As a separate practical expedient, an entity may elect to measure the effects of a significant event as of the calendar month-end closest to the date of the significant event. The new standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted and the new standard should be applied prospectively. The Company does not believe that the adoption of ASU 2014-05 will have a material impact on its results of operations. | ||
In April 2015, the FASB issued ASU 2015-05 related to customer's accounting for fees paid in a cloud computing arrangement. The new standard requires a customer to determine whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for under accounting guidance for internal-use software. Early adoption is permitted for all entities. An entity can elect to adopt the amendments either (i) prospectively to all arrangements entered into or materially modified after the effective date or (ii) retrospectively. The Company does not believe that the adoption of ASU 2014-05 will have a material impact on its results of operations. |
Business_Acquisitions
Business Acquisitions | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Business Acquisitions | ||||
3 | Business Acquisitions | |||
Esso portfolio in Europe | ||||
On December 1, 2014, the Company acquired certain assets of the Esso portfolio in Europe through a majority owned subsidiary, WEX Europe Services Limited. The Company formed this entity during 2013 and has 75 percent ownership. The Company paid $377,618 in cash, which includes an $80,000 advance payment made in the third quarter of 2014. The purchase price is subject to an estimated future working capital adjustment that is expected to be settled in 2015. The transaction was financed through the Company’s cash on hand and existing credit facility. Under the terms of the transaction, WEX purchased ExxonMobil’s commercial fleet fuel card program which includes operations, funding, pricing, sales and marketing in nine countries in Europe. As part of the transaction, both parties have agreed to enter into a long term supply agreement to serve the current and future Esso Card customers and to grow the business. The Company entered into this transaction in order to expand its presence in the European market and to broaden its international footprint, while laying the foundation for further expansion. | ||||
During the fourth quarter of 2014, the Company obtained preliminary information to assist in determining the fair values of certain tangible and intangible assets acquired and liabilities assumed in the Esso portfolio in Europe transaction. During the first quarter of 2015, 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 acquisition date. Based on such information, the Company retrospectively adjusted the fiscal year 2014 comparative information resulting in an increase in goodwill of $549, a decrease in accounts receivable of $2 and a decrease in other tangible assets and liabilities, net, including consideration receivable of $547. Based on such information, the Company recorded intangible assets and goodwill as described below. The Company is still reviewing the valuation as well as performing procedures to verify the completenesses and accuracy of the data used in the independent valuation of all assets and liabilities. The Company has not finalized the purchase accounting. Goodwill related to this transaction is expected to be deductible for income tax purposes. The results of operations for the Esso portfolio in Europe are presented in the Company's Fleet Payment Solutions segment. | ||||
The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired: | ||||
Consideration paid (net of cash acquired and consideration receivable) | $ | 377,618 | ||
Less: | ||||
Accounts receivable | 303,376 | |||
Other tangible assets and liabilities, net | (11,097 | ) | ||
Licensing agreements(a) | 36,979 | |||
Customer relationships(b) | 7,720 | |||
Recorded goodwill | $ | 40,640 | ||
(a) | Weighted average life – 4.6 years. | |||
(b) | Weighted average life – 7.2 years. | |||
Supplemental pro forma financial information related to the Esso portfolio in Europe acquisition has not been provided as it would be impracticable to do so. Historical financial information regarding the acquired assets is not accessible and, thus, the amounts would require estimates to be significant and render the disclosure irrelevant. | ||||
Acquisition of Evolution1 | ||||
On July 16, 2014, the Company acquired all of the outstanding stock of Evolution1, a leading provider of cloud-based technology and payment solutions within the healthcare industry, for approximately $532,174 in cash. The transaction was financed through the Company’s cash on hand and existing credit facility. Evolution1 developed and operates an all-in-one, multi-tenant technology platform, card products, and mobile offering that supports a full range of healthcare account types. This includes consumer-directed payments for health savings accounts, health reimbursement arrangements, flexible spending accounts, voluntary employee beneficiary associations, and defined contribution and wellness programs. The Company acquired Evolution1 to enhance the Company's capabilities and positioning in the growing healthcare market. | ||||
During the third quarter of 2014, the Company obtained preliminary information to assist in determining the fair values of certain tangible and intangible assets acquired and liabilities assumed in the Evolution1 acquisition. During the fourth 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 acquisition date. Based on such information, the Company recorded intangible assets and goodwill as described below. The Company is still reviewing the valuation of the tax assets and liabilities and has not finalized the purchase accounting. Evolution1 had previously recorded goodwill on its financial statements from a prior acquisition, some of which is expected to be deductible for tax purposes. The results of operations for Evolution1 are presented in the Company's Other Payment Solutions segment. | ||||
The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired: | ||||
Consideration paid (net of cash acquired) | $ | 532,174 | ||
Less: | ||||
Accounts receivable | 8,418 | |||
Accounts payable | (175 | ) | ||
Deferred tax liabilities, net | (68,516 | ) | ||
Other tangible assets and liabilities, net | (3,585 | ) | ||
Acquired software and developed technology(a) | 70,000 | |||
Customer relationships(b) | 211,000 | |||
Trade name(c) | 7,900 | |||
Trade name(d) | 11,000 | |||
Recorded goodwill | $ | 296,132 | ||
(a) | Weighted average life – 6.4 years. | |||
(b) | Weighted average life – 9.7 years. | |||
(c) | Weighted average life – 9.9 years. | |||
(d) | Indefinite-lived | |||
The following represents unaudited pro forma operational results as if Evolution1 had been included in the Company’s unaudited condensed consolidated statements of operations as of the beginning of the fiscal period ended: | ||||
Three months ended | ||||
March 31, | ||||
2014 | ||||
Revenue | $ | 205,270 | ||
Net income attributable to WEX Inc. | $ | 38,581 | ||
Pro forma net income attributable to WEX Inc. per common share: | ||||
Net income per share – basic | $ | 0.99 | ||
Net income per share – diluted | $ | 0.99 | ||
The pro forma financial information assumes that the companies were combined as of January 1, 2013, and includes the business combination accounting impact from the acquisition, including acquisition related expenses, amortization charges from acquired intangible assets, interest expense for debt incurred in the acquisition and net income tax effects. The pro forma results of operations do not include any cost savings or other synergies that may result from the acquisition or any estimated integration costs that have been or will be incurred by the Company. The pro forma information as presented above is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal year 2014. |
Sale_of_Subsidiary_and_Assets
Sale of Subsidiary and Assets | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||
Sale of Subsidiary and Assets | ||||
4 | Sale of Subsidiary and Assets | |||
rapid! PayCard | ||||
On January 7, 2015, the Company sold the assets of its operations of rapid! PayCard for $20,000, subject to final working capital adjustments which resulted in a pre-tax gain of approximately $1,215. The Company's primary focus in the U.S. continues to be in the fleet, travel, and healthcare industries. As such, the Company divested the operations of rapid! PayCard. The operations of rapid! PayCard were not material to the Company's annual revenue, net income or earnings per share. The Company does not view this divestiture as a strategic shift in its Other Payment Solution segment. | ||||
Pacific Pride | ||||
On July 29, 2014, the Company sold its wholly owned subsidiary Pacific Pride for $49,664, which resulted in a pre-tax gain of $27,490. The transfer of the operations of Pacific Pride occurred on July 31, 2014. The Company decided to sell the operations of Pacific Pride as it did not align with the long-term strategy of the core fleet business. The operations of Pacific Pride were not material to the Company's annual revenue, net income or earnings per share. Simultaneously with the sale, the Company entered into a multi-year agreement with the buyer that will continue to allow WEX branded card acceptance at Pacific Pride locations. The Company does not view this divestiture as a strategic shift in its Fleet Payment Solution segment. | ||||
The following is a summary of the allocation of the assets and liabilities sold: | ||||
Consideration received | $ | 49,664 | ||
Less: | ||||
Expenses associated with the sale | 1,340 | |||
Accounts receivable | 48,699 | |||
Accounts payable | (53,001 | ) | ||
Other tangible assets and liabilities, net | 828 | |||
Customer relationships | 3,727 | |||
Trademarks and trade name | 1,444 | |||
Goodwill | 19,137 | |||
Gain on sale | $ | 27,490 | ||
Reserves_for_Credit_Losses
Reserves for Credit Losses | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Reserves for Credit Losses | ||||||||
5 | Reserves for Credit Losses | |||||||
In general, the Company’s trade receivables provide for payment terms of 30 days or less. Beginning in the first quarter of 2015, the Company began to extend revolving credit to certain customers with respect to small fleet receivables. The portfolio of receivables consists of a large group of smaller balance homogeneous amounts that are collectively evaluated for impairment. No customer made up more than seven percent of the outstanding receivables at March 31, 2015. | ||||||||
As of March 31, 2015, approximately 95 percent of the outstanding balance of total trade accounts receivable was current and approximately 98 percent of the outstanding balance of total trade accounts receivable was less than 60 days past due. As of 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 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, | ||||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 13,919 | $ | 10,396 | ||||
Provision for credit losses | 3,914 | 9,090 | ||||||
Charge-offs | (7,367 | ) | (8,107 | ) | ||||
Recoveries of amounts previously charged-off | 1,210 | 1,697 | ||||||
Currency translation | (163 | ) | 87 | |||||
Balance, end of period | $ | 11,513 | $ | 13,163 | ||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
6 | Goodwill and Other Intangible Assets | |||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
The changes in goodwill during the first three months of 2015 were as follows: | ||||||||||||||||||||||||
Fleet Payment Solutions Segment | Other | Total | ||||||||||||||||||||||
Payment | ||||||||||||||||||||||||
Solutions | ||||||||||||||||||||||||
Segment | ||||||||||||||||||||||||
Gross goodwill, January 1, 2015 | $ | 759,998 | $ | 374,424 | $ | 1,134,422 | ||||||||||||||||||
Impact of foreign currency translation | (15,095 | ) | (3,920 | ) | (19,015 | ) | ||||||||||||||||||
Sale of rapid! PayCard | — | (12,386 | ) | (12,386 | ) | |||||||||||||||||||
Gross goodwill, March 31, 2015 | 744,903 | 358,118 | 1,103,021 | |||||||||||||||||||||
Accumulated impairment, March 31, 2015 | (1,337 | ) | (16,171 | ) | (17,508 | ) | ||||||||||||||||||
Net goodwill, March 31, 2015 | $ | 743,566 | $ | 341,947 | $ | 1,085,513 | ||||||||||||||||||
As described in Note 3, the Company adjusted the amount of goodwill as of December 31, 2014 in the accompanying unaudited condensed consolidated balance sheet to account for the measurement period adjustments to the Esso portfolio in Europe purchase price allocation. | ||||||||||||||||||||||||
The Company had no impairments to goodwill during the three months ended March 31, 2015. | ||||||||||||||||||||||||
Management is currently evaluating its internal reporting structure and is in the process of determining the impact of the changes on the Company’s segment and goodwill reporting. | ||||||||||||||||||||||||
Other Intangible Assets | ||||||||||||||||||||||||
The changes in other intangible assets during the first three months of 2015 were as follows: | ||||||||||||||||||||||||
Net | Amortization | Disposals | Impact of | Net Carrying | ||||||||||||||||||||
Carrying | foreign | Amount, March 31, 2015 | ||||||||||||||||||||||
Amount, | currency | |||||||||||||||||||||||
January 1, | translation | |||||||||||||||||||||||
2015 | ||||||||||||||||||||||||
Definite-lived intangible assets | ||||||||||||||||||||||||
Acquired software and developed technology | $ | 119,509 | $ | (3,062 | ) | $ | — | $ | (1,984 | ) | $ | 114,463 | ||||||||||||
Customer relationships | 309,824 | (7,695 | ) | (2,296 | ) | (4,450 | ) | 295,383 | ||||||||||||||||
Licensing agreements | 35,715 | (1,089 | ) | — | (3,792 | ) | 30,834 | |||||||||||||||||
Patent | 1,245 | (27 | ) | — | (107 | ) | 1,111 | |||||||||||||||||
Trade names | 15,373 | (286 | ) | (723 | ) | (198 | ) | 14,166 | ||||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||
Trademarks and trade names | 16,379 | — | — | (274 | ) | 16,105 | ||||||||||||||||||
Total | $ | 498,045 | $ | (12,159 | ) | $ | (3,019 | ) | $ | (10,805 | ) | $ | 472,062 | |||||||||||
The following table presents the estimated amortization expense related to the definite-lived intangible assets listed above for the remainder of 2015 and for each of the five succeeding fiscal years: | ||||||||||||||||||||||||
Remaining 2015 | $ | 35,889 | ||||||||||||||||||||||
2016 | $ | 47,444 | ||||||||||||||||||||||
2017 | $ | 47,129 | ||||||||||||||||||||||
2018 | $ | 43,702 | ||||||||||||||||||||||
2019 | $ | 40,417 | ||||||||||||||||||||||
2020 | $ | 37,025 | ||||||||||||||||||||||
Other intangible assets, net consist of the following: | ||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Definite-lived intangible assets | ||||||||||||||||||||||||
Acquired software and developed technology | $ | 147,365 | $ | (32,902 | ) | $ | 114,463 | $ | 150,458 | $ | (30,949 | ) | $ | 119,509 | ||||||||||
Customer relationships | 381,810 | (86,427 | ) | 295,383 | 394,316 | (84,492 | ) | 309,824 | ||||||||||||||||
Licensing agreements | 32,225 | (1,391 | ) | 30,834 | 36,100 | (385 | ) | 35,715 | ||||||||||||||||
Patent | 2,543 | (1,432 | ) | 1,111 | 2,697 | (1,452 | ) | 1,245 | ||||||||||||||||
Trademarks and trade names | 16,555 | (2,389 | ) | 14,166 | 17,786 | (2,413 | ) | 15,373 | ||||||||||||||||
$ | 580,498 | $ | (124,541 | ) | 455,957 | $ | 601,357 | $ | (119,691 | ) | 481,666 | |||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||
Trademarks and trade names | 16,105 | 16,379 | ||||||||||||||||||||||
Total | $ | 472,062 | $ | 498,045 | ||||||||||||||||||||
Earnings_per_Share
Earnings per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings per Share | ||||||||
7 | 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, 2015 and 2014: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net earnings attributable to WEX Inc. available for common stockholders – Basic and Diluted | $ | 22,345 | $ | 36,542 | ||||
Weighted average common shares outstanding – Basic | 38,859 | 38,966 | ||||||
Unvested restricted stock units | 76 | 153 | ||||||
Stock options | 17 | 26 | ||||||
Weighted average common shares outstanding – Diluted | 38,952 | 39,145 | ||||||
No material amount of shares were considered anti-dilutive during the periods reported. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||
8 | Derivative Instruments | ||||||||||||||||||||||||
The Company is exposed to certain market risks relating to its ongoing business operations. Derivative instruments are utilized to manage the Company's 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 the 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. | |||||||||||||||||||||||||
During the fourth quarter of 2014 the Company suspended purchases under its fuel derivatives program due to unusually low prices in the commodities market. Management will continue to monitor the fuel price market and evaluate its alternatives as it relates to this hedging program. | |||||||||||||||||||||||||
Beginning in April 2014, the Company initiated a partial foreign currency exchange hedging program. The Company uses currency forward contracts to offset the foreign currency impact of balance sheet translation. Prior to the first quarter of 2015, the Company managed foreign currency exchange exposure on an intra-quarter basis. Beginning in the first quarter of 2015, the Company held foreign currency exchange contracts that were outstanding over the quarter-end period, minimized foreign cash balances, and expanded the scope of its hedging program to include more currencies. The realized and unrealized gains or losses on the currency forward contracts are reported in earnings within the same unaudited condensed consolidated statement of income line as the impact of the foreign currency translation, net foreign currency (loss) gain. | |||||||||||||||||||||||||
Accounting guidance requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the unaudited condensed consolidated balance sheet. The Company’s fuel price derivative instruments and foreign currency instruments do not qualify for hedge accounting treatment under the current accounting 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, 2015, the Company had the following put and call option contracts related to the Company's commodity fuel price derivatives, which are not designated as hedging contracts and settle on a monthly basis: | |||||||||||||||||||||||||
Aggregate | |||||||||||||||||||||||||
Notional | |||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
(gallons) (a) | |||||||||||||||||||||||||
Fuel price derivative instruments – unleaded fuel | |||||||||||||||||||||||||
Option contracts settling April 2015 – March 2016 | 23,947 | ||||||||||||||||||||||||
Fuel price derivative instruments – diesel | |||||||||||||||||||||||||
Option contracts settling April 2015 – March 2016 | 11,790 | ||||||||||||||||||||||||
Total fuel price derivative instruments | 35,737 | ||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||
As of March 31, 2015, the Company had the following forward and spot contracts related to its foreign currency exchange contracts, which are not designated as hedging contracts and settle at various dates within approximately 40 days: | |||||||||||||||||||||||||
Aggregate | |||||||||||||||||||||||||
Notional | |||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
($) | |||||||||||||||||||||||||
Foreign currency exchange contracts | 366,991 | ||||||||||||||||||||||||
The following table presents information on the location and amounts of derivative fair values in the unaudited condensed consolidated balance sheets: | |||||||||||||||||||||||||
Derivatives Classified as Assets | Derivatives Classified as Liabilities | ||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | |||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | ||||||||||||||||||
Location | Location | Location | Location | ||||||||||||||||||||||
Commodity contracts | Fuel price | $ | 31,624 | Fuel price | $ | 40,969 | Fuel price | $ | — | Fuel price | $ | — | |||||||||||||
derivatives, | derivatives, | derivatives, | derivatives, | ||||||||||||||||||||||
at fair value | at fair value | at fair value | at fair value | ||||||||||||||||||||||
Foreign currency exchange contracts | Other assets | $ | 2,752 | Other assets | $ | — | Other liabilities | $ | — | Other liabilities | $ | — | |||||||||||||
The following table presents information on the location and amounts of derivative gains and losses in the unaudited 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 | 2015 | 2014 | |||||||||||||||||||||||
Commodity contracts | Net realized and unrealized gain (loss) on fuel price derivatives | $ | 2,749 | $ | 1,845 | ||||||||||||||||||||
Foreign currency exchange contracts | Net unrealized gain (loss) on currency forward contracts | $ | 2,752 | $ | — | ||||||||||||||||||||
Financing_and_Other_Debt
Financing and Other Debt | 3 Months Ended | |
Mar. 31, 2015 | ||
Debt Disclosure [Abstract] | ||
Financing and Other Debt | ||
9 | Financing and Other Debt | |
2014 Credit Agreement | ||
As of March 31, 2015, we have $336,497 of borrowings against our $700,000 revolving credit facility. The outstanding debt under our amortizing term loan arrangement, which expires in January of 2018, totaled $479,375 at March 31, 2015 and $486,250 at December 31, 2014. As of March 31, 2015, amounts outstanding under the amortizing term loan bear interest at a rate of LIBOR plus 225 basis points. The revolving credit facility currently bears interest at a rate equal to, at our option, (a) LIBOR plus 225 basis points, (b) the prime rate plus 175 basis points for our domestic borrowings; and the Eurocurrency rate plus 225 basis points for our international borrowings. | ||
UNIK debt | ||
UNIK had approximately $6,160 of debt as of March 31, 2015, and $7,975 of debt as of December 31, 2014. UNIK's debt is comprised of various credit facilities held in Brazil, with various maturity dates. The weighted average annual interest rate was 13.4 percent as of March 31, 2015, and 13.9 percent as of December 31, 2014. This debt is classified in Other debt on the Company’s unaudited condensed consolidated balance sheets for the periods presented. | ||
Participation debt | ||
During the second quarter of 2014, WEX Bank entered into an agreement with a third party bank to fund a customer balance that exceeded WEX Bank's lending limit to an individual customer. This borrowing carries a variable interest rate of 3-month LIBOR plus a margin of 2.25 percent. The balance of the debt as of both March 31, 2015 and December 31, 2014, was $45,000,which, in each case, was secured by an interest in the underlying customer receivable. The participation debt balance will fluctuate on a daily basis based on customer funding needs, and will range from $0 to $45,000. The participation debt agreement will mature on April 1, 2016. This debt is classified in Other debt on the Company’s unaudited condensed consolidated balance sheets for the periods presented. |
Fair_Value
Fair Value | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value | ||||||||||||||||
10 | Fair Value | |||||||||||||||
The Company holds mortgage-backed securities, fixed income and equity securities, derivatives (see Note 8, Derivative Instruments) 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 in active markets. | |||||||||||||||
• | Level 2 – Quoted prices for similar instruments in active 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 that are measured at fair value and the related hierarchy levels as of March 31, 2015: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
at Reporting Date Using | ||||||||||||||||
31-Mar-15 | 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 | $ | 788 | $ | — | $ | 788 | $ | — | ||||||||
Asset-backed securities | 1,079 | — | 1,079 | — | ||||||||||||
Municipal bonds | 494 | — | 494 | — | ||||||||||||
Equity securities | 16,650 | 16,650 | — | — | ||||||||||||
Total available-for-sale securities | $ | 19,011 | $ | 16,650 | $ | 2,361 | $ | — | ||||||||
Executive deferred compensation plan trust (a) | $ | 6,406 | $ | 6,406 | $ | — | $ | — | ||||||||
Foreign currency exchange contracts(a) | $ | 2,752 | $ | — | $ | 2,752 | $ | — | ||||||||
Fuel price derivatives – unleaded fuel (b) | $ | 21,363 | $ | — | $ | 21,363 | $ | — | ||||||||
Fuel price derivatives – diesel (b) | 10,261 | — | — | 10,261 | ||||||||||||
Total fuel price derivatives | $ | 31,624 | $ | — | $ | 21,363 | $ | 10,261 | ||||||||
(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 December 31, 2014: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
at Reporting Date Using | ||||||||||||||||
31-Dec-14 | 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 | $ | 810 | $ | — | $ | 810 | $ | — | ||||||||
Asset-backed securities | 1,165 | — | 1,165 | — | ||||||||||||
Municipal bonds | 554 | — | 554 | — | ||||||||||||
Equity securities | 16,411 | 16,411 | — | — | ||||||||||||
Total available-for-sale securities | $ | 18,940 | $ | 16,411 | $ | 2,529 | $ | — | ||||||||
Executive deferred compensation plan trust (a) | $ | 5,927 | $ | 5,927 | $ | — | $ | — | ||||||||
Fuel price derivatives – unleaded fuel (b) | $ | 29,120 | $ | — | $ | 29,120 | $ | — | ||||||||
Fuel price derivatives – diesel (b) | 11,849 | — | — | 11,849 | ||||||||||||
Total fuel price derivatives | $ | 40,969 | $ | — | $ | 29,120 | $ | 11,849 | ||||||||
(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, 2015 | March 31, 2014 | |||||||||||||||
Fuel Price | Fuel Price | |||||||||||||||
Derivatives – | Derivatives – | |||||||||||||||
Diesel | Diesel | |||||||||||||||
Beginning balance | $ | 11,848 | $ | (2,142 | ) | |||||||||||
Total gains and (losses) – realized/unrealized | ||||||||||||||||
Included in earnings (a) | (1,587 | ) | 1,519 | |||||||||||||
Included in other comprehensive income | — | — | ||||||||||||||
Purchases, issuances and settlements | — | — | ||||||||||||||
Transfers (in)/out of Level 3 | — | — | ||||||||||||||
Ending balance | $ | 10,261 | $ | (623 | ) | |||||||||||
(a)Gains and losses (realized and unrealized) associated with fuel price derivatives, included in earnings for the three months ended March 31, 2015 and 2014, are reported in net realized and unrealized losses on fuel price derivatives on the unaudited condensed consolidated statements of income. | ||||||||||||||||
$400 Million Notes outstanding | ||||||||||||||||
The Notes outstanding as of March 31, 2015, have a carrying value of $400,000 and fair value of $397,000. As of December 31, 2014, the carrying value of the $400,000 in Notes outstanding had a fair value of $388,000. The fair value is based on market rates for the issuance of our debt. The Company determined the fair value of its Notes outstanding are classified as Level 2 in the fair value hierarchy. | ||||||||||||||||
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. The obligations related to the deferred compensation plan trust are classified as Level 1 in the fair value hierarchy because the fair value is determined using quoted prices for identical instruments in active markets. | ||||||||||||||||
Foreign currency exchange contracts | ||||||||||||||||
Derivatives include foreign currency forward contracts. Our foreign currency forward contracts are valued using an income approach (Level 2) based on the spot rate less the contract rate multiplied by the notional amount. We consider counterparty credit risk in the valuation of our derivatives. However, counterparty credit risk did not impact the valuation of our derivatives during the first quarter of 2015. | ||||||||||||||||
Fuel price derivative instruments | ||||||||||||||||
The majority of fuel price derivative instruments 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 derivative instruments – diesel. The assumptions used in the valuation of the diesel fuel price derivative instruments 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, 2015, are as follows: | ||||||||||||||||
Fair Value | Valuation | Unobservable Input | Range | |||||||||||||
Technique | $ per gallon | |||||||||||||||
Fuel price derivatives – diesel | $ | 10,261 | Option model | Future retail price of diesel fuel after March 31, 2015 | $3.72 – 3.86 | |||||||||||
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 2015 through the first quarter of 2016. Significant changes in these unobservable inputs in isolation would result in a significant change in the fair value measurement. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
11 | Accumulated Other Comprehensive Income | |||||||||||||||
A reconciliation of accumulated other comprehensive income for the three month periods ended March 31, 2015 and 2014, is as follows: | ||||||||||||||||
2015 | 2014 | |||||||||||||||
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 | $ | (129 | ) | $ | (50,452 | ) | $ | (433 | ) | $ | (15,062 | ) | ||||
Other comprehensive income (loss) | 91 | (24,683 | ) | 74 | 13,999 | |||||||||||
Ending balance | $ | (38 | ) | $ | (75,135 | ) | $ | (359 | ) | $ | (1,063 | ) | ||||
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 losses, as of March 31, 2015, was $2,155, and the total tax effect on accumulated unrealized losses, as of March 31, 2014, was $831. |
Noncontrolling_interests
Non-controlling interests | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Noncontrolling Interest [Abstract] | ||||||||
Non-controlling interests | ||||||||
12 | 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 unaudited condensed consolidated balance sheets as “Redeemable non-controlling interest." | ||||||||
A reconciliation of redeemable non-controlling interest for the three month periods ended March 31, 2015 and March 31, 2014, is as follows: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 16,590 | $ | 18,729 | ||||
Net loss attributable to redeemable non-controlling interest | (11 | ) | (167 | ) | ||||
Currency translation adjustment | (2,932 | ) | 776 | |||||
Ending balance | $ | 13,647 | $ | 19,338 | ||||
On December 1, 2014, WEX acquired the assets of ExxonMobil's Esso portfolio in Europe through its 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 the three month periods ended March 31, 2015 and March 31, 2014 is as follows: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 17,396 | $ | 519 | ||||
Net loss attributable to non-controlling interest | (2,301 | ) | (295 | ) | ||||
Currency translation adjustment | (1,451 | ) | 4 | |||||
Ending balance | $ | 13,644 | $ | 228 | ||||
Income_Taxes
Income Taxes | 3 Months Ended | |
Mar. 31, 2015 | ||
Income Tax Disclosure [Abstract] | ||
Income Taxes | ||
13 | Income Taxes | |
Undistributed earnings of certain foreign subsidiaries of the Company amounted to $8,731 at March 31, 2015, and $7,733 at December 31, 2014. 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, 2015 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | ||
14 | Commitments and Contingencies | |
Litigation | ||
The Company is involved in pending litigation in the ordinary 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. |
Restructuring
Restructuring | 3 Months Ended | |
Mar. 31, 2015 | ||
Restructuring and Related Activities [Abstract] | ||
Restructuring | ||
15 | Restructuring | |
In the first quarter of 2015 the Company recorded restructuring costs of approximately $8,559 related to the Company's global review of operations. This global review identified certain initiatives to further streamline the business, improve the Company's efficiency, and to globalize the Company's operations, all with an objective to improve scale and increase profitability going forward. The costs related to this initiative are employee termination benefits and are expected to be paid during the remainder of 2015 and 2016. The Company has determined that the amount of expense related to this program is probable and estimable and has recorded the impact on the unaudited condensed consolidated statements of income and in Accrued expenses on the unaudited condensed consolidated balance sheet. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | ||||||||||||||||
16 | 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 because each operating segment represents a strategic business unit that generally offers different products and serves different markets. The operating segments are aggregated into the two reportable segments as described below. | ||||||||||||||||
The Company’s chief operating decision maker evaluates the operating results of the Company’s operating and reportable segments based upon revenues and adjusted pre-tax income before NCI which adjusts income before income taxes for fair value changes of fuel price derivative instruments, the amortization of acquired intangible assets, the expense associated with stock-based compensation, acquisition related expenses and adjustments, 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, gains on the extinguishment of a portion of the tax receivable agreement, restructuring charges, gain or losses on divestitures and adjustments attributable to non-controlling interests. | ||||||||||||||||
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 these 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 our corporate purchase cards and 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. The results of operations for Evolution1 are presented in the Company's Other Payment Solutions segment. Evolution1 contributed net revenues of approximately $24,828 and are not significant to the adjusted pre-tax income before NCI. Management is currently evaluating its internal reporting structure and is in the process of determining the impact of the changes on the Company’s segment and goodwill reporting. | ||||||||||||||||
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, 2015 and 2014: | ||||||||||||||||
Total | Operating | Depreciation | Adjusted Pre-Tax Income before NCI | |||||||||||||
Revenues | Interest | and | ||||||||||||||
Expense | Amortization | |||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||
Fleet payment solutions | $ | 128,490 | $ | 740 | $ | 7,458 | $ | 44,928 | ||||||||
Other payment solutions | 73,795 | 839 | 1,770 | 21,663 | ||||||||||||
Total | $ | 202,285 | $ | 1,579 | $ | 9,228 | $ | 66,591 | ||||||||
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 | ||||||||
The following table reconciles adjusted pre-tax income before NCI to income before income taxes: | ||||||||||||||||
Three months ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Adjusted pre-tax income before NCI | $ | 66,591 | $ | 64,946 | ||||||||||||
Unrealized (loss) gain on fuel price derivatives | (9,345 | ) | 2,823 | |||||||||||||
Amortization of acquired intangible assets | (12,159 | ) | (8,287 | ) | ||||||||||||
Stock-based compensation | (3,218 | ) | (2,423 | ) | ||||||||||||
Restructuring | (8,559 | ) | — | |||||||||||||
Gain on divestiture | 1,215 | — | ||||||||||||||
Income before income taxes | $ | 34,525 | $ | 57,059 | ||||||||||||
Subsequent_Event
Subsequent Event | 3 Months Ended | |
Mar. 31, 2015 | ||
Subsequent Events [Abstract] | ||
Subsequent Event | ||
17 | Subsequent Event | |
On April 28, 2015, the Company entered into a one year receivables securitization facility using as collateral certain receivables at our two of our Australian subsidiaries. Under the terms of the securitization facility, the Company sells an undivided ownership interest in the Australian receivables for up to AUD125,000 (approximately USD $100,000) in cash proceeds, subject to additional contributions. | ||
The Company will pay a variable interest rate on the outstanding balance based on the Australian Bank Bill Rate, which as of April 30, 2015, was 2.20 percent, plus a margin payable monthly in arrears and an arrangement fee upon closing of the securitization facility. |
New_Accounting_Standards_Polic
New Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | In May 2014, the FASB issued ASU 2014-09 related to revenue recognition, which will supersede most existing revenue recognition guidance under U.S. GAAP. The new revenue recognition standard requires entities to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In April 2015, the Board tentatively decided to defer the original effective date of interim and annual reporting periods beginning after December 15, 2016 by one year. As a result, public entities would apply the new revenue standard to annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before the original public entity effective date (that is, annual periods beginning after December 15, 2016). The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method. |
In April 2015, the FASB issued ASU 2015-03 related to the simplification of the presentation of debt issuance costs. The standard requires entities to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The new standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. Entities would apply the new guidance retrospectively to all prior periods and provide the applicable disclosures for a change in accounting principal: (i) the nature of and reason for the change in accounting principle; (ii) the transition method; (iii) a description of the prior-period information that has been retrospectively adjusted; and, (iv) the effect of the change on the financial statement line item. The adoption of this standard affects presentation only and, as such, is not expected to have a material impact on the Company's consolidated financial statements. | |
In April 2015, the FASB issued ASU 2015-04 related to using a practical expedient for the measurement date of an employer’s defined benefit obligation and plan assets.The new standard gives an entity with a fiscal year-end that does not coincide with a calendar month-end the ability, as a practical expedient, to measure its defined benefit retirement obligations and related plan assets as of the month-end that is closest to its fiscal year-end. Additionally, the new standard provides guidance on accounting for (i) contributions to the plan and (ii) significant events that require a remeasurement (e.g., a plan amendment, settlement, or curtailment) that occur during the period between a month-end measurement date and the employer’s fiscal year-end. An entity should reflect the effects of those contributions or significant events in the measurement of the retirement benefit obligations and related plan assets. As a separate practical expedient, an entity may elect to measure the effects of a significant event as of the calendar month-end closest to the date of the significant event. The new standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted and the new standard should be applied prospectively. The Company does not believe that the adoption of ASU 2014-05 will have a material impact on its results of operations. | |
In April 2015, the FASB issued ASU 2015-05 related to customer's accounting for fees paid in a cloud computing arrangement. The new standard requires a customer to determine whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for under accounting guidance for internal-use software. Early adoption is permitted for all entities. An entity can elect to adopt the amendments either (i) prospectively to all arrangements entered into or materially modified after the effective date or (ii) retrospectively. The Company does not believe that the adoption of ASU 2014-05 will have a material impact on its results of operations. |
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Schedule of Glossary of Terms in Document | 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 | ||
2014 Amendment Agreement | Amendment and restatement agreement entered into on August 22, 2014, among the Company, the lenders party thereto, and Bank of America, N.A., as administrative agent | ||
2014 Credit Agreement | Second amended and restated credit agreement entered into on August 22, 2014, by and among the Company and certain of our subsidiaries, as borrowers, and WEX Card Holding Australia | ||
Adjusted Net Income or ANI | A non-GAAP metric that adjusts net earnings attributable to WEX Inc. for fair value changes of fuel-price related derivative instruments, the amortization of purchased intangibles, the expense associated with stock-based compensation, acquisition related expenses, 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, restructuring charges, gains on the extinguishment of a portion of the tax receivable agreement, gain or losses on divestitures and adjustments attributable to non-controlling interests, as well as the related tax impacts of the adjustments | ||
ASU 2014-09 | Accounting Standards Update No. 2014-09 Revenue from Contracts with Customers (Topic 606) | ||
ASU 2015-03 | Accounting Standards Update No. 2015-03 Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs | ||
ASU 2015-04 | Accounting Standards Update No. 2015-04 Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets | ||
ASU 2015-05 | Accounting Standards Update No. 2015-05 Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement | ||
Company | WEX Inc. and all entities included in the unaudited condensed consolidated financial statements | ||
European fleet business | Primarily includes our European commercial fleet card portfolio acquired by the Company from ExxonMobil on December 1, 2014 ("Esso portfolio in Europe") | ||
Evolution1 | EB Holdings Corp. and its subsidiaries which includes Evolution1, Inc., acquired by the Company on July 16, 2014 | ||
FASB | Financial Accounting Standards Board | ||
GAAP | Generally Accepted Accounting Principles in the United States | ||
Indenture | 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 interests | ||
Notes | $400 million notes with a 4.75% fixed rate, issued on January 30, 2013 | ||
NOW deposits | Negotiable order of withdrawal deposits | ||
Pacific Pride | Pacific Pride Services, LLC, previously a wholly owned subsidiary, sold on July 29, 2014 | ||
rapid! PayCard | rapid! PayCard, previously a line of business of the Company, sold on January 7, 2015 | ||
SEC | Securities and Exchange Commission | ||
UNIK | UNIK S.A., the Company's Brazilian 51 percent majority owned subsidiary | ||
WEX | WEX Inc. |
Business_Acquisitions_Business
Business Acquisitions Business Acquisitions (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Schedule of Business Acquisitions, by Acquisition | The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired: | |||
Consideration paid (net of cash acquired) | $ | 532,174 | ||
Less: | ||||
Accounts receivable | 8,418 | |||
Accounts payable | (175 | ) | ||
Deferred tax liabilities, net | (68,516 | ) | ||
Other tangible assets and liabilities, net | (3,585 | ) | ||
Acquired software and developed technology(a) | 70,000 | |||
Customer relationships(b) | 211,000 | |||
Trade name(c) | 7,900 | |||
Trade name(d) | 11,000 | |||
Recorded goodwill | $ | 296,132 | ||
(a) | Weighted average life – 6.4 years. | |||
(b) | Weighted average life – 9.7 years. | |||
(c) | Weighted average life – 9.9 years. | |||
(d) | Indefinite-lived | |||
The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired: | ||||
Consideration paid (net of cash acquired and consideration receivable) | $ | 377,618 | ||
Less: | ||||
Accounts receivable | 303,376 | |||
Other tangible assets and liabilities, net | (11,097 | ) | ||
Licensing agreements(a) | 36,979 | |||
Customer relationships(b) | 7,720 | |||
Recorded goodwill | $ | 40,640 | ||
(a) | Weighted average life – 4.6 years. | |||
(b) | Weighted average life – 7.2 years. | |||
Business Acquisition, Pro Forma Information | The following represents unaudited pro forma operational results as if Evolution1 had been included in the Company’s unaudited condensed consolidated statements of operations as of the beginning of the fiscal period ended: | |||
Three months ended | ||||
March 31, | ||||
2014 | ||||
Revenue | $ | 205,270 | ||
Net income attributable to WEX Inc. | $ | 38,581 | ||
Pro forma net income attributable to WEX Inc. per common share: | ||||
Net income per share – basic | $ | 0.99 | ||
Net income per share – diluted | $ | 0.99 | ||
Sale_of_Subsidiary_and_Assets_
Sale of Subsidiary and Assets (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The following is a summary of the allocation of the assets and liabilities sold: | |||
Consideration received | $ | 49,664 | ||
Less: | ||||
Expenses associated with the sale | 1,340 | |||
Accounts receivable | 48,699 | |||
Accounts payable | (53,001 | ) | ||
Other tangible assets and liabilities, net | 828 | |||
Customer relationships | 3,727 | |||
Trademarks and trade name | 1,444 | |||
Goodwill | 19,137 | |||
Gain on sale | $ | 27,490 | ||
Reserves_for_Credit_Losses_Tab
Reserves for Credit Losses (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | ||||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 13,919 | $ | 10,396 | ||||
Provision for credit losses | 3,914 | 9,090 | ||||||
Charge-offs | (7,367 | ) | (8,107 | ) | ||||
Recoveries of amounts previously charged-off | 1,210 | 1,697 | ||||||
Currency translation | (163 | ) | 87 | |||||
Balance, end of period | $ | 11,513 | $ | 13,163 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Changes in Goodwill | The changes in goodwill during the first three months of 2015 were as follows: | |||||||||||||||||||||||
Fleet Payment Solutions Segment | Other | Total | ||||||||||||||||||||||
Payment | ||||||||||||||||||||||||
Solutions | ||||||||||||||||||||||||
Segment | ||||||||||||||||||||||||
Gross goodwill, January 1, 2015 | $ | 759,998 | $ | 374,424 | $ | 1,134,422 | ||||||||||||||||||
Impact of foreign currency translation | (15,095 | ) | (3,920 | ) | (19,015 | ) | ||||||||||||||||||
Sale of rapid! PayCard | — | (12,386 | ) | (12,386 | ) | |||||||||||||||||||
Gross goodwill, March 31, 2015 | 744,903 | 358,118 | 1,103,021 | |||||||||||||||||||||
Accumulated impairment, March 31, 2015 | (1,337 | ) | (16,171 | ) | (17,508 | ) | ||||||||||||||||||
Net goodwill, March 31, 2015 | $ | 743,566 | $ | 341,947 | $ | 1,085,513 | ||||||||||||||||||
Changes in Other Intangible Assets | The changes in other intangible assets during the first three months of 2015 were as follows: | |||||||||||||||||||||||
Net | Amortization | Disposals | Impact of | Net Carrying | ||||||||||||||||||||
Carrying | foreign | Amount, March 31, 2015 | ||||||||||||||||||||||
Amount, | currency | |||||||||||||||||||||||
January 1, | translation | |||||||||||||||||||||||
2015 | ||||||||||||||||||||||||
Definite-lived intangible assets | ||||||||||||||||||||||||
Acquired software and developed technology | $ | 119,509 | $ | (3,062 | ) | $ | — | $ | (1,984 | ) | $ | 114,463 | ||||||||||||
Customer relationships | 309,824 | (7,695 | ) | (2,296 | ) | (4,450 | ) | 295,383 | ||||||||||||||||
Licensing agreements | 35,715 | (1,089 | ) | — | (3,792 | ) | 30,834 | |||||||||||||||||
Patent | 1,245 | (27 | ) | — | (107 | ) | 1,111 | |||||||||||||||||
Trade names | 15,373 | (286 | ) | (723 | ) | (198 | ) | 14,166 | ||||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||
Trademarks and trade names | 16,379 | — | — | (274 | ) | 16,105 | ||||||||||||||||||
Total | $ | 498,045 | $ | (12,159 | ) | $ | (3,019 | ) | $ | (10,805 | ) | $ | 472,062 | |||||||||||
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 2015 and for each of the five succeeding fiscal years: | |||||||||||||||||||||||
Remaining 2015 | $ | 35,889 | ||||||||||||||||||||||
2016 | $ | 47,444 | ||||||||||||||||||||||
2017 | $ | 47,129 | ||||||||||||||||||||||
2018 | $ | 43,702 | ||||||||||||||||||||||
2019 | $ | 40,417 | ||||||||||||||||||||||
2020 | $ | 37,025 | ||||||||||||||||||||||
Other Intangible Assets | Other intangible assets, net consist of the following: | |||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Definite-lived intangible assets | ||||||||||||||||||||||||
Acquired software and developed technology | $ | 147,365 | $ | (32,902 | ) | $ | 114,463 | $ | 150,458 | $ | (30,949 | ) | $ | 119,509 | ||||||||||
Customer relationships | 381,810 | (86,427 | ) | 295,383 | 394,316 | (84,492 | ) | 309,824 | ||||||||||||||||
Licensing agreements | 32,225 | (1,391 | ) | 30,834 | 36,100 | (385 | ) | 35,715 | ||||||||||||||||
Patent | 2,543 | (1,432 | ) | 1,111 | 2,697 | (1,452 | ) | 1,245 | ||||||||||||||||
Trademarks and trade names | 16,555 | (2,389 | ) | 14,166 | 17,786 | (2,413 | ) | 15,373 | ||||||||||||||||
$ | 580,498 | $ | (124,541 | ) | 455,957 | $ | 601,357 | $ | (119,691 | ) | 481,666 | |||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||
Trademarks and trade names | 16,105 | 16,379 | ||||||||||||||||||||||
Total | $ | 472,062 | $ | 498,045 | ||||||||||||||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2015 and 2014: | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net earnings attributable to WEX Inc. available for common stockholders – Basic and Diluted | $ | 22,345 | $ | 36,542 | ||||
Weighted average common shares outstanding – Basic | 38,859 | 38,966 | ||||||
Unvested restricted stock units | 76 | 153 | ||||||
Stock options | 17 | 26 | ||||||
Weighted average common shares outstanding – Diluted | 38,952 | 39,145 | ||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Put and Call Option Contracts | As of March 31, 2015, the Company had the following put and call option contracts related to the Company's commodity fuel price derivatives, which are not designated as hedging contracts and settle on a monthly basis: | ||||||||||||||||||||||||
Aggregate | |||||||||||||||||||||||||
Notional | |||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
(gallons) (a) | |||||||||||||||||||||||||
Fuel price derivative instruments – unleaded fuel | |||||||||||||||||||||||||
Option contracts settling April 2015 – March 2016 | 23,947 | ||||||||||||||||||||||||
Fuel price derivative instruments – diesel | |||||||||||||||||||||||||
Option contracts settling April 2015 – March 2016 | 11,790 | ||||||||||||||||||||||||
Total fuel price derivative instruments | 35,737 | ||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||
Schedule of Forward and Spot Contracts related to Foreign Exchange Contracts | As of March 31, 2015, the Company had the following forward and spot contracts related to its foreign currency exchange contracts, which are not designated as hedging contracts and settle at various dates within approximately 40 days: | ||||||||||||||||||||||||
Aggregate | |||||||||||||||||||||||||
Notional | |||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
($) | |||||||||||||||||||||||||
Foreign currency exchange contracts | 366,991 | ||||||||||||||||||||||||
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 unaudited condensed consolidated balance sheets: | ||||||||||||||||||||||||
Derivatives Classified as Assets | Derivatives Classified as Liabilities | ||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | |||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | ||||||||||||||||||
Location | Location | Location | Location | ||||||||||||||||||||||
Commodity contracts | Fuel price | $ | 31,624 | Fuel price | $ | 40,969 | Fuel price | $ | — | Fuel price | $ | — | |||||||||||||
derivatives, | derivatives, | derivatives, | derivatives, | ||||||||||||||||||||||
at fair value | at fair value | at fair value | at fair value | ||||||||||||||||||||||
Foreign currency exchange contracts | Other assets | $ | 2,752 | Other assets | $ | — | Other liabilities | $ | — | Other liabilities | $ | — | |||||||||||||
Location and Amounts of Derivative Gains and Losses in Condensed Consolidated Statements of Income | The following table presents information on the location and amounts of derivative gains and losses in the unaudited 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 | 2015 | 2014 | |||||||||||||||||||||||
Commodity contracts | Net realized and unrealized gain (loss) on fuel price derivatives | $ | 2,749 | $ | 1,845 | ||||||||||||||||||||
Foreign currency exchange contracts | Net unrealized gain (loss) on currency forward contracts | $ | 2,752 | $ | — | ||||||||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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, 2014: | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
at Reporting Date Using | ||||||||||||||||
31-Dec-14 | 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 | $ | 810 | $ | — | $ | 810 | $ | — | ||||||||
Asset-backed securities | 1,165 | — | 1,165 | — | ||||||||||||
Municipal bonds | 554 | — | 554 | — | ||||||||||||
Equity securities | 16,411 | 16,411 | — | — | ||||||||||||
Total available-for-sale securities | $ | 18,940 | $ | 16,411 | $ | 2,529 | $ | — | ||||||||
Executive deferred compensation plan trust (a) | $ | 5,927 | $ | 5,927 | $ | — | $ | — | ||||||||
Fuel price derivatives – unleaded fuel (b) | $ | 29,120 | $ | — | $ | 29,120 | $ | — | ||||||||
Fuel price derivatives – diesel (b) | 11,849 | — | — | 11,849 | ||||||||||||
Total fuel price derivatives | $ | 40,969 | $ | — | $ | 29,120 | $ | 11,849 | ||||||||
(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 that are measured at fair value and the related hierarchy levels as of March 31, 2015: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
at Reporting Date Using | ||||||||||||||||
31-Mar-15 | 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 | $ | 788 | $ | — | $ | 788 | $ | — | ||||||||
Asset-backed securities | 1,079 | — | 1,079 | — | ||||||||||||
Municipal bonds | 494 | — | 494 | — | ||||||||||||
Equity securities | 16,650 | 16,650 | — | — | ||||||||||||
Total available-for-sale securities | $ | 19,011 | $ | 16,650 | $ | 2,361 | $ | — | ||||||||
Executive deferred compensation plan trust (a) | $ | 6,406 | $ | 6,406 | $ | — | $ | — | ||||||||
Foreign currency exchange contracts(a) | $ | 2,752 | $ | — | $ | 2,752 | $ | — | ||||||||
Fuel price derivatives – unleaded fuel (b) | $ | 21,363 | $ | — | $ | 21,363 | $ | — | ||||||||
Fuel price derivatives – diesel (b) | 10,261 | — | — | 10,261 | ||||||||||||
Total fuel price derivatives | $ | 31,624 | $ | — | $ | 21,363 | $ | 10,261 | ||||||||
(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, 2015 | March 31, 2014 | |||||||||||||||
Fuel Price | Fuel Price | |||||||||||||||
Derivatives – | Derivatives – | |||||||||||||||
Diesel | Diesel | |||||||||||||||
Beginning balance | $ | 11,848 | $ | (2,142 | ) | |||||||||||
Total gains and (losses) – realized/unrealized | ||||||||||||||||
Included in earnings (a) | (1,587 | ) | 1,519 | |||||||||||||
Included in other comprehensive income | — | — | ||||||||||||||
Purchases, issuances and settlements | — | — | ||||||||||||||
Transfers (in)/out of Level 3 | — | — | ||||||||||||||
Ending balance | $ | 10,261 | $ | (623 | ) | |||||||||||
(a)Gains and losses (realized and unrealized) associated with fuel price derivatives, included in earnings for the three months ended March 31, 2015 and 2014, are reported in net realized and unrealized losses on fuel price derivatives 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, 2015, are as follows: | |||||||||||||||
Fair Value | Valuation | Unobservable Input | Range | |||||||||||||
Technique | $ per gallon | |||||||||||||||
Fuel price derivatives – diesel | $ | 10,261 | Option model | Future retail price of diesel fuel after March 31, 2015 | $3.72 – 3.86 | |||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Reconciliation of Accumulated Other Comprehensive Income | A reconciliation of accumulated other comprehensive income for the three month periods ended March 31, 2015 and 2014, is as follows: | |||||||||||||||
2015 | 2014 | |||||||||||||||
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 | $ | (129 | ) | $ | (50,452 | ) | $ | (433 | ) | $ | (15,062 | ) | ||||
Other comprehensive income (loss) | 91 | (24,683 | ) | 74 | 13,999 | |||||||||||
Ending balance | $ | (38 | ) | $ | (75,135 | ) | $ | (359 | ) | $ | (1,063 | ) |
Noncontrolling_interests_Table
Non-controlling interests (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Noncontrolling Interest [Abstract] | ||||||||
Redeemable Noncontrolling Interest | A reconciliation of redeemable non-controlling interest for the three month periods ended March 31, 2015 and March 31, 2014, is as follows: | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 16,590 | $ | 18,729 | ||||
Net loss attributable to redeemable non-controlling interest | (11 | ) | (167 | ) | ||||
Currency translation adjustment | (2,932 | ) | 776 | |||||
Ending balance | $ | 13,647 | $ | 19,338 | ||||
Summary of Noncontrolling Interests | A reconciliation of non-controlling interest for the three month periods ended March 31, 2015 and March 31, 2014 is as follows: | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 17,396 | $ | 519 | ||||
Net loss attributable to non-controlling interest | (2,301 | ) | (295 | ) | ||||
Currency translation adjustment | (1,451 | ) | 4 | |||||
Ending balance | $ | 13,644 | $ | 228 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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, 2015 and 2014: | |||||||||||||||
Total | Operating | Depreciation | Adjusted Pre-Tax Income before NCI | |||||||||||||
Revenues | Interest | and | ||||||||||||||
Expense | Amortization | |||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||
Fleet payment solutions | $ | 128,490 | $ | 740 | $ | 7,458 | $ | 44,928 | ||||||||
Other payment solutions | 73,795 | 839 | 1,770 | 21,663 | ||||||||||||
Total | $ | 202,285 | $ | 1,579 | $ | 9,228 | $ | 66,591 | ||||||||
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 | ||||||||
Reconciliation of Adjusted Net Income to Net Income | The following table reconciles adjusted pre-tax income before NCI to income before income taxes: | |||||||||||||||
Three months ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Adjusted pre-tax income before NCI | $ | 66,591 | $ | 64,946 | ||||||||||||
Unrealized (loss) gain on fuel price derivatives | (9,345 | ) | 2,823 | |||||||||||||
Amortization of acquired intangible assets | (12,159 | ) | (8,287 | ) | ||||||||||||
Stock-based compensation | (3,218 | ) | (2,423 | ) | ||||||||||||
Restructuring | (8,559 | ) | — | |||||||||||||
Gain on divestiture | 1,215 | — | ||||||||||||||
Income before income taxes | $ | 34,525 | $ | 57,059 | ||||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Details) (USD $) | Mar. 31, 2015 | Aug. 30, 2012 |
Unik [Member] | ||
Debt Instrument [Line Items] | ||
Percent of ownership interest acquired | 51.00% | 51.00% |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 4.75% | |
Debt instrument, aggregate principal amount | 400,000,000 |
Business_Acquisitions_Addition
Business Acquisitions - Additional Information (Detail) (USD $) | 3 Months Ended | 5 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 01, 2014 | Jul. 16, 2014 |
ESSO Portfolio [Member] | ||||
Business Acquisition [Line Items] | ||||
Percent of ownership interest acquired | 75.00% | |||
Consideration paid (net of cash acquired) | $80,000 | $377,618 | ||
Increase (decrease) in goodwill | 549 | |||
Increase (decrease) in accounts receivable | -2 | |||
Increase (decrease) in other tangible assets and liabilities, net | -547 | |||
Evolution1 [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration paid (net of cash acquired) | 532,174 | |||
Payments to acquire business, gross | $532,174 |
Business_Acquisitions_Summary_
Business Acquisitions - Summary of Esso Portfolio Acquisition (Details) (USD $) | 3 Months Ended | 5 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 01, 2014 | Dec. 01, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $1,085,513 | $1,116,914 | |||
ESSO Portfolio [Member] | |||||
Business Acquisition [Line Items] | |||||
Consideration paid (net of cash acquired and consideration receivable) | 80,000 | 377,618 | |||
Accounts receivable | 303,376 | 303,376 | |||
Other tangible assets and liabilities, net | -11,097 | -11,097 | |||
Goodwill | 40,640 | 40,640 | |||
ESSO Portfolio [Member] | Licensing agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | 36,979 | 36,979 | |||
Weighted average life | 4 years 7 months 6 days | ||||
ESSO Portfolio [Member] | Customer relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $7,720 | $7,720 | |||
Weighted average life | 7 years 2 months 12 days |
Business_Acquisitions_Summary_1
Business Acquisitions - Summary of Evolution1 Acquisition (Details) (USD $) | 0 Months Ended | |||
In Thousands, unless otherwise specified | Jul. 16, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Less: | ||||
Recorded goodwill | $1,085,513 | $1,116,914 | ||
Evolution1 [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration paid (net of cash acquired) | 532,174 | |||
Less: | ||||
Accounts receivable | 8,418 | |||
Accounts payable | -175 | |||
Deferred tax liabilities, net | -68,516 | |||
Other tangible assets and liabilities, net | -3,585 | |||
Recorded goodwill | 296,132 | |||
Acquired software and developed technology [Member] | Evolution1 [Member] | ||||
Less: | ||||
Finite-lived intangible assets | 70,000 | [1] | ||
Weighted average life | 6 years 4 months 24 days | |||
Customer relationships [Member] | Evolution1 [Member] | ||||
Less: | ||||
Finite-lived intangible assets | 211,000 | [2] | ||
Weighted average life | 9 years 8 months 12 days | |||
Trademarks and trade names [Member] | Evolution1 [Member] | ||||
Less: | ||||
Finite-lived intangible assets | 7,900 | [3] | ||
Indefinite-lived intangible assets | $11,000 | [4] | ||
Weighted average life | 9 years 10 months 24 days | |||
[1] | Weighted average life – 6.4 years. | |||
[2] | Weighted average life – 9.7 years. | |||
[3] | Weighted average life – 9.9 years. | |||
[4] | Indefinite-lived |
Business_Acquisitions_Pro_Form
Business Acquisitions - Pro Forma Results of Operations of Evolution1 (Details) (Evolution1 [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Evolution1 [Member] | |
Business Acquisition [Line Items] | |
Revenue | $205,270 |
Net income attributable to WEX Inc. | $38,581 |
Pro forma net income attributable to WEX Inc. per common share: | |
Net income per share – basic (in usd per share) | $0.99 |
Net income per share – diluted (in usd per share) | $0.99 |
Sale_of_Subsidiary_and_Assets_1
Sale of Subsidiary and Assets - Additional Information (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 07, 2015 | Jul. 29, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on divestiture | $1,215 | $0 | ||
Rapid! Paycard [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of subsidiary | 20,000 | |||
Gain on divestiture | 1,215 | |||
Pacific Pride [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of subsidiary | 49,664 | |||
Gain on divestiture | $27,490 |
Sale_of_Subsidiary_and_Assets_2
Sale of Subsidiary and Assets - Summary of Sale of Pacific Pride LLC (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jul. 29, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on divestiture | $1,215 | $0 | |
Pacific Pride [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration received | 49,664 | ||
Expenses associated with the sale | 1,340 | ||
Accounts receivable | 48,699 | ||
Accounts payable | -53,001 | ||
Other tangible assets and liabilities, net | 828 | ||
Goodwill | 19,137 | ||
Gain on divestiture | 27,490 | ||
Pacific Pride [Member] | Customer relationships [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Intangible assets | 3,727 | ||
Pacific Pride [Member] | Trademarks and trade names [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Intangible assets | $1,444 |
Reserves_for_Credit_Losses_Add
Reserves for Credit Losses - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Concentration Risk [Line Items] | ||
Trade receivable payments terms (30 days or less) | 30 days | |
Outstanding balance of total trade accounts receivable | 95.00% | 96.00% |
Percentage of trade accounts receivables less than 60 days past due | 98.00% | 99.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, number of customers | 0 | |
Concentration risk, percentage | 7.00% |
Reserves_for_Credit_Losses_Cha
Reserves for Credit Losses - Changes in Reserves for Credit Losses Related to Accounts Receivable (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance, beginning of period | $13,919 | $10,396 |
Provision for credit losses | 3,914 | 9,090 |
Charge-offs | -7,367 | -8,107 |
Recoveries of amounts previously charged-off | 1,210 | 1,697 |
Currency translation | -163 | 87 |
Balance, end of period | $11,513 | $13,163 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Changes In Goodwill (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill [Roll Forward] | ||
Gross goodwill, January 1, 2015 | $1,134,422 | |
Impact of foreign currency translation | -19,015 | |
Sale of rapid! PayCard | -12,386 | |
Gross goodwill, March 31, 2015 | 1,103,021 | |
Accumulated impairment, March 31, 2015 | -17,508 | |
Net goodwill, March 31, 2015 | 1,085,513 | 1,116,914 |
Fleet Payment Solutions Segment [Member] | ||
Goodwill [Roll Forward] | ||
Gross goodwill, January 1, 2015 | 759,998 | |
Impact of foreign currency translation | -15,095 | |
Sale of rapid! PayCard | 0 | |
Gross goodwill, March 31, 2015 | 744,903 | |
Accumulated impairment, March 31, 2015 | -1,337 | |
Net goodwill, March 31, 2015 | 743,566 | |
Other Payment Solutions Segment [Member] | ||
Goodwill [Roll Forward] | ||
Gross goodwill, January 1, 2015 | 374,424 | |
Impact of foreign currency translation | -3,920 | |
Sale of rapid! PayCard | -12,386 | |
Gross goodwill, March 31, 2015 | 358,118 | |
Accumulated impairment, March 31, 2015 | -16,171 | |
Net goodwill, March 31, 2015 | $341,947 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill impairment | $0 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Changes in Intangible Assets (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Definite-lived intangible assets | ||
Net Carrying Amount, January 1, 2015 | $481,666 | |
Amortization | -12,159 | -8,287 |
Net Carrying Amount, March 31, 2015 | 455,957 | |
Indefinite-lived intangible assets | ||
Net Carrying Amount, January 1, 2015 | 498,045 | |
Disposals | -3,019 | |
Impact of foreign currency translation | -10,805 | |
Net Carrying Amount, March 31, 2015 | 472,062 | |
Trademarks and trade names [Member] | ||
Indefinite-lived intangible assets | ||
Net Carrying Amount, January 1, 2015 | 16,379 | |
Impact of foreign currency translation | -274 | |
Net Carrying Amount, March 31, 2015 | 16,105 | |
Acquired software and developed technology [Member] | ||
Definite-lived intangible assets | ||
Net Carrying Amount, January 1, 2015 | 119,509 | |
Amortization | -3,062 | |
Disposals | 0 | |
Impact of foreign currency translation | -1,984 | |
Net Carrying Amount, March 31, 2015 | 114,463 | |
Customer relationships [Member] | ||
Definite-lived intangible assets | ||
Net Carrying Amount, January 1, 2015 | 309,824 | |
Amortization | -7,695 | |
Disposals | -2,296 | |
Impact of foreign currency translation | -4,450 | |
Net Carrying Amount, March 31, 2015 | 295,383 | |
Licensing agreements [Member] | ||
Definite-lived intangible assets | ||
Net Carrying Amount, January 1, 2015 | 35,715 | |
Amortization | -1,089 | |
Disposals | 0 | |
Impact of foreign currency translation | -3,792 | |
Net Carrying Amount, March 31, 2015 | 30,834 | |
Patent [Member] | ||
Definite-lived intangible assets | ||
Net Carrying Amount, January 1, 2015 | 1,245 | |
Amortization | -27 | |
Disposals | 0 | |
Impact of foreign currency translation | -107 | |
Net Carrying Amount, March 31, 2015 | 1,111 | |
Trade names [Member] | ||
Definite-lived intangible assets | ||
Net Carrying Amount, January 1, 2015 | 15,373 | |
Amortization | -286 | |
Disposals | -723 | |
Impact of foreign currency translation | -198 | |
Net Carrying Amount, March 31, 2015 | $14,166 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Estimated Amortization Expense Related to Definite Lived Intangible Assets (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining 2015 | $35,889 |
2016 | 47,444 |
2017 | 47,129 |
2018 | 43,702 |
2019 | 40,417 |
2020 | $37,025 |
Goodwill_and_Other_Intangible_6
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived intangible assets | $580,498 | $601,357 |
Accumulated Amortization, Definite-lived intangible assets | -124,541 | -119,691 |
Net Carrying Amount, Definite-lived intangible assets | 455,957 | 481,666 |
Other intangible assets, net | 472,062 | 498,045 |
Acquired software and developed technology [Member] | ||
Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived intangible assets | 147,365 | 150,458 |
Accumulated Amortization, Definite-lived intangible assets | -32,902 | -30,949 |
Net Carrying Amount, Definite-lived intangible assets | 114,463 | 119,509 |
Customer relationships [Member] | ||
Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived intangible assets | 381,810 | 394,316 |
Accumulated Amortization, Definite-lived intangible assets | -86,427 | -84,492 |
Net Carrying Amount, Definite-lived intangible assets | 295,383 | 309,824 |
Licensing agreements [Member] | ||
Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived intangible assets | 32,225 | 36,100 |
Accumulated Amortization, Definite-lived intangible assets | -1,391 | -385 |
Net Carrying Amount, Definite-lived intangible assets | 30,834 | 35,715 |
Patent [Member] | ||
Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived intangible assets | 2,543 | 2,697 |
Accumulated Amortization, Definite-lived intangible assets | -1,432 | -1,452 |
Net Carrying Amount, Definite-lived intangible assets | 1,111 | 1,245 |
Trademarks and trade names [Member] | ||
Other Intangible Assets [Line Items] | ||
Gross Carrying Amount, Definite-lived intangible assets | 16,555 | 17,786 |
Accumulated Amortization, Definite-lived intangible assets | -2,389 | -2,413 |
Net Carrying Amount, Definite-lived intangible assets | 14,166 | 15,373 |
Net Carrying Amount, Indefinite-lived intangible assets | $16,105 | $16,379 |
Earnings_per_Share_Reconciliat
Earnings per Share - 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, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net earnings attributable to WEX Inc. available for common stockholders – Basic and Diluted | $22,345 | $36,542 |
Weighted average common shares outstanding – Basic (in shares) | 38,859 | 38,966 |
Unvested restricted stock units (in shares) | 76 | 153 |
Stock options (in shares) | 17 | 26 |
Weighted average common shares outstanding – Diluted (in shares) | 38,952 | 39,145 |
Put_and_Call_Option_Contracts_
- Put and Call Option Contracts (Detail) | 3 Months Ended | |
Mar. 31, 2015 | ||
gal | ||
Derivative [Line Items] | ||
Total fuel price derivative instruments, gallons | 35,737,000 | [1] |
Unleaded Fuel [Member] | ||
Derivative [Line Items] | ||
Total fuel price derivative instruments, gallons | 23,947,000 | [1] |
Diesel [Member] | ||
Derivative [Line Items] | ||
Total fuel price derivative instruments, gallons | 11,790,000 | [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. |
Derivative_Instruments_Put_and
Derivative Instruments - Put and Call Option Contracts (Phantom) (Detail) | 3 Months Ended | |
Mar. 31, 2015 | ||
Minimum [Member] | Unleaded Fuel [Member] | ||
Derivative [Line Items] | ||
Derivative settlement date | 2015-04 | [1] |
Minimum [Member] | Diesel [Member] | ||
Derivative [Line Items] | ||
Derivative settlement date | 2015-04 | [1] |
Maximum [Member] | Unleaded Fuel [Member] | ||
Derivative [Line Items] | ||
Derivative settlement date | 2016-03 | [1] |
Maximum [Member] | Diesel [Member] | ||
Derivative [Line Items] | ||
Derivative settlement date | 2016-03 | [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. |
Derivative_Instruments_Forward
Derivative Instruments - Forward and Spot Contracts on Foreign Currency Exchange Contracts (Details) (Foreign Currency Exchange Contract [Member], Derivatives Not Designated as Hedging Instruments [Member], USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Foreign Currency Exchange Contract [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |
Derivatives, Fair Value [Line Items] | |
Aggregate Notional Amount | $366,991 |
Derivative_Instruments_Locatio
Derivative Instruments - Location and Amounts of Derivative Fair Values in Condensed Consolidated Balance Sheets (Detail) (Derivatives Not Designated as Hedging Instruments [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Commodity contracts [Member] | Fuel Price Derivatives at Fair Value [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Classified as Assets | $31,624 | $40,969 |
Derivatives Classified as Liabilities | 0 | 0 |
Foreign Currency Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Classified as Assets | 2,752 | 0 |
Derivatives Classified as Liabilities | $0 | $0 |
Derivative_Instruments_Locatio1
Derivative Instruments - Location and Amounts of Derivative Gains and Losses in Condensed Consolidated Statements of Income (Detail) (Derivatives Not Designated as Hedging Instruments [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Commodity contracts [Member] | Net realized and unrealized gains (losses) on fuel price derivatives [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivative | $2,749 | $1,845 |
Foreign Currency Exchange Contract [Member] | Net unrealized gain (loss) on currency forward contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivative | $2,752 | $0 |
Financing_and_Other_Debt_Addit
Financing and Other Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Lines of credit | 815,872,000 | $901,564,000 |
Unik [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 6,160,000 | 7,975,000 |
Weighted average annual interest rate | 13.40% | 13.90% |
2014 Credit Agreement [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit | 336,497,000 | |
Maximum borrowing capacity | 700,000,000 | |
2014 Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Interest Rate Option One [Member] | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 2.25% | |
2014 Credit Agreement [Member] | Domestic Line of Credit [Member] | Prime Rate [Member] | Interest Rate Option Two [Member] | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 1.75% | |
2014 Credit Agreement [Member] | Foreign Line of Credit [Member] | Eurocurrency Rate [Member] | Interest Rate Option Two [Member] | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 2.25% | |
2014 Credit Agreement [Member] | Credit Facility Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit | 479,375,000 | 486,250,000 |
2014 Credit Agreement [Member] | Credit Facility Term Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 2.25% | |
Loan Participations and Assignments [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, aggregate principal amount | 45,000,000 | 45,000,000 |
Loan Participations and Assignments [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Range of daily balance | 0 | |
Loan Participations and Assignments [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Range of daily balance | 45,000,000 | |
Loan Participations and Assignments [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 2.25% |
Fair_Value_Assets_and_Liabilit
Fair Value - Assets and Liabilities Measured at Fair Value and Related Hierarchy Levels (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | $19,011 | $18,940 | ||
Executive deferred compensation plan trust | 6,406 | [1] | 5,927 | [1] |
Foreign currency exchange contracts | 2,752 | [1] | ||
Total fuel price derivatives | 31,624 | 40,969 | ||
Mortgage-backed securities [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | 788 | 810 | ||
Asset-backed securities [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | 1,079 | 1,165 | ||
Municipal bonds [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | 494 | 554 | ||
Equity securities [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | 16,650 | 16,411 | ||
Fuel price derivatives – unleaded fuel [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total fuel price derivatives | 21,363 | [2] | 29,120 | [2] |
Fuel price derivatives – diesel [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total fuel price derivatives | 10,261 | [2] | 11,849 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | 16,650 | 16,411 | ||
Executive deferred compensation plan trust | 6,406 | [1] | 5,927 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | 16,650 | 16,411 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | 2,361 | 2,529 | ||
Foreign currency exchange contracts | 2,752 | [1] | ||
Total fuel price derivatives | 21,363 | 29,120 | ||
Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed securities [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | 788 | 810 | ||
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | 1,079 | 1,165 | ||
Significant Other Observable Inputs (Level 2) [Member] | Municipal bonds [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total available-for-sale securities | 494 | 554 | ||
Significant Other Observable Inputs (Level 2) [Member] | Fuel price derivatives – unleaded fuel [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total fuel price derivatives | 21,363 | [2] | 29,120 | [2] |
Significant Other Observable Inputs (Level 3) [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total fuel price derivatives | 10,261 | 11,849 | ||
Significant Other Observable Inputs (Level 3) [Member] | Fuel price derivatives – diesel [Member] | ||||
Fair Value Measurements [Line Items] | ||||
Total fuel price derivatives | $10,261 | [2] | $11,849 | [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_Reconciliation_of_B
Fair Value - Reconciliation of Beginning and Ending Balances for Assets (Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level Three) (Detail) (Fuel price derivatives – diesel [Member], USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Fuel price derivatives – diesel [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $11,848 | ($2,142) | ||
Included in earnings | -1,587 | [1] | 1,519 | [1] |
Included in other comprehensive income | 0 | 0 | ||
Ending balance | $10,261 | ($623) | ||
[1] | Gains and losses (realized and unrealized) associated with fuel price derivatives, included in earnings for the three months ended March 31, 2015 and 2014, are reported in net realized and unrealized losses on fuel price derivatives on the unaudited condensed consolidated statements of income. |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Notes outstanding, carrying value | $400,000 | $400,000 |
Notes outstanding, fair value | $397,000 | $388,000 |
Fair_Value_Quantitative_Inform
Fair Value - Quantitative Information About Level Three Fair Value Measurements (Detail) (Fuel price derivatives – diesel [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value | $10,261 |
Option Model [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Future retail price of diesel (in dollars per gallon) | 3.72 |
Option Model [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Future retail price of diesel (in dollars per gallon) | 3.86 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Reconciliation of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | ($50,581) | ||
Ending balance | -75,173 | -50,581 | |
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | -129 | -433 | |
Other comprehensive income (loss) | 91 | 74 | |
Ending balance | -38 | -359 | |
Accumulated Other Comprehensive Income (Loss), Tax | 2,155 | 831 | |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | -50,452 | -15,062 | |
Other comprehensive income (loss) | -24,683 | 13,999 | |
Ending balance | ($75,135) | ($1,063) |
Noncontrolling_interests_Addit
Non-controlling interests - Additional Information (Detail) | Mar. 31, 2015 | Aug. 30, 2012 | Nov. 08, 2013 |
Unik [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent of ownership interest acquired | 51.00% | 51.00% | |
WEX Europe Services [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent of ownership interest acquired | 75.00% |
Noncontrolling_interests_Redee
Non-controlling interests - Redeemable Noncontrolling Interests (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reconcilliation of Redeemable Noncontrolling Interest [Roll Forward] | ||
Balance, beginning of period | $16,590 | $18,729 |
Net loss attributable to redeemable non-controlling interest | -11 | -167 |
Currency translation adjustment | -2,932 | 776 |
Ending balance | 13,647 | 19,338 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Balance, beginning of period | 17,396 | |
Net loss attributable to non-controlling interest | -2,312 | -462 |
Ending balance | 13,644 | |
WEX Europe Services [Member] | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Balance, beginning of period | 17,396 | 519 |
Net loss attributable to non-controlling interest | -2,301 | -295 |
Currency translation adjustment | -1,451 | 4 |
Ending balance | $13,644 | $228 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Undistributed earnings of certain foreign subsidiaries | $8,731 | $7,733 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring and Related Activities [Abstract] | ||
Restructuring | $8,559 | $0 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 2 | |
Revenues | $202,285 | $182,068 |
Evolution1 [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $24,828 |
Segment_Information_Reportable
Segment Information - Reportable Segment Results (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Disclosure [Line Items] | ||
Total Revenues | $202,285 | $182,068 |
Adjusted Pre-Tax Income before NCI | 66,591 | 64,946 |
Operating Segments [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Total Revenues | 202,285 | 182,068 |
Operating Interest Expense | 1,579 | 1,288 |
Depreciation and Amortization | 9,228 | 6,731 |
Operating Segments [Member] | Fleet payment solutions [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Total Revenues | 128,490 | 135,435 |
Operating Interest Expense | 740 | 524 |
Depreciation and Amortization | 7,458 | 6,377 |
Adjusted Pre-Tax Income before NCI | 44,928 | 47,674 |
Operating Segments [Member] | Other payment solutions [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Total Revenues | 73,795 | 46,633 |
Operating Interest Expense | 839 | 764 |
Depreciation and Amortization | 1,770 | 354 |
Adjusted Pre-Tax Income before NCI | $21,663 | $17,272 |
Segment_Information_Reconcilia
Segment Information - Reconciliation of Adjusted Pre-Tax Income Before NCI to Income Before Income Taxes (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting [Abstract] | ||
Adjusted Pre-Tax Income before NCI | $66,591 | $64,946 |
Unrealized gain (loss) on fuel price derivatives | -9,345 | 2,823 |
Amortization of acquired intangible assets | -12,159 | -8,287 |
Stock-based compensation | -3,218 | -2,423 |
Restructuring | -8,559 | 0 |
Gain on divestiture | 1,215 | 0 |
Income before income taxes | $34,525 | $57,059 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Details) (Subsequent Event [Member]) | 0 Months Ended | ||
Apr. 28, 2015 | Apr. 28, 2015 | Apr. 30, 2015 | |
USD ($) | AUD | Australian Bank Bill Rate [Member] | |
Subsequent Event [Line Items] | |||
Term of securitization facility | 1 year | 1 year | |
Maximum transacted amount under agreement | $100,000,000 | 125,000,000 | |
Interest rate at period end | 2.20% |