Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-32426 | ||
Entity Registrant Name | WEX INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 01-0526993 | ||
Entity Address, Address Line One | 1 Hancock St., | ||
Entity Address, City or Town | Portland, | ||
Entity Address, State or Province | ME | ||
Entity Address, Postal Zip Code | 04101 | ||
City Area Code | 207 | ||
Local Phone Number | 773-8171 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | WEX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,945,887,913 | ||
Entity Common Stock, Shares Outstanding | 43,341,984 | ||
Entity Central Index Key | 0001309108 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | FY | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Total revenues | $ 1,723,691 | $ 1,492,639 | $ 1,248,577 |
Cost of services | |||
Processing costs | 400,439 | 309,450 | 278,056 |
Service fees | 57,027 | 53,655 | 72,957 |
Provision for credit losses | 65,664 | 66,482 | 64,218 |
Operating interest | 41,915 | 38,407 | 24,993 |
Depreciation and amortization | 94,725 | 79,935 | 74,061 |
Total cost of services | 659,770 | 547,929 | 514,285 |
General and administrative | 275,807 | 209,319 | 184,339 |
Sales and marketing | 259,869 | 229,234 | 163,654 |
Depreciation and amortization | 142,404 | 119,870 | 129,663 |
Impairment charges | 0 | 5,649 | 44,171 |
Gain on divestiture | 0 | 0 | (20,958) |
Operating income | 385,841 | 380,638 | 233,423 |
Financing interest expense | (134,677) | (105,023) | (107,067) |
Net foreign currency (loss) gain | (926) | (38,800) | 31,487 |
Non-cash adjustments related to tax receivable agreement | 932 | (775) | 15,259 |
Net unrealized (loss) gain on financial instruments | (34,654) | 2,579 | 1,314 |
Income before income taxes | 216,516 | 238,619 | 174,416 |
Income taxes | 61,223 | 68,843 | 15,450 |
Net income | 155,293 | 169,776 | 158,966 |
Less: Net (loss) income from non-controlling interests | (1,030) | 1,481 | (1,096) |
Net income attributable to WEX Inc. | 156,323 | 168,295 | 160,062 |
Accretion of non-controlling interest | (57,317) | 0 | 0 |
Net income attributable to shareholders | $ 99,006 | $ 168,295 | $ 160,062 |
Net income attributable to shareholders per share: | |||
Basic (in dollars per share) | $ 2.29 | $ 3.90 | $ 3.72 |
Diluted (in dollars per share) | $ 2.26 | $ 3.86 | $ 3.71 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 43,316 | 43,156 | 42,977 |
Diluted (in shares) | 43,769 | 43,574 | 43,105 |
Payment processing revenue | |||
Revenues | |||
Total revenues | $ 825,592 | $ 723,991 | $ 569,166 |
Account servicing revenue | |||
Revenues | |||
Total revenues | 413,552 | 308,096 | 276,570 |
Finance fee revenue | |||
Revenues | |||
Total revenues | 247,318 | 208,627 | 188,792 |
Other revenue | |||
Revenues | |||
Total revenues | $ 237,229 | $ 251,925 | $ 214,049 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 155,293 | $ 169,776 | $ 158,966 |
Changes in investment securities, net of tax benefit of $3 in 2017 | 0 | 0 | (5) |
Foreign currency translation | 1,784 | (28,535) | 34,295 |
Comprehensive income | 157,077 | 141,241 | 193,256 |
Less: Comprehensive (loss) income attributable to non-controlling interest | (1,088) | 1,007 | (1,554) |
Comprehensive income attributable to WEX Inc. | $ 158,165 | $ 140,234 | $ 194,810 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Changes in available-for-sale securities, tax benefit | $ 3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 810,932 | $ 541,498 |
Restricted cash | 170,449 | 13,533 |
Accounts receivable (net of allowances of $52,274 in 2019 and $46,948 in 2018) | 2,661,108 | 2,584,203 |
Securitized accounts receivable, restricted | 112,192 | 109,871 |
Prepaid expenses and other current assets | 87,694 | 149,021 |
Total current assets | 3,842,375 | 3,398,126 |
Property, equipment and capitalized software (net of accumulated depreciation of $344,212 in 2019 and $307,750 in 2018) | 212,475 | 187,868 |
Goodwill | 2,441,201 | 1,832,129 |
Other intangible assets (net of accumulated amortization of $666,793 in 2019 and $509,055 in 2018) | 1,575,050 | 1,034,194 |
Investment securities | 30,460 | 24,406 |
Deferred income taxes, net | 12,833 | 9,643 |
Other assets | 184,024 | 284,229 |
Total assets | 8,298,418 | 6,770,595 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 969,816 | 814,742 |
Accrued expenses | 315,642 | 312,268 |
Restricted cash payable | 170,449 | 13,533 |
Short-term deposits | 1,310,813 | 927,444 |
Short-term debt, net | 248,531 | 216,517 |
Other current liabilities | 34,692 | 27,067 |
Total current liabilities | 3,049,943 | 2,311,571 |
Long-term debt, net | 2,686,513 | 2,133,923 |
Long-term deposits | 143,399 | 345,231 |
Deferred income taxes, net | 218,740 | 151,685 |
Other liabilities | 106,422 | 32,261 |
Total liabilities | 6,205,017 | 4,974,671 |
Commitments and contingencies (Note 21) | ||
Redeemable non-controlling interest | 156,879 | 0 |
Stockholders’ Equity | ||
Common stock $0.01 par value; 175,000 shares authorized; 47,749 issued in 2019 and 47,557 in 2018; 43,321 shares outstanding in 2019 and 43,129 in 2018 | 477 | 475 |
Additional paid-in capital | 675,060 | 593,262 |
Retained earnings | 1,539,201 | 1,481,593 |
Accumulated other comprehensive loss | (115,449) | (117,291) |
Treasury stock at cost; 4,428 shares in 2019 and 2018 | (172,342) | (172,342) |
Total WEX Inc. stockholders’ equity | 1,926,947 | 1,785,697 |
Non-controlling interest | 9,575 | 10,227 |
Total stockholders’ equity | 1,936,522 | 1,795,924 |
Total liabilities and stockholders’ equity | $ 8,298,418 | $ 6,770,595 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserve for credit losses | $ 52,274 | $ 46,948 |
Accumulated depreciation | 344,212 | 307,750 |
Accumulated amortization | $ 666,793 | $ 509,055 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, shares issued (in shares) | 47,749,000 | 47,557,000 |
Common stock, shares outstanding (in shares) | 43,321,000 | 43,129,000 |
Treasury stock, shares (in shares) | 4,428,000 | 4,428,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Issued | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Treasury Stock | Retained Earnings | Non-Controlling Interest |
Beginning Balances (in shares) at Dec. 31, 2016 | 47,173 | ||||||
Beginning balance at Dec. 31, 2016 | $ 1,415,151 | $ 472 | $ 547,627 | $ (123,978) | $ (172,342) | $ 1,152,713 | $ 10,659 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other | 0 | (115) | 115 | ||||
Stock issued (in shares) | 178 | ||||||
Stock issued | 733 | $ 1 | 732 | ||||
Share repurchases for tax withholdings | (9,527) | (9,527) | |||||
Stock-based compensation expense (in shares) | 1 | ||||||
Stock-based compensation expense | 30,487 | 30,487 | |||||
Changes in investment securities, net of tax benefit of $3 | (5) | (5) | |||||
Foreign currency translation | 34,295 | 34,753 | (458) | ||||
Net income (loss) | 158,966 | 160,062 | (1,096) | ||||
Ending Balance (in shares) at Dec. 31, 2017 | 47,352 | ||||||
Ending balance at Dec. 31, 2017 | 1,630,100 | $ 473 | 569,319 | (89,230) | (172,342) | 1,312,660 | 9,220 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued (in shares) | 205 | ||||||
Stock issued | 2,430 | $ 2 | 2,428 | ||||
Share repurchases for tax withholdings | (12,372) | (12,372) | |||||
Stock-based compensation expense | 33,887 | 33,887 | |||||
Changes in investment securities, net of tax benefit of $3 | 0 | ||||||
Foreign currency translation | (28,535) | (28,061) | (474) | ||||
Net income (loss) | 169,776 | 168,295 | 1,481 | ||||
Ending Balance (in shares) at Dec. 31, 2018 | 47,557 | ||||||
Ending balance at Dec. 31, 2018 | 1,795,924 | $ 475 | 593,262 | (117,291) | (172,342) | 1,481,593 | 10,227 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued (in shares) | 192 | ||||||
Stock issued | 4,941 | $ 2 | 4,939 | ||||
Share repurchases for tax withholdings | (10,352) | (10,352) | |||||
Stock-based compensation expense | 45,811 | 45,811 | |||||
Changes in investment securities, net of tax benefit of $3 | 0 | ||||||
Adjustments of redeemable non-controlling interest | (57,315) | 41,400 | (98,715) | ||||
Foreign currency translation | 1,784 | 1,842 | (58) | ||||
Net income (loss) | 155,729 | 156,323 | (594) | ||||
Ending Balance (in shares) at Dec. 31, 2019 | 47,749 | ||||||
Ending balance at Dec. 31, 2019 | $ 1,936,522 | $ 477 | $ 675,060 | $ (115,449) | $ (172,342) | $ 1,539,201 | $ 9,575 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Changes in available-for-sale securities, tax effect | $ (3) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities | ||||
Net income | $ 155,293 | $ 169,776 | $ 158,966 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Net unrealized loss | 29,792 | 21,924 | 12,565 | |
Stock-based compensation | 45,811 | 33,887 | 30,487 | |
Depreciation and amortization | 237,129 | 199,805 | 203,724 | |
Debt restructuring and debt issuance cost amortization | 9,942 | 9,674 | 7,957 | |
Gain on divestiture | 0 | 0 | (20,958) | |
Provision for deferred taxes | 19,667 | 31,334 | (4,234) | |
Provision for credit losses | 65,664 | 66,482 | 64,218 | |
Impairment charges | 0 | 5,649 | 44,171 | |
Non-cash adjustments related to tax receivable agreement | (932) | 775 | (15,259) | |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||
Accounts receivable and securitized accounts receivable | (67,645) | (201,637) | (540,470) | |
Prepaid expenses and other current and other long-term assets | 31,337 | 68,014 | (3,043) | |
Accounts payable | 139,187 | (3,588) | 195,773 | |
Accrued expenses and restricted cash payable | 31,627 | 8,654 | (2,378) | |
Income taxes | (12,266) | (2,107) | 9,484 | |
Other current and other long-term liabilities | (21,435) | (8,413) | (5,576) | |
Net cash provided by operating activities | 663,171 | 400,229 | 135,427 | |
Cash flows from investing activities | ||||
Purchases of property, equipment and capitalized software | (102,860) | (87,152) | (79,276) | |
Purchase of equity investment | 0 | (2,771) | (4,553) | |
Purchases of investment securities | (5,567) | (1,768) | (474) | |
Maturities of investment securities | 230 | 266 | 631 | |
Acquisitions, net cash | (882,417) | (162,750) | (114,282) | |
Proceeds from divestiture | 0 | 0 | 29,900 | |
Net cash used for investing activities | (990,614) | (254,175) | (168,054) | |
Cash flows from financing activities | ||||
Repurchase of share-based awards to satisfy tax withholdings | (10,352) | (12,372) | (9,527) | |
Proceeds from stock option exercises | 4,941 | 2,430 | 733 | |
Net change in deposits | 176,603 | (20,360) | 173,052 | |
Net activity on other debt | (43,148) | (62,290) | 68,525 | |
Borrowings on revolving credit facility | 1,267,704 | 1,570,983 | 4,367,168 | |
Repayments on revolving credit facility | (1,265,251) | (1,707,478) | (4,239,241) | |
Borrowings on term loans | 688,990 | 178,000 | 0 | |
Repayments on term loans | (64,329) | (35,791) | (34,750) | |
Debt issuance costs | (3,442) | (5,841) | (985) | |
Net change in securitized debt | (1,943) | (10,009) | 34,410 | |
Net cash provided by (used for) financing activities | 749,773 | (102,728) | 359,385 | |
Effect of exchange rates on cash, cash equivalents and restricted cash | 4,020 | (10,680) | (17,715) | |
Net change in cash, cash equivalents and restricted cash | 426,350 | 32,646 | 309,043 | |
Cash, cash equivalents and restricted cash at beginning of year | [1] | 555,031 | 522,385 | 213,342 |
Cash, cash equivalents and restricted cash at end of year | [1] | 981,381 | 555,031 | 522,385 |
Supplemental cash flow information | ||||
Interest paid | 175,993 | 141,476 | 128,888 | |
Income taxes paid | 50,964 | 39,225 | 6,679 | |
Supplemental disclosure of non-cash investing and financing activities | ||||
Capital expenditures incurred but not paid | 4,771 | 8,569 | 4,596 | |
Reconciliation of cash, cash equivalents and restricted cash | ||||
Cash and cash equivalents at beginning of year | 541,498 | 503,519 | 190,930 | |
Restricted cash at beginning of year | 13,533 | 18,866 | 22,412 | |
Cash, cash equivalents and restricted cash at beginning of year | [1] | 555,031 | 522,385 | 213,342 |
Cash and cash equivalents at end of year | 810,932 | 541,498 | 503,519 | |
Restricted cash at end of year | 170,449 | 13,533 | 18,866 | |
Cash, cash equivalents and restricted cash at end of year | [1] | $ 981,381 | $ 555,031 | $ 522,385 |
[1] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our consolidated balance sheets to amounts within our consolidated statements of cash flows for the years ended December 31, 2019, 2018 and 2017: December 31, 2019 2018 2017 Cash and cash equivalents at beginning of year $ 541,498 $ 503,519 $ 190,930 Restricted cash at beginning of year 13,533 18,866 22,412 Cash, cash equivalents and restricted cash at beginning of year $ 555,031 $ 522,385 $ 213,342 Cash and cash equivalents at end of year $ 810,932 $ 541,498 $ 503,519 Restricted cash at end of year 170,449 13,533 18,866 Cash, cash equivalents and restricted cash at end of year $ 981,381 $ 555,031 $ 522,385 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Business Description WEX Inc. (“Company”, “we” or “our”) is a provider of corporate card payment solutions. The Company provides products and services that meet the needs of businesses in various geographic regions including North and South America, Asia Pacific and Europe. The Company’s Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions segments provide our customers with security and control for complex payments across a wide spectrum of business sectors. The Company markets its products and services directly, as well as through strategic relationships, which include major oil companies, fuel retailers, vehicle maintenance providers, online travel agencies and health partners. Basis of Presentation The accompanying consolidated financial statements for the years ended December 31, 2019 , 2018 and 2017 , include the accounts of the Company and its wholly and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company rounds amounts in the consolidated financial statements to thousands within tables and millions within text (unless otherwise specified), and calculates all percentages and per-share data from underlying whole-dollar amounts. Thus, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Use of Estimates and Assumptions The Company prepares its consolidated financial statements in conformity with GAAP and with the Rules and Regulations of the SEC, specifically Regulation S – X and the instructions to Form 10 – K. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates and those differences may be material. Cash and Cash Equivalents Highly liquid investments with original maturities at the time of purchase of three months or less (that are readily convertible to cash) are considered to be cash equivalents and are stated at cost, which approximates fair value. Cash and cash equivalents include Eurodollar time deposits, and money market funds, which are unsecured short-term investments entered into with financial institutions. Restricted Cash Restricted cash represents funds collected from individuals or employers on behalf of our customers that are to be remitted to third parties or funds required to be maintained on hand under certain vendor agreements and is not available to fund the Company’s operations. We maintain an offsetting liability against restricted cash collected and remitted on behalf of our customers. Accounts Receivable, Net of Allowances Accounts receivable, net of allowances consists of amounts billed and due from third parties. We often extend short-term credit to cardholders and pay the merchant for the purchase price, less the fees we retain and record as revenue. We subsequently collect the total purchase price from the cardholder. The amounts due are stated at their net realizable value. The receivables portfolio consists of a large group of homogeneous smaller balances across a wide range of industries, which are collectively evaluated for impairment. The accounts receivable allowance reflects management’s estimate of uncollectable balances resulting from credit and fraud losses and is based on the determination of the amount of expected losses inherent in the accounts receivable as of the reporting date. Management reviews delinquency reports, historical collection rates, changes in customer payment patterns, economic trends, geography and other information in order to make judgments as to probable credit losses. Management monitors pending fraud cases, customer-identified fraudulent activity and unconfirmed suspicious activity in order to make judgments as to probable fraud losses. Management also uses historical charge-off experience to determine the amount of losses inherent in accounts receivable at the reporting date. Assumptions regarding probable losses are reviewed periodically and may be impacted by actual performance of accounts receivable and changes in any of the factors discussed above. The accounts receivable allowance also includes a reserve for waived finance fees, which is used to maintain customer goodwill and recorded against the late fee revenue recognized. Investment Securities As a result of adopting ASU 2016 – 01, effective January 1, 2018, changes in the fair value of investment securities are included in net unrealized (loss) gain on financial instruments within our consolidated statements of income. Prior to adoption, unrealized gains and losses, net of tax, were reported on the consolidated balance sheets in accumulated other comprehensive loss. Realized gains and losses and declines in fair value determined to be other-than-temporary are included in non-operating expenses. The cost basis of securities is based on the specific identification method. Investment securities held by the Company were purchased and are held by WEX Bank primarily in order to meet the requirements of the Community Reinvestment Act. Derivatives From time to time, the Company utilizes derivative instruments as part of its overall strategy to manage its exposure to fluctuations in fuel prices and to reduce the impact of interest and foreign currency exchange rate volatility. The Company’s derivative instruments are recorded at fair value on the consolidated balance sheets . The Company’s derivative instruments have not been designated as hedges; realized and unrealized gains and losses are recognized in financing interest and unrealized gains and losses on financial instruments, respectively. For the purposes of cash flow presentation, realized and unrealized gains or losses are included within cash flows from operating activities. Leases Beginning January 1, 2019, leases are required to be accounted for using a right-of-use model, which recognizes that at the date of commencement, a lessee has a financial obligation to make lease payments to the lessor for the right to use the underlying asset during the lease term. The lessee recognizes a corresponding right-of-use asset related to this right. The Company made an accounting policy election to not recognize assets or liabilities for leases with a term of less than twelve months and to account for all components in a lease arrangement as a single combined lease component. As the Company’s leases do not specify an implicit rate, the Company uses an incremental borrowing rate based on information available at the lease commencement date to determine the present value of the lease payments. The Company evaluates right-of-use assets for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. See Note 15, Leases, for further information. Property, Equipment and Capitalized Software Property, equipment and capitalized software are stated at cost, net of accumulated depreciation and amortization. Replacements, renewals and improvements are capitalized and costs for repair and maintenance are expensed as incurred. Leasehold improvements are depreciated using the straight-line method over the shorter of the remaining lease term or the useful life of the improvement. Depreciation and amortization for all other property, equipment and capitalized software is primarily computed using the straight-line method over the estimated useful lives shown below for all periods presented in these consolidated financial statements. Estimated Useful Lives Furniture, fixtures and equipment 3 to 5 years Internal-use computer software 1.5 to 5 years Computer software 3 years The Company’s developed software is used to provide processing and information management services to customers. A significant portion of the Company’s capital expenditures is devoted to the development of such internal-use computer software. Costs incurred during the preliminary project stage are expensed as incurred. Software development costs are capitalized during the application development stage. Capitalization begins when the preliminary project stage is complete, as well as when management authorizes and commits to the funding of the project. Capitalization of costs ceases when the software is ready for its intended use. Costs related to maintenance of internal-use software are expensed as incurred. Below are the amounts of internal-use computer software capitalized within property, equipment and capitalized software and the related amortization expense incurred on all internal-use computer software during the years ended December 31: (in thousands) 2019 2018 2017 Gross amounts capitalized for internal-use computer software (including construction-in-process) $ 74,432 $ 46,382 $ 50,682 Amounts expensed for amortization of internal-use computer software $ 57,821 $ 38,632 $ 32,582 Acquisitions For acquisitions that meet the definition of a business combination, the Company applies the acquisition method of accounting where assets acquired and liabilities assumed are recorded at fair value at the date of each acquisition. Any excess of the consideration transferred by the Company over the amounts recognized for assets acquired and liabilities assumed is recorded as goodwill. The Company continues to evaluate acquisitions for a period not to exceed one year after the acquisition date of each transaction to determine whether any additional adjustments are needed to the allocation of the purchase price. The acquiree’s results of operations are included in consolidated results of the Company from the date of the respective acquisition. All other acquisitions are accounted for as asset acquisitions and the purchase price is allocated to the net assets acquired with no recognition of goodwill. Following the acquisition date, the purchase price is not subsequently adjusted. The fair value of assets acquired and liabilities assumed is based on management’s estimates and assumptions, as well as other information compiled by management. Fair values are typically determined using a discounted cash flow valuation method, though the Company utilizes alternative valuation methods when deemed appropriate. Significant acquisition valuation assumptions typically include timing and amount of future cash flows, effective income tax rates, discount rates, long-term growth expectations and customer attrition rates. Goodwill and Other Intangible Assets The Company classifies intangible assets in the following three categories: (1) intangible assets with definite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. The Company tests intangible assets with definite lives for impairment if conditions exist that indicate the carrying value may not be recoverable. Such conditions may include a reduction in operating cash flow or a dramatic change in the manner in which the asset is intended to be used. The Company records an impairment charge when the carrying value of the definite-lived intangible asset exceeds the undiscounted cash flows generated from the use of the asset. Intangible assets with indefinite lives and goodwill are not amortized. The Company tests these intangible assets and goodwill for impairment at least annually or more frequently if facts or circumstances indicate that such intangible assets or goodwill might be impaired. All goodwill and intangible assets are assigned to reporting units, which are one level below the Company’s operating segments. The Company performs goodwill impairment tests at the reporting unit level. Such impairment tests include comparing the fair value of the respective reporting unit with its carrying value, including goodwill. The Company uses both discounted cash flow analyses and comparable company pricing multiples to determine the fair value of our reporting units. Such analyses are corroborated using market analytics. Certain assumptions are used in determining the fair value, including assumptions about future cash flows and terminal values. When appropriate, the Company considers the assumptions that it believes hypothetical marketplace participants would use in estimating future cash flows. In addition, an appropriate discount rate is used, based on the Company’s cost of capital or reporting unit-specific economic factors. For indefinite-lived intangible assets, the Company performs a qualitative assessment to determine whether it is more likely than not that an indefinite-lived asset is impaired. Such assessment includes consideration of any negative financial performance, legal, regulatory, contractual, or other factors that could affect significant inputs used in determining the fair value. If the Company determines that the asset is more likely than not impaired, then a quantitative test is performed comparing the fair value of the asset with its carrying amount. When the fair value is less than the carrying value of the intangible assets or the reporting unit, the Company records an impairment charge to reduce the carrying value of the assets to the reporting unit’s implied fair value. Effective October 1, 2018, the Company adopted ASU 2017 – 04, which simplified the subsequent measurement of goodwill. Following adoption, the Company performs its annual goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and, if necessary, recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company’s annual goodwill and intangible asset impairment tests performed as of October 1, 2018 identified a $3.2 million impairment related to our Brazil fleet reporting unit. The Company’s annual goodwill and intangible asset impairment tests performed as of October 1, 2019 and 2017 did not identify any impairment. None of our reporting units with allocated goodwill had negative carrying amounts of net assets as of October 1, 2019. Our European fleet and Brazil benefits reporting units had negative carrying amounts of net assets as of October 1, 2018. Our 2018 annual goodwill impairment test indicated an excess of estimated fair value greater than the carrying values of the European fleet and Brazil benefits reporting units of approximately $180 million and $250 million , respectively. As of December 31, 2018, goodwill assigned to the European fleet and Brazil benefits reporting units totaled approximately $35.8 million and $14.3 million , respectively. Such amounts are included in our Fleet Solutions and Health and Employee Benefit Solutions segments, respectively. Intangible assets that are deemed to have definite lives are amortized over their useful lives, which is the period of time that the asset is expected to contribute directly or indirectly to future cash flows. The Company determines the useful lives of its identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. The factors that management considers when determining useful lives include the contractual term of agreements, the history of the asset, the Company’s long-term strategy for the use of the asset, any laws or other local regulations which could impact the useful life of the asset and other economic factors, including competition and specific market conditions. An evaluation of the remaining useful lives of the definite-lived intangible assets is performed periodically to determine if any change is warranted. Impairment and Disposals of Assets Long-lived assets are tested for impairment whenever facts or circumstances, such as a reduction in operating cash flow or a significant adverse change in the manner the asset is being used, indicate the carrying amount of the asset may not be recoverable. The Company compares the estimated undiscounted future cash flows associated with these assets or asset group to their carrying value to determine if a write-down to fair value is required. See Note 24, Impairment and Restructuring Activities, for further discussion on impairments and asset write-offs. Fair Value of Financial Instruments The Company holds mortgage-backed securities, fixed-income mutual funds, money market funds, derivatives (see Note 12, Derivative Instruments ) and certain other financial instruments that 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. Various factors are considered in determining the fair value of the Company’s obligations, 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. Additionally, the Company holds certain investments that are measured at their NAV as a practical expedient, which are excluded from the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Revenue Recognition The Company adopted ASU 2014–09 (“Topic 606”) on January 1, 2018, utilizing the modified retrospective method. Prior period comparable financial information continues to be presented under the guidance of ASC 605, Revenue Recognition . Topic 606 does not apply to rights or obligations associated with financial instruments or gains on the sale of WEX Latin America receivables, which are within the scope of ASC 310, Receivables and ASC 860, Transfers and Servicing , respectively. The Company generally records revenue net of consideration retained based upon its conclusion that the Company is the agent in its principal versus agent relationships. Prior to the adoption of Topic 606, this conclusion was based on the following criteria: (i) the Company is not the primary obligor in the arrangement; (ii) the Company has no inventory risk; (iii) the Company does not have reasonable latitude with respect to establishing the price for the product; (iv) the Company does not make any changes to the product or have any involvement in the product specifications; and, (v) the amount the Company earns for its services is fixed, within a limited range. Under Topic 606, the Company evaluated the nature of its promise to the customer and determined that it does not control a promised good or service before transferring that good or service to the customer, but rather arranges for another entity to provide the goods or services. The vast majority of the Company’s Topic 606 revenue is derived from stand-ready obligations to provide payment processing, transaction processing and SaaS services and support. As such, we view these services as comprising a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. Accordingly, the promise to stand ready is accounted for as a single-series performance obligation. The transaction-based fees are generally calculated based on measures such as (i) percentage of dollar value of volume processed; (ii) number of transactions processed; or (iii) some combination thereof. The Company has entered into agreements with major oil companies, fuel retailers, vehicle maintenance providers, online travel agencies and health partners, which provide products and/or services to the Company’s customers. These agreements specify that a transaction is deemed to be captured when the Company has validated that the transaction has no errors and has accepted and posted the data to the Company’s records. Prior to adoption of Topic 606, the Company recognized revenues when persuasive evidence of an arrangement existed, the products and services had been provided to the client, the sales price was fixed or determinable and collectability was reasonably assured. Subsequent to adoption of Topic 606, revenue is recognized based on the value of services transferred to date using a time elapsed output method. The change in accounting guidance did not result in a change in the pattern or timing of our revenue recognition. See Note 3, Revenue, for a description of the major components of revenue. The Company enters into contracts with certain large customers or partners that provide for fee rebates tied to performance milestones. Rebates and incentives are calculated based on estimated performance and the terms of the related business agreements. Prior to the adoption of Topic 606, certain amounts paid to partners in our Fleet Solutions and Travel and Corporate Solutions segments were recorded as a reduction in revenue in the same period that revenue was earned or performance occurs. Subsequent to the adoption of Topic 606, these amounts are now reflected within sales and marketing expense on our consolidated statements of income. Stock-Based Compensation The Company recognizes the fair value of all stock-based payments to employees in its financial statements. The Company estimates the fair value of service-based stock option awards and market performance-based stock option awards on the grant date using a Black-Scholes-Merton valuation model and a Monte Carlo simulation model, respectively. The fair value of RSUs, including PBRSUs, is determined and fixed on the grant date based on the closing price of the Company’s stock. Stock-based compensation expense is net of estimated forfeitures and is recorded over each award’s requisite service period. The Company uses the straight-line methodology for recognizing the expense associated with service-based stock options and RSU grants and a graded-vesting methodology for the expense recognition of market performance-based stock options and PBRSUs. Advertising Costs Advertising and marketing costs are expensed in the period incurred. During the years ended December 31, 2019 , 2018 and 2017 , advertising expense was $17.9 million , $16.3 million and $17.1 million , respectively. Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the associated temporary differences become deductible. A valuation allowance is established for those jurisdictions in which the realization of deferred tax assets is not deemed to be more likely than not. Accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This accounting guidance also provides guidance on derecognition, classification, interest and penalties, accounting in the interim periods, disclosure, and transition. Penalties and interest related to uncertain tax positions are recognized as a component of income tax expense. To the extent penalties and interest are not assessed with respect to uncertain tax positions, amounts accrued are reduced and reflected as a reduction of the overall income tax provision. Earnings per Share Basic earnings per share is computed by dividing net income attributable to shareholders by the weighted average number of shares of common stock and vested DSUs outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options, and the assumed issuance of unvested RSUs and performance-based awards for which the performance condition has been met as of the date of determination using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options and the average unrecognized compensation expense for unvested share-based compensation awards, would be used to purchase the Company’s common stock at the average market price during the period. The following table summarizes net income attributable to shareholders and reconciles basic and diluted shares outstanding used in the earnings per share computations: Year ended December 31, (In thousands) 2019 2018 2017 Net income attributable to shareholders $ 99,006 $ 168,295 $ 160,062 Weighted average common shares outstanding – Basic 43,316 43,156 42,977 Dilutive impact of share-based compensation awards 453 418 128 Weighted average common shares outstanding – Diluted 43,769 43,574 43,105 For the years ended December 31, 2019 , 2018 and 2017 , an immaterial number of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share, as the effect of including these awards would be anti-dilutive. Foreign Currency Movement The financial statements of the Company’s foreign subsidiaries, where the local currency is the functional currency, are translated to U.S. dollars using year-end spot exchange rates for assets and liabilities, average exchange rates for revenue and expenses and historical exchange rates for equity transactions. The resulting foreign currency translation adjustment is recorded as a component of accumulated other comprehensive loss. Gains and losses on foreign currency transactions as well as the remeasurement of the Company’s cash, receivable and payable balances that are denominated in foreign currencies, are recorded directly in net foreign currency (loss) gain in the consolidated statements of income. However, gains or losses resulting from intercompany transactions where repayment is not anticipated for the foreseeable future are not recognized in the consolidated statements of income. In these situations, the gains or losses are deferred and included as a component of accumulated other comprehensive loss. In addition, gains and losses associated with the Company’s foreign currency exchange derivatives are recorded in net foreign currency (loss) gain in the consolidated statements of income. Accumulated Other Comprehensive Loss ( “ AOCL ” ) For the years ended December 31, 2019 and 2018 , AOCL consisted entirely of unrealized gains and losses on foreign currency translation adjustments pertaining to the net investment in foreign operations. For the year ended December 31, 2017, AOCL also included less than $1 million related to unrealized gains and losses on investment securities. Amounts are recognized net of tax to the extent applicable. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements The following table provides a brief description of recent accounting pronouncements that have had, or could have, a material effect on our financial statements: Standard Description Date/Method of Adoption Effect on financial statements or other significant matters Adopted During the Year Ended December 31, 2019 ASU 2016–02 This standard requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The Company adopted ASU 2016–02 effective January 1, 2019 using the modified retrospective method approach and certain practical expedients permitted under the transition guidance. In February 2016, the FASB issued ASU 2016 – 02, Leases (Topic 842), which requires leases with a duration greater than twelve months to be recognized on the balance sheet as right-of-use (“ROU”) assets and lease liabilities. We adopted the new standard using the modified retrospective approach and have elected certain practical expedients permitted under the transition guidance including (i) whether any existing contracts are or contain leases, (ii) the classification of existing leases and (iii) initial direct costs for existing leases. The consolidated financial statements for the year ended December 31, 2019 are presented under the new standard, while comparative periods presented continue to be reported in accordance with Topic 840. The most significant impact of adoption was the recording of an operating lease ROU asset and liability on our consolidated balance sheet. Refer to Note 15, Leases, for more information. Not Yet Adopted as of December 31, 2019 ASU 2016 – 13 This standard requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses will be based on historical experience, current conditions, and reasonable and supportable forecasts that impact the collectability of the reported amount. The standard is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. This ASU amends several aspects of the measurement of credit losses on financial instruments, including replacing the existing incurred credit loss model and other models with the Current Expected Credit Losses (CECL) model. The Company established a cross-functional task force charged with evaluating the requirements of the new standard, analyzing historical data, identifying relevant economic indicators correlated to loss-rates, and determining the impact the standard will have on our processes, systems and internal controls. The most significant effects of the ASU will be incorporating economic indicator forecasts into our credit loss reserve methodologies and providing expanded disclosures on expected credit losses. The impact of this ASU on credit loss reserves for financial assets held as of December 31, 2019 is not expected to be material. This is mainly due to the short-term nature of the Company’s accounts receivable and relatively stable economic conditions over the contractual life of accounts receivable. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 3. Revenue In accordance with Topic 606, revenue is recognized when, or as, performance obligations are satisfied as defined by the terms of the contract, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for goods or services provided. The following tables disaggregate our consolidated revenue: Year Ended December 31, 2019 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 457,244 $ 303,385 $ 64,963 $ 825,592 Account servicing revenue 17,709 43,293 205,524 266,526 Other revenue 83,765 3,340 28,225 115,330 Total Topic 606 revenues $ 558,718 $ 350,018 $ 298,712 $ 1,207,448 Non-Topic 606 revenues Account servicing revenue $ 147,026 $ — $ — $ 147,026 Finance fee revenue 245,082 2,086 150 247,318 Other revenue 87,569 15,722 18,608 121,899 Total non-Topic 606 revenues $ 479,677 $ 17,808 $ 18,758 $ 516,243 Total revenues $ 1,038,395 $ 367,826 $ 317,470 $ 1,723,691 Year Ended December 31, 2018 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 464,980 $ 203,289 $ 55,722 $ 723,991 Account servicing revenue 30,385 37,262 108,172 175,819 Other revenue 66,379 4,906 25,668 96,953 Total Topic 606 revenues $ 561,744 $ 245,457 $ 189,562 $ 996,763 Non-Topic 606 revenues Account servicing revenue $ 132,277 $ — $ — $ 132,277 Finance fee revenue 190,528 1,391 16,708 208,627 Other revenue 90,591 56,496 7,885 154,972 Total non-Topic 606 revenues $ 413,396 $ 57,887 $ 24,593 $ 495,876 Total revenues $ 975,140 $ 303,344 $ 214,155 $ 1,492,639 The vast majority of the above revenue relates to services transferred to the customer over time. Point-in-time revenue recognized was immaterial during the years ended December 31, 2019 and 2018 . Payment Processing Revenue Payment processing revenue consists primarily of interchange income. Interchange income is a fee paid by a merchant bank (“merchant”) to the card-issuing bank (generally the Company) in exchange for the Company facilitating and processing transactions with cardholders. Interchange fees are set by the card network. WEX processes transactions through both closed-loop and open-loop networks. • Fleet Solutions segment interchange income primarily relates to revenue earned on transactions processed through the Company’s proprietary closed-loop fuel networks. In closed-loop fuel network arrangements, written contracts are entered into between the Company and merchants, which determine the interchange fee charged on transactions. The Company extends short-term credit to the fleet cardholder and pays the merchant the purchase price for the cardholder’s transaction, less the interchange fees the Company retains. The Company collects the total purchase price from the fleet cardholder. In Europe, interchange income is specifically derived from the difference between the negotiated price of fuel from the supplier and the agreed upon price paid by fleet cardholders. • Interchange income in our Travel and Corporate Solutions and Health and Employee Benefit Solutions segments relates to revenue earned on transactions processed through open-loop networks. In open-loop network arrangements, there are several intermediaries involved between the merchant and the cardholder and written contracts between all parties involved in the process do not exist. Rather, the transaction is governed by the rates determined by the card network at the point-of-sale. This framework dictates the interchange rate, the risk of loss, dispute procedures and timing of payment. For these transactions, there is an implied contract between the Company and the merchant. In our Travel and Corporate Solutions segment, the Company remits payment to the card network for the purchase price of the cardholder transaction, less the interchange fees the Company earns. The Company collects the total purchase price from the cardholder. In our Health and Employee Benefit Solutions segment, funding of transactions and collections from cardholders is performed by third-party sponsor banks, who remit a portion of the interchange fee to us. The Company has determined that the merchant is the customer as it relates to interchange income regardless of the type of network through which transactions are processed. The Company’s primary performance obligation to merchants is a stand-ready commitment to provide payment and transaction processing services as the merchant requires, which is satisfied over time in daily increments. Since the timing and quantity of transactions to be processed by us is not determinable, the total consideration is determined to be variable consideration. The variable consideration for our payment and transaction processing service is usage-based and therefore specifically relates to our efforts to satisfy our obligation. The variability is satisfied each day the service is provided to the customer. We directly ascribe variable fees to the distinct day of service to which it relates, and we consider the services performed each day in order to ascribe the appropriate amount of total fees to that day. Therefore, we measure interchange income on a daily basis based on the services that are performed on that day. In determining the amount of consideration received related to these services, the Company applied the principal-agent guidance in Topic 606 and assessed whether it controls services performed by other intermediaries. Based on this assessment, the Company determined that WEX does not control the services performed by merchant acquirers, card networks and sponsor banks as each of these parties is the primary obligor for their portion of payment and transaction processing services performed. Therefore, interchange income is recognized net of any fees owed to these intermediaries. Conversely, the Company determined that services performed by third-party payment processors are controlled by the Company as it is responsible for directing how the third-party payment processor authorizes and processes transactions. Therefore, such fees paid to third-party payment processors are recorded as service fees within cost of services. Additionally, the Company enters into contracts with certain large customers or strategic cardholders that provide for fee rebates tied to performance milestones. When such fee rebates constitute consideration payable to a customer or other party that purchases services from the customer, they are considered variable consideration and are recorded as a reduction in payment processing revenue in the same period that related interchange income is recognized. For the years ended December 31, 2019 and 2018, such variable consideration totaled approximately $891.0 million and $858.9 million , respectively. Fee rebates made to certain other partners were determined to be costs to obtain a contract and are recorded as sales and marketing expenses. Account Servicing Revenue In our Fleet Solutions segment, account servicing revenue is primarily comprised of monthly fees charged to cardholders based on the number of vehicles serviced. These fees are primarily in return for providing monthly vehicle data reports and are recognized on a monthly basis as the service is provided. The Company also recognizes account servicing revenue related to reporting services on telematics hardware placements and permit sales to our over-the-road customers, both of which are within the scope of Topic 606. Additionally, account servicing revenue includes other fees recognized as revenue when assessed to the cardholder as part of the lending relationship, which are outside the scope of Topic 606. In our Travel and Corporate Solutions segment, account servicing reflects revenues earned from our AOC acquisition, primarily consisting of licensing fees for use of our accounts receivable and accounts payable SaaS platforms, all of which is within the scope of Topic 606. In our Health and Employee Benefit Solutions segment, we recognize account servicing fees for the per-participant per-month fee charged per consumer on our SaaS healthcare technology platform. Customers including health plans, third-party administrators, financial institutions and payroll companies typically enter into three to five year contracts, which contain significant termination penalties. This revenue is within the scope of Topic 606. Our Travel and Corporate Solutions and Health and Employee Benefit Solutions segments provide SaaS services and support, which are stand-ready commitments and are satisfied over time in a series of daily increments. Revenue is recognized based on an output method using days elapsed to measure progress as the Company transfers control evenly over each monthly subscription period. Finance Fee Revenue The Company earns revenue on overdue accounts, which is recognized when the fees are assessed. The finance fee is calculated using the greater of a minimum charge or a stated late fee rate multiplied by the outstanding balance that is subject to a late fee charge. On occasion, these fees are waived to maintain customer goodwill. The established reserve for such waived amounts is estimated and offset against the late fee revenue recognized. Finance fee revenue also includes amounts earned by the Company’s factoring business, which purchases accounts receivable from third-parties at a discount. This revenue is outside the scope of Topic 606. Other Revenue In our Fleet Solutions segment, other revenue primarily consists of transaction processing revenue, other fees charged to the merchants, professional services, including software development projects and other services sold subsequent to the core offerings, and the sales of telematics hardware, all of which are within the scope of Topic 606. Revenue is recognized when control of the services or hardware is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those services. We also recognize fees charged to cardholders in other revenue, which are outside the scope of Topic 606. In our Travel Solutions segment, the majority of other revenue reflects international settlement fees, which is outside the scope of Topic 606 and recognized as the service is performed. In our Health Solutions segment, other revenue primarily consists of professional services, which is within the Topic 606, and is recognized as the services are performed, in the amount we expect to receive from these services. Other revenue in Health Solutions also includes the gain on sale of WEX Latin America receivables, which is outside the scope of Topic 606 and is recognized on the sale date of the receivables. See Note 13, Off-Balance Sheet Arrangements, for further information on our WEX Latin America securitization. Contract Balances The Company’s contract assets consist of upfront payments made to customers under long-term contracts and are recorded upon payment or when due. The resulting asset is amortized against revenue as the Company performs its obligations under these arrangements. The Company’s contract liabilities consist of customer payments received before the Company has satisfied the associated performance obligations and upfront payments due to the customer. The following table provides information about these contract balances: (In thousands) Contract balance Location on the consolidated balance sheets December 31, 2019 December 31, 2018 Receivables 1 Accounts receivable, net $ 43,092 $ 32,949 Contract assets Prepaid expenses and other current assets $ 4,593 $ 3,819 Contract assets Other assets $ 20,496 $ 19,232 Contract liabilities Other current liabilities $ 5,171 $ 7,612 1 The majority of the Company’s receivables, which are excluded from the table above, are either due from cardholders who have not been deemed our customer as it relates to interchange income, or from revenues earned outside of the scope of Topic 606. Impairment losses recognized on our receivables and contract assets were immaterial for the years ended December 31, 2019 and December 31, 2018 . In the years ended December 31, 2019 and December 31, 2018 , we recognized revenue of $7.2 million and $10.5 million included in the opening contract liabilities balances, respectively. Remaining Performance Obligations The Company’s unsatisfied, or partially unsatisfied performance obligations as of December 31, 2019 represent the remaining minimum monthly fees on a portion of contracts across the lines of business and contractually obligated professional services yet to be provided by the Company. It is not indicative of the Company’s future revenue, as it relates to an insignificant portion of the Company’s operations. The following table includes revenue expected to be recognized related to remaining performance obligations at the end of the reporting period. (In thousands) 2020 2021 2022 2023 2024 Thereafter Total Minimum monthly fees 1 $ 50,034 $ 29,498 $ 18,588 $ 8,281 $ 1,928 $ 36 $ 108,365 Professional services 2 7,667 — — — — — 7,667 Total remaining performance obligations $ 57,701 $ 29,498 $ 18,588 $ 8,281 $ 1,928 $ 36 $ 116,032 1 The transaction price allocated to the remaining performance obligations represents the minimum monthly fees on certain service contracts, which contain substantive termination penalties that require the counterparty to pay the Company for the aggregate remaining minimum monthly fees upon an early termination for convenience. 2 Includes software development projects and other services sold subsequent to the core offerings, to which the customer is contractually obligated. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions In 2019, we incurred and expensed $4.8 million related to acquisitions in process as of December 31, 2019, while costs related to completed acquisitions were $13.0 million , The Company incurred and expensed costs directly related to completed acquisitions of $2.5 million and $1.0 million in 2018 and 2017 , respectively. Acquisition-related costs are included within general and administrative expenses in the consolidated statements of income. Asset Acquisition In December 2016, the Company entered into a contract with Chevron to issue and operate branded commercial fleet cards commencing in 2018. During October 2018, the Company entered into a definitive asset purchase agreement to acquire Chevron’s existing trade accounts receivable and customer portfolio from a third-party for $223.4 million . During 2018, the consideration paid consisted of $162.8 million to acquire the customer portfolio and a deposit of $38.9 million was paid into escrow for a portion of the outstanding accounts receivable at the date of the agreement. The actual amount of accounts receivable purchased from the third party during the second quarter of 2019 was less than the amount deposited in escrow, resulting in the Company receiving the excess funds of approximately $27 million from the escrow agent in January 2020. As of December 31, 2018, the deposit related to the customer portfolio was recorded within other assets, while the deposit for the purchase of customer receivables was recorded in prepaid expenses and other current assets. During the second quarter of 2019, the Company determined that it obtained control of the customer portfolio and accounted for this transaction under the asset acquisition method of accounting. At that time, we allocated approximately $168.0 million of consideration paid to a customer relationship intangible asset and established the accounts receivable at fair value. This customer relationship intangible asset is being amortized over the 13 year term of the Chevron agreement, which has been determined to be the period of anticipated benefit, which began when the Company took possession of the customer portfolio during the second quarter of 2019. Transaction costs related to the acquisition were insignificant and expensed as incurred. Business Acquisitions 2019 Business Acquisitions As of December 31, 2019, the Company has not finalized the purchase accounting for Discovery Benefits, Noventis, Pavestone Capital or Go Fuel Card and is currently evaluating the tax basis and allocation of the net assets acquired. Additionally, the Company is performing valuations of intangible assets acquired in certain of the business combinations. The preliminary estimates could change significantly upon completion of these valuations. Discovery Benefits, Inc. On March 5, 2019, the Company acquired Discovery Benefits, an employee benefits administrator, for a total purchase price of $526.1 million , of which $50.0 million was paid during the fourth quarter of 2019.The acquisition was primarily funded with cash on hand and through borrowings under the 2016 Credit Agreement. The seller of Discovery Benefits obtained a 4.9 percent equity interest in the newly formed parent company of WEX Health and Discovery Benefits, which constitutes the U.S. Health business. The fair value of the equity interest was determined to be $100.0 million on the acquisition date. See Note 20, Redeemable Non-Controlling Interest , for further information. The purpose of this acquisition was to obtain the comprehensive suite of products and services for our partners and customers and to open go-to-market channels to include consulting firms and brokers in our Health and Employee Benefit Solutions segment. This acquisition has been accounted for as a business combination, resulting in the recording of goodwill. The majority of the associated goodwill is deductible for tax purposes. The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired, based on the estimated fair value at the date of acquisition: (In thousands) Cash consideration, net of $125,865 in cash and restricted cash acquired $ 300,191 Fair value of redeemable non-controlling interest 100,000 Total consideration, net of cash and restricted cash acquired $ 400,191 Less: Accounts receivable 10,722 Property and equipment 4,904 Customer relationships (a)(d) 213,600 Developed technologies (b)(d) 38,900 Trademarks and trade names (c)(d) 13,800 Other assets 13,601 Accounts payable (3,071 ) Accrued expenses (7,563 ) Restricted cash payable (125,346 ) Deferred income taxes (21,941 ) Other liabilities (9,814 ) Recorded goodwill $ 272,399 (a) Weighted average life - 7.3 years . (b) Weighted average life - 5.4 years . (c) Weighted average life - 7.3 years . (d) The weighted average life of all amortizable intangible assets acquired in this business combination is 7.0 years . Since the acquisition date through December 31, 2019 , Discovery Benefits has contributed $94.7 million in total revenues and income before income taxes of $0.3 million . Noventis On January 24, 2019, the Company acquired Noventis, a long-time customer and electronic payments network focused on optimizing payment delivery for bills and invoices to commercial entities, for $338.7 million , which was primarily funded with cash on hand and through borrowings under the 2016 Credit Agreement. Excluded from the consideration is $5.5 million paid to certain Noventis shareholders who held unvested option awards at the acquisition date. The modification of these awards to accelerate the vesting resulted in the Company recording this expense as general and administrative expense on our consolidated income statement. The Company purchased Noventis to expand our reach as a corporate payments supplier and provide more channels to billing aggregators and financial institutions in our Travel and Corporate Solutions segment. This acquisition was accounted for as a business combination, resulting in the recording of goodwill. The goodwill associated with this acquisition is not deductible for tax purposes. The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired, based on the estimated fair value at the date of acquisition: (In thousands) Total consideration, net of $44,947 in cash acquired $ 293,767 Less: Accounts receivable 22,134 Property and equipment 549 Network relationships (a) (c) 100,900 Developed technologies (b) (c) 15,000 Other assets 2,379 Accounts payable (33,521 ) Deferred income taxes (21,194 ) Other liabilities (2,367 ) Recorded goodwill $ 209,887 (a) Weighted average life - 8.3 years . (b) Weighted average life - 2.9 years . (c) The weighted average life of all amortizable intangible assets acquired in this business combination is 7.6 years . Since the acquisition date through December 31, 2019 , Noventis has contributed $43.8 million in total revenues and income before income taxes of $8.2 million . Pavestone Capital, LLC On February 14, 2019, the Company acquired Pavestone Capital, a recourse factoring company that provides working capital to businesses, for a purchase price of $28.0 million , net of cash acquired. This acquisition, which was funded with cash on hand, has been accounted for as a business combination. The Company purchased Pavestone Capital to complement our existing factoring business. As a result, the purchase price is primarily allocated to goodwill, accounts receivable and customer relationships in amounts of $9.5 million , $14.9 million and $3.9 million , respectively. The goodwill associated with this acquisition is deductible for tax purposes. The customer relationships intangible asset has a weighted-average amortization period of 6.5 years . Since the acquisition date, Pavestone Capital revenues and income before income taxes, which are recorded in our Fleet Solutions segment, were not material to Company operations. No pro forma or current information has been included in these financial statements as the operations of Pavestone Capital for the period that they were not part of the Company are not material to the Company’s revenues, net income and earnings per share. Go Fuel Card On July 1, 2019, the Company acquired Go Fuel Card, a European fuel card business, for a total purchase price of €235.0 million (equivalent of $266.0 million on date of purchase). This acquisition, which was funded with cash on hand, was accounted for as a business combination. The purpose of the acquisition was to strengthen our position in the European market, grow our existing customer base and reduce our sensitivity to retail fuel prices, resulting in the recording of goodwill. The goodwill associated with the acquisition of Go Fuel Card is deductible for tax purposes. The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired, based on the estimated fair value at the date of acquisition: (In thousands) Total consideration, net of $5,589 in cash acquired $ 260,455 Less: Network relationships (a) (d) 112,893 Customer relationships (b)(d) 33,963 Brand name (c) (d) 442 Deposits (5,169 ) Accrued expenses (420 ) Recorded goodwill $ 118,746 (a) Weighted average life - 10.1 years . (b) Weighted average life - 5.0 years . (c) Weighted average life - 1.0 year . (d) The weighted average life of all amortizable intangible assets acquired in this business combination is 8.9 years . Since the acquisition date through December 31, 2019 , Go Fuel Card has contributed $10.5 million in total revenues and loss before income taxes of $9.1 million . No pro forma information has been included in these financial statements as the operations of Go Fuel Card for the period that they were not part of the Company are not material to the Company’s revenues, net income and earnings per share. Pro Forma Supplemental Information The pro forma information below gives effect to the Discovery Benefits and Noventis acquisitions as if they had been completed on January 1, 2018. These pro forma results have been calculated after applying the Company’s accounting policies, adjustments to reflect amortization associated with intangibles acquired and interest expense associated with the incremental borrowings under the 2016 Credit Agreement used to fund the acquisitions and related income tax results. The pro forma financial information is presented for comparative purposes only, based on certain estimates and assumptions, which the Company believes to be reasonable but not necessarily indicative of future results of operations or the results that would have been reported if the acquisitions had been completed on January 1, 2018. The following represents unaudited pro forma operational results: Year Ended December 31, (In thousands, except per share data) 2019 2018 Total revenues $ 1,742,797 $ 1,604,165 Net income attributable to shareholders $ 113,851 $ 134,564 Net income attributable to shareholders per share: Basic $ 2.63 $ 3.12 Diluted $ 2.60 $ 3.09 2017 Acquisition AOC Effective O ctober 18, 2017 , the Company acquired certain assets and assumed certain liabilities of AOC, an industry leader in commercial payments technology. The Company purchased AOC, a longstanding technology provider for our virtual card product, to broaden our capabilities, increase our pool of employees with payments platform expertise and allow us to evolve with the needs of our customers and partners through the use of AOC’s payments processing technology platforms. The Company purchased AOC for $129.8 million , which was funded with cash on hand and through borrowings under the 2016 Credit Agreement. The Company recorded adjustments to the assets acquired and liabilities assumed throughout the measurement period, which ended on September 30, 2018. The Company obtained information to assist in determining the fair values of certain assets acquired and liabilities assumed, resulting primarily in the recording of other intangible assets and goodwill. Goodwill is calculated as the consideration in excess of net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized, including synergies derived from the acquisition. The goodwill and intangible assets recorded from this business combination were assigned to our Travel and Corporate Solutions segment. The goodwill recognized in this business combination will be deductible for income tax purposes. The Company assigned $21.6 million of the purchase price to an acquired processing platform that had not reached technological feasibility as of the date of acquisition. During the third quarter of 2018, the Company placed this asset into service. The following is a summary of the allocation of the purchase price to the assets and liabilities acquired: (In thousands) As Reported Measurement Period Adjustments As Reported, Final Total consideration $ 129,828 $ — $ 129,828 Less: Cash 15,546 — 15,546 Accounts receivable 4,171 100 4,271 Property and equipment 2,530 (1,329 ) 1,201 Customer relationships (a) 15,000 200 15,200 Developed technologies (b) 24,100 — 24,100 Trademarks and trade names (c) 1,460 10 1,470 In-process research and development — 21,600 21,600 Other liabilities (685 ) (772 ) (1,457 ) Recorded goodwill $ 67,706 $ (19,809 ) $ 47,897 (a) Weighted average life – 9.0 years . (b) Weighted average life – 3.4 years . (c) Weighted average life – 4.3 years . (a) (b) (c) The weighted average life of these amortized intangible assets is 5.5 years . From the acquisition date to December 31, 2017, the operations of AOC contributed net revenues of approximately $6.7 million and net loss before taxes of approximately $0.6 million . No pro forma information has been included in these financial statements as the operations of AOC for the period that they were not part of the Company are not material to the Company’s revenues, net income and earnings per share. |
Divestiture
Divestiture | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | 5. Divestiture During the year ended December 31, 2017, the Company sold $8.9 million in net assets of its Telapoint business for proceeds of $29.9 million . The sale resulted in a pre-tax book gain of $21.0 million . Costs incurred related to this divestiture were immaterial. Prior to the sale, the Telapoint business was assigned to our North American Fleet reporting unit, which is included within our Fleet Solutions reportable segment. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | 6. Accounts Receivable In general, the Company’s trade accounts receivable provide for payment terms of 30 days or less. Receivables not paid within the terms of the agreement are generally subject to late fees based upon the outstanding receivable balance. The Company extends revolving credit to certain small fleets, which are subject to interest charges based on the revolving balance not paid in full. The Company had approximately $62.4 million and $18.9 million in receivables with revolving credit balances as of December 31, 2019 and 2018 , respectively. The increase in revolving credit balances during 2019 was due to the onboarding of a customer portfolio. Concentration of Credit Risk The receivables portfolio consists of a large group of homogeneous smaller balances across a wide range of industries, which are collectively evaluated for impairment. No one customer receivable balance represented 10 percent or more of the outstanding receivables balance at December 31, 2019 or 2018 . The following table presents the outstanding balance of trade accounts receivable that are less than 30 and 60 days past due, shown in each case as a percentage of total trade accounts receivable: December 31, Delinquency Status 2019 2018 29 days or less past due 96 % 95 % 59 days or less past due 97 % 98 % Reserves for Accounts Receivable Receivables are generally written off when they are 150 days past due or upon declaration of bankruptcy of the customer. The reserve for credit losses is primarily calculated by an analytic model that also takes into account other factors, such as the actual charge-offs for the preceding reporting periods, expected charge-offs and recoveries for the subsequent reporting periods, a review of past due accounts receivable balances, changes in payment patterns, known fraudulent activity in the portfolio, as well as leading economic and market indicators. The following table presents changes in the accounts receivable allowances: Year ended December 31, (In thousands) 2019 2018 2017 Balance, beginning of year $ 46,948 $ 33,387 $ 21,564 Provision for credit losses 65,664 66,482 64,218 Other 1 22,746 19,067 16,869 Charge-offs (92,638 ) (78,323 ) (77,229 ) Recoveries of amounts previously charged-off 9,781 6,854 7,526 Currency translation (227 ) (519 ) 439 Balance, end of year $ 52,274 $ 46,948 $ 33,387 1 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 7. Investment Securities The Company’s investment securities as of December 31, 2019 and 2018 , are presented below: (In thousands) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (a) 2019 Fixed income securities: Mortgage-backed securities $ 164 $ 10 $ — $ 174 Asset-backed securities 248 — 1 247 Municipal bonds 306 — 4 302 Mutual fund 25,221 — 484 24,737 Pooled investment fund 5,000 — — 5,000 Total investment securities (b)(c) $ 30,939 $ 10 $ 489 $ 30,460 2018 Fixed income securities: Mortgage-backed securities $ 255 $ 5 $ — $ 260 Asset-backed securities 281 — 2 279 Municipal bonds 411 — 7 404 Mutual fund 24,656 — 1,193 23,463 Total investment securities (b)(c) $ 25,603 $ 5 $ 1,202 $ 24,406 (a) The Company’s techniques used to measure the fair value of its investments are discussed in Note 19, Fair Value . (b) The Company’s investment securities are not deemed available for current operations and have been classified as non-current on the consolidated balance sheets. (c) Excludes $8.0 million and $6.4 million in equity securities designated as trading as of December 31, 2019 and 2018 , respectively, included in prepaid expenses and other current assets and other assets on the consolidated balance sheets. See Note 18, Employee Benefit Plans, for additional information. The Company reviews its investments to identify and evaluate indications of possible impairment. Factors considered in determining whether a loss is temporary include the length of time and extent to which the fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. Substantially all of the Company’s fixed income securities are rated investment grade or better. The Company’s fixed-income mutual fund and certain other insignificant fixed income security positions have been in an unrealized loss position for greater than 12 months as of December 31, 2019 and 2018. The amount by which these investment securities have been in a continuous unrealized loss position is insignificant. The Company’s management has determined that these gross unrealized losses at December 31, 2019 and 2018 are temporary in nature. The Company had maturities of investment securities of $0.2 million , $0.3 million and $0.6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The contractual maturity dates of the Company’s investment securities are as follows: December 31, 2019 2018 (In thousands) Cost Fair Value Cost Fair Value Due after 5 years through year 10 $ 278 $ 277 $ 311 $ 309 Due after 10 years 276 272 381 374 Mortgage-backed securities with original maturities of 30 years 164 174 255 260 Investment securities with no maturity dates 30,221 29,737 24,656 23,463 Total $ 30,939 $ 30,460 $ 25,603 $ 24,406 |
Property, Equipment and Capital
Property, Equipment and Capitalized Software, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Capitalized Software, Net | 8. Property, Equipment and Capitalized Software, Net Property, equipment and capitalized software, net consist of the following: December 31, (In thousands) 2019 2018 Furniture, fixtures and equipment $ 94,478 $ 78,167 Computer software, including internal-use software 411,308 355,209 Leasehold improvements 32,406 25,516 Construction in progress 18,495 36,726 Total 556,687 495,618 Less: accumulated depreciation (344,212 ) (307,750 ) Total property, equipment and capitalized software, net $ 212,475 $ 187,868 Depreciation expense was $77.7 million , $61.6 million and $49.9 million in 2019 , 2018 and 2017 , respectively. See Note 24, Impairment and Restructuring Activities, for information regarding impairment charges on property, equipment and capitalized software. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets Goodwill The changes in goodwill during the period January 1 to December 31, 2019 were as follows: (In thousands) Fleet Solutions Segment Travel and Corporate Solutions Segment Health and Employee Benefit Solutions Segment Total Gross goodwill, January 1, 2019 $ 1,251,501 $ 244,632 $ 350,193 $ 1,846,326 Current year acquisitions 128,251 209,887 272,399 610,537 Foreign currency translation (1,645 ) 488 (483 ) (1,640 ) Gross goodwill, December 31, 2019 $ 1,378,107 $ 455,007 $ 622,109 $ 2,455,223 Accumulated impairment, January 1, 2019 $ (4,205 ) $ (9,992 ) $ — $ (14,197 ) Foreign currency translation 118 57 — 175 Accumulated impairment, December 31, 2019 $ (4,087 ) $ (9,935 ) $ — $ (14,022 ) Net goodwill, January 1, 2019 $ 1,247,296 $ 234,640 $ 350,193 $ 1,832,129 Net goodwill, December 31, 2019 $ 1,374,020 $ 445,072 $ 622,109 $ 2,441,201 The changes in goodwill during the period January 1 to December 31, 2018 were as follows: (In thousands) Fleet Solutions Segment Travel and Corporate Solutions Segment Health and Employee Benefit Solutions Total Gross goodwill, January 1, 2018 $ 1,269,718 $ 265,041 $ 353,508 $ 1,888,267 Acquisition adjustments for AOC — (19,809 ) — (19,809 ) Foreign currency translation (18,217 ) (600 ) (3,315 ) (22,132 ) Gross goodwill, December 31, 2018 $ 1,251,501 $ 244,632 $ 350,193 $ 1,846,326 Accumulated impairment, January 1, 2018 $ (927 ) $ (11,208 ) $ — $ (12,135 ) Brazil fleet impairment 1 (3,225 ) — — (3,225 ) Foreign currency translation (53 ) 1,216 — 1,163 Accumulated impairment, December 31, 2018 $ (4,205 ) $ (9,992 ) $ — $ (14,197 ) Net goodwill, January 1, 2018 $ 1,268,791 $ 253,833 $ 353,508 $ 1,876,132 Net goodwill, December 31, 2018 $ 1,247,296 $ 234,640 $ 350,193 $ 1,832,129 1 During our annual goodwill assessment completed in the fourth quarter of 2018, we assessed the impact of a customer loss significant to our Brazil fleet reporting unit. The fair value of this reporting unit was derived using a combination of present value of estimated cash flows and prices from comparable businesses. The calculated fair value was then compared to the reporting unit ’ s carrying value, which resulted in the Company recording a $3.2 million goodwill impairment charge. There is no remaining net goodwill associated with this reporting unit. Other Intangible Assets Other intangible assets consist of the following: December 31, 2019 December 31, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Acquired software and developed technology $ 269,888 $ (142,239 ) $ 127,649 $ 216,325 $ (113,694 ) $ 102,631 Customer relationships 1,762,066 (478,680 ) 1,283,386 1,243,589 (360,593 ) 882,996 Licensing agreements 145,295 (24,160 ) 121,135 32,962 (18,303 ) 14,659 Patent 2,319 (2,183 ) 136 2,332 (2,044 ) 288 Trade names and brand names 62,275 (19,531 ) 42,744 43,907 (14,421 ) 29,486 $ 2,241,843 $ (666,793 ) $ 1,575,050 $ 1,539,115 $ (509,055 ) $ 1,030,060 Indefinite-lived intangible assets Brand names — 4,134 Total $ 1,575,050 $ 1,034,194 During the fourth quarter of 2019, it was determined that the Company’s indefinite-lived intangible assets related to acquired fuel card brand names are no longer indefinite-lived, primarily due to the cessation of marketing efforts and card issuance to new customers for one of the branded cards. The Company has estimated that the phase-out of the existing cards will occur over a period of five years . Accordingly, the asset has been classified as a definite-lived intangible asset as of December 31, 2019 and will be amortized over the phase-out term. During the years ended December 31, 2019 , 2018 and 2017 , amortization expense was $159.4 million , $138.2 million and $153.8 million , respectively. The following table presents the estimated amortization expense related to the definite-lived intangible assets listed above for each of the next five fiscal years: (in thousands) 2020 $ 170,603 2021 $ 161,265 2022 $ 147,934 2023 $ 136,668 2024 $ 124,119 |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable | 10. Accounts Payable Accounts payable consists of: December 31, (In thousands) 2019 2018 Merchant payables $ 852,964 $ 690,651 Other payables 116,852 124,091 Accounts payable $ 969,816 $ 814,742 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | 11. Deposits Deposits WEX Bank’s regulatory status enables it to raise capital to fund the Company’s working capital requirements by issuing deposits, subject to FDIC rules governing minimum financial ratios. See Note 26, Supplementary Regulatory Capital Disclosure, for further information concerning these FDIC requirements. WEX Bank accepts its deposits through: (i) certain customers as required collateral for credit that has been extended (“customer deposits”); (ii) contractual arrangements with brokerage firms for both certificate of deposit and brokered money market deposit products (“brokered deposits”); and (iii) a listing service that provides certificates of deposit with financial institutions (“institutional deposits”). Customer deposits are generally non-interest bearing, while brokered deposits are issued at variable rates based on LIBOR or the Federal Funds rate and institutional deposits contain varying terms. The following table presents the composition of deposits, which are classified as short-term or long-term based on their contractual maturities: December 31, (in thousands) 2019 2018 Interest-bearing brokered money market deposits $ 362,246 $ 283,790 Customer deposits 112,571 138,072 Certificates of deposits with maturities within 1 year (a)(b) 835,996 505,582 Short-term deposits 1,310,813 927,444 Certificates of deposit with maturities greater than 1 year and less than 5 years (a)(b) 143,399 345,231 Total Deposits $ 1,454,212 $ 1,272,675 Weighted average cost of funds on certificates of deposit outstanding 2.57 % 2.36 % Weighted average cost of interest-bearing brokered money market deposits 1.88 % 2.49 % (a) As of December 31, 2019 , all brokered deposits were in denominations of $250 thousand or less, corresponding to FDIC deposit insurance limits. (b) Original maturities range from 4 months to 5 years , with interest rates ranging from 1.80 percent to 3.52 percent as of December 31, 2019 . At December 31, 2018, original maturities ranged from 6 months to 5 years with interest rates ranging from 1.30 percent to 3.52 percent . In accordance with regulatory requirements, WEX Bank maintains reserves against a portion of its outstanding customer deposits by keeping balances with the Federal Reserve Bank. The required reserve was $24.9 million and $11.1 million at December 31, 2019 and December 31, 2018 , respectively. The following table presents the average interest rates for deposits and interest-bearing money market deposits: Year ended December 31, (in thousands) 2019 2018 2017 Average interest rate: Deposits 2.46 % 1.91 % 1.22 % Interest-bearing brokered money market deposits 2.28 % 2.03 % 1.12 % Sources of Funds ICS Purchases From time to time, WEX Bank utilizes alternative funding sources such as Promontory Interfinancial Network, LLC’s ICS service, which provides for one-way buy transactions among banks for the purposes of purchasing cost-effective variable-rate funding without collateralization. WEX Bank may purchase brokered money market demand accounts and demand deposit accounts in amounts not to exceed $125.0 million through this service. There were no outstanding balances for ICS purchases at December 31, 2019 and December 31, 2018 . |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 12. Derivative Instruments The Company is exposed to certain market risks relating to its ongoing business operations. From time to time, the Company enters into derivative instrument arrangements to manage various risks including interest rate risk. The following table presents relevant information for the interest rate swap agreements outstanding during 2019 : Tranche A Tranche B Tranche C Tranche D Tranche E Tranche F Tranche G Notional amount at inception (in thousands) $150,000 $100,000 $200,000 $300,000 $200,000 $400,000 $150,000 Amortization N/A N/A N/A N/A N/A 5% annually N/A Maturity date 3/12/2022 3/12/2022 3/12/2023 12/30/2022 12/30/2022 12/31/2020 12/31/2020 Fixed interest rate 2.418% 2.425% 2.413% 2.204% 2.212% 1.108% 1.125% As of December 31, 2019, outstanding interest rate swap contracts are intended to fix the future interest payments associated with $1.4 billion of the $2.4 billion of outstanding borrowings under our 2016 Credit Agreement. The following table presents information on the location and amounts of interest rate swap gains and losses: (In thousands) Year ended December 31, Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Consolidated Statements of Income 2019 2018 2017 Interest rate swap agreements – unrealized portion Net unrealized (loss) gain on financial instruments $ (35,363 ) $ 3,772 $ 1,314 Interest rate swap agreements – realized portion Financing interest expense $ (5,411 ) $ (6,160 ) $ (214 ) See Note 19, Fair Value, for more information regarding the valuation of the Company’s interest rate swaps. |
Off-Balance Sheet Arrangements
Off-Balance Sheet Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Off-Balance Sheet Arrangements | 13. Off-Balance Sheet Arrangements WEX Europe Services Accounts Receivable Factoring During the first quarter of 2017, WEX Europe Services entered into a factoring arrangement with an unrelated third-party financial institution. Under this arrangement, the Company sells customer accounts receivable balances without recourse to the extent that the customer balances are maintained at or below the credit limit established by the buyer. If customer receivable balances exceed the buyer’s credit limit, the Company maintains the risk of default. The Company obtained a true-sale opinion from an independent attorney, which states that the factoring agreement provides legal isolation upon WEX Europe Services bankruptcy or receivership under local law and creates a sale of receivables for amounts transferred both below and above the established credit limits. The Company continues to service these receivables post-transfer with no participating interest. As such, transfers under this arrangement are treated as sales and are accounted for as reductions in trade accounts receivable because effective control of the receivables is transferred to the buyer. The Company sold approximately $630.3 million and $713.8 million of accounts receivable under this arrangement during the years ended December 31, 2019 and 2018 , respectively. Proceeds received, which are recorded net of applicable costs, including interest and commissions, are recorded in operating activities in the consolidated statements of cash flows. The loss on factoring was $3.5 million and $4.7 million for the year ended December 31, 2019 and 2018 , respectively, and was recorded within cost of services in the consolidated statements of income. As of December 31, 2019 and 2018 , the amount of outstanding transferred receivables in excess of the established credit limit was immaterial. Charge-backs on balances in excess of the credit limit during the year ended December 31, 2019 and 2018 were insignificant. WEX Bank Accounts Receivable Factoring In August 2018, WEX Bank entered into a factoring agreement with an unrelated third-party financial institution to sell certain of our trade accounts receivable under non-recourse transactions. The Company obtained a true-sale opinion from an independent attorney, which states that the factoring agreement provides legal isolation upon WEX Bank bankruptcy or receivership under local law. WEX Bank continues to service the receivables post-transfer with no participating interest. As such, transfers under this arrangement are treated as a sale and are accounted for as a reduction in trade accounts receivable because effective control of the receivables is transferred to the buyer. The Company sold approximately $14.8 billion and $3.2 billion of trade accounts receivable under this arrangement during the years ended December 31, 2019 and 2018 , respectively. Proceeds received, which are reported net of a negotiated discount rate, are recorded in operating activities in the consolidated statements of cash flows. The loss on factoring, which is recorded within cost of services in the consolidated statements of income, was $3.7 million and $1.0 million for the years ended December 31, 2019 and 2018 , respectively. WEX Latin America Securitization of Receivables During 2017, WEX Latin America entered into a securitized agreement to transfer certain unsecured receivables associated with our salary advance payment card product to an investment fund managed by an unrelated third-party. WEX Latin America holds a non-controlling equity interest in the investment fund. During the year ended December 31, 2019 , the Company did not make equity contributions to the investment fund. During the year ended December 31, 2018, the Company’s equity contributions to the investment fund totaled $2.8 million . This securitization arrangement did not meet the derecognition conditions until July 1, 2018 due to continuing involvement with the transferred assets and accordingly WEX Latin America reported the transferred receivables and securitized debt on our consolidated balance sheet. During the year ended December 31, 2018, the Company recognized operating interest expense of $4.4 million under this financing arrangement. During the third quarter of 2018, the securitization agreements were amended, resulting in the Company giving up effective control of the transferred receivables to the buyer. The Company received a true-sale opinion from an independent attorney stating that the amended agreements provide legal isolation upon WEX Latin America bankruptcy or receivership under local law. As such, transfers under this arrangement are treated as sales and are accounted for as reductions of trade accounts receivable. During the years ended December 31, 2019 and 2018 , the Company sold $78.0 million and $39.8 million of receivables, respectively, and recognized a gain on sale of $16.1 million and $6.9 million , respectively. The gain recognized consists of the difference between the sales price and the carrying value of the receivables, and is recorded within other revenue in the consolidated statements of income. Cash proceeds from the transfer of these receivables are recorded within operating activities in the consolidated statement of cash flows. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Income before income taxes consisted of the following: Year ended December 31, (In thousands) 2019 2018 2017 United States $ 178,235 $ 194,770 $ 147,240 Foreign 38,281 43,849 27,176 Total $ 216,516 $ 238,619 $ 174,416 Income taxes from continuing operations consisted of the following for the years ended December 31: (In thousands) United States State Foreign Total 2019 Current $ 20,748 $ 4,486 $ 16,322 $ 41,556 Deferred $ 19,946 $ 3,831 $ (4,110 ) $ 19,667 Income taxes $ 61,223 2018 Current $ 16,027 $ 3,566 $ 17,916 $ 37,509 Deferred $ 29,520 $ 8,016 $ (6,202 ) $ 31,334 Income taxes $ 68,843 2017 Current $ 2,254 $ 3,687 $ 13,743 $ 19,684 Deferred $ (11,748 ) $ 10,842 $ (3,328 ) $ (4,234 ) Income taxes $ 15,450 2017 Tax Act On December 22, 2017, the 2017 Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. The Company estimated the provision for income taxes in accordance with the 2017 Tax Act and guidance available as of the date of the December 31, 2017 filing and as a result recorded a provisional one-time income tax benefit of $60.6 million in the fourth quarter of 2017, the period in which the legislation was enacted. While our accounting for the impact of the 2017 Tax Act as of December 31, 2018 was deemed to be complete, amounts recorded were based on prevailing regulations and available information as of December 31, 2018. Additional guidance issued by the Internal Revenue Service had no material impact on the amounts presented in 2019. The 2017 Tax Act also changed the taxation of foreign earnings as companies are generally no longer subject to United States federal income taxes upon the receipt of dividends from foreign subsidiaries and will not be permitted foreign tax credits related to such dividends. However, the 2017 Tax Act created a new requirement to tax certain foreign earnings relating to GILTI. During 2018, the Company elected to treat GILTI inclusions as a period cost. Undistributed earnings of certain foreign subsidiaries of the Company amounted to $77.4 million and $64.9 million at December 31, 2019 and 2018 , respectively. These earnings and profits are considered to be indefinitely reinvested. Upon distribution of these earnings in the form of dividends or otherwise, the Company would be subject to withholding taxes payable to foreign countries, where applicable, but would generally have no further federal income tax liability. The reconciliation between the income tax computed by applying the U.S. federal statutory rate and the reported effective tax rate on income from continuing operations is as follows: Year ended December 31, (In thousands except for tax rates) 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes (net of federal income tax benefit) 1.4 2.2 2.0 Foreign income tax rate differential 0.8 1.1 (0.7 ) Revaluation of deferred tax assets for foreign and state tax rate changes, net (1.0 ) (1.3 ) 0.4 Research and development credit (0.5 ) (0.2 ) — Tax reserves 0.8 2.0 0.3 Withholding taxes 0.7 0.2 0.2 2017 Tax Act — (0.2 ) (34.8 ) Change in valuation allowance 3.1 4.5 4.6 Nondeductible expenses 2.3 1.4 0.5 Incremental tax benefit from share-based compensation awards (2.0 ) (1.7 ) (0.9 ) GILTI 0.5 0.8 — Other 1.2 (0.9 ) 2.3 Effective tax rate 28.3 % 28.9 % 8.9 % The decrease in our effective tax rate for the year ended December 31, 2019 relative to the prior year was primarily due to the jurisdictional earnings mix. Our lower effective tax rate for the year ended December 31, 2017 relative to 2018 was primarily due to the reduction of our net deferred tax liabilities resulting from the 2017 Tax Act’s change in the federal corporate income tax rate to 21 percent from 35 percent. The tax effects of temporary differences in the recognition of income and expense for tax and financial reporting purposes that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, (In thousands) 2019 2018 Deferred tax assets related to: Reserve for credit losses $ 11,831 $ 10,357 Tax credit carryforwards 2,570 986 Stock-based compensation, net 16,070 10,937 Net operating loss carry forwards 49,464 48,235 Accruals 18,934 13,142 Operating lease liabilities 18,892 — Other 4,283 — Total $ 122,044 $ 83,657 Deferred tax liabilities related to: Other liabilities $ (86 ) $ (1,961 ) Deferred financing costs (1,090 ) (3,078 ) Property, equipment and capitalized software (35,273 ) (28,227 ) Intangibles (243,229 ) (166,347 ) Operating lease assets (15,602 ) — Total $ (295,280 ) $ (199,613 ) Valuation allowance (32,671 ) (26,086 ) Deferred income taxes, net $ (205,907 ) $ (142,042 ) Net deferred tax (liabilities) assets by jurisdiction are as follows: December 31, (In thousands) 2019 2018 United States $ (217,927 ) $ (151,125 ) Australia (795 ) (516 ) Europe 5,645 5,873 New Zealand 237 116 Brazil 6,820 3,202 Canada 113 408 Deferred income taxes, net $ (205,907 ) $ (142,042 ) The Company had approximately $608.7 million of post apportionment state, $31.3 million of federal and $58.6 million of foreign net operating loss carryforwards at December 31, 2019 and approximately $503.3 million of post apportionment state, $53.8 million of federal and $58.7 million of foreign net operating loss carryforwards at December 31, 2018 . The U.S. losses expire at various times through 2039 . Foreign losses in Brazil and the UK have indefinite carryforward periods. At December 31, 2019 , the Company’s valuation allowances primarily pertain to the following items: (i) net deferred tax assets for certain states, (ii) acquired and certain net operating losses in the UK and (iii) U.S. foreign tax credits. In each case, the Company has determined it is not more likely than not that the benefits will be utilized. During 2019 and 2018 , the Company recorded tax expense of $6.6 million and $10.7 million , respectively, for net increases to the valuation allowance. The substantial majority of the 2019 and 2018 increase in valuation allowance was related to state net operating losses driven from our parent company’s separate state filings. At December 31, 2019 , the Company had $10.3 million of unrecognized tax benefits, net of federal income tax benefit, of which $9.8 million would decrease our effective tax rate if fully recognized. It is reasonably possible that the Company’s unrecognized tax benefits could be reduced by as much as $5.4 million within the next twelve months as a result of settlements of certain examinations or expiration of statutes of limitations. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The total amounts of interest and penalties were no t material for the years ended December 31, 2019 , 2018 and 2017 , and as of December 31, 2019 and 2018 , the Company had no material amounts accrued for interest and penalties related to unrecognized tax benefits. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits excluding interest and penalties is as follows: Year ended December 31, (In thousands) 2019 2018 2017 Beginning balance $ 8,996 $ 5,898 $ 5,458 Increases related to prior year tax positions 1,727 4,831 1,332 Increases related to current year tax positions — — 363 Decreases related to prior year tax positions (39 ) — — Settlements (364 ) (1,733 ) (1,255 ) Ending balance $ 10,320 $ 8,996 $ 5,898 The Company’s primary tax jurisdictions are the United States, Australia and the United Kingdom. The Company or one of its subsidiaries files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions, where required. In the normal course of business, the Company is no longer subject to income tax examination after the Internal Revenue Service statute of limitations of three years. The Internal Revenue Service is currently examining the Company’s U.S. federal income tax returns for 2013 through 2016. The Company is in the process of concluding the appeals process with the Internal Revenue Service in connection with the 2010 through 2012 audits with no anticipated additional tax impact to the Company. At December 31, 2019, for U.S. state tax returns, we were no longer subject to tax examination for years prior to 2013. The Company is finalizing a transfer pricing examination with New Zealand Inland Revenue for years 2013 through 2017 with no anticipated additional tax impact to the Company. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 15. Leases The Company has non-cancelable operating lease arrangements for its office space and equipment that expire at various dates through 2034. In addition, the Company rents office equipment under agreements that may be canceled anytime. Prior to January 1, 2019, all such leases were accounted for off-balance sheet. On January 1, 2019, we adopted accounting standard ASC 842, using the modified retrospective approach, which requires that leases with a duration greater than twelve months be recognized on the balance sheet as right-of-use assets and lease liabilities. The adoption of ASC 842 had no impact on our retained earnings and no prior period amounts have been adjusted. The following table presents supplemental balance sheet information related to our recognized operating leases as a result of adopting ASC 842: (In thousands) Balance Sheet Location December 31, 2019 January 1, 2019 Assets Operating lease ROU assets Other assets $ 68,351 $ 71,169 Liabilities Current operating lease liabilities Other current liabilities 13,176 11,422 Non-current operating lease liabilities Other liabilities 67,910 71,445 Total lease liabilities $ 81,086 $ 82,867 We determine whether or not a contract contains a lease at its inception. For building leases with terms greater than twelve months, we account for lease and non-lease components as a single lease component. Many of our lease agreements contain renewal or termination clauses that we factor into our determination of the lease term if we are reasonably certain to exercise any such options. As the Company’s leases do not specifically state an implicit rate, the Company uses a market-specific incremental borrowing rate consistent with the lease term as of the lease commencement date when calculating the present value of remaining lease payments. The incremental borrowing rate reflects the cost to borrow on a securitized basis in each market. The following table presents the weighted average remaining lease term and discount rate: Operating leases December 31, 2019 Weighted average remaining term (in years) 8.5 Weighted average discount rate 4.6 % Maturities of our operating lease liabilities are as follows: (In thousands) December 31, 2019 2020 $ 16,387 2021 15,544 2022 13,428 2023 9,765 2024 7,318 2025 and thereafter 36,434 Total lease payments $ 98,876 Less: Imputed interest 17,790 Total lease obligations $ 81,086 Less: Current portion of lease obligations 13,176 Long-term lease obligations $ 67,910 In addition to the total lease obligations presented in the table above, we have a 14 year building operating lease with undiscounted payment obligations of $30.0 million that is expected to commence during 2020. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet. Short-term lease payments are recognized on a straight-line basis and variable short-term lease payments are recognized in the period in which the obligation is incurred. We recognized $18.3 million of operating lease expense during 2019, which includes these immaterial short-term leases and variable lease costs as well as lease expense related to equipment and vehicles. Rental expense related to office space, equipment and vehicles prior to adoption of ASC 842 amounted to $15.7 million and $15.5 million for the years ended December 31, 2018 and 2017, respectively. These amounts are classified as general and administrative expenses on our consolidated statements of income. The following table presents supplemental cash flow and other information related to our leases: (In thousands) December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,314 Right-of-use assets obtained in exchange for lease liabilities: Operating leases (a) $ 11,001 (a) Includes non-cash transactions resulting in adjustments to the lease liability or ROU asset due to modification, impairment or other reassessment events. At December 31, 2018, the minimum annual rental payments under our lease agreements were as follows: $14.8 million in 2019; $16.0 million in 2020; $15.2 million in 2021; $14.1 million in 2022; $11.7 million in 2023; and $65.6 million |
Financing and Other Debt
Financing and Other Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Financing and Other Debt | 16. Financing and Other Debt The following table summarizes the Company’s total outstanding debt by type: Year ended December 31, (In thousands) 2019 2018 Tranche A term loan 923,707 423,637 Tranche B term loan 1,457,048 1,321,447 Term loans under 2016 Credit Agreement (a) 2,380,755 1,745,084 Notes outstanding (a) 400,000 400,000 Securitized debt 104,261 106,872 Participation debt 50,000 114,849 Borrowed federal funds 34,998 — WEX Latin America debt 2,660 16,242 Total gross debt $ 2,972,674 $ 2,383,047 (a) See Note 19, Fair Value, for more information regarding the Company’s 2016 Credit Agreement and Notes. The following table summarizes the Company’s total outstanding debt by balance sheet classification: Year ended December 31, (In thousands) 2019 2018 Current portion of gross debt $ 256,529 $ 223,241 Less: Unamortized debt issuance costs/debt discount (7,998 ) (6,724 ) Short-term debt, net $ 248,531 $ 216,517 Long-term portion of gross debt $ 2,716,145 $ 2,159,806 Less: Unamortized debt issuance costs/debt discount (29,632 ) (25,883 ) Long-term debt, net $ 2,686,513 $ 2,133,923 Supplemental information under 2016 Credit Agreement: Letters of credit (a) $ 51,314 $ 53,514 Remaining borrowing capacity on revolving credit facility (b) $ 768,686 $ 666,486 (a) Collateral for lease agreements, virtual card and fuel payment processing activity at the Company’s foreign subsidiaries. (b) Contingent on maintaining compliance with the financial covenants as defined in the Company’s 2016 Credit Agreement. 2016 Credit Agreement As of December 31, 2018, the 2016 Credit Agreement, as amended, provided for a secured tranche A term loan in an original principal amount of $480.0 million , a secured tranche B term loan in an original principal amount of $1,335.0 million and a $720.0 million secured revolving credit facility, with a $250.0 million sublimit for letters of credit and $20.0 million sublimit for swingline loans. Under the 2016 Credit Agreement, the Company has granted a security interest in substantially all of the assets of the Company, subject to exceptions including the assets of WEX Bank and certain foreign subsidiaries. On January 18, 2019, the Company entered into a Fifth Amendment to the 2016 Credit Agreement, which provided additional tranche A term loans in the original principal amount of $300.0 million . In addition, subject to certain conditions, the Fifth Amendment provided delayed draw commitments for an incremental $275.0 million tranche A term loan and an incremental $25.0 million of revolving credit commitments (subject to conversion of the delayed draw incremental tranche A term loan commitments and incremental revolving credit commitments to commitments of the other type). On March 5, 2019, the Company drew down this delayed draw commitment in order to fund the acquisition of Discovery Benefits, consisting of $250.0 million of tranche A term loans and an incremental $50.0 million of revolving credit commitments. On May 17, 2019, the Company entered into a Sixth Amendment to the 2016 Credit Agreement, which provided additional tranche B term loans in the original principal amount of $150.0 million and extended the maturity date of tranche B term loans by three years to May 2026. The maturity date of amounts due under the revolving credit facility and tranche A term loans of the 2016 Credit Agreement remained unchanged at July 2023. On November 19, 2019, the Company entered into the Seventh Amendment to the Credit Agreement, which increased commitments under the Company’s revolving credit facility from $770.0 million to $820.0 million . See Note 28, Related Party Transaction, for further information regarding the incremental revolving loan lender under the Seventh Amendment. As of December 31, 2019, after giving effect to amendments prior to such date, the 2016 Credit Agreement provides for a secured tranche A term in an original principal amount of $1,030.0 million , a secured tranche B term loan in an original principal amount of $1,485.0 million and an $820.0 million secured revolving credit facility, with a $250.0 million sublimit for letters of credit and $20.0 million sublimit for swingline loans. Prior to maturity, amounts borrowed under the tranche A and tranche B term loan facilities will be reduced by mandatory quarterly payments of $12.5 million and $3.7 million , respectively. The revolving loans and tranche A term loans outstanding under the 2016 Credit Agreement bear interest at variable rates, at the Company’s option, plus an applicable margin ranging from 0.75% to 1.25% for base rate loans and 1.75% to 2.25% for eurocurrency rate loans determined based on the Company’s consolidated leverage ratio, as defined in the 2016 Credit Agreement. The tranche B term loans bear interest at a variable rate plus a margin equal to 1.25 percent for base rate loans and 2.25 percent for eurocurrency rate loans. As of December 31, 2019 and 2018 , amounts outstanding under the 2016 Credit Agreement bore a weighted average effective interest rate of 4.0 percent and 4.7 percent , respectively. The Company maintains interest rate swap agreements to manage the interest rate risk associated with its outstanding variable-interest rate borrowings under the 2016 Credit Agreement. See Note 12, Derivative Instruments, for further discussion. In addition, the Company has agreed to pay a quarterly commitment fee at a rate per annum ranging from 0.30% to 0.50% of the daily unused portion of the 2016 Credit Agreement ( 0.40% at December 31, 2019 ) determined based on the consolidated leverage ratio. The 2016 Credit Agreement requires the Company to prepay outstanding term loans, subject to certain exceptions: • solely with respect to the tranche B term loan facility, currently with 25% (subject to increase to 50% and reduction to 0% based upon the Company’s consolidated leverage ratio) of the Company’s annual Excess Cash Flow (as defined in the 2016 Credit Agreement); • with 100% of the net cash proceeds of certain asset sales where the proceeds exceed certain thresholds, and certain casualty and condemnation events, subject to reinvestment rights and certain other exceptions; and • with 100% of the net cash proceeds of any incurrence or issuance of certain debt, other than debt permitted under the 2016 Credit Agreement. The Company may voluntarily prepay outstanding loans from time to time, subject to certain conditions, without premium or penalty other than customary “breakage” costs. The 2016 Credit Agreement, as amended, contains customary representations and warranties, as well as affirmative and negative covenants. The 2016 Credit Agreement also requires, solely for the benefit of the lenders under the tranche A term loan facility and the revolving credit facility, that the Company maintain at the end of each fiscal quarter the following financial ratios: • a consolidated EBITDA to consolidated interest charge coverage ratio of no less than 3.00 to 1.00 ; and • a consolidated leverage ratio, of consolidated funded indebtedness (excluding (i) up to $350 million of consolidated funded indebtedness under permitted securitization transactions and (ii) the non-recourse portion of any permitted factoring transaction, and netting up to $125.0 million of unrestricted cash and cash equivalents denominated in U.S. dollars held by the Company and its subsidiaries) to consolidated EBITDA of, no more than 5.00 to 1.00 , at December 31, 2019, which ratio shall step down to 4.75 to 1.00 at December 31, 2020 and 4.5 to 1.0 at December 31, 2021 and thereafter. See Note 26, Supplementary Regulatory Capital Disclosure, for further discussion. Notes Outstanding The Company has $400.0 million of 4.75 percent senior notes outstanding as of December 31, 2019 and 2018. The Notes mature on February 1, 2023 and interest accrues at the rate of 4.750 percent per annum. Interest is payable semiannually in arrears on February 1 and August 1 of each year. The Company may redeem the Notes at 100.792 percent of principal prior to February 1, 2021. After this date, there is no premium due upon redemption. Upon the occurrence of a change of control of the Company (as defined in the Indenture to the Notes), the Company must offer to repurchase the Notes at 101 percent of the principal amount of the Notes, plus accrued and unpaid interest, if any, up to the date of repurchase. The Notes are guaranteed on a senior secured basis by each of the Company’s restricted subsidiaries and each of the Company’s regulated subsidiaries that guaranteed the Company’s 2013 Credit Agreement. WEX Bank, is not a guarantor and is not subject to many of the restrictive covenants in the indenture governing the Notes. The Notes and guarantees described above are general senior secured obligations ranking equally with the Company’s existing and future senior debt, senior in right of payment to all of the Company’s subordinated debt, and effectively equal in lien priority to the Company’s 2016 Credit Agreement. In addition, the Notes and the guarantees are structurally subordinated to all liabilities of the Company’s subsidiaries that are not guarantors, including WEX Bank. Debt Issuance Costs The Company accounted for the Fifth Amendment as a debt modification. The Company accounted for the Sixth A mendment as both a debt modification and a partial debt extinguishment, and consequently recorded a loss on extinguishment of debt of $1.3 million related to the write-off of unamortized debt issuance costs during 2019. The Company incurred and expensed $10.6 million of third party costs associated with the Fifth and Sixth Amendments, which are classified within general and administrative expenses in the consolidated statements of income during 2019. We expensed as incurred an insignificant amount of costs resulting from the Seventh Amendment. During 2019, the Company also incurred and capitalized lender costs of $3.4 million associated with the Fifth Amendment and a debt discount of $11.0 million associated with the Sixth Amendment. In 2018, the Company entered into the Third and Fourth Amendments to the 2016 Credit Agreement. The Third Amendment was accounted for as both a debt modification and partial debt extinguishment, which caused us to record a loss on extinguishment of debt of $1.1 million related to the write-off of unamortized debt issuance costs, while the Fourth Amendment was accounted for as a debt modification. The Company incurred general and administrative expenses of $3.8 million related to third-party costs associated with the Third and Fourth Amendments. The loss on extinguishment and third-party costs are reflected as financing interest expense and general and administrative expenses, respectively. In addition, the Company incurred and capitalized $5.8 million of new debt issuance costs related to the Third and Fourth Amendments. Debt issuance costs are being amortized into interest expense over the 2016 Credit Agreement’s remaining term using the effective interest method for the tranche A and B term loans and the revolving credit facility. Debt Covenants The 2016 Credit Agreement and the Indenture contain covenants that limit the Company and its subsidiaries’ ability and the ability of its restricted subsidiaries and, in certain limited circumstances, WEX Bank and the Company’s other regulated subsidiaries, to (i) incur additional debt, (ii) pay dividends or make other distributions on, redeem or repurchase capital stock, or make investments or other restricted payments, (iii) enter into transactions with affiliates, (iv) dispose of assets or issue stock of restricted subsidiaries or regulated subsidiaries, (v) create liens on assets, or (vi) effect a consolidation or merger or sell all, or substantially all, of the Company’s assets. These covenants are subject to important exceptions and qualifications. At any time that the Notes are rated investment grade, which is not currently the case, and subject to certain conditions, certain covenants will be suspended with respect to the Notes. WEX Bank and the Company’s other regulated subsidiaries will not be subject to some of the restrictive covenants in the Indenture that place limitations on the Company and its restricted subsidiaries’ actions, and where WEX Bank and the Company’s regulated subsidiaries are subject to covenants, there are significant exceptions and limitations on the application of those covenants to WEX Bank and the Company’s regulated subsidiaries. Australian Securitization Facility The Company maintains a securitized debt agreement with the Bank of Tokyo-Mitsubishi UFJ, Ltd., which expires in April 2020. Under the terms of the agreement, each month, on a revolving basis, the Company sells certain of its Australian receivables to the Company’s Australian Securitization Subsidiary. The Australian Securitization Subsidiary, in turn, uses the receivables as collateral to issue asset-backed commercial paper (“securitized debt”) for approximately 85 percent of the securitized receivables. The amount collected on the securitized receivables is restricted to pay the securitized debt and is not available for general corporate purposes. The Company pays a variable interest rate on the outstanding balance of the securitized debt, based on the Australian Bank Bill Rate plus an applicable margin. The interest rate was 1.80 percent and 2.89 percent as of December 31, 2019 and 2018 , respectively. The Company had securitized debt under this facility of $78.6 million and $87.0 million as of December 31, 2019 and 2018 , respectively. European Securitization Facility On April 7, 2016, the Company entered into a five -year securitized debt agreement with the Bank of Tokyo-Mitsubishi UFJ, Ltd. Under the terms of the agreement, the Company sells certain of its receivables from selected European countries to its European Securitization Subsidiary. The European Securitization Subsidiary, in turn, uses the receivables as collateral to issue securitized debt. The amount collected on the securitized receivables is restricted to pay the securitized debt and is not available for general corporate purposes. The amount of receivables to be securitized under this agreement is determined by management on a monthly basis. The interest rate was 0.63 percent and 0.98 percent as of December 31, 2019 and 2018 , respectively. The Company had securitized debt under this facility of $25.7 million and $18.0 million as of December 31, 2019 and 2018 , respectively. Participation Debt From time to time, WEX Bank enters into participation agreements with third-party banks to fund customers’ balances that exceed WEX Bank’s lending limit to individual customers. Associated unsecured borrowings carry a variable interest rate of 1 month to 3 month LIBOR plus a margin of 225 basis points. The following table provides the amounts outstanding under the participation debt agreements in place: December 31, 2019 December 31, 2018 (In thousands) Amounts Available (1) Amounts Outstanding (1) Remaining Funding Capacity Amounts Available (2) Amounts Outstanding (2) Remaining Funding Capacity Short-term debt, net $ 80,000 50,000 30,000 $ 130,000 64,849 $ 65,151 Long-term debt, net — — — 50,000 50,000 $ — $ 80,000 50,000 30,000 $ 180,000 $ 114,849 $ 65,151 Average interest rate 4.17 % 4.30 % (1) Amounts available and outstanding under agreement terminating on August 31, 2020 as to $50 million and on demand as to $30 million . (2) Amounts available under agreements terminating on June 30, 2019 and August 31, 2020 as to $50 million each, and on demand as to $80 million . Amounts outstanding under agreements terminating on demand as to $14.8 million and on June 30, 2019 and August 31, 2020 as to $50 million each. Borrowed Federal Funds WEX Bank borrows from uncommitted federal funds lines to supplement the financing of its accounts receivable. As of December 31, 2019 and 2018, the Company’s federal funds available lines of credit were $355.0 million and $309.0 million , respectively. There were $35.0 million of outstanding borrowings as of December 31, 2019 (matured January 14, 2020 ) and no outstanding borrowings as of December 31, 2018 . The average interest rate on borrowed federal funds was 2.36 percent and 2.15 percent for the years ended December 31, 2019 and 2018, respectively. WEX Latin America Debt WEX Latin America had debt of $2.7 million and $16.2 million as of December 31, 2019 and 2018 , respectively. This is comprised of credit facilities and loan arrangements related to the Company’s accounts receivable. These borrowings are recorded in short-term debt, net. As of December 31, 2019 and 2018 , the interest rate was 35.04% and 23.59% , respectively. Other As of December 31, 2019 , WEX Bank pledged $318.3 million of fleet receivables held by WEX Bank to the Federal Reserve Bank as collateral for potential borrowings, through the Federal Reserve Bank Discount Window. Amounts that can be borrowed are based on the amount of collateral pledged and were $269.1 million as of December 31, 2019 . WEX Bank had no borrowings outstanding on this line of credit through the Federal Reserve Bank Discount Window as of December 31, 2019 and December 31, 2018. Debt Commitments The table below summarizes the Company’s annual principal payments on its total debt for each of the next five years: 2020 $ 256,529 2021 $ 64,611 2022 $ 64,611 2023 $ 1,188,598 2024 $ 14,681 |
Tax Receivable Agreement
Tax Receivable Agreement | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Tax Receivable Agreement | 17. Tax Receivable Agreement As a consequence of the Company’s separation from its former parent company in 2005, the tax basis of the Company’s net tangible and intangible assets increased, reducing the amount of tax that the Company would pay in the future to the extent the Company generated taxable income in sufficient amounts. The Company is contractually obligated to remit a portion of any such cash savings to a third party. The estimated amounts of future payments owed were $3.7 million at December 31, 2019 and $13.6 million at December 31, 2018, which are included within accrued expenses and other liabilities on the consolidated balance sheets based on the timing of payment. There has been a reassessment of the estimate for each period presented. For the years ended December 31, 2019 and 2018, the net future benefits decreased and increased, respectively, which decreased and increased the associated liability, respectively, resulting in an off-set to non-operating expense of $0.9 million and $0.8 million , respectively. For the year ended December 31, 2017, the net future benefits decreased, primarily as a result of the decline in the Federal statutory tax rate as part of the 2017 Tax Act, which decreased the associated liability, resulting in an off-set of $ 15.3 million to non-operating expense. In addition, the liability decreased due to payments of $8.9 million and $7.5 million made during the years ended December 31, 2019 and 2018, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 18. Employee Benefit Plans The Company sponsors a 401(k) retirement and savings plan for U.S. employees. Eligible employees may participate in the plan immediately. The Company’s employees who are at least 18 years of age and have completed one year of service are eligible for Company matching contributions in the plan. The Company matches 100 percent of each employee’s contributions up to a maximum of 6 percent of each employee’s eligible compensation. All contributions vest immediately. WEX has the right to discontinue the plan at any time. Contributions to the plan are voluntary. The Company contributed $10.0 million , $8.0 million and $6.7 million in matching funds to the plan for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company also sponsors deferred compensation plans for certain employees designated by the Company. Participants may elect to defer receipt of designated percentages or amounts of their compensation. The Company maintains a grantor’s trust to hold the assets under these plans. The related obligations totaled $8.0 million and $6.4 million at December 31, 2019 and 2018 , respectively, and are included in other current liabilities and other liabilities on the consolidated balance sheets. The assets are recorded at fair value, based on quoted prices for identical instruments in active markets, with any changes recorded currently to earnings and are included in prepaid expenses and other current assets and other assets on the consolidated balance sheets. Refer to Note 19, Fair Value, for further information. The Company has defined benefit pension plans in several European countries. The total net unfunded status for the Company’s foreign defined benefit pension plans was $5.9 million and $5.4 million as of December 31, 2019 and 2018 , respectively. These obligations are recorded in other current liabilities and other liabilities in the consolidated balance sheets. The Company measures these plan obligations on an annual basis. The change in fair value to the defined benefit pension plans is recorded through the consolidated statements of income. The expense under each of these defined benefit pension plans for 2019 , 2018 and 2017 was not |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 19. Fair Value Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company’s financial instruments that are measured at fair value on a recurring basis: December 31, (In thousands) Fair Value Hierarchy 2019 2018 Financial Assets: Money market funds (a) 1 $ 223,217 $ 71,228 Investment securities Municipal bonds 2 $ 302 $ 404 Asset-backed securities 2 247 279 Mortgage-backed securities 2 174 260 Pooled investment fund measured at net asset value (e) 5,000 — Fixed-income mutual fund 1 24,737 23,463 Total investment securities $ 30,460 $ 24,406 Executive deferred compensation plan trust (b) 1 $ 7,965 $ 6,398 Interest rate swaps (c) 2 $ 2,395 $ 17,994 Liabilities: Interest rate swaps (d) 2 $ 19,764 $ — (a) The fair value is recorded in cash and cash equivalents. (b) The fair value is recorded in prepaid expenses and other current assets and other assets based on the timing of payment obligations. At December 31, 2019, $0.9 million and $7.0 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. At December 31, 2018, $0.8 million and $5.6 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. (c) The fair value is recorded as a current or long-term asset depending on the timing of expected discounted cash flows. At December 31, 2019 and 2018, $2.4 million and $8.8 million of fair value, respectively, is recorded within prepaid expenses and other current assets. At December 31, 2018, $9.2 million of fair value is recorded within other assets. (d) The fair value is recorded in other current liabilities or other liabilities depending on the timing of expected discounted cash flows. At December 31, 2019, $6.7 million and $13.1 million of fair value is recorded within other current liabilities and other liabilities, respectively. (e) The fair value of this security is measured at net asset value as a practical expedient and has not been classified within the fair value hierarchy. The fair value amount presented in this table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. Money Market Funds A portion of the Company’s cash and cash equivalents are invested in money market funds that primarily consist of short-term government securities, which are classified as Level 1 in the fair value hierarchy because they are valued using quoted market prices in an active market. Investment Securities When available, the Company uses quoted market prices to determine the fair value of investment securities; such inputs are classified as Level 1 of the fair-value hierarchy. These securities primarily consist of an open-ended mutual fund, which is invested in fixed-income securities and is held in order to satisfy the regulatory requirements of WEX Bank. For mortgage-backed and asset-backed debt securities and municipal 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 valued using Level 2 inputs. Pooled Investment Fund (In thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Pooled investment fund, as of December 31, 2019 $ 5,000 — Monthly 30 days The pooled investment fund is a Community Reinvestment Act-eligible investment fund, which seeks to provide current income consistent with the returns available in adjustable-rate government guaranteed financial products by investing in Community Development loans guaranteed by the Small Business Administration. The fund maintains individual capital accounts for each investor, which reflect each individual investor’s share of the NAV of the fund. Executive Deferred Compensation Plan Trust The investments held in the executive 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. Interest Rate Swaps The Company determines the fair value of its interest rate swaps based on the discounted cash flows of the difference between the projected fixed payments on the swaps and the implied floating payments using the current LIBOR curve, which are Level 2 inputs of the fair value hierarchy. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company had no assets and liabilities measured on a non-recurring basis during the year ended December 31, 2019. See Note 24, Impairment and Restructuring Activities, for assets and liabilities measured at fair value on a non-recurring basis for the years ended December 31, 2018 and 2017, and the related impairment charges recorded. Assets and Liabilities Measured at Carrying Value, for which Fair Value is Disclosed Notes Outstanding The Company determines the fair value of the Notes based on market rates for the issuance of our debt, which are classified as Level 2 in the fair value hierarchy. As of both December 31, 2019 and 2018, the carrying value of the Notes approximated fair value. 2016 Credit Agreement The Company determines the fair value of the amount outstanding under its 2016 Credit Agreement based on the market rates for the issuance of the Company’s debt, which are Level 2 inputs in the fair value hierarchy. As of both December 31, 2019 and 2018 , the carrying value of the 2016 Credit Agreement approximated fair value. Other Assets and Liabilities |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | 20. Redeemable Non-Controlling Interest On March 5, 2019, the Company acquired Discovery Benefits, an employee benefits administrator. The seller of Discovery Benefits obtained a 4.9 percent equity interest in the newly formed parent company of WEX Health and Discovery Benefits (the “U.S. Health business”). The seller’s 4.9 percent non-controlling interest in the U.S. Health business was initially established at both carrying value and fair value. On the date of acquisition, the excess of the fair value of the 4.9 percent equity interest in WEX Health over its carrying value was recognized as an equity transaction, resulting in a $41.4 million increase to additional paid-in capital. The agreement provides the seller with a put right and the Company with a call right for the equity interest, which can be exercised no earlier than seven years following the date of acquisition, respectively. Upon exercise of the put or call right, the purchase price is calculated based on a revenue multiple of peer companies (as described in the operating agreement for the U.S. Health business) applied to trailing twelve month revenues of the U.S. Health business. The put option makes the non-controlling interest redeemable and, therefore, the non-controlling interest is classified as temporary equity outside of stockholders’ equity. The redeemable non-controlling interest is reported at the higher of its redemption value or the non-controlling interest holder’s proportionate share of the U.S. Health business’ net carrying value. Subsequent remeasurement of the equity interest to fair value during the first quarter of 2019 resulted in an increase to redeemable non-controlling interest of $41.4 million and an offsetting decrease to retained earnings that did not impact earnings per share. During the year ended December 31, 2019 , we recalculated the redeemable non-controlling interest using revenue multiples as determined in accordance with the operating agreement for the U.S. Health business and described above, resulting in a $57.3 million increase to the redeemable non-controlling interest. The adjustment reduced both retained earnings and earnings per share attributable to shareholders for the year ended December 31, 2019 . Subsequent increases or decreases in the redemption value of the non-controlling interest will be offset against retained earnings and impact earnings per share. The following table presents the changes in the Company’s redeemable non-controlling interest: (In thousands) Year Ended December 31, 2019 Balance, beginning of year $ — Acquisition of Discovery Benefits at fair value 25,757 Establishing redeemable non-controlling interest for WEX Health at carrying value 32,843 Adjustment to redeemable non-controlling interest to reflect WEX Health at fair value 41,400 Net loss attributable to redeemable non-controlling interest (436 ) Accretion of non-controlling interest 57,315 Balance, end of year $ 156,879 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. Commitments and Contingencies Litigation The Company is subject to legal proceedings and claims in the ordinary course of business. As of the date of this filing, the current estimate of a reasonably possible loss contingency from all legal proceedings is not material to the Company’s consolidated financial position, results of operations, cash flows or liquidity. Extension of Credit to Customers We have entered into commitments to extend credit in the ordinary course of business. We had approximately $9.5 billion of unused commitments to extend credit at December 31, 2019 , as part of established customer agreements. These amounts may increase or decrease during 2020 as we increase or decrease credit to customers, subject to appropriate credit reviews, as part of our lending product agreements. Many of these commitments are not expected to be utilized. We can adjust most of our customers’ credit lines at our discretion at any time. Therefore, we do not believe total unused credit available to customers and customers of strategic relationships represents future cash requirements. Unfunded Commitment As a member bank, we have committed to funding a maximum of $7.0 million of loans to a nonprofit, community development financial institution to facilitate their offering of flexible financing for affordable, quality housing to assist Utah’s low and moderate-income residents. As of December 31, 2019, the Company has funded $2.4 million of its commitment, which has been included on the consolidated balance sheet within accounts receivable. The Company’s remaining unused commitment as of December 31, 2019 is $4.6 million . Minimum Volume Purchase and Spend Commitments Two of the Company’s subsidiaries are required to purchase a minimum amount of fuel from suppliers on an annual basis through 2024. Should the Company fail to meet these minimum volume commitments, a penalty will be assessed as defined under the contracts. If the Company does not purchase any fuel under these commitments after December 31, 2019 , it would incur penalties totaling approximately $49.6 million through 2024. The Company did not incur any shortfall penalties under these contracts during the year ended December 31, 2019 . During the year ended December 31, 2018 , the Company incurred $1.6 million in shortfall penalties under these contracts. The Company considers the associated risk of loss to be remote based on current operations. The Company is subject to minimum annual spend commitments as part of negotiated contracts for certain IT and non-IT related services through 2023. Minimum spend commitments under these contracts as of December 31, 2019 total $23.0 million in the aggregate, with $6.0 million in 2020, $10.2 million in 2021, $6.4 million in 2022 and $0.3 million |
Dividend Restrictions
Dividend Restrictions | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Dividend Restrictions | 22. Dividend Restrictions The Company has certain restrictions on the dividends it may pay including those under the 2016 Credit Agreement. The 2016 Credit Agreement does allow us to make certain restricted payments (including dividends) if we are able to demonstrate pro forma compliance with a consolidated leverage ratio, as defined in the 2016 Credit Agreement, of no more than 2.50 :1.00 for the most recent period of four fiscal quarters after execution of a restricted payment. Additionally, as long as the Company would be in compliance with its interest charge coverage ratio and its maximum consolidated leverage ratio after giving pro forma effect to such restricted payment, the Company may pay $50 million per annum for restricted payments, including dividends, of which 100% of unused amounts may be carried over into subsequent years. In addition, the purchase agreement that the Company entered into on January 24, 2020 for the acquisition of eNett and Optal prohibits the Company from declaring or paying dividends without the prior written consent of the sellers prior to the closing of the acquisition. See Note 29, Subsequent Event, for more information regarding this purchase agreement. The Company has not declared any dividends on its common stock since it commenced trading on the NYSE on February 16, 2005. Dividends paid by WEX Bank have provided a substantial part of the Company’s operating funds and for the foreseeable future it is anticipated that dividends paid by WEX Bank will continue to be a source of operating funds to the Company. Capital adequacy requirements serve to limit the amount of dividends that may be paid by WEX Bank. WEX Bank is chartered under the laws of the State of Utah and the FDIC insures its deposits. Under Utah law, WEX Bank may only pay a dividend out of net profits after it has (i) provided for all expenses, losses, interest and taxes accrued or due from WEX Bank and (ii) transferred to a surplus fund 10 percent of its net profits before dividends for the period covered by the dividend, until the surplus reaches 100 percent of its capital stock. For purposes of these Utah dividend limitations, WEX Bank’s capital stock is $5.3 million and its capital surplus exceeds 100 percent of capital stock. Under FDIC regulations, WEX Bank may not pay any dividend if, following the payment of the dividend, WEX Bank would be “undercapitalized,” as defined under the Federal Deposit Insurance Act and applicable regulations. The FDIC also has the authority to prohibit WEX Bank from engaging in business practices that the FDIC considers to be unsafe or unsound, which, depending on the financial condition of WEX Bank, could include the payment of dividends. WEX Bank complied with the aforementioned dividend restrictions for each of the years ended December 31, 2019 , 2018 and 2017 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 23. Stock-Based Compensation On May 9, 2019, our stockholders approved the WEX Inc. 2019 Equity and Incentive Plan (the “Plan”), which replaced our 2010 Equity and Incentive Plan (the “Prior Plan”). Upon the expiration of the Prior Plan on May 20, 2020, all then outstanding awards will remain in effect, but no additional awards may be made under the Prior Plan. The Plan permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based or cash-based awards to non-employee directors, officers, employees, advisors or consultants. The Plans permit the Company to grant a total number of shares which is the sum of; (i) 3.7 million shares of common stock; plus (ii) such additional number of shares of common stock (up to 1.5 million ) as is equal to the number of shares of common stock subject to awards granted under the Prior Plan. There were 3.6 million units of common stock available for grant for future equity compensation awards under the Plan at December 31, 2019 . As of December 31, 2019 , the Company had four stock-based compensation award types, which are described below. The compensation cost that has been charged against income for these programs totals $45.6 million , $33.9 million and $30.5 million for 2019 , 2018 and 2017 , respectively. In connection with the Noventis acquisition, we recognized an additional $5.5 million of compensation cost for 2019 . Refer to Note 4, Acquisitions , for further information. The associated tax benefit related to these costs was $9.9 million , $8.0 million and $7.3 million , for 2019 , 2018 and 2017 , respectively. Restricted Stock Units The Company periodically grants RSUs, a right to receive a specific number of shares of the Company’s common stock at a specified date, to non-employee directors and certain employees. RSUs granted to non-employee directors vest 12 months from the date of grant, or upon termination of board service if the director elects to defer receipt. RSUs issued to certain employees generally vest evenly over up to three years and provide for accelerated vesting if there is a change of control (as defined in the Plan). The fair value of each RSU award is based on the closing market price of the Company’s stock on the day of grant as reported by the NYSE. The following is a summary of RSU activity during the year ended December 31, 2019 : Restricted Stock Units (In thousands except per share data) Units Weighted-Average Grant-Date Fair Value Unvested at January 1, 2019 167 $ 138.58 Granted 171 198.03 Vested, including 20 shares withheld for tax (a) (64 ) 117.81 Forfeited (14 ) 172.38 Unvested at December 31, 2019 260 $ 181.23 (a) The Company withholds shares of common stock to pay the minimum required statutory taxes due upon RSU vesting. Cash is then remitted by the Company to the appropriate taxing authorities. As of December 31, 2019 , there was $34.9 million of total unrecognized compensation cost related to RSUs. That cost is expected to be recognized over a weighted-average period of 1.9 years . The total grant-date fair value of RSUs granted was $34.0 million , $16.8 million and $11.7 million during 2019 , 2018 and 2017 , respectively. The total fair value of RSUs that vested during 2019 , 2018 and 2017 was $7.6 million , $9.2 million and $7.3 million , respectively. Performance-Based Restricted Stock Units The Company periodically grants PBRSUs to employees. A PBRSU is a right to receive stock based on the achievement of both performance goals and continued employment during the vesting period. In a PBRSU, the number of shares earned varies based upon meeting certain performance goals. PBRSU awards generally have performance goals spanning one to three years , depending on the nature of the performance goal. The fair value of each PBRSU award is based on the closing market price of the Company’s stock on the grant date as reported by the NYSE. The following is a summary of PBRSU activity during the year ended December 31, 2019 : Performance-Based Restricted Stock Units (In thousands except per share data) Shares Weighted-Average Unvested at January 1, 2019 419 $ 113.58 Granted 102 185.92 Forfeited (52 ) 136.83 Vested, including 37 shares withheld for tax (a) (114 ) 81.87 Performance adjustment (b) 94 144.37 Unvested at December 31, 2019 449 $ 140.58 (a) The Company withholds shares of common stock to pay the minimum required statutory taxes due upon PBRSU vesting. Cash is then remitted by the Company to the appropriate taxing authorities. (b) Reflects adjustments to the number of shares of PBRSUs expected to vest based on the change in performance attainment during the year ended December 31, 2019. As of December 31, 2019 , there was $23.7 million of unrecognized compensation cost related to the PBRSUs that is expected to be recognized over a weighted-average period of 1.7 years . The total grant-date fair value of PBRSUs granted during 2019 , 2018 and 2017 was $19.0 million , $18.3 million and $15.0 million , respectively. The total fair value of PBRSUs that vested during 2019 , 2018 and 2017 was $9.3 million , $12.0 million and $15.9 million , respectively. Stock Options Market Performance-Based Stock Options In May 2017, the Company granted market performance-based stock options with a contractual term of ten years to certain members of senior management. The options contain a market condition that begins operating on the third anniversary of the grant date, requiring the closing price of the Company’s stock to meet or exceed certain price thresholds for twenty consecutive trading days (“Stock Price Hurdle”) in order for shares to vest. In addition, award recipients must be continually employed from the grant date until such date that the Stock Price Hurdle is satisfied in order for shares to vest. To the extent both the service condition and the Stock Price Hurdles are not met by the end of a defined measurement period, these options will be canceled. The grant date fair value of these options was estimated on the date of the grant using a Monte-Carlo simulation model used to simulate a distribution of future stock price paths based on historical volatility levels. The table below summarizes the assumptions used to calculate the fair value: Exercise price $ 99.69 Expected stock price volatility 31.14 % Risk-free interest rate 2.18 % Weighted average fair value of market performance-based stock options granted $ 28.69 The Company expenses these options on a graded basis over the derived service period of approximately three years regardless of whether the market condition is satisfied. Upon satisfaction of a Stock Price Hurdle, any unrecognized compensation expense for that specific tranche will be accelerated. Service-Based Stock Options The Company periodically grants stock options to certain officers and employees under the Plan, which generally become exercisable over three years (with approximately 33 percent of the total grant vesting each year on the anniversary of the grant date) and expire 10 years from the date of grant. All service-based stock option grants provide for an option exercise price equal to the closing market value of the common stock on the date of grant as reported by the NYSE. Based on the Company’s lack of historical option exercise experience and granting of stock options with “plain vanilla” characteristics, the Company uses the simplified method to estimate the expected term of its employee stock options. The fair value of each option award is estimated on the grant date using the following assumptions and a Black-Scholes-Merton option- pricing model. The expected term assumption as it relates to the valuation of the options represents the period of time that options granted are expected to be outstanding. The Company estimates expected stock price volatility based on historical volatility of the Company’s common stock over a period matching the expected term of the options granted. The option-pricing model also includes a risk-free interest rate for the period matching the expected term of the option and is based on the U.S. Treasury yield curve in effect at the time of the grant. We have never paid nor do we expect to pay any cash dividends on our common stock; therefore, we assume that no dividends will be paid over the expected terms of option awards. The table below summarizes the assumptions used to calculate the fair value by year of grant: 2019 2018 2017 Weighted average grant date fair value $ 58.28 $ 51.27 $ 35.58 Weighted average expected term (in years) 6 6 6 Weighted average exercise price $ 184.81 $ 158.23 $ 104.95 Expected stock price volatility 27.21 % 27.35 % 30.67 % Risk-free interest rate 2.37 % 2.69 % 2.13 % The following is a summary of all stock option activity during the year ended December 31, 2019 : Stock Options (In thousands, except per share data) Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2019 891 $ 104.62 Granted 124 184.81 Exercised (53 ) 93.00 Forfeited or expired (70 ) 112.10 Outstanding at December 31, 2019 892 $ 115.82 7.52 $ 83,543 Exercisable on December 31, 2019 182 $ 103.32 6.71 $ 19,289 Vested and expected to vest at December 31, 2019 685 $ 119.23 7.73 $ 61,769 As of December 31, 2019 , there was $9.4 million of total unrecognized compensation cost related to options. That cost is expected to be recognized over a weighted-average period of 1.2 years . The total intrinsic value of options exercised during the years ended December 31, 2019 , 2018 and 2017 was $5.7 million , $1.9 million and $0.6 million , respectively. The total grant-date fair value of options granted during 2019 , 2018 and 2017 was $7.2 million , $5.2 million , and $20.5 million , respectively. Deferred Stock Units Non-employee directors may elect to defer their cash fees and RSUs in the form of DSUs. The Company previously granted fully vested DSUs to non-employee directors. These awards are distributed as common stock 200 days immediately following the date upon which such director’s service as a member of the Company’s Board of Directors terminates for any reason. There were approximately 63 thousand and 74 thousand DSUs outstanding as of December 31, 2019 and 2018 , respectively. Unvested DSUs as of December 31, 2019 and 2018 were not material. |
Impairment and Restructuring Ac
Impairment and Restructuring Activities | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Activities | 24. Impairment and Restructuring Activities Impairment Charges We did not record any impairment charges during our annual goodwill assessment completed in the fourth quarter of 2019. In the fourth quarter of 2018, we recorded a non-cash goodwill impairment charge of $3.2 million related to our Brazil fleet reporting unit. We also impaired $2.4 million of computer software in 2018, which was determined to provide no future benefit. See Note 9, Goodwill and Other Intangible Assets, of our consolidated financial statements for more information. Following the acquisition of AOC in the fourth quarter of 2017, the Company reevaluated software currently under development for payment processing within our Travel and Corporate Solutions segment. From this, we determined the developed technology obtained in the AOC acquisition more closely aligns with our technological strategy. As a result, $22.0 million of software under development was determined to have no future benefit and was therefore impaired during the year ended December 31, 2017. We also impaired $6.0 million of computer software within the Fleet Solutions segment in 2017 as a result of our ongoing platform consolidation strategy, designed to ensure we continue to deliver superior technology to our customers. During the year ended December 31, 2017, the Company executed a vendor contract amendment based on a strategic decision to in-source certain previously outsourced technology functions. As a result of this action, the Company determined that $16.2 million of prepaid services had no future benefit and were therefore written off within the Fleet Solutions and Travel and Corporate Solutions segments during the same period. Restructuring In the first quarter of 2015, the Company commenced a restructuring initiative as a result of its global review of operations. The Company identified certain initiatives to further streamline the business, improve efficiency and globalize operations, all with an objective to improve scale and increase profitability. The Company continued its efforts to improve overall operational efficiency and began a second restructuring initiative during the second quarter of 2016. In connection with the EFS acquisition, the Company initiated a third restructuring program in the third quarter of 2016. Total restructuring charges incurred to date under these initiatives, which primarily consisted of employee costs and office closure costs, were $27.6 million as of December 31, 2019 . During 2019 , the Company continued its strategic shift related to its global restructuring initiatives, resulting in $2.8 million of charges related to severance. Based on current plans, which are subject to change, the Company does not expect to incur any material charges under these initiatives in future periods. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 25. Segment Information The Company determines its operating segments and reports segment information in accordance with how the Company’s chief operating decision maker (“CODM”) allocates resources and assesses performance. The Company’s CODM is its Chief Executive Officer. The operating segments are aggregated into the three reportable segments described below. • Fleet Solutions provides customers with payment and transaction processing services specifically designed for the needs of commercial and government fleets. This segment also provides information management services to these fleet customers. • Travel and Corporate Solutions focuses on the complex payment environment of business-to-business payments, providing customers with payment processing solutions for their corporate payment and transaction monitoring needs. • Health and Employee Benefit Solutions provides healthcare payment products and SaaS consumer directed platforms, as well as payroll related benefits to customers. The following tables present the Company’s reportable segment revenues: Year Ended December 31, 2019 (in thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 457,244 $ 303,385 $ 64,963 $ 825,592 Account servicing revenue 164,735 43,293 205,524 413,552 Finance fee revenue 245,082 2,086 150 247,318 Other revenue 171,334 19,062 46,833 237,229 Total revenues $ 1,038,395 $ 367,826 $ 317,470 $ 1,723,691 Interest income $ 6,249 $ 1,521 $ 1,534 $ 9,304 Year Ended December 31, 2018 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 464,980 $ 203,289 $ 55,722 $ 723,991 Account servicing revenue 162,662 37,262 108,172 308,096 Finance fee revenue 190,528 1,391 16,708 208,627 Other revenue 156,970 61,402 33,553 251,925 Total revenues $ 975,140 $ 303,344 $ 214,155 $ 1,492,639 Interest income $ 3,503 $ 958 $ 11,706 $ 16,167 Year Ended December 31, 2017 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 360,158 $ 158,660 $ 50,348 $ 569,166 Account servicing revenue 165,083 7,531 103,956 276,570 Finance fee revenue 159,336 760 28,696 188,792 Other revenue 138,533 57,096 18,420 214,049 Total revenues $ 823,110 $ 224,047 $ 201,420 $ 1,248,577 Interest income $ 3,681 $ 717 $ 27,507 $ 31,905 No one customer accounted for more than 10 percent of the total consolidated revenue in 2019 , 2018 or 2017 . The CODM evaluates the financial performance of each segment using segment adjusted operating income, which excludes: (i) acquisition and divestiture related items (including acquisition-related intangible amortization); (ii) stock-based compensation; (iii) restructuring and other costs; (iv) gains on divestitures; (v) debt restructuring costs; (vi) impairment charges; and (vii) unallocated corporate expenses. Additionally, we do not allocate foreign currency gains and losses, financing interest expense, unrealized and realized gains and losses on financial instruments, non-cash adjustments related to the tax receivable agreement, income taxes and net gains or losses from non-controlling interests to our operating segments. The following table reconciles total segment adjusted operating income to income before income taxes: Year ended December 31, (In thousands) 2019 2018 2017 Segment adjusted operating income Fleet Solutions $ 485,539 $ 459,646 $ 369,872 Travel and Corporate Solutions 168,786 135,379 96,660 Health and Employee Benefit Solutions 80,283 44,931 46,846 Total segment adjusted operating income $ 734,608 $ 639,956 $ 513,378 Reconciliation: Total segment adjusted operating income $ 734,608 $ 639,956 $ 513,378 Less: Unallocated corporate expenses 67,982 58,095 53,753 Acquisition-related intangible amortization 159,431 138,186 153,810 Other acquisition and divestiture related items 37,675 4,143 5,000 Debt restructuring costs 11,062 4,425 2,563 Stock-based compensation 47,511 35,103 30,487 Restructuring and other costs 25,106 13,717 11,129 Impairment charges — 5,649 44,171 Gain on divestiture — — (20,958 ) Operating income $ 385,841 $ 380,638 $ 233,423 Financing interest expense (134,677 ) (105,023 ) (107,067 ) Net foreign currency (loss) gain (926 ) (38,800 ) 31,487 Non-cash adjustments related to tax receivable agreement 932 (775 ) 15,259 Net unrealized (loss) gain on financial instruments (34,654 ) 2,579 1,314 Income before income taxes $ 216,516 $ 238,619 $ 174,416 Assets are not allocated to the segments for internal reporting purposes. Geographic Data Revenue by principal geographic area, based on the country in which the sale originated, was as follows: Year ended December 31, (In thousands) 2019 2018 2017 United States $ 1,535,985 $ 1,287,405 $ 1,037,322 Other international 1 187,706 205,234 211,255 Total revenues $ 1,723,691 $ 1,492,639 $ 1,248,577 1 No single country within made up more than 5 percent of total revenues for any of the years presented. Net property, equipment and capitalized software is subject to geographic risks because it is generally difficult to move and relatively illiquid. Net property, equipment and capitalized software by principal geographic area was as follows: Year ended December 31, (In thousands) 2019 2018 2017 United States $ 200,101 $ 176,111 $ 148,490 International 1 12,374 11,757 15,418 Net property, equipment and capitalized software $ 212,475 $ 187,868 $ 163,908 1 No single country within made up more than 5 percent |
Supplementary Regulatory Capita
Supplementary Regulatory Capital Disclosure | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Supplementary Regulatory Capital Disclosure | 26. Supplementary Regulatory Capital Disclosure The Company’s subsidiary, WEX Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, WEX Bank must meet specific capital guidelines that involve quantitative measures of WEX Bank’s assets, liabilities and certain off-balance sheet items. WEX Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could limit our business activities and have a material effect on our business, results of operations and financial condition. Quantitative measures established by regulation to ensure capital adequacy require WEX Bank to maintain minimum amounts and ratios as defined in the regulations. As of December 31, 2019 , the most recent FDIC exam report categorized WEX Bank as “well capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events subsequent to that examination report that management believes have changed WEX Bank’s capital rating. The following table presents WEX Bank’s actual and regulatory minimum capital amounts and ratios: Actual Amount Ratio Minimum for Capital Adequacy Purposes Amount Ratio Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio December 31, 2019 Total Capital to risk-weighted assets $ 329,276 13.54 % $ 194,566 8.00 % $ 243,208 10.00 % Tier 1 Capital to average assets $ 314,466 10.88 % $ 115,583 4.00 % $ 144,479 5.00 % Common equity to risk-weighted assets $ 314,466 12.93 % $ 109,443 4.50 % $ 158,085 6.50 % Tier 1 Capital to risk-weighted assets $ 314,466 12.93 % $ 145,925 6.00 % $ 194,566 8.00 % December 31, 2018 Total Capital to risk-weighted assets $ 323,178 12.82 % $ 201,749 8.00 % $ 252,186 10.00 % Tier 1 Capital to average assets $ 305,734 10.88 % $ 112,401 4.00 % $ 140,501 5.00 % Common equity to risk-weighted assets $ 305,734 12.12 % $ 113,484 4.50 % $ 163,921 6.50 % Tier 1 Capital to risk-weighted assets $ 305,734 12.12 % $ 151,312 6.00 % $ 201,749 8.00 % |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (Unaudited) | 27. Quarterly Financial Results (Unaudited) Summarized quarterly results for the years ended December 31, 2019 and 2018 , are as follows: Three months ended (In thousands, except per share data) March 31 June 30 September 30 December 31 2019 Total revenues 1 $ 381,876 $ 441,807 $ 459,963 $ 440,045 Operating income $ 68,935 $ 94,737 $ 118,311 $ 103,858 Net income attributable to shareholders $ 16,134 $ 13,807 $ 14,619 $ 54,446 Earnings per share: Basic $ 0.37 $ 0.32 $ 0.34 $ 1.26 Diluted $ 0.37 $ 0.32 $ 0.33 $ 1.24 2018 Total revenues $ 354,028 $ 370,798 $ 386,617 $ 381,196 Operating income $ 83,859 $ 100,424 $ 102,564 $ 93,791 Net income attributable to shareholders $ 51,970 $ 38,424 $ 56,644 $ 21,257 Earnings per share: Basic $ 1.21 $ 0.89 $ 1.31 $ 0.49 Diluted $ 1.20 $ 0.88 $ 1.30 $ 0.49 1 During the fourth quarter of 2019, we recorded an immaterial out-of-period adjustment related to prior quarters of 2019 to properly reflect fleet segment revenue and expenses, which decreased total revenues and sales and marketing expense by $14.3 million . Basic and diluted net income per share are computed independently for each quarter presented. Therefore, the sum of quarterly basic and diluted net income per share information may not equal annual basic and diluted net income per share. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 28. Related Party Transaction On November 19, 2019, the Company entered into the Seventh Amendment to the 2016 Credit Agreement. The Seventh Amendment increased commitments under the Company’s revolving credit facility by $50.0 million , with Bell Bank as the incremental revolving loan lender. Bell Bank was the seller of Discovery Benefits and holds a 4.9 percent |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 29. Subsequent Events On January 24, 2020, the Company entered into a purchase agreement to purchase eNett, a leading provider of business-to-business payments solutions to the travel industry and Optal, a company that specializes in optimizing business-to-business transactions. Pursuant to the purchase agreement, and subject to the terms and conditions contained therein, the Company will acquire all of the issued share capital of eNett and Optal from Travelport Limited, Toro Private Holdings I, Ltd., and the other shareholders of eNett and Optal, for an aggregate purchase price comprised of approximately $1.3 billion in cash and 2.0 million shares of the Company’s common stock and subject to certain working capital and other adjustments as described in the purchase agreement. The parties’ obligations to consummate the acquisition are subject to customary closing conditions, including regulatory approvals. We expect that the acquisition will accelerate our global growth strategy and strengthen our technology and product portfolio. This acquisition will be accounted for under the acquisition method of accounting. In connection with the acquisition, the Company entered into a commitment letter with Bank of America, N.A. and BofA Securities, Inc. on January 24, 2020 for (a) senior secured credit facilities in the aggregate amount of up to $2.8 billion , consisting of (i) up to a $2.0 billion seven-year term loan B facility, comprised of $1.1 billion to fund the planned acquisition and a $924.0 million backstop to refinance the Company’s existing Term A loans under the 2016 Credit Agreement and (ii) an $820.0 million backstop to replace the Company’s existing revolving credit facility under the 2016 Credit Agreement and (b) a senior unsecured bridge facility in the aggregate amount of up to $300.0 million . To the extent that the 2016 Credit Agreement had not been amended prior to the funding of these facilities to increase the maximum consolidated leverage ratio upon the closing of the acquisition to 5.75 x, the backstops were available to the Company for use. On February 10, 2020, the Company entered into an Eighth Amendment to the 2016 Credit Agreement. The Eighth Amendment, among other things, (i) modifies the maximum consolidated leverage ratio to be no more than 5.75 to 1.0 commencing as of December 31, 2019, decreasing to 5.50 to 1.0 commencing as of December 31, 2020, decreasing to 5.00 to 1.0 commencing as of December 31, 2021 and further decreasing to 4.75 to 1.0 commencing as of December 31, 2022 and thereafter and (ii) increases the Company’s capacity to incur additional incremental debt facilities up to $1.4 billion in connection with the acquisition of eNett and Optal. As such, the portion of the commitment letter related to the backstops described above have been reduced to zero. The amendments set forth in the Eighth Amendment would only become effective concurrently with the closing of the pending acquisition of eNett and Optal, if it occurs. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Business Description | Business Description WEX Inc. (“Company”, “we” or “our”) is a provider of corporate card payment solutions. The Company provides products and services that meet the needs of businesses in various geographic regions including North and South America, Asia Pacific and Europe. The Company’s Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions segments provide our customers with security and control for complex payments across a wide spectrum of business sectors. The Company markets its products and services directly, as well as through strategic relationships, which include major oil companies, fuel retailers, vehicle maintenance providers, online travel agencies and health partners. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements for the years ended December 31, 2019 , 2018 and 2017 , include the accounts of the Company and its wholly and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company rounds amounts in the consolidated financial statements to thousands within tables and millions within text (unless otherwise specified), and calculates all percentages and per-share data from underlying whole-dollar amounts. Thus, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The Company prepares its consolidated financial statements in conformity with GAAP and with the Rules and Regulations of the SEC, specifically Regulation S – X and the instructions to Form 10 – K. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates and those differences may be material. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Restricted Cash | Restricted Cash Restricted cash represents funds collected from individuals or employers on behalf of our customers that are to be remitted to third parties or funds required to be maintained on hand under certain vendor agreements and is not available to fund the Company’s operations. We maintain an offsetting liability against restricted cash collected and remitted on behalf of our customers. |
Accounts Receivable, Net of Allowances | Accounts Receivable, Net of Allowances Accounts receivable, net of allowances consists of amounts billed and due from third parties. We often extend short-term credit to cardholders and pay the merchant for the purchase price, less the fees we retain and record as revenue. We subsequently collect the total purchase price from the cardholder. The amounts due are stated at their net realizable value. The receivables portfolio consists of a large group of homogeneous smaller balances across a wide range of industries, which are collectively evaluated for impairment. The accounts receivable allowance reflects management’s estimate of uncollectable balances resulting from credit and fraud losses and is based on the determination of the amount of expected losses inherent in the accounts receivable as of the reporting date. Management reviews delinquency reports, historical collection rates, changes in customer payment patterns, economic trends, geography and other information in order to make judgments as to probable credit losses. Management monitors pending fraud cases, customer-identified fraudulent activity and unconfirmed suspicious activity in order to make judgments as to probable fraud losses. Management also uses historical charge-off experience to determine the amount of losses inherent in accounts receivable at the reporting date. Assumptions regarding probable losses are reviewed periodically and may be impacted by actual performance of accounts receivable and changes in any of the factors discussed above. The accounts receivable allowance also includes a reserve for waived finance fees, which is used to maintain customer goodwill and recorded against the late fee revenue recognized. |
Investment Securities | Investment Securities As a result of adopting ASU 2016 – 01, effective January 1, 2018, changes in the fair value of investment securities are included in net unrealized (loss) gain on financial instruments within our consolidated statements of income. Prior to adoption, unrealized gains and losses, net of tax, were reported on the consolidated balance sheets in accumulated other comprehensive loss. Realized gains and losses and declines in fair value determined to be other-than-temporary are included in non-operating expenses. The cost basis of securities is based on the specific identification method. Investment securities held by the Company were purchased and are held by WEX Bank primarily in order to meet the requirements of the Community Reinvestment Act. |
Derivatives | Derivatives From time to time, the Company utilizes derivative instruments as part of its overall strategy to manage its exposure to fluctuations in fuel prices and to reduce the impact of interest and foreign currency exchange rate volatility. The Company’s derivative instruments are recorded at fair value on the consolidated balance sheets . The Company’s derivative instruments have not been designated as hedges; realized and unrealized gains and losses are recognized in financing interest and unrealized gains and losses on financial instruments, respectively. For the purposes of cash flow presentation, realized and unrealized gains or losses are included within cash flows from operating activities. |
Leases | Leases Beginning January 1, 2019, leases are required to be accounted for using a right-of-use model, which recognizes that at the date of commencement, a lessee has a financial obligation to make lease payments to the lessor for the right to use the underlying asset during the lease term. The lessee recognizes a corresponding right-of-use asset related to this right. The Company made an accounting policy election to not recognize assets or liabilities for leases with a term of less than twelve months and to account for all components in a lease arrangement as a single combined lease component. As the Company’s leases do not specify an implicit rate, the Company uses an incremental borrowing rate based on information available at the lease commencement date to determine the present value of the lease payments. The Company evaluates right-of-use assets for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. See Note 15, Leases, for further information. |
Property, Equipment and Capitalized Software | Property, Equipment and Capitalized Software Property, equipment and capitalized software are stated at cost, net of accumulated depreciation and amortization. Replacements, renewals and improvements are capitalized and costs for repair and maintenance are expensed as incurred. Leasehold improvements are depreciated using the straight-line method over the shorter of the remaining lease term or the useful life of the improvement. Depreciation and amortization for all other property, equipment and capitalized software is primarily computed using the straight-line method over the estimated useful lives shown below for all periods presented in these consolidated financial statements. Estimated Useful Lives Furniture, fixtures and equipment 3 to 5 years Internal-use computer software 1.5 to 5 years Computer software 3 years The Company’s developed software is used to provide processing and information management services to customers. A significant portion of the Company’s capital expenditures is devoted to the development of such internal-use computer software. Costs incurred during the preliminary project stage are expensed as incurred. Software development costs are capitalized during the application development stage. Capitalization begins when the preliminary project stage is complete, as well as when management authorizes and commits to the funding of the project. Capitalization of costs ceases when the software is ready for its intended use. Costs related to maintenance of internal-use software are expensed as incurred. |
Acquisitions | Acquisitions For acquisitions that meet the definition of a business combination, the Company applies the acquisition method of accounting where assets acquired and liabilities assumed are recorded at fair value at the date of each acquisition. Any excess of the consideration transferred by the Company over the amounts recognized for assets acquired and liabilities assumed is recorded as goodwill. The Company continues to evaluate acquisitions for a period not to exceed one year after the acquisition date of each transaction to determine whether any additional adjustments are needed to the allocation of the purchase price. The acquiree’s results of operations are included in consolidated results of the Company from the date of the respective acquisition. All other acquisitions are accounted for as asset acquisitions and the purchase price is allocated to the net assets acquired with no recognition of goodwill. Following the acquisition date, the purchase price is not subsequently adjusted. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company classifies intangible assets in the following three categories: (1) intangible assets with definite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. The Company tests intangible assets with definite lives for impairment if conditions exist that indicate the carrying value may not be recoverable. Such conditions may include a reduction in operating cash flow or a dramatic change in the manner in which the asset is intended to be used. The Company records an impairment charge when the carrying value of the definite-lived intangible asset exceeds the undiscounted cash flows generated from the use of the asset. Intangible assets with indefinite lives and goodwill are not amortized. The Company tests these intangible assets and goodwill for impairment at least annually or more frequently if facts or circumstances indicate that such intangible assets or goodwill might be impaired. All goodwill and intangible assets are assigned to reporting units, which are one level below the Company’s operating segments. The Company performs goodwill impairment tests at the reporting unit level. Such impairment tests include comparing the fair value of the respective reporting unit with its carrying value, including goodwill. The Company uses both discounted cash flow analyses and comparable company pricing multiples to determine the fair value of our reporting units. Such analyses are corroborated using market analytics. Certain assumptions are used in determining the fair value, including assumptions about future cash flows and terminal values. When appropriate, the Company considers the assumptions that it believes hypothetical marketplace participants would use in estimating future cash flows. In addition, an appropriate discount rate is used, based on the Company’s cost of capital or reporting unit-specific economic factors. For indefinite-lived intangible assets, the Company performs a qualitative assessment to determine whether it is more likely than not that an indefinite-lived asset is impaired. Such assessment includes consideration of any negative financial performance, legal, regulatory, contractual, or other factors that could affect significant inputs used in determining the fair value. If the Company determines that the asset is more likely than not impaired, then a quantitative test is performed comparing the fair value of the asset with its carrying amount. When the fair value is less than the carrying value of the intangible assets or the reporting unit, the Company records an impairment charge to reduce the carrying value of the assets to the reporting unit’s implied fair value. Effective October 1, 2018, the Company adopted ASU 2017 – 04, which simplified the subsequent measurement of goodwill. Following adoption, the Company performs its annual goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and, if necessary, recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company’s annual goodwill and intangible asset impairment tests performed as of October 1, 2018 identified a $3.2 million impairment related to our Brazil fleet reporting unit. The Company’s annual goodwill and intangible asset impairment tests performed as of October 1, 2019 and 2017 did not identify any impairment. None of our reporting units with allocated goodwill had negative carrying amounts of net assets as of October 1, 2019. Our European fleet and Brazil benefits reporting units had negative carrying amounts of net assets as of October 1, 2018. Our 2018 annual goodwill impairment test indicated an excess of estimated fair value greater than the carrying values of the European fleet and Brazil benefits reporting units of approximately $180 million and $250 million , respectively. As of December 31, 2018, goodwill assigned to the European fleet and Brazil benefits reporting units totaled approximately $35.8 million and $14.3 million , respectively. Such amounts are included in our Fleet Solutions and Health and Employee Benefit Solutions segments, respectively. Intangible assets that are deemed to have definite lives are amortized over their useful lives, which is the period of time that the asset is expected to contribute directly or indirectly to future cash flows. The Company determines the useful lives of its identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. The factors that management considers when determining useful lives include the contractual term of agreements, the history of the asset, the Company’s long-term strategy for the use of the asset, any laws or other local regulations which could impact the useful life of the asset and other economic factors, including competition and specific market conditions. An evaluation of the remaining useful lives of the definite-lived intangible assets is performed periodically to determine if any change is warranted. |
Impairment and Disposals of Assets | Impairment and Disposals of Assets Long-lived assets are tested for impairment whenever facts or circumstances, such as a reduction in operating cash flow or a significant adverse change in the manner the asset is being used, indicate the carrying amount of the asset may not be recoverable. The Company compares the estimated undiscounted future cash flows associated with these assets or asset group to their carrying value to determine if a write-down to fair value is required. See Note 24, Impairment and Restructuring Activities, for further discussion on impairments and asset write-offs. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company holds mortgage-backed securities, fixed-income mutual funds, money market funds, derivatives (see Note 12, Derivative Instruments ) and certain other financial instruments that 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. Various factors are considered in determining the fair value of the Company’s obligations, 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. Additionally, the Company holds certain investments that are measured at their NAV as a practical expedient, which are excluded from the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Investment Securities When available, the Company uses quoted market prices to determine the fair value of investment securities; such inputs are classified as Level 1 of the fair-value hierarchy. These securities primarily consist of an open-ended mutual fund, which is invested in fixed-income securities and is held in order to satisfy the regulatory requirements of WEX Bank. For mortgage-backed and asset-backed debt securities and municipal bonds, the Company generally uses quoted prices for recent trading activity of |
Revenue Recognition | Revenue Recognition The Company adopted ASU 2014–09 (“Topic 606”) on January 1, 2018, utilizing the modified retrospective method. Prior period comparable financial information continues to be presented under the guidance of ASC 605, Revenue Recognition . Topic 606 does not apply to rights or obligations associated with financial instruments or gains on the sale of WEX Latin America receivables, which are within the scope of ASC 310, Receivables and ASC 860, Transfers and Servicing , respectively. The Company generally records revenue net of consideration retained based upon its conclusion that the Company is the agent in its principal versus agent relationships. Prior to the adoption of Topic 606, this conclusion was based on the following criteria: (i) the Company is not the primary obligor in the arrangement; (ii) the Company has no inventory risk; (iii) the Company does not have reasonable latitude with respect to establishing the price for the product; (iv) the Company does not make any changes to the product or have any involvement in the product specifications; and, (v) the amount the Company earns for its services is fixed, within a limited range. Under Topic 606, the Company evaluated the nature of its promise to the customer and determined that it does not control a promised good or service before transferring that good or service to the customer, but rather arranges for another entity to provide the goods or services. The vast majority of the Company’s Topic 606 revenue is derived from stand-ready obligations to provide payment processing, transaction processing and SaaS services and support. As such, we view these services as comprising a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. Accordingly, the promise to stand ready is accounted for as a single-series performance obligation. The transaction-based fees are generally calculated based on measures such as (i) percentage of dollar value of volume processed; (ii) number of transactions processed; or (iii) some combination thereof. The Company has entered into agreements with major oil companies, fuel retailers, vehicle maintenance providers, online travel agencies and health partners, which provide products and/or services to the Company’s customers. These agreements specify that a transaction is deemed to be captured when the Company has validated that the transaction has no errors and has accepted and posted the data to the Company’s records. Prior to adoption of Topic 606, the Company recognized revenues when persuasive evidence of an arrangement existed, the products and services had been provided to the client, the sales price was fixed or determinable and collectability was reasonably assured. Subsequent to adoption of Topic 606, revenue is recognized based on the value of services transferred to date using a time elapsed output method. The change in accounting guidance did not result in a change in the pattern or timing of our revenue recognition. See Note 3, Revenue, for a description of the major components of revenue. The Company enters into contracts with certain large customers or partners that provide for fee rebates tied to performance milestones. Rebates and incentives are calculated based on estimated performance and the terms of the related business agreements. Prior to the adoption of Topic 606, certain amounts paid to partners in our Fleet Solutions and Travel and Corporate Solutions segments were recorded as a reduction in revenue in the same period that revenue was earned or performance occurs. Subsequent to the adoption of Topic 606, these amounts are now reflected within sales and marketing expense on our consolidated statements of income. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the fair value of all stock-based payments to employees in its financial statements. The Company estimates the fair value of service-based stock option awards and market performance-based stock option awards on the grant date using a Black-Scholes-Merton valuation model and a Monte Carlo simulation model, respectively. The fair value of RSUs, including PBRSUs, is determined and fixed on the grant date based on the closing price of the Company’s stock. Stock-based compensation expense is net of estimated forfeitures and is recorded over each award’s requisite service period. The Company uses the straight-line methodology for recognizing the expense associated with service-based stock options and RSU grants and a graded-vesting methodology for the expense recognition of market performance-based stock options and PBRSUs. |
Advertising Costs | Advertising Costs |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the associated temporary differences become deductible. A valuation allowance is established for those jurisdictions in which the realization of deferred tax assets is not deemed to be more likely than not. Accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This accounting guidance also provides guidance on derecognition, classification, interest and penalties, accounting in the interim periods, disclosure, and transition. Penalties and interest related to uncertain tax positions are recognized as a component of income tax expense. To the extent penalties and interest are not assessed with respect to uncertain tax positions, amounts accrued are reduced and reflected as a reduction of the overall income tax provision. |
Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing net income attributable to shareholders by the weighted average number of shares of common stock and vested DSUs outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options, and the assumed issuance of unvested RSUs and performance-based awards for which the performance condition has been met as of the date of determination using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options and the average unrecognized compensation expense for unvested share-based compensation awards, would be used to purchase the Company’s common stock at the average market price during the period. |
Foreign Currency Movement | Foreign Currency Movement The financial statements of the Company’s foreign subsidiaries, where the local currency is the functional currency, are translated to U.S. dollars using year-end spot exchange rates for assets and liabilities, average exchange rates for revenue and expenses and historical exchange rates for equity transactions. The resulting foreign currency translation adjustment is recorded as a component of accumulated other comprehensive loss. Gains and losses on foreign currency transactions as well as the remeasurement of the Company’s cash, receivable and payable balances that are denominated in foreign currencies, are recorded directly in net foreign currency (loss) gain in the consolidated statements of income. However, gains or losses resulting from intercompany transactions where repayment is not anticipated for the foreseeable future are not recognized in the consolidated statements of income. In these situations, the gains or losses are deferred and included as a component of accumulated other comprehensive loss. In addition, gains and losses associated with the Company’s foreign currency exchange derivatives are recorded in net foreign currency (loss) gain in the consolidated statements of income. |
Accumulated Other Comprehensive Loss (“AOCL”) | Accumulated Other Comprehensive Loss ( “ AOCL ” ) For the years ended December 31, 2019 and 2018 , AOCL consisted entirely of unrealized gains and losses on foreign currency translation adjustments pertaining to the net investment in foreign operations. For the year ended December 31, 2017, AOCL also included less than $1 million related to unrealized gains and losses on investment securities. Amounts are recognized net of tax to the extent applicable. |
Recent Accounting Pronouncements | Standard Description Date/Method of Adoption Effect on financial statements or other significant matters Adopted During the Year Ended December 31, 2019 ASU 2016–02 This standard requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The Company adopted ASU 2016–02 effective January 1, 2019 using the modified retrospective method approach and certain practical expedients permitted under the transition guidance. In February 2016, the FASB issued ASU 2016 – 02, Leases (Topic 842), which requires leases with a duration greater than twelve months to be recognized on the balance sheet as right-of-use (“ROU”) assets and lease liabilities. We adopted the new standard using the modified retrospective approach and have elected certain practical expedients permitted under the transition guidance including (i) whether any existing contracts are or contain leases, (ii) the classification of existing leases and (iii) initial direct costs for existing leases. The consolidated financial statements for the year ended December 31, 2019 are presented under the new standard, while comparative periods presented continue to be reported in accordance with Topic 840. The most significant impact of adoption was the recording of an operating lease ROU asset and liability on our consolidated balance sheet. Refer to Note 15, Leases, for more information. Not Yet Adopted as of December 31, 2019 ASU 2016 – 13 This standard requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses will be based on historical experience, current conditions, and reasonable and supportable forecasts that impact the collectability of the reported amount. The standard is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. This ASU amends several aspects of the measurement of credit losses on financial instruments, including replacing the existing incurred credit loss model and other models with the Current Expected Credit Losses (CECL) model. The Company established a cross-functional task force charged with evaluating the requirements of the new standard, analyzing historical data, identifying relevant economic indicators correlated to loss-rates, and determining the impact the standard will have on our processes, systems and internal controls. The most significant effects of the ASU will be incorporating economic indicator forecasts into our credit loss reserve methodologies and providing expanded disclosures on expected credit losses. The impact of this ASU on credit loss reserves for financial assets held as of December 31, 2019 is not expected to be material. This is mainly due to the short-term nature of the Company’s accounts receivable and relatively stable economic conditions over the contractual life of accounts receivable. |
Accounts Receivable | In general, the Company’s trade accounts receivable provide for payment terms of 30 days or less. Receivables not paid within the terms of the agreement are generally subject to late fees based upon the outstanding receivable balance. |
Investments | The Company reviews its investments to identify and evaluate indications of possible impairment. Factors considered in determining whether a loss is temporary include the length of time and extent to which the fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. Substantially all of the Company’s fixed income securities are rated investment grade or better. |
Derivative Instruments | The Company is exposed to certain market risks relating to its ongoing business operations. From time to time, the Company enters into derivative instrument arrangements to manage various risks including interest rate risk. |
Segment Information | The Company’s CODM is its Chief Executive Officer. The operating segments are aggregated into the three reportable segments described below. • Fleet Solutions provides customers with payment and transaction processing services specifically designed for the needs of commercial and government fleets. This segment also provides information management services to these fleet customers. • Travel and Corporate Solutions focuses on the complex payment environment of business-to-business payments, providing customers with payment processing solutions for their corporate payment and transaction monitoring needs. • Health and Employee Benefit Solutions provides healthcare payment products and SaaS consumer directed platforms, as well as payroll related benefits to customers. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives | Depreciation and amortization for all other property, equipment and capitalized software is primarily computed using the straight-line method over the estimated useful lives shown below for all periods presented in these consolidated financial statements. Estimated Useful Lives Furniture, fixtures and equipment 3 to 5 years Internal-use computer software 1.5 to 5 years Computer software 3 years Property, equipment and capitalized software, net consist of the following: December 31, (In thousands) 2019 2018 Furniture, fixtures and equipment $ 94,478 $ 78,167 Computer software, including internal-use software 411,308 355,209 Leasehold improvements 32,406 25,516 Construction in progress 18,495 36,726 Total 556,687 495,618 Less: accumulated depreciation (344,212 ) (307,750 ) Total property, equipment and capitalized software, net $ 212,475 $ 187,868 |
Schedule of Internal-Use Software | Below are the amounts of internal-use computer software capitalized within property, equipment and capitalized software and the related amortization expense incurred on all internal-use computer software during the years ended December 31: (in thousands) 2019 2018 2017 Gross amounts capitalized for internal-use computer software (including construction-in-process) $ 74,432 $ 46,382 $ 50,682 Amounts expensed for amortization of internal-use computer software $ 57,821 $ 38,632 $ 32,582 |
Schedule of Net Earnings Attributable to Shareholders and Reconciliation of Basic and Diluted Shares | The following table summarizes net income attributable to shareholders and reconciles basic and diluted shares outstanding used in the earnings per share computations: Year ended December 31, (In thousands) 2019 2018 2017 Net income attributable to shareholders $ 99,006 $ 168,295 $ 160,062 Weighted average common shares outstanding – Basic 43,316 43,156 42,977 Dilutive impact of share-based compensation awards 453 418 128 Weighted average common shares outstanding – Diluted 43,769 43,574 43,105 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table provides a brief description of recent accounting pronouncements that have had, or could have, a material effect on our financial statements: Standard Description Date/Method of Adoption Effect on financial statements or other significant matters Adopted During the Year Ended December 31, 2019 ASU 2016–02 This standard requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The Company adopted ASU 2016–02 effective January 1, 2019 using the modified retrospective method approach and certain practical expedients permitted under the transition guidance. In February 2016, the FASB issued ASU 2016 – 02, Leases (Topic 842), which requires leases with a duration greater than twelve months to be recognized on the balance sheet as right-of-use (“ROU”) assets and lease liabilities. We adopted the new standard using the modified retrospective approach and have elected certain practical expedients permitted under the transition guidance including (i) whether any existing contracts are or contain leases, (ii) the classification of existing leases and (iii) initial direct costs for existing leases. The consolidated financial statements for the year ended December 31, 2019 are presented under the new standard, while comparative periods presented continue to be reported in accordance with Topic 840. The most significant impact of adoption was the recording of an operating lease ROU asset and liability on our consolidated balance sheet. Refer to Note 15, Leases, for more information. Not Yet Adopted as of December 31, 2019 ASU 2016 – 13 This standard requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses will be based on historical experience, current conditions, and reasonable and supportable forecasts that impact the collectability of the reported amount. The standard is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. This ASU amends several aspects of the measurement of credit losses on financial instruments, including replacing the existing incurred credit loss model and other models with the Current Expected Credit Losses (CECL) model. The Company established a cross-functional task force charged with evaluating the requirements of the new standard, analyzing historical data, identifying relevant economic indicators correlated to loss-rates, and determining the impact the standard will have on our processes, systems and internal controls. The most significant effects of the ASU will be incorporating economic indicator forecasts into our credit loss reserve methodologies and providing expanded disclosures on expected credit losses. The impact of this ASU on credit loss reserves for financial assets held as of December 31, 2019 is not expected to be material. This is mainly due to the short-term nature of the Company’s accounts receivable and relatively stable economic conditions over the contractual life of accounts receivable. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following tables disaggregate our consolidated revenue: Year Ended December 31, 2019 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 457,244 $ 303,385 $ 64,963 $ 825,592 Account servicing revenue 17,709 43,293 205,524 266,526 Other revenue 83,765 3,340 28,225 115,330 Total Topic 606 revenues $ 558,718 $ 350,018 $ 298,712 $ 1,207,448 Non-Topic 606 revenues Account servicing revenue $ 147,026 $ — $ — $ 147,026 Finance fee revenue 245,082 2,086 150 247,318 Other revenue 87,569 15,722 18,608 121,899 Total non-Topic 606 revenues $ 479,677 $ 17,808 $ 18,758 $ 516,243 Total revenues $ 1,038,395 $ 367,826 $ 317,470 $ 1,723,691 Year Ended December 31, 2018 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 464,980 $ 203,289 $ 55,722 $ 723,991 Account servicing revenue 30,385 37,262 108,172 175,819 Other revenue 66,379 4,906 25,668 96,953 Total Topic 606 revenues $ 561,744 $ 245,457 $ 189,562 $ 996,763 Non-Topic 606 revenues Account servicing revenue $ 132,277 $ — $ — $ 132,277 Finance fee revenue 190,528 1,391 16,708 208,627 Other revenue 90,591 56,496 7,885 154,972 Total non-Topic 606 revenues $ 413,396 $ 57,887 $ 24,593 $ 495,876 Total revenues $ 975,140 $ 303,344 $ 214,155 $ 1,492,639 |
Contract with Customer, Asset and Liability | The following table provides information about these contract balances: (In thousands) Contract balance Location on the consolidated balance sheets December 31, 2019 December 31, 2018 Receivables 1 Accounts receivable, net $ 43,092 $ 32,949 Contract assets Prepaid expenses and other current assets $ 4,593 $ 3,819 Contract assets Other assets $ 20,496 $ 19,232 Contract liabilities Other current liabilities $ 5,171 $ 7,612 |
Schedule of Remaining Performance Obligations | The following table includes revenue expected to be recognized related to remaining performance obligations at the end of the reporting period. (In thousands) 2020 2021 2022 2023 2024 Thereafter Total Minimum monthly fees 1 $ 50,034 $ 29,498 $ 18,588 $ 8,281 $ 1,928 $ 36 $ 108,365 Professional services 2 7,667 — — — — — 7,667 Total remaining performance obligations $ 57,701 $ 29,498 $ 18,588 $ 8,281 $ 1,928 $ 36 $ 116,032 1 The transaction price allocated to the remaining performance obligations represents the minimum monthly fees on certain service contracts, which contain substantive termination penalties that require the counterparty to pay the Company for the aggregate remaining minimum monthly fees upon an early termination for convenience. 2 Includes software development projects and other services sold subsequent to the core offerings, to which the customer is contractually obligated. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired, based on the estimated fair value at the date of acquisition: (In thousands) Total consideration, net of $5,589 in cash acquired $ 260,455 Less: Network relationships (a) (d) 112,893 Customer relationships (b)(d) 33,963 Brand name (c) (d) 442 Deposits (5,169 ) Accrued expenses (420 ) Recorded goodwill $ 118,746 (a) Weighted average life - 10.1 years . (b) Weighted average life - 5.0 years . (c) Weighted average life - 1.0 year . (d) The weighted average life of all amortizable intangible assets acquired in this business combination is 8.9 years . The following is a summary of the allocation of the purchase price to the assets and liabilities acquired: (In thousands) As Reported Measurement Period Adjustments As Reported, Final Total consideration $ 129,828 $ — $ 129,828 Less: Cash 15,546 — 15,546 Accounts receivable 4,171 100 4,271 Property and equipment 2,530 (1,329 ) 1,201 Customer relationships (a) 15,000 200 15,200 Developed technologies (b) 24,100 — 24,100 Trademarks and trade names (c) 1,460 10 1,470 In-process research and development — 21,600 21,600 Other liabilities (685 ) (772 ) (1,457 ) Recorded goodwill $ 67,706 $ (19,809 ) $ 47,897 (a) Weighted average life – 9.0 years . (b) Weighted average life – 3.4 years . (c) Weighted average life – 4.3 years . (a) (b) (c) The weighted average life of these amortized intangible assets is 5.5 years . The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired, based on the estimated fair value at the date of acquisition: (In thousands) Cash consideration, net of $125,865 in cash and restricted cash acquired $ 300,191 Fair value of redeemable non-controlling interest 100,000 Total consideration, net of cash and restricted cash acquired $ 400,191 Less: Accounts receivable 10,722 Property and equipment 4,904 Customer relationships (a)(d) 213,600 Developed technologies (b)(d) 38,900 Trademarks and trade names (c)(d) 13,800 Other assets 13,601 Accounts payable (3,071 ) Accrued expenses (7,563 ) Restricted cash payable (125,346 ) Deferred income taxes (21,941 ) Other liabilities (9,814 ) Recorded goodwill $ 272,399 (a) Weighted average life - 7.3 years . (b) Weighted average life - 5.4 years . (c) Weighted average life - 7.3 years . (d) The weighted average life of all amortizable intangible assets acquired in this business combination is 7.0 years . The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired, based on the estimated fair value at the date of acquisition: (In thousands) Total consideration, net of $44,947 in cash acquired $ 293,767 Less: Accounts receivable 22,134 Property and equipment 549 Network relationships (a) (c) 100,900 Developed technologies (b) (c) 15,000 Other assets 2,379 Accounts payable (33,521 ) Deferred income taxes (21,194 ) Other liabilities (2,367 ) Recorded goodwill $ 209,887 (a) Weighted average life - 8.3 years . (b) Weighted average life - 2.9 years . (c) The weighted average life of all amortizable intangible assets acquired in this business combination is 7.6 years . |
Business Acquisition, Pro Forma Information | The following represents unaudited pro forma operational results: Year Ended December 31, (In thousands, except per share data) 2019 2018 Total revenues $ 1,742,797 $ 1,604,165 Net income attributable to shareholders $ 113,851 $ 134,564 Net income attributable to shareholders per share: Basic $ 2.63 $ 3.12 Diluted $ 2.60 $ 3.09 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Concentration of Credit Risk | The following table presents the outstanding balance of trade accounts receivable that are less than 30 and 60 days past due, shown in each case as a percentage of total trade accounts receivable: December 31, Delinquency Status 2019 2018 29 days or less past due 96 % 95 % 59 days or less past due 97 % 98 % |
Changes in Reserves for Credit Losses Related to Accounts Receivable | The following table presents changes in the accounts receivable allowances: Year ended December 31, (In thousands) 2019 2018 2017 Balance, beginning of year $ 46,948 $ 33,387 $ 21,564 Provision for credit losses 65,664 66,482 64,218 Other 1 22,746 19,067 16,869 Charge-offs (92,638 ) (78,323 ) (77,229 ) Recoveries of amounts previously charged-off 9,781 6,854 7,526 Currency translation (227 ) (519 ) 439 Balance, end of year $ 52,274 $ 46,948 $ 33,387 1 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-For-Sale Securities | The Company’s investment securities as of December 31, 2019 and 2018 , are presented below: (In thousands) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (a) 2019 Fixed income securities: Mortgage-backed securities $ 164 $ 10 $ — $ 174 Asset-backed securities 248 — 1 247 Municipal bonds 306 — 4 302 Mutual fund 25,221 — 484 24,737 Pooled investment fund 5,000 — — 5,000 Total investment securities (b)(c) $ 30,939 $ 10 $ 489 $ 30,460 2018 Fixed income securities: Mortgage-backed securities $ 255 $ 5 $ — $ 260 Asset-backed securities 281 — 2 279 Municipal bonds 411 — 7 404 Mutual fund 24,656 — 1,193 23,463 Total investment securities (b)(c) $ 25,603 $ 5 $ 1,202 $ 24,406 (a) The Company’s techniques used to measure the fair value of its investments are discussed in Note 19, Fair Value . (b) The Company’s investment securities are not deemed available for current operations and have been classified as non-current on the consolidated balance sheets. (c) Excludes $8.0 million and $6.4 million in equity securities designated as trading as of December 31, 2019 and 2018 , respectively, included in prepaid expenses and other current assets and other assets on the consolidated balance sheets. See Note 18, Employee Benefit Plans, for additional information. |
Maturity Dates Of Available-For-Sale Securities | The contractual maturity dates of the Company’s investment securities are as follows: December 31, 2019 2018 (In thousands) Cost Fair Value Cost Fair Value Due after 5 years through year 10 $ 278 $ 277 $ 311 $ 309 Due after 10 years 276 272 381 374 Mortgage-backed securities with original maturities of 30 years 164 174 255 260 Investment securities with no maturity dates 30,221 29,737 24,656 23,463 Total $ 30,939 $ 30,460 $ 25,603 $ 24,406 |
Property, Equipment and Capit_2
Property, Equipment and Capitalized Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Property, Equipment And Capitalized Software, Net | Depreciation and amortization for all other property, equipment and capitalized software is primarily computed using the straight-line method over the estimated useful lives shown below for all periods presented in these consolidated financial statements. Estimated Useful Lives Furniture, fixtures and equipment 3 to 5 years Internal-use computer software 1.5 to 5 years Computer software 3 years Property, equipment and capitalized software, net consist of the following: December 31, (In thousands) 2019 2018 Furniture, fixtures and equipment $ 94,478 $ 78,167 Computer software, including internal-use software 411,308 355,209 Leasehold improvements 32,406 25,516 Construction in progress 18,495 36,726 Total 556,687 495,618 Less: accumulated depreciation (344,212 ) (307,750 ) Total property, equipment and capitalized software, net $ 212,475 $ 187,868 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The changes in goodwill during the period January 1 to December 31, 2019 were as follows: (In thousands) Fleet Solutions Segment Travel and Corporate Solutions Segment Health and Employee Benefit Solutions Segment Total Gross goodwill, January 1, 2019 $ 1,251,501 $ 244,632 $ 350,193 $ 1,846,326 Current year acquisitions 128,251 209,887 272,399 610,537 Foreign currency translation (1,645 ) 488 (483 ) (1,640 ) Gross goodwill, December 31, 2019 $ 1,378,107 $ 455,007 $ 622,109 $ 2,455,223 Accumulated impairment, January 1, 2019 $ (4,205 ) $ (9,992 ) $ — $ (14,197 ) Foreign currency translation 118 57 — 175 Accumulated impairment, December 31, 2019 $ (4,087 ) $ (9,935 ) $ — $ (14,022 ) Net goodwill, January 1, 2019 $ 1,247,296 $ 234,640 $ 350,193 $ 1,832,129 Net goodwill, December 31, 2019 $ 1,374,020 $ 445,072 $ 622,109 $ 2,441,201 The changes in goodwill during the period January 1 to December 31, 2018 were as follows: (In thousands) Fleet Solutions Segment Travel and Corporate Solutions Segment Health and Employee Benefit Solutions Total Gross goodwill, January 1, 2018 $ 1,269,718 $ 265,041 $ 353,508 $ 1,888,267 Acquisition adjustments for AOC — (19,809 ) — (19,809 ) Foreign currency translation (18,217 ) (600 ) (3,315 ) (22,132 ) Gross goodwill, December 31, 2018 $ 1,251,501 $ 244,632 $ 350,193 $ 1,846,326 Accumulated impairment, January 1, 2018 $ (927 ) $ (11,208 ) $ — $ (12,135 ) Brazil fleet impairment 1 (3,225 ) — — (3,225 ) Foreign currency translation (53 ) 1,216 — 1,163 Accumulated impairment, December 31, 2018 $ (4,205 ) $ (9,992 ) $ — $ (14,197 ) Net goodwill, January 1, 2018 $ 1,268,791 $ 253,833 $ 353,508 $ 1,876,132 Net goodwill, December 31, 2018 $ 1,247,296 $ 234,640 $ 350,193 $ 1,832,129 1 During our annual goodwill assessment completed in the fourth quarter of 2018, we assessed the impact of a customer loss significant to our Brazil fleet reporting unit. The fair value of this reporting unit was derived using a combination of present value of estimated cash flows and prices from comparable businesses. The calculated fair value was then compared to the reporting unit ’ s carrying value, which resulted in the Company recording a $3.2 million goodwill impairment charge. There is no remaining net goodwill associated with this reporting unit. |
Definite-Lived Intangible Assets | Other intangible assets consist of the following: December 31, 2019 December 31, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Acquired software and developed technology $ 269,888 $ (142,239 ) $ 127,649 $ 216,325 $ (113,694 ) $ 102,631 Customer relationships 1,762,066 (478,680 ) 1,283,386 1,243,589 (360,593 ) 882,996 Licensing agreements 145,295 (24,160 ) 121,135 32,962 (18,303 ) 14,659 Patent 2,319 (2,183 ) 136 2,332 (2,044 ) 288 Trade names and brand names 62,275 (19,531 ) 42,744 43,907 (14,421 ) 29,486 $ 2,241,843 $ (666,793 ) $ 1,575,050 $ 1,539,115 $ (509,055 ) $ 1,030,060 Indefinite-lived intangible assets Brand names — 4,134 Total $ 1,575,050 $ 1,034,194 |
Indefinite-Lived Intangible Assets | Other intangible assets consist of the following: December 31, 2019 December 31, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Acquired software and developed technology $ 269,888 $ (142,239 ) $ 127,649 $ 216,325 $ (113,694 ) $ 102,631 Customer relationships 1,762,066 (478,680 ) 1,283,386 1,243,589 (360,593 ) 882,996 Licensing agreements 145,295 (24,160 ) 121,135 32,962 (18,303 ) 14,659 Patent 2,319 (2,183 ) 136 2,332 (2,044 ) 288 Trade names and brand names 62,275 (19,531 ) 42,744 43,907 (14,421 ) 29,486 $ 2,241,843 $ (666,793 ) $ 1,575,050 $ 1,539,115 $ (509,055 ) $ 1,030,060 Indefinite-lived intangible assets Brand names — 4,134 Total $ 1,575,050 $ 1,034,194 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents the estimated amortization expense related to the definite-lived intangible assets listed above for each of the next five fiscal years: (in thousands) 2020 $ 170,603 2021 $ 161,265 2022 $ 147,934 2023 $ 136,668 2024 $ 124,119 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule Of Accounts Payable | Accounts payable consists of: December 31, (In thousands) 2019 2018 Merchant payables $ 852,964 $ 690,651 Other payables 116,852 124,091 Accounts payable $ 969,816 $ 814,742 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Deposits | The following table presents the composition of deposits, which are classified as short-term or long-term based on their contractual maturities: December 31, (in thousands) 2019 2018 Interest-bearing brokered money market deposits $ 362,246 $ 283,790 Customer deposits 112,571 138,072 Certificates of deposits with maturities within 1 year (a)(b) 835,996 505,582 Short-term deposits 1,310,813 927,444 Certificates of deposit with maturities greater than 1 year and less than 5 years (a)(b) 143,399 345,231 Total Deposits $ 1,454,212 $ 1,272,675 Weighted average cost of funds on certificates of deposit outstanding 2.57 % 2.36 % Weighted average cost of interest-bearing brokered money market deposits 1.88 % 2.49 % (a) As of December 31, 2019 , all brokered deposits were in denominations of $250 thousand or less, corresponding to FDIC deposit insurance limits. (b) Original maturities range from 4 months to 5 years , with interest rates ranging from 1.80 percent to 3.52 percent as of December 31, 2019 . At December 31, 2018, original maturities ranged from 6 months to 5 years with interest rates ranging from 1.30 percent to 3.52 percent . |
Schedule of Average Interest Rates | The following table presents the average interest rates for deposits and interest-bearing money market deposits: Year ended December 31, (in thousands) 2019 2018 2017 Average interest rate: Deposits 2.46 % 1.91 % 1.22 % Interest-bearing brokered money market deposits 2.28 % 2.03 % 1.12 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table presents relevant information for the interest rate swap agreements outstanding during 2019 : Tranche A Tranche B Tranche C Tranche D Tranche E Tranche F Tranche G Notional amount at inception (in thousands) $150,000 $100,000 $200,000 $300,000 $200,000 $400,000 $150,000 Amortization N/A N/A N/A N/A N/A 5% annually N/A Maturity date 3/12/2022 3/12/2022 3/12/2023 12/30/2022 12/30/2022 12/31/2020 12/31/2020 Fixed interest rate 2.418% 2.425% 2.413% 2.204% 2.212% 1.108% 1.125% |
Location and Amounts of Derivative Gains and Losses | The following table presents information on the location and amounts of interest rate swap gains and losses: (In thousands) Year ended December 31, Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Consolidated Statements of Income 2019 2018 2017 Interest rate swap agreements – unrealized portion Net unrealized (loss) gain on financial instruments $ (35,363 ) $ 3,772 $ 1,314 Interest rate swap agreements – realized portion Financing interest expense $ (5,411 ) $ (6,160 ) $ (214 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Before Income Taxes | Income before income taxes consisted of the following: Year ended December 31, (In thousands) 2019 2018 2017 United States $ 178,235 $ 194,770 $ 147,240 Foreign 38,281 43,849 27,176 Total $ 216,516 $ 238,619 $ 174,416 |
Components Of Income Tax Expense (Benefit) | Income taxes from continuing operations consisted of the following for the years ended December 31: (In thousands) United States State Foreign Total 2019 Current $ 20,748 $ 4,486 $ 16,322 $ 41,556 Deferred $ 19,946 $ 3,831 $ (4,110 ) $ 19,667 Income taxes $ 61,223 2018 Current $ 16,027 $ 3,566 $ 17,916 $ 37,509 Deferred $ 29,520 $ 8,016 $ (6,202 ) $ 31,334 Income taxes $ 68,843 2017 Current $ 2,254 $ 3,687 $ 13,743 $ 19,684 Deferred $ (11,748 ) $ 10,842 $ (3,328 ) $ (4,234 ) Income taxes $ 15,450 |
Reconciliation Of Provision Of Income Taxes | The reconciliation between the income tax computed by applying the U.S. federal statutory rate and the reported effective tax rate on income from continuing operations is as follows: Year ended December 31, (In thousands except for tax rates) 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes (net of federal income tax benefit) 1.4 2.2 2.0 Foreign income tax rate differential 0.8 1.1 (0.7 ) Revaluation of deferred tax assets for foreign and state tax rate changes, net (1.0 ) (1.3 ) 0.4 Research and development credit (0.5 ) (0.2 ) — Tax reserves 0.8 2.0 0.3 Withholding taxes 0.7 0.2 0.2 2017 Tax Act — (0.2 ) (34.8 ) Change in valuation allowance 3.1 4.5 4.6 Nondeductible expenses 2.3 1.4 0.5 Incremental tax benefit from share-based compensation awards (2.0 ) (1.7 ) (0.9 ) GILTI 0.5 0.8 — Other 1.2 (0.9 ) 2.3 Effective tax rate 28.3 % 28.9 % 8.9 % |
Deferred Tax Assets And Liabilities | The tax effects of temporary differences in the recognition of income and expense for tax and financial reporting purposes that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, (In thousands) 2019 2018 Deferred tax assets related to: Reserve for credit losses $ 11,831 $ 10,357 Tax credit carryforwards 2,570 986 Stock-based compensation, net 16,070 10,937 Net operating loss carry forwards 49,464 48,235 Accruals 18,934 13,142 Operating lease liabilities 18,892 — Other 4,283 — Total $ 122,044 $ 83,657 Deferred tax liabilities related to: Other liabilities $ (86 ) $ (1,961 ) Deferred financing costs (1,090 ) (3,078 ) Property, equipment and capitalized software (35,273 ) (28,227 ) Intangibles (243,229 ) (166,347 ) Operating lease assets (15,602 ) — Total $ (295,280 ) $ (199,613 ) Valuation allowance (32,671 ) (26,086 ) Deferred income taxes, net $ (205,907 ) $ (142,042 ) |
Net Deferred Tax Assets By Jurisdiction | Net deferred tax (liabilities) assets by jurisdiction are as follows: December 31, (In thousands) 2019 2018 United States $ (217,927 ) $ (151,125 ) Australia (795 ) (516 ) Europe 5,645 5,873 New Zealand 237 116 Brazil 6,820 3,202 Canada 113 408 Deferred income taxes, net $ (205,907 ) $ (142,042 ) |
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits excluding interest and penalties is as follows: Year ended December 31, (In thousands) 2019 2018 2017 Beginning balance $ 8,996 $ 5,898 $ 5,458 Increases related to prior year tax positions 1,727 4,831 1,332 Increases related to current year tax positions — — 363 Decreases related to prior year tax positions (39 ) — — Settlements (364 ) (1,733 ) (1,255 ) Ending balance $ 10,320 $ 8,996 $ 5,898 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | The following table presents supplemental balance sheet information related to our recognized operating leases as a result of adopting ASC 842: (In thousands) Balance Sheet Location December 31, 2019 January 1, 2019 Assets Operating lease ROU assets Other assets $ 68,351 $ 71,169 Liabilities Current operating lease liabilities Other current liabilities 13,176 11,422 Non-current operating lease liabilities Other liabilities 67,910 71,445 Total lease liabilities $ 81,086 $ 82,867 |
Schedule of Lease Term and Discount Rate | The following table presents supplemental cash flow and other information related to our leases: (In thousands) December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,314 Right-of-use assets obtained in exchange for lease liabilities: Operating leases (a) $ 11,001 (a) Includes non-cash transactions resulting in adjustments to the lease liability or ROU asset due to modification, impairment or other reassessment events. The following table presents the weighted average remaining lease term and discount rate: Operating leases December 31, 2019 Weighted average remaining term (in years) 8.5 Weighted average discount rate 4.6 % |
Schedule of Maturities of Lease Liabilities | Maturities of our operating lease liabilities are as follows: (In thousands) December 31, 2019 2020 $ 16,387 2021 15,544 2022 13,428 2023 9,765 2024 7,318 2025 and thereafter 36,434 Total lease payments $ 98,876 Less: Imputed interest 17,790 Total lease obligations $ 81,086 Less: Current portion of lease obligations 13,176 Long-term lease obligations $ 67,910 |
Financing and Other Debt (Table
Financing and Other Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings | The following table summarizes the Company’s total outstanding debt by type: Year ended December 31, (In thousands) 2019 2018 Tranche A term loan 923,707 423,637 Tranche B term loan 1,457,048 1,321,447 Term loans under 2016 Credit Agreement (a) 2,380,755 1,745,084 Notes outstanding (a) 400,000 400,000 Securitized debt 104,261 106,872 Participation debt 50,000 114,849 Borrowed federal funds 34,998 — WEX Latin America debt 2,660 16,242 Total gross debt $ 2,972,674 $ 2,383,047 (a) See Note 19, Fair Value, for more information regarding the Company’s 2016 Credit Agreement and Notes. The following table summarizes the Company’s total outstanding debt by balance sheet classification: Year ended December 31, (In thousands) 2019 2018 Current portion of gross debt $ 256,529 $ 223,241 Less: Unamortized debt issuance costs/debt discount (7,998 ) (6,724 ) Short-term debt, net $ 248,531 $ 216,517 Long-term portion of gross debt $ 2,716,145 $ 2,159,806 Less: Unamortized debt issuance costs/debt discount (29,632 ) (25,883 ) Long-term debt, net $ 2,686,513 $ 2,133,923 Supplemental information under 2016 Credit Agreement: Letters of credit (a) $ 51,314 $ 53,514 Remaining borrowing capacity on revolving credit facility (b) $ 768,686 $ 666,486 (a) Collateral for lease agreements, virtual card and fuel payment processing activity at the Company’s foreign subsidiaries. (b) Contingent on maintaining compliance with the financial covenants as defined in the Company’s 2016 Credit Agreement. |
Schedule of Amounts Outstanding Under Participation Debt Agreements in Place | The following table provides the amounts outstanding under the participation debt agreements in place: December 31, 2019 December 31, 2018 (In thousands) Amounts Available (1) Amounts Outstanding (1) Remaining Funding Capacity Amounts Available (2) Amounts Outstanding (2) Remaining Funding Capacity Short-term debt, net $ 80,000 50,000 30,000 $ 130,000 64,849 $ 65,151 Long-term debt, net — — — 50,000 50,000 $ — $ 80,000 50,000 30,000 $ 180,000 $ 114,849 $ 65,151 Average interest rate 4.17 % 4.30 % (1) Amounts available and outstanding under agreement terminating on August 31, 2020 as to $50 million and on demand as to $30 million . (2) Amounts available under agreements terminating on June 30, 2019 and August 31, 2020 as to $50 million each, and on demand as to $80 million . Amounts outstanding under agreements terminating on demand as to $14.8 million and on June 30, 2019 and August 31, 2020 as to $50 million each. |
Summary of Annual Principal Payments | The table below summarizes the Company’s annual principal payments on its total debt for each of the next five years: 2020 $ 256,529 2021 $ 64,611 2022 $ 64,611 2023 $ 1,188,598 2024 $ 14,681 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s financial instruments that are measured at fair value on a recurring basis: December 31, (In thousands) Fair Value Hierarchy 2019 2018 Financial Assets: Money market funds (a) 1 $ 223,217 $ 71,228 Investment securities Municipal bonds 2 $ 302 $ 404 Asset-backed securities 2 247 279 Mortgage-backed securities 2 174 260 Pooled investment fund measured at net asset value (e) 5,000 — Fixed-income mutual fund 1 24,737 23,463 Total investment securities $ 30,460 $ 24,406 Executive deferred compensation plan trust (b) 1 $ 7,965 $ 6,398 Interest rate swaps (c) 2 $ 2,395 $ 17,994 Liabilities: Interest rate swaps (d) 2 $ 19,764 $ — (a) The fair value is recorded in cash and cash equivalents. (b) The fair value is recorded in prepaid expenses and other current assets and other assets based on the timing of payment obligations. At December 31, 2019, $0.9 million and $7.0 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. At December 31, 2018, $0.8 million and $5.6 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. (c) The fair value is recorded as a current or long-term asset depending on the timing of expected discounted cash flows. At December 31, 2019 and 2018, $2.4 million and $8.8 million of fair value, respectively, is recorded within prepaid expenses and other current assets. At December 31, 2018, $9.2 million of fair value is recorded within other assets. (d) The fair value is recorded in other current liabilities or other liabilities depending on the timing of expected discounted cash flows. At December 31, 2019, $6.7 million and $13.1 million of fair value is recorded within other current liabilities and other liabilities, respectively. (e) The fair value of this security is measured at net asset value as a practical expedient and has not been classified within the fair value hierarchy. The fair value amount presented in this table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. |
Pooled Investment Fund | Pooled Investment Fund (In thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Pooled investment fund, as of December 31, 2019 $ 5,000 — Monthly 30 days |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The following table presents the changes in the Company’s redeemable non-controlling interest: (In thousands) Year Ended December 31, 2019 Balance, beginning of year $ — Acquisition of Discovery Benefits at fair value 25,757 Establishing redeemable non-controlling interest for WEX Health at carrying value 32,843 Adjustment to redeemable non-controlling interest to reflect WEX Health at fair value 41,400 Net loss attributable to redeemable non-controlling interest (436 ) Accretion of non-controlling interest 57,315 Balance, end of year $ 156,879 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule Of Restricted Stock Units | The following is a summary of RSU activity during the year ended December 31, 2019 : Restricted Stock Units (In thousands except per share data) Units Weighted-Average Grant-Date Fair Value Unvested at January 1, 2019 167 $ 138.58 Granted 171 198.03 Vested, including 20 shares withheld for tax (a) (64 ) 117.81 Forfeited (14 ) 172.38 Unvested at December 31, 2019 260 $ 181.23 (a) The Company withholds shares of common stock to pay the minimum required statutory taxes due upon RSU vesting. Cash is then remitted by the Company to the appropriate taxing authorities. |
Schedule Of Performance Based Restricted Stock Units | The following is a summary of PBRSU activity during the year ended December 31, 2019 : Performance-Based Restricted Stock Units (In thousands except per share data) Shares Weighted-Average Unvested at January 1, 2019 419 $ 113.58 Granted 102 185.92 Forfeited (52 ) 136.83 Vested, including 37 shares withheld for tax (a) (114 ) 81.87 Performance adjustment (b) 94 144.37 Unvested at December 31, 2019 449 $ 140.58 (a) The Company withholds shares of common stock to pay the minimum required statutory taxes due upon PBRSU vesting. Cash is then remitted by the Company to the appropriate taxing authorities. |
Schedule Of Assumptions Used, Options | The table below summarizes the assumptions used to calculate the fair value: Exercise price $ 99.69 Expected stock price volatility 31.14 % Risk-free interest rate 2.18 % Weighted average fair value of market performance-based stock options granted $ 28.69 The table below summarizes the assumptions used to calculate the fair value by year of grant: 2019 2018 2017 Weighted average grant date fair value $ 58.28 $ 51.27 $ 35.58 Weighted average expected term (in years) 6 6 6 Weighted average exercise price $ 184.81 $ 158.23 $ 104.95 Expected stock price volatility 27.21 % 27.35 % 30.67 % Risk-free interest rate 2.37 % 2.69 % 2.13 % |
Schedule Of Stock Option Activity | The following is a summary of all stock option activity during the year ended December 31, 2019 : Stock Options (In thousands, except per share data) Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2019 891 $ 104.62 Granted 124 184.81 Exercised (53 ) 93.00 Forfeited or expired (70 ) 112.10 Outstanding at December 31, 2019 892 $ 115.82 7.52 $ 83,543 Exercisable on December 31, 2019 182 $ 103.32 6.71 $ 19,289 Vested and expected to vest at December 31, 2019 685 $ 119.23 7.73 $ 61,769 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segment Results | The following tables present the Company’s reportable segment revenues: Year Ended December 31, 2019 (in thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 457,244 $ 303,385 $ 64,963 $ 825,592 Account servicing revenue 164,735 43,293 205,524 413,552 Finance fee revenue 245,082 2,086 150 247,318 Other revenue 171,334 19,062 46,833 237,229 Total revenues $ 1,038,395 $ 367,826 $ 317,470 $ 1,723,691 Interest income $ 6,249 $ 1,521 $ 1,534 $ 9,304 Year Ended December 31, 2018 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 464,980 $ 203,289 $ 55,722 $ 723,991 Account servicing revenue 162,662 37,262 108,172 308,096 Finance fee revenue 190,528 1,391 16,708 208,627 Other revenue 156,970 61,402 33,553 251,925 Total revenues $ 975,140 $ 303,344 $ 214,155 $ 1,492,639 Interest income $ 3,503 $ 958 $ 11,706 $ 16,167 Year Ended December 31, 2017 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 360,158 $ 158,660 $ 50,348 $ 569,166 Account servicing revenue 165,083 7,531 103,956 276,570 Finance fee revenue 159,336 760 28,696 188,792 Other revenue 138,533 57,096 18,420 214,049 Total revenues $ 823,110 $ 224,047 $ 201,420 $ 1,248,577 Interest income $ 3,681 $ 717 $ 27,507 $ 31,905 |
Reconciliation Of Adjusted Net Income To Net Income | The following table reconciles total segment adjusted operating income to income before income taxes: Year ended December 31, (In thousands) 2019 2018 2017 Segment adjusted operating income Fleet Solutions $ 485,539 $ 459,646 $ 369,872 Travel and Corporate Solutions 168,786 135,379 96,660 Health and Employee Benefit Solutions 80,283 44,931 46,846 Total segment adjusted operating income $ 734,608 $ 639,956 $ 513,378 Reconciliation: Total segment adjusted operating income $ 734,608 $ 639,956 $ 513,378 Less: Unallocated corporate expenses 67,982 58,095 53,753 Acquisition-related intangible amortization 159,431 138,186 153,810 Other acquisition and divestiture related items 37,675 4,143 5,000 Debt restructuring costs 11,062 4,425 2,563 Stock-based compensation 47,511 35,103 30,487 Restructuring and other costs 25,106 13,717 11,129 Impairment charges — 5,649 44,171 Gain on divestiture — — (20,958 ) Operating income $ 385,841 $ 380,638 $ 233,423 Financing interest expense (134,677 ) (105,023 ) (107,067 ) Net foreign currency (loss) gain (926 ) (38,800 ) 31,487 Non-cash adjustments related to tax receivable agreement 932 (775 ) 15,259 Net unrealized (loss) gain on financial instruments (34,654 ) 2,579 1,314 Income before income taxes $ 216,516 $ 238,619 $ 174,416 |
Revenue from External Customers by Geographic Areas | Revenue by principal geographic area, based on the country in which the sale originated, was as follows: Year ended December 31, (In thousands) 2019 2018 2017 United States $ 1,535,985 $ 1,287,405 $ 1,037,322 Other international 1 187,706 205,234 211,255 Total revenues $ 1,723,691 $ 1,492,639 $ 1,248,577 1 No single country within made up more than 5 percent |
Schedule Of Property and Equipment By Geographic Data | Net property, equipment and capitalized software by principal geographic area was as follows: Year ended December 31, (In thousands) 2019 2018 2017 United States $ 200,101 $ 176,111 $ 148,490 International 1 12,374 11,757 15,418 Net property, equipment and capitalized software $ 212,475 $ 187,868 $ 163,908 1 No single country within made up more than 5 percent of total net property, equipment and capitalized software for any of the years presented. |
Supplementary Regulatory Capi_2
Supplementary Regulatory Capital Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents WEX Bank’s actual and regulatory minimum capital amounts and ratios: Actual Amount Ratio Minimum for Capital Adequacy Purposes Amount Ratio Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio December 31, 2019 Total Capital to risk-weighted assets $ 329,276 13.54 % $ 194,566 8.00 % $ 243,208 10.00 % Tier 1 Capital to average assets $ 314,466 10.88 % $ 115,583 4.00 % $ 144,479 5.00 % Common equity to risk-weighted assets $ 314,466 12.93 % $ 109,443 4.50 % $ 158,085 6.50 % Tier 1 Capital to risk-weighted assets $ 314,466 12.93 % $ 145,925 6.00 % $ 194,566 8.00 % December 31, 2018 Total Capital to risk-weighted assets $ 323,178 12.82 % $ 201,749 8.00 % $ 252,186 10.00 % Tier 1 Capital to average assets $ 305,734 10.88 % $ 112,401 4.00 % $ 140,501 5.00 % Common equity to risk-weighted assets $ 305,734 12.12 % $ 113,484 4.50 % $ 163,921 6.50 % Tier 1 Capital to risk-weighted assets $ 305,734 12.12 % $ 151,312 6.00 % $ 201,749 8.00 % |
Quarterly Financial Results (_2
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary Of Quarterly Financial Results | Summarized quarterly results for the years ended December 31, 2019 and 2018 , are as follows: Three months ended (In thousands, except per share data) March 31 June 30 September 30 December 31 2019 Total revenues 1 $ 381,876 $ 441,807 $ 459,963 $ 440,045 Operating income $ 68,935 $ 94,737 $ 118,311 $ 103,858 Net income attributable to shareholders $ 16,134 $ 13,807 $ 14,619 $ 54,446 Earnings per share: Basic $ 0.37 $ 0.32 $ 0.34 $ 1.26 Diluted $ 0.37 $ 0.32 $ 0.33 $ 1.24 2018 Total revenues $ 354,028 $ 370,798 $ 386,617 $ 381,196 Operating income $ 83,859 $ 100,424 $ 102,564 $ 93,791 Net income attributable to shareholders $ 51,970 $ 38,424 $ 56,644 $ 21,257 Earnings per share: Basic $ 1.21 $ 0.89 $ 1.31 $ 0.49 Diluted $ 1.20 $ 0.88 $ 1.30 $ 0.49 1 During the fourth quarter of 2019, we recorded an immaterial out-of-period adjustment related to prior quarters of 2019 to properly reflect fleet segment revenue and expenses, which decreased total revenues and sales and marketing expense by $14.3 million . |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 3 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 5 years |
Internal-use computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 1 year 6 months |
Internal-use computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 7 years |
Computer software, including internal-use software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Capitalized Software (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Gross amounts capitalized for internal-use computer software (including construction-in-process) | $ 74,432 | $ 46,382 | $ 50,682 |
Amounts expensed for amortization of internal-use computer software | $ 57,821 | $ 38,632 | $ 32,582 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets and Advertising Costs (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | |||||
Goodwill impairment | $ 3,200 | $ 3,225 | |||
Goodwill | 1,832,129 | $ 2,441,201 | 1,832,129 | $ 1,876,132 | |
Advertising expense | 17,900 | 16,300 | 17,100 | ||
European Fleet | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | 180,000 | ||||
Brazil Fleet | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | 250,000 | ||||
Fleet solutions | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | 3,225 | ||||
Goodwill | 1,247,296 | 1,374,020 | 1,247,296 | 1,268,791 | |
Fleet solutions | European Fleet | |||||
Goodwill [Line Items] | |||||
Goodwill | 35,800 | 35,800 | |||
Fleet solutions | Brazil Fleet | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | $ 3,200 | 3,200 | |||
Health and Employee Benefit Solutions | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | 0 | ||||
Goodwill | 350,193 | $ 622,109 | 350,193 | $ 353,508 | |
Health and Employee Benefit Solutions | Brazil Fleet | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 14,300 | $ 14,300 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Weighted Average Common Shares Outstanding Used to Calculate Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||||||||
Net income attributable to shareholders | $ 54,446 | $ 14,619 | $ 13,807 | $ 16,134 | $ 21,257 | $ 56,644 | $ 38,424 | $ 51,970 | $ 99,006 | $ 168,295 | $ 160,062 |
Weighted average common shares outstanding – Basic (in shares) | 43,316 | 43,156 | 42,977 | ||||||||
Dilutive impact of share based compensation awards (in shares) | 453 | 418 | 128 | ||||||||
Weighted average common shares outstanding – Diluted (in shares) | 43,769 | 43,574 | 43,105 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Loss ("AOCL") (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCL (less than) | $ 1,936,522 | $ 1,795,924 | $ 1,630,100 | $ 1,415,151 |
Unrealized gains and losses on investment securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCL (less than) | $ 1,000 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | $ 1,207,448 | $ 996,763 | |||||||||
Total non-Topic 606 revenues | 516,243 | 495,876 | |||||||||
Total revenues | $ 440,045 | $ 459,963 | $ 441,807 | $ 381,876 | $ 381,196 | $ 386,617 | $ 370,798 | $ 354,028 | 1,723,691 | 1,492,639 | $ 1,248,577 |
Fleet solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 558,718 | 561,744 | |||||||||
Total non-Topic 606 revenues | 479,677 | 413,396 | |||||||||
Total revenues | 1,038,395 | 975,140 | 823,110 | ||||||||
Travel and corporate solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 350,018 | 245,457 | |||||||||
Total non-Topic 606 revenues | 17,808 | 57,887 | |||||||||
Total revenues | 367,826 | 303,344 | 224,047 | ||||||||
Health and Employee Benefit Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 298,712 | 189,562 | |||||||||
Total non-Topic 606 revenues | 18,758 | 24,593 | |||||||||
Total revenues | 317,470 | 214,155 | 201,420 | ||||||||
Payment processing revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 825,592 | 723,991 | |||||||||
Total revenues | 825,592 | 723,991 | 569,166 | ||||||||
Payment processing revenue | Fleet solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 457,244 | 464,980 | |||||||||
Total revenues | 457,244 | 464,980 | 360,158 | ||||||||
Payment processing revenue | Travel and corporate solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 303,385 | 203,289 | |||||||||
Total revenues | 303,385 | 203,289 | 158,660 | ||||||||
Payment processing revenue | Health and Employee Benefit Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 64,963 | 55,722 | |||||||||
Total revenues | 64,963 | 55,722 | 50,348 | ||||||||
Account servicing revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 266,526 | 175,819 | |||||||||
Total non-Topic 606 revenues | 147,026 | 132,277 | |||||||||
Total revenues | 413,552 | 308,096 | 276,570 | ||||||||
Account servicing revenue | Fleet solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 17,709 | 30,385 | |||||||||
Total non-Topic 606 revenues | 147,026 | 132,277 | |||||||||
Total revenues | 164,735 | 162,662 | 165,083 | ||||||||
Account servicing revenue | Travel and corporate solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 43,293 | 37,262 | |||||||||
Total non-Topic 606 revenues | 0 | 0 | |||||||||
Total revenues | 43,293 | 37,262 | 7,531 | ||||||||
Account servicing revenue | Health and Employee Benefit Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 205,524 | 108,172 | |||||||||
Total non-Topic 606 revenues | 0 | 0 | |||||||||
Total revenues | 205,524 | 108,172 | 103,956 | ||||||||
Finance fee revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total non-Topic 606 revenues | 247,318 | 208,627 | |||||||||
Total revenues | 247,318 | 208,627 | 188,792 | ||||||||
Finance fee revenue | Fleet solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total non-Topic 606 revenues | 245,082 | 190,528 | |||||||||
Total revenues | 190,528 | 159,336 | |||||||||
Finance fee revenue | Travel and corporate solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total non-Topic 606 revenues | 2,086 | 1,391 | |||||||||
Total revenues | 1,391 | 760 | |||||||||
Finance fee revenue | Health and Employee Benefit Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total non-Topic 606 revenues | 150 | 16,708 | |||||||||
Total revenues | 16,708 | 28,696 | |||||||||
Other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 115,330 | 96,953 | |||||||||
Total non-Topic 606 revenues | 121,899 | 154,972 | |||||||||
Total revenues | 237,229 | 251,925 | 214,049 | ||||||||
Other revenue | Fleet solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 83,765 | 66,379 | |||||||||
Total non-Topic 606 revenues | 87,569 | 90,591 | |||||||||
Total revenues | 171,334 | 156,970 | 138,533 | ||||||||
Other revenue | Travel and corporate solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 3,340 | 4,906 | |||||||||
Total non-Topic 606 revenues | 15,722 | 56,496 | |||||||||
Total revenues | 19,062 | 61,402 | 57,096 | ||||||||
Other revenue | Health and Employee Benefit Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Topic 606 revenues | 28,225 | 25,668 | |||||||||
Total non-Topic 606 revenues | 18,608 | 7,885 | |||||||||
Total revenues | $ 46,833 | $ 33,553 | $ 18,420 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Variable consideration | $ 891 | $ 858.9 |
Revenue recognized related to contract liabilities | $ 7.2 | $ 10.5 |
Revenue - Contract Assets and L
Revenue - Contract Assets and Liabilities From Contracts with Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 4,593 | $ 3,819 |
Contract liabilities | 1,310,813 | 927,444 |
Accounts receivable, net | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 43,092 | 32,949 |
Other assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 20,496 | 19,232 |
Other current liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | $ 5,171 | $ 7,612 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 57,701 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 29,498 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 18,588 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 8,281 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1,928 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 36 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 116,032 |
Minimum monthly fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 50,034 |
Minimum monthly fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 29,498 |
Minimum monthly fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 18,588 |
Minimum monthly fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 8,281 |
Minimum monthly fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 1,928 |
Minimum monthly fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 36 |
Minimum monthly fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 108,365 |
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 7,667 |
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 0 |
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 0 |
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 0 |
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 0 |
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 0 |
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 7,667 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Thousands, € in Millions | Jul. 01, 2019EUR (€) | Jul. 01, 2019USD ($) | Mar. 05, 2019USD ($) | Feb. 14, 2019USD ($) | Jan. 24, 2019USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Expenses related to acquisitions in process | $ 4,800 | |||||||||||
Expenses related to acquisitions | 13,000 | $ 2,500 | $ 1,000 | |||||||||
Payment for trade accounts receivable portfolio | $ 223,400 | |||||||||||
Premium in excess of receivables' estimated fair value | 162,800 | |||||||||||
Payment in escrow for carrying value of accounts receivable | 38,900 | |||||||||||
Term of agreement | 13 years | |||||||||||
Purchase price of acquisition, net of cash acquired | 882,417 | 162,750 | 114,282 | |||||||||
Goodwill | $ 2,441,201 | $ 2,441,201 | $ 1,832,129 | $ 1,876,132 | ||||||||
Weighted average life | 7 years | |||||||||||
Discovery Benefits, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Consideration transferred | $ 526,100 | |||||||||||
Deferred cash consideration | 400,191 | $ 50,000 | ||||||||||
Fair value of equity interests acquired | 100,000 | |||||||||||
Purchase price of acquisition, net of cash acquired | 300,191 | |||||||||||
Goodwill | 272,399 | |||||||||||
Accounts receivable acquired | $ 10,722 | |||||||||||
Noventis | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Consideration transferred | $ 338,700 | |||||||||||
Amount of accelerated vesting of options | 5,500 | |||||||||||
Goodwill | 209,887 | |||||||||||
Accounts receivable acquired | $ 22,134 | |||||||||||
Weighted average life | 7 years 7 months 6 days | |||||||||||
Pavestone Capital | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price of acquisition, net of cash acquired | $ 28,000 | |||||||||||
Goodwill | 9,500 | |||||||||||
Accounts receivable acquired | 14,900 | |||||||||||
Go Fuel Card | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Consideration transferred | € 235 | $ 266,000 | ||||||||||
Goodwill | $ 118,746 | |||||||||||
Weighted average life | 8 years 10 months 24 days | 8 years 10 months 24 days | ||||||||||
Customer relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Asset acquisition, customer relationship intangible assets | $ 168,000 | |||||||||||
Weighted average life | 7 years 3 months 18 days | |||||||||||
Customer relationships | Discovery Benefits, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Customer relationships acquired | $ 213,600 | |||||||||||
Customer relationships | Noventis | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Customer relationships acquired | $ 100,900 | |||||||||||
Weighted average life | 8 years 3 months 18 days | |||||||||||
Customer relationships | Pavestone Capital | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Customer relationships acquired | $ 3,900 | |||||||||||
Weighted average life | 6 years 6 months | |||||||||||
Customer relationships | Go Fuel Card | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Customer relationships acquired | $ 33,963 | |||||||||||
Weighted average life | 5 years | 5 years | ||||||||||
Subsequent Event | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Expected funds from escrow | $ 27,000 |
Acquisitions - Schedules of Ass
Acquisitions - Schedules of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Jul. 01, 2019 | Mar. 05, 2019 | Jan. 24, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||||||
Cash consideration, net of $125,865 in cash and restricted cash acquired | $ 882,417 | $ 162,750 | $ 114,282 | |||||||
Less: | ||||||||||
Recorded goodwill | $ 2,441,201 | $ 2,441,201 | $ 2,441,201 | $ 2,441,201 | $ 2,441,201 | $ 1,832,129 | $ 1,876,132 | |||
Weighted average life | 7 years | |||||||||
Customer relationships | ||||||||||
Less: | ||||||||||
Weighted average life | 7 years 3 months 18 days | |||||||||
Developed technologies | ||||||||||
Less: | ||||||||||
Weighted average life | 5 years 4 months 24 days | |||||||||
Trademarks and trade names | ||||||||||
Less: | ||||||||||
Weighted average life | 7 years 3 months 18 days | |||||||||
Discovery Benefits, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration, net of $125,865 in cash and restricted cash acquired | $ 300,191 | |||||||||
Fair value of redeemable non-controlling interest | 100,000 | |||||||||
Total consideration, net of cash and restricted cash acquired | 400,191 | $ 50,000 | ||||||||
Less: | ||||||||||
Property and equipment | 4,904 | |||||||||
Other assets | 13,601 | |||||||||
Accounts payable | (3,071) | |||||||||
Accrued expenses | (7,563) | |||||||||
Restricted cash payable | (125,346) | |||||||||
Deferred income taxes | (21,941) | |||||||||
Other liabilities | (9,814) | |||||||||
Recorded goodwill | 272,399 | |||||||||
Restricted cash | 125,865 | |||||||||
Total revenues | 94,700 | |||||||||
Net loss before taxes | $ 300 | |||||||||
Discovery Benefits, Inc. | Customer relationships | ||||||||||
Less: | ||||||||||
Intangible assets | 213,600 | |||||||||
Discovery Benefits, Inc. | Developed technologies | ||||||||||
Less: | ||||||||||
Intangible assets | 38,900 | |||||||||
Discovery Benefits, Inc. | Trademarks and trade names | ||||||||||
Less: | ||||||||||
Intangible assets | $ 13,800 | |||||||||
Noventis | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total consideration | $ 293,767 | |||||||||
Less: | ||||||||||
Property and equipment | 549 | |||||||||
Other assets | 2,379 | |||||||||
Accounts payable | (33,521) | |||||||||
Deferred income taxes | (21,194) | |||||||||
Other liabilities | (2,367) | |||||||||
Recorded goodwill | 209,887 | |||||||||
Restricted cash | $ 44,947 | |||||||||
Weighted average life | 7 years 7 months 6 days | |||||||||
Total revenues | 43,800 | |||||||||
Net loss before taxes | $ 8,200 | |||||||||
Noventis | Customer relationships | ||||||||||
Less: | ||||||||||
Intangible assets | $ 100,900 | |||||||||
Weighted average life | 8 years 3 months 18 days | |||||||||
Noventis | Developed technologies | ||||||||||
Less: | ||||||||||
Intangible assets | $ 15,000 | |||||||||
Weighted average life | 2 years 10 months 24 days | |||||||||
Go Fuel Card | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total consideration | $ 260,455 | |||||||||
Less: | ||||||||||
Deposits | (5,169) | |||||||||
Accrued expenses | (420) | |||||||||
Recorded goodwill | 118,746 | |||||||||
Restricted cash | $ 5,589 | |||||||||
Weighted average life | 8 years 10 months 24 days | |||||||||
Total revenues | 10,500 | |||||||||
Net loss before taxes | $ 9,100 | |||||||||
Go Fuel Card | Network Relationships | ||||||||||
Less: | ||||||||||
Intangible assets | $ 112,893 | |||||||||
Weighted average life | 10 years 1 month 6 days | |||||||||
Go Fuel Card | Customer relationships | ||||||||||
Less: | ||||||||||
Intangible assets | $ 33,963 | |||||||||
Weighted average life | 5 years | |||||||||
Go Fuel Card | Trademarks and trade names | ||||||||||
Less: | ||||||||||
Intangible assets | $ 442 | |||||||||
Weighted average life | 1 year |
Acquisitions - Schedules of Pro
Acquisitions - Schedules of Pro Forma Information (Details) - Discovery Benefits and Noventis - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 1,742,797 | $ 1,604,165 |
Net income attributable to shareholders | $ 113,851 | $ 134,564 |
Net income attributable to shareholders per share: | ||
Basic (in dollars per share) | $ 2.63 | $ 3.12 |
Diluted (in dollars per share) | $ 2.60 | $ 3.09 |
Acquisitions - Summary of AOC A
Acquisitions - Summary of AOC Acquisition (Details) - USD ($) $ in Thousands | Mar. 05, 2019 | Dec. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 18, 2017 |
Less: | ||||||
Recorded goodwill | $ 1,876,132 | $ 2,441,201 | $ 1,832,129 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Recorded goodwill | $ 610,537 | $ (19,809) | ||||
Weighted average life | 7 years | |||||
AOC Acquisition | ||||||
Less: | ||||||
Total consideration | 129,828 | $ 129,828 | $ 129,800 | |||
Cash | 15,546 | 15,546 | ||||
Accounts receivable | 4,171 | 4,271 | ||||
Property and equipment | 2,530 | 1,201 | ||||
Other liabilities | (685) | (1,457) | ||||
Recorded goodwill | 67,706 | 47,897 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Total consideration | 0 | |||||
Cash | 0 | |||||
Accounts receivable | 100 | |||||
Property and equipment | (1,329) | |||||
Other liabilities | (772) | |||||
Recorded goodwill | $ (19,809) | |||||
Weighted average life | 5 years 6 months | |||||
Total revenues | 6,700 | |||||
Net loss before taxes | 600 | |||||
Customer relationships | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Weighted average life | 7 years 3 months 18 days | |||||
Customer relationships | AOC Acquisition | ||||||
Less: | ||||||
Intangible assets | 15,000 | $ 15,200 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Intangible assets | $ 200 | |||||
Weighted average life | 9 years | |||||
Developed technologies | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Weighted average life | 5 years 4 months 24 days | |||||
Developed technologies | AOC Acquisition | ||||||
Less: | ||||||
Intangible assets | 24,100 | $ 24,100 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Intangible assets | $ 0 | |||||
Weighted average life | 3 years 4 months 24 days | |||||
Trademarks and trade names | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Weighted average life | 7 years 3 months 18 days | |||||
Trademarks and trade names | AOC Acquisition | ||||||
Less: | ||||||
Intangible assets | 1,460 | $ 1,470 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Intangible assets | $ 10 | |||||
Weighted average life | 4 years 3 months 18 days | |||||
In Process Research and Development | AOC Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Acquired processing platform | $ 21,600 | |||||
Less: | ||||||
Intangible assets | $ 0 | 21,600 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Intangible assets | $ 21,600 |
Divestiture (Details)
Divestiture (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Telapoint $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net assets disposed of | $ 8.9 |
Consideration received | 29.9 |
Pre-tax book gain on disposal | $ 21 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivable payments terms (in days) | 30 days | |
Threshold period past due for write-off of trade accounts receivable (in days) | 150 days | |
Accounts receivable, net | Credit Concentration Risk | 29 days or less past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of outstanding receivables | 96.00% | 95.00% |
Accounts receivable, net | Credit Concentration Risk | 59 days or less past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of outstanding receivables | 97.00% | 98.00% |
Revolving line-of-credit facility under 2016 Credit Agreement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables with revolving credit balances | $ 62.4 | $ 18.9 |
Accounts Receivable - Changes i
Accounts Receivable - Changes in Reserves for Credit Losses Related to Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Rollforward] | |||
Balance, beginning of year | $ 46,948 | $ 33,387 | $ 21,564 |
Provision for credit losses | 65,664 | 66,482 | 64,218 |
Other | 22,746 | 19,067 | 16,869 |
Charge-offs | (92,638) | (78,323) | (77,229) |
Recoveries of amounts previously charged-off | 9,781 | 6,854 | 7,526 |
Currency translation | (227) | (519) | 439 |
Balance, end of year | $ 52,274 | $ 46,948 | $ 33,387 |
Investment Securities - Availab
Investment Securities - Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Total | $ 30,939 | $ 25,603 |
Gross Unrealized Gains | 10 | 5 |
Gross Unrealized Losses | 489 | 1,202 |
Fair Value | 30,460 | 24,406 |
Trading securities | 8,000 | 6,400 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 164 | 255 |
Gross Unrealized Gains | 10 | 5 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 174 | 260 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 248 | 281 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 2 |
Fair Value | 247 | 279 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 306 | 411 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 4 | 7 |
Fair Value | 302 | 404 |
Mutual fund | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 25,221 | 24,656 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 484 | 1,193 |
Fair Value | 24,737 | $ 23,463 |
Pooled investment fund | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 5,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 5,000 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Maturities of investment securities | $ 230 | $ 266 | $ 631 |
Investment Securities - Maturit
Investment Securities - Maturity Dates Of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cost | ||
Due after 5 years through year 10 | $ 278 | $ 311 |
Due after 10 years | 276 | 381 |
Mortgage-backed securities with original maturities of 30 years | 164 | 255 |
Investment securities with no maturity dates | 30,221 | 24,656 |
Total | 30,939 | 25,603 |
Fair Value | ||
Due after 5 years through year 10 | 277 | 309 |
Due after 10 years | 272 | 374 |
Mortgage-backed securities with original maturities of 30 years | 174 | 260 |
Investment securities with no maturity dates | 29,737 | 23,463 |
Total | $ 30,460 | $ 24,406 |
Property, Equipment and Capit_3
Property, Equipment and Capitalized Software, Net - Schedule Of Property, Equipment And Capitalized Software, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||
Property, equipment and capitalized software, gross | $ 556,687 | $ 495,618 | |
Less: accumulated depreciation | (344,212) | (307,750) | |
Total property, equipment and capitalized software, net | 212,475 | 187,868 | $ 163,908 |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and capitalized software, gross | 94,478 | 78,167 | |
Computer software, including internal-use software | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and capitalized software, gross | 411,308 | 355,209 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and capitalized software, gross | 32,406 | 25,516 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and capitalized software, gross | $ 18,495 | $ 36,726 |
Property, Equipment and Capit_4
Property, Equipment and Capitalized Software, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 77.7 | $ 61.6 | $ 49.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes In Goodwill (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Roll Forward] | ||||
Gross goodwill, beginning of period | $ 1,846,326 | $ 1,888,267 | ||
Acquisition adjustments | 610,537 | (19,809) | ||
Foreign currency translation | (1,640) | (22,132) | ||
Gross goodwill, end of period | $ 1,846,326 | 2,455,223 | 1,846,326 | |
Accumulated impairment, beginning of period | (14,197) | (12,135) | ||
Brazil fleet impairment | (3,200) | (3,225) | ||
Foreign currency translation | 175 | 1,163 | ||
Accumulated impairment, end of period | (14,197) | (14,022) | (14,197) | |
Net goodwill, beginning of period | 1,832,129 | 1,876,132 | ||
Net goodwill, end of period | 1,832,129 | 2,441,201 | 1,832,129 | |
Brazil Fleet | ||||
Goodwill [Roll Forward] | ||||
Brazil fleet impairment | (250,000) | |||
Fleet Solutions Segment | ||||
Goodwill [Roll Forward] | ||||
Gross goodwill, beginning of period | 1,251,501 | 1,269,718 | ||
Acquisition adjustments | 128,251 | 0 | ||
Foreign currency translation | (1,645) | (18,217) | ||
Gross goodwill, end of period | 1,251,501 | 1,378,107 | 1,251,501 | |
Accumulated impairment, beginning of period | (4,205) | (927) | ||
Brazil fleet impairment | (3,225) | |||
Foreign currency translation | 118 | (53) | ||
Accumulated impairment, end of period | (4,205) | (4,087) | (4,205) | |
Net goodwill, beginning of period | 1,247,296 | 1,268,791 | ||
Net goodwill, end of period | 1,247,296 | 1,374,020 | 1,247,296 | |
Fleet Solutions Segment | Brazil Fleet | ||||
Goodwill [Roll Forward] | ||||
Brazil fleet impairment | $ (3,200) | (3,200) | ||
Travel and Corporate Solutions Segment | ||||
Goodwill [Roll Forward] | ||||
Gross goodwill, beginning of period | 244,632 | 265,041 | ||
Acquisition adjustments | 209,887 | (19,809) | ||
Foreign currency translation | 488 | (600) | ||
Gross goodwill, end of period | 244,632 | 455,007 | 244,632 | |
Accumulated impairment, beginning of period | (9,992) | (11,208) | ||
Brazil fleet impairment | 0 | |||
Foreign currency translation | 57 | 1,216 | ||
Accumulated impairment, end of period | (9,992) | (9,935) | (9,992) | |
Net goodwill, beginning of period | 234,640 | 253,833 | ||
Net goodwill, end of period | 234,640 | 445,072 | 234,640 | |
Health and Employee Benefit Solutions Segment | ||||
Goodwill [Roll Forward] | ||||
Gross goodwill, beginning of period | 350,193 | 353,508 | ||
Acquisition adjustments | 272,399 | 0 | ||
Foreign currency translation | (483) | (3,315) | ||
Gross goodwill, end of period | 350,193 | 622,109 | 350,193 | |
Accumulated impairment, beginning of period | 0 | 0 | ||
Brazil fleet impairment | 0 | |||
Foreign currency translation | 0 | 0 | ||
Accumulated impairment, end of period | 0 | 0 | ||
Net goodwill, beginning of period | 350,193 | 353,508 | ||
Net goodwill, end of period | 350,193 | 622,109 | 350,193 | |
Health and Employee Benefit Solutions Segment | Brazil Fleet | ||||
Goodwill [Roll Forward] | ||||
Net goodwill, beginning of period | $ 14,300 | |||
Net goodwill, end of period | $ 14,300 | $ 14,300 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,241,843 | $ 1,539,115 | |
Accumulated Amortization | (666,793) | (509,055) | |
Net Carrying Amount | 1,575,050 | 1,030,060 | |
Net Carrying Amount, Total | 1,575,050 | 1,034,194 | |
Amortization expense | 159,400 | 138,200 | $ 153,800 |
Brand names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 0 | 4,134 | |
Acquired software and developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 269,888 | 216,325 | |
Accumulated Amortization | (142,239) | (113,694) | |
Net Carrying Amount | 127,649 | 102,631 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,762,066 | 1,243,589 | |
Accumulated Amortization | (478,680) | (360,593) | |
Net Carrying Amount | 1,283,386 | 882,996 | |
Licensing agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 145,295 | 32,962 | |
Accumulated Amortization | (24,160) | (18,303) | |
Net Carrying Amount | 121,135 | 14,659 | |
Patent | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,319 | 2,332 | |
Accumulated Amortization | (2,183) | (2,044) | |
Net Carrying Amount | 136 | 288 | |
Trade names and brand names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 62,275 | 43,907 | |
Accumulated Amortization | (19,531) | (14,421) | |
Net Carrying Amount | $ 42,744 | $ 29,486 | |
Fuel card brand names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Phase-out term | 5 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 170,603 |
2021 | 161,265 |
2022 | 147,934 |
2023 | 136,668 |
2024 | $ 124,119 |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Merchant payables | $ 852,964 | $ 690,651 |
Other payables | 116,852 | 124,091 |
Accounts payable | $ 969,816 | $ 814,742 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Interest-bearing money market deposits | $ 362,246,000 | $ 283,790,000 |
Customer deposits | 112,571,000 | 138,072,000 |
Certificates of deposit with maturities within 1 year | 835,996,000 | 505,582,000 |
Short-term deposits | 1,310,813,000 | 927,444,000 |
Certificates of deposit with maturities greater than 1 year and less than 5 years | 143,399,000 | 345,231,000 |
Total deposits | $ 1,454,212,000 | $ 1,272,675,000 |
Weighted average cost of funds on certificates of deposit outstanding | 2.57% | 2.36% |
Weighted average cost of interest-bearing money market deposits | 1.88% | 2.49% |
Certificates of deposit, denominations ($250 or less) | $ 250,000 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Certificates of deposit, maturities range | 4 months | 6 months |
Certificates of deposit, fixed interest rates range | 1.80% | 1.30% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Certificates of deposit, maturities range | 5 years | 5 years |
Certificates of deposit, fixed interest rates range | 3.52% | 3.52% |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |||
Required reserve | $ 24,900,000 | $ 11,100,000 | |
Maximum money market and demand deposit accounts purchasable | $ 125,000,000 | ||
Outstanding balance of ICS purchases | $ 0 | $ 0 |
Deposits - Average Interest Rat
Deposits - Average Interest Rate (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Average interest rate: | |||
Deposits | 2.46% | 1.91% | 1.22% |
Interest-bearing money market deposits | 2.28% | 2.03% | 1.12% |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Notional Amounts (Details) - Derivatives not designated as hedging instruments $ in Thousands | Dec. 31, 2019USD ($) |
Tranche A | |
Derivative [Line Items] | |
Notional amount at inception (in thousands) | $ 150,000 |
Fixed interest rate | 2.418% |
Tranche B | |
Derivative [Line Items] | |
Notional amount at inception (in thousands) | $ 100,000 |
Fixed interest rate | 2.425% |
Tranche C | |
Derivative [Line Items] | |
Notional amount at inception (in thousands) | $ 200,000 |
Fixed interest rate | 2.413% |
Tranche D | |
Derivative [Line Items] | |
Notional amount at inception (in thousands) | $ 300,000 |
Fixed interest rate | 2.204% |
Tranche E | |
Derivative [Line Items] | |
Notional amount at inception (in thousands) | $ 200,000 |
Fixed interest rate | 2.212% |
Tranche F | |
Derivative [Line Items] | |
Notional amount at inception (in thousands) | $ 400,000 |
Amortization | 5.00% |
Fixed interest rate | 1.108% |
Tranche G | |
Derivative [Line Items] | |
Notional amount at inception (in thousands) | $ 150,000 |
Fixed interest rate | 1.125% |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) $ in Billions | Dec. 31, 2019USD ($) |
Interest rate swaps | |
Derivative [Line Items] | |
Borrowings under derivative agreements | $ 1.4 |
2016 Credit Agreement | |
Derivative [Line Items] | |
Variable rate borrowings | $ 2.4 |
Derivative Instruments - Locati
Derivative Instruments - Location and Amounts of Derivative Gains and Losses in Condensed Consolidated Statements of Income (Details) - Derivatives not designated as hedging instruments - Interest rate swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net unrealized gains on interest rate swap agreements | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments | $ (35,363) | $ 3,772 | $ 1,314 |
Financing interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments | $ (5,411) | $ (6,160) | $ (214) |
Off-Balance Sheet Arrangements
Off-Balance Sheet Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of receivables sold | $ 630.3 | $ 713.8 |
Gain (loss) on factoring | (3.5) | (4.7) |
WEX Europe Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of receivables sold | 14,800 | 3,200 |
Gain (loss) on factoring | (3.7) | (1) |
WEX Latin America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gain (loss) on factoring | 16.1 | 6.9 |
WEX Latin America Securitization Facility | WEX Latin America | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of receivables sold | $ 78 | 39.8 |
Contribution to investment fund | 2.8 | |
Operating interest | $ 4.4 |
Income Taxes - Components Of In
Income Taxes - Components Of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 178,235 | $ 194,770 | $ 147,240 |
Foreign | 38,281 | 43,849 | 27,176 |
Income before income taxes | $ 216,516 | $ 238,619 | $ 174,416 |
Income Taxes - Components Of _2
Income Taxes - Components Of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||
United States | $ 20,748 | $ 16,027 | $ 2,254 |
State and Local | 4,486 | 3,566 | 3,687 |
Foreign | 16,322 | 17,916 | 13,743 |
Total | 41,556 | 37,509 | 19,684 |
Deferred | |||
United States | 19,946 | 29,520 | (11,748) |
State and Local | 3,831 | 8,016 | 10,842 |
Foreign | (4,110) | (6,202) | (3,328) |
Total | 19,667 | 31,334 | (4,234) |
Income taxes | $ 61,223 | $ 68,843 | $ 15,450 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
2017 Tax Act, income tax benefit | $ 60,600 | |||
Undistributed earnings of certain foreign subsidiaries | $ 77,400 | $ 64,900 | ||
Income Tax Contingency [Line Items] | ||||
Tax expense related to valuation allowance | 6,600 | 10,700 | ||
Unrecognized tax benefits, net | 10,300 | |||
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 9,800 | |||
Decrease in unrecognized tax benefits is reasonably possible | 5,400 | |||
Interest and penalties related to uncertain tax positions | 0 | 0 | $ 0 | |
Accrued penalties and interest related to uncertain tax positions | 0 | 0 | ||
State and Local Jurisdiction | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carry forwards | 608,700 | 503,300 | ||
Domestic Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carry forwards | 31,300 | 53,800 | ||
Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carry forwards | $ 58,600 | $ 58,700 |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Provision Of Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
State income taxes (net of federal income tax benefit) | 1.40% | 2.20% | 2.00% |
Foreign income tax rate differential | 0.80% | 1.10% | (0.70%) |
Revaluation of deferred tax assets for foreign and state tax rate changes, net | (1.00%) | (1.30%) | 0.40% |
Research and development credit | (0.50%) | (0.20%) | 0.00% |
Tax reserves | 0.80% | 2.00% | 0.30% |
Withholding taxes | 0.70% | 0.20% | 0.20% |
2017 Tax Act | 0 | (0.002) | (0.348) |
Change in valuation allowance | 3.10% | 4.50% | 4.60% |
Nondeductible expenses | 2.30% | 1.40% | 0.50% |
Incremental tax benefit from share-based compensation awards | (2.00%) | (1.70%) | (0.90%) |
GILTI | 0.50% | 0.80% | 0.00% |
Other | 1.20% | (0.90%) | 2.30% |
Effective tax rate | 28.30% | 28.90% | 8.90% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets related to: | ||
Reserve for credit losses | $ 11,831 | $ 10,357 |
Tax credit carryforwards | 2,570 | 986 |
Stock-based compensation, net | 16,070 | 10,937 |
Net operating loss carry forwards | 49,464 | 48,235 |
Accruals | 18,934 | 13,142 |
Operating lease liabilities | 18,892 | 0 |
Other | 4,283 | 0 |
Total | 122,044 | 83,657 |
Deferred tax liabilities related to: | ||
Other liabilities | (86) | (1,961) |
Deferred financing costs | (1,090) | (3,078) |
Property, equipment and capitalized software | (35,273) | (28,227) |
Intangibles | (243,229) | (166,347) |
Operating lease assets | (15,602) | 0 |
Total | (295,280) | (199,613) |
Valuation allowance | (32,671) | (26,086) |
Deferred income taxes, net | $ (205,907) | $ (142,042) |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets By Jurisdiction (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Contingency [Line Items] | ||
Deferred tax liabilities | $ (205,907) | $ (142,042) |
United States | ||
Income Tax Contingency [Line Items] | ||
Deferred tax liabilities | (217,927) | (151,125) |
Australia | ||
Income Tax Contingency [Line Items] | ||
Deferred tax liabilities | (795) | (516) |
Europe | ||
Income Tax Contingency [Line Items] | ||
Deferred tax assets | 5,645 | 5,873 |
New Zealand | ||
Income Tax Contingency [Line Items] | ||
Deferred tax assets | 237 | 116 |
Brazil | ||
Income Tax Contingency [Line Items] | ||
Deferred tax assets | 6,820 | 3,202 |
Canada | ||
Income Tax Contingency [Line Items] | ||
Deferred tax assets | $ 113 | $ 408 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 8,996 | $ 5,898 | $ 5,458 |
Increases related to prior year tax positions | 1,727 | 4,831 | 1,332 |
Increases related to current year tax positions | 0 | 0 | 363 |
Decreases related to prior year tax positions | (39) | 0 | 0 |
Settlements | (364) | (1,733) | (1,255) |
Ending balance | $ 10,320 | $ 8,996 | $ 5,898 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Assets | ||
Operating lease ROU assets | $ 68,351 | $ 71,169 |
Liabilities: | ||
Current operating lease liabilities | 13,176 | 11,422 |
Non-current operating lease liabilities | 67,910 | 71,445 |
Total lease liabilities | $ 81,086 | $ 82,867 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining term (in years) | 8 years 6 months |
Weighted average discount rate (as a percent) | 4.60% |
Leases - Maturities of Lease Pa
Leases - Maturities of Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 16,387 | |
2021 | 15,544 | |
2022 | 13,428 | |
2023 | 9,765 | |
2024 | 7,318 | |
2025 and thereafter | 36,434 | |
Total lease payments | 98,876 | |
Less: Imputed interest | 17,790 | |
Total lease liabilities | 81,086 | $ 82,867 |
Less: Current portion of lease obligations | 13,176 | 11,422 |
Long-term lease obligations | $ 67,910 | $ 71,445 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Additional lease not yet commenced, term (in years) | 14 years | |||
Additional lease not yet commenced | $ 30 | |||
Rental expense | $ 18.3 | $ 15.7 | $ 15.5 | |
Operating Leases | ||||
2019 | 14.8 | |||
2020 | 16 | |||
2021 | 15.2 | |||
2022 | 14.1 | |||
2023 | 11.7 | |||
Thereafter | $ 65.6 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 16,314 |
Right-of-use assets obtained in exchange for lease liabilities: | |
Operating leases | $ 11,001 |
Financing and Other Debt - Summ
Financing and Other Debt - Summary of Outstanding Borrowings (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total gross debt | $ 2,972,674,000 | $ 2,383,047,000 |
Current portion of gross debt | 256,529,000 | 223,241,000 |
Less: Unamortized debt issuance costs/debt discount | (7,998,000) | (6,724,000) |
Short-term debt, net | 248,531,000 | 216,517,000 |
Long-term portion of gross debt | 2,716,145,000 | 2,159,806,000 |
Less: Unamortized debt issuance costs/debt discount | (29,632,000) | (25,883,000) |
Long-term debt, net | 2,686,513,000 | 2,133,923,000 |
2016 Credit Agreement | ||
Supplemental information under 2016 Credit Agreement: | ||
Letters of credit | 2,400,000,000 | |
Participation debt | ||
Debt Instrument [Line Items] | ||
Total gross debt | 50,000,000 | 114,849,000 |
Supplemental information under 2016 Credit Agreement: | ||
Remaining borrowing capacity | 80,000,000 | 180,000,000 |
Term loans under 2016 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Total gross debt | 104,261,000 | 106,872,000 |
Term loans under 2016 Credit Agreement | Line of Credit | 2016 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Total gross debt | 2,380,755,000 | 1,745,084,000 |
Term loans under 2016 Credit Agreement | Line of Credit | Tranche A term loan | ||
Debt Instrument [Line Items] | ||
Total gross debt | 923,707,000 | 423,637,000 |
Term loans under 2016 Credit Agreement | Line of Credit | Tranche B term loan | ||
Debt Instrument [Line Items] | ||
Total gross debt | 1,457,048,000 | 1,321,447,000 |
Senior Notes | 4.75 percent senior notes | ||
Debt Instrument [Line Items] | ||
Total gross debt | 400,000,000 | 400,000,000 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Total gross debt | 34,998,000 | 0 |
Supplemental information under 2016 Credit Agreement: | ||
Remaining borrowing capacity | 355,000,000 | 309,000,000 |
Revolving line-of-credit facility under 2016 Credit Agreement | 2016 Credit Agreement | ||
Supplemental information under 2016 Credit Agreement: | ||
Remaining borrowing capacity | 768,686,000 | 666,486,000 |
Letter of Credit | Revolving line-of-credit facility under 2016 Credit Agreement | 2016 Credit Agreement | ||
Supplemental information under 2016 Credit Agreement: | ||
Letters of credit | 51,314,000 | 53,514,000 |
WEX Latin America | ||
Debt Instrument [Line Items] | ||
Total gross debt | $ 2,660,000 | $ 16,242,000 |
Financing and Other Debt - Addi
Financing and Other Debt - Additional Information (Details) - USD ($) | Nov. 19, 2019 | May 17, 2019 | Apr. 07, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 05, 2019 | Jan. 18, 2019 |
Debt Instrument [Line Items] | |||||||
Loss on debt extinguishment | $ 1,300,000 | $ 1,100,000 | |||||
General and administrative expenses incurred | 10,600,000 | 3,800,000 | |||||
Debt issuance costs capitalized | 3,400,000 | 5,800,000 | |||||
Debt discount | 11,000,000 | ||||||
Total gross debt | $ 2,972,674,000 | $ 2,383,047,000 | |||||
Borrowed federal funds | $ 50,000,000 | ||||||
Average interest rate on borrowed federal funds | 2.36% | 2.15% | |||||
Pledged receivables held as collateral | $ 318,300,000 | ||||||
Revolving line-of-credit facility under 2016 Credit Agreement | Federal Reserve Bank | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | 269,100,000 | ||||||
Borrowings outstanding | $ 0 | $ 0 | |||||
Loan Participations and Assignments | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average effective interest rate (as a percent) | 4.17% | 4.30% | |||||
Remaining borrowing capacity | $ 80,000,000 | $ 180,000,000 | |||||
Total gross debt | $ 50,000,000 | 114,849,000 | |||||
Tranche A term loan | |||||||
Debt Instrument [Line Items] | |||||||
Interest coverage ratio (no less than) | 3 | ||||||
Securitized accounts receivable, restricted | $ 350,000,000 | ||||||
Unrestricted cash and cash equivalents | $ 125,000,000 | ||||||
Tranche A term loan | December 31, 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Indebtedness to EBITDA Ratio (no more than) | 5 | ||||||
Tranche A term loan | December 31, 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Indebtedness to EBITDA Ratio (no more than) | 4.75 | ||||||
Tranche A term loan | December 31, 2021 and thereafter | |||||||
Debt Instrument [Line Items] | |||||||
Indebtedness to EBITDA Ratio (no more than) | 4.5 | ||||||
Tranche A term loan | Credit Facility and Term Loans | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | $ 1,030,000,000 | 480,000,000 | $ 250,000,000 | ||||
Additional borrowing capacity added | $ 300,000,000 | ||||||
Mandatory quarterly payments | $ 12,500,000 | ||||||
Revolving line-of-credit facility under 2016 Credit Agreement | Credit Facility and Term Loans | |||||||
Debt Instrument [Line Items] | |||||||
Additional borrowing capacity added | $ 50,000,000 | ||||||
Tranche B term loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, excess of cash required to be used for debt repayment | 25.00% | ||||||
Tranche B term loan | Leverage Ratio One | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, excess of cash required to be used for debt repayment | 50.00% | ||||||
Tranche B term loan | Leverage Ratio Two | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, excess of cash required to be used for debt repayment | 0.00% | ||||||
Tranche B term loan | Credit Facility and Term Loans | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | $ 1,485,000,000 | $ 1,335,000,000 | |||||
Additional borrowing capacity added | $ 150,000,000 | ||||||
Mandatory quarterly payments | $ 3,700,000 | ||||||
2016 Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average effective interest rate (as a percent) | 4.00% | 4.70% | |||||
Commitment fee percentage | 0.40% | ||||||
Debt instrument, cash proceeds from assets sales required to be used towards debt repayment, percent | 100.00% | ||||||
Debt instrument. cash proceeds from other debts required to be used towards debt repayment, percent | 100.00% | ||||||
Borrowings outstanding | $ 2,400,000,000 | ||||||
2016 Credit Agreement | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.30% | ||||||
2016 Credit Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.50% | ||||||
2016 Credit Agreement | Revolving line-of-credit facility under 2016 Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | $ 820,000,000 | $ 720,000,000 | |||||
Additional borrowing capacity added | 25,000,000 | ||||||
Extension term | 3 years | ||||||
Delayed Draw Commitment | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | $ 275,000,000 | ||||||
Securitization Facility | |||||||
Debt Instrument [Line Items] | |||||||
Securitization facility, percentage of receivables used as collateral | 85.00% | ||||||
Interest rate during period, percent | 1.80% | 2.89% | |||||
Securitization facility | $ 78,600,000 | $ 87,000,000 | |||||
European Securitization Facility | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate during period, percent | 0.63% | 0.98% | |||||
Debt instrument, term | 5 years | ||||||
Securitized debt | $ 25,700,000 | $ 18,000,000 | |||||
WEX Latin America | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate during period, percent | 35.04% | 23.59% | |||||
Total gross debt | $ 2,660,000 | $ 16,242,000 | |||||
Letter of Credit | Revolving line-of-credit facility under 2016 Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | $ 820,000,000 | $ 770,000,000 | |||||
Letter of Credit | 2016 Credit Agreement | Revolving line-of-credit facility under 2016 Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | 250,000,000 | 250,000,000 | |||||
Swingline Loans | 2016 Credit Agreement | Revolving line-of-credit facility under 2016 Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | 20,000,000 | 20,000,000 | |||||
Senior Notes | 4.75 percent senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term deposits | $ 400,000,000 | ||||||
Interest rate, stated percentage | 4.75% | ||||||
Redemption price as percentage of principal amount | 100.792% | ||||||
Percentage of principal amount company must offer to repurchase | 101.00% | ||||||
Total gross debt | $ 400,000,000 | 400,000,000 | |||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Remaining borrowing capacity | 355,000,000 | 309,000,000 | |||||
Total gross debt | 34,998,000 | 0 | |||||
Borrowed federal funds | $ 35,000,000 | $ 0 | |||||
Base Rate | Tranche B term loan | Credit Facility and Term Loans | |||||||
Debt Instrument [Line Items] | |||||||
Margin on variable rate, percent | 1.25% | ||||||
Base Rate | Tranche B term loan | Credit Facility and Term Loans | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Margin on variable rate, percent | 0.75% | ||||||
Base Rate | Tranche B term loan | Credit Facility and Term Loans | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Margin on variable rate, percent | 1.25% | ||||||
Eurocurrency Rate | Tranche B term loan | Credit Facility and Term Loans | |||||||
Debt Instrument [Line Items] | |||||||
Margin on variable rate, percent | 2.25% | ||||||
Eurocurrency Rate | Tranche B term loan | Credit Facility and Term Loans | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Margin on variable rate, percent | 1.75% | ||||||
Eurocurrency Rate | Tranche B term loan | Credit Facility and Term Loans | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Margin on variable rate, percent | 2.25% | ||||||
London Interbank Offered Rate (LIBOR) | Loan Participations and Assignments | |||||||
Debt Instrument [Line Items] | |||||||
Margin on variable rate, percent | 2.25% |
Financing and Other Debt - Amou
Financing and Other Debt - Amounts Outstanding Under Participation Debt Agreements (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Amounts Outstanding | $ 2,686,513,000 | $ 2,133,923,000 |
Loan Participations and Assignments | ||
Debt Instrument [Line Items] | ||
Amounts Available | 80,000,000 | 180,000,000 |
Amounts Outstanding | 50,000,000 | 114,849,000 |
Remaining Funding Capacity | $ 30,000,000 | $ 65,151,000 |
Average interest rate | 4.17% | 4.30% |
Loan Participations and Assignments | Short-term debt, net | ||
Debt Instrument [Line Items] | ||
Amounts Available | $ 80,000,000 | $ 130,000,000 |
Amounts Outstanding | 50,000,000 | 64,849,000 |
Remaining Funding Capacity | 30,000,000 | 65,151,000 |
Loan Participations and Assignments | Long-term debt, net | ||
Debt Instrument [Line Items] | ||
Amounts Available | 0 | 50,000,000 |
Amounts Outstanding | $ 0 | 50,000,000 |
Loan Participations And Assignments One | ||
Debt Instrument [Line Items] | ||
Amounts Available | 50,000,000 | |
Remaining Funding Capacity | 80,000,000 | |
Loan Participations And Assignments Two | ||
Debt Instrument [Line Items] | ||
Amounts Available | 50,000,000 | |
Amounts Outstanding | $ 14,800,000 |
Financing and Other Debt - Su_2
Financing and Other Debt - Summary of Annual Principal Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 256,529 |
2021 | 64,611 |
2022 | 64,611 |
2023 | 1,188,598 |
2024 | $ 14,681 |
Tax Receivable Agreement (Detai
Tax Receivable Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax receivable agreement, liability | $ 3.7 | $ 13.6 | |
Off-set to non-operating expense | 0.9 | (0.8) | $ 15.3 |
Payments for tax receivable agreement | $ 8.9 | $ 7.5 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Eligible age to participate | 18 years | ||
Eligible year of service for Company matching contributions | 1 year | ||
Company matching percentage of each employee's contributions to maximum employee eligible compensation | 100.00% | ||
Maximum percentage of employee eligible compensation to the plan | 6.00% | ||
Contributions by company | $ 10 | $ 8 | $ 6.7 |
Obligation related to defined contribution plan | 8 | 6.4 | |
Total net unfunded status of defined benefit pension plan | $ 5.9 | $ 5.4 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Total investment securities | $ 30,460 | $ 24,406 |
Prepaid expenses and other current assets | ||
Financial Assets: | ||
Executive deferred compensation plan trust | 900 | 800 |
Other assets | ||
Financial Assets: | ||
Executive deferred compensation plan trust | 7,000 | 5,600 |
Municipal bonds | ||
Financial Assets: | ||
Total investment securities | 302 | 404 |
Asset-backed securities | ||
Financial Assets: | ||
Total investment securities | 247 | 279 |
Mortgage-backed securities | ||
Financial Assets: | ||
Total investment securities | 174 | 260 |
Pooled investment fund measured at net asset value | ||
Financial Assets: | ||
Total investment securities | 5,000 | |
Interest rate swaps | Prepaid expenses and other current assets | ||
Financial Assets: | ||
Derivative asset | 2,400 | 8,800 |
Interest rate swaps | Other assets | ||
Financial Assets: | ||
Derivative asset | 9,200 | |
Interest rate swaps | Other current liabilities | ||
Liabilities: | ||
Interest rate swaps | 6,700 | |
Interest rate swaps | Other liabilities | ||
Liabilities: | ||
Interest rate swaps | 13,100 | |
Level 1 | ||
Financial Assets: | ||
Executive deferred compensation plan trust | 7,965 | 6,398 |
Level 1 | Money market funds | ||
Financial Assets: | ||
Money market funds | 223,217 | 71,228 |
Level 1 | Fixed-income mutual fund | ||
Financial Assets: | ||
Total investment securities | 24,737 | 23,463 |
Level 2 | Municipal bonds | ||
Financial Assets: | ||
Total investment securities | 302 | 404 |
Level 2 | Asset-backed securities | ||
Financial Assets: | ||
Total investment securities | 247 | 279 |
Level 2 | Mortgage-backed securities | ||
Financial Assets: | ||
Total investment securities | 174 | 260 |
Level 2 | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 2,395 | 17,994 |
Liabilities: | ||
Interest rate swaps | 19,764 | 0 |
Net Asset Value | Pooled investment fund measured at net asset value | ||
Financial Assets: | ||
Total investment securities | $ 5,000 | $ 0 |
Fair Value - Pooled Investment
Fair Value - Pooled Investment Fund (Details) - Net Asset Value - Pooled investment fund $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Unfunded Commitments | $ 0 |
Redemption Notice Period | 30 days |
Fair Value | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | $ 5,000 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest - Additional Information (Details) - USD ($) $ in Thousands | Mar. 05, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Noncontrolling Interest [Line Items] | ||||
Adjustment to redeemable non-controlling interest to reflect WEX Health at fair value | $ 57,315 | |||
Accretion of non-controlling interest | $ 57,317 | $ 0 | $ 0 | |
Discovery Benefits, Inc. | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage by noncontrolling interest | 4.90% | |||
Adjustment to redeemable non-controlling interest to reflect WEX Health at fair value | $ 41,400 | |||
Call rights, exercise period | 7 years |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest - Schedule of Redeemable Non-Controlling Interest (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance, beginning of year | $ 0 |
Acquisition of Discovery Benefits at fair value | 25,757 |
Establishing redeemable non-controlling interest for WEX Health at carrying value | 32,843 |
Adjustment to redeemable non-controlling interest to reflect WEX Health at fair value | 41,400 |
Net loss attributable to redeemable non-controlling interest | (436) |
Accretion of non-controlling interest | 57,315 |
Balance, end of year | $ 156,879 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Long-term Purchase Commitment [Line Items] | ||
Unused commitments to extend credit | $ 9,500,000,000 | |
Maximum penalties | 49,600,000 | |
Shortfall penalties | $ 1,600,000 | |
Cloud Platform Services | ||
Long-term Purchase Commitment [Line Items] | ||
Minimum spend commitment, total | 23,000,000 | |
Minimum spend commitment in 2020 | 6,000,000 | |
Minimum spend commitment in 2021 | 10,200,000 | |
Minimum spend commitment in 2022 | 6,400,000 | |
Minimum spend commitment in 2023 | 300,000 | |
Loans To Nonprofit, Community Development Financial Institution | ||
Long-term Purchase Commitment [Line Items] | ||
Unused commitments to extend credit | 4,600,000 | |
Fund commitment | 7,000,000 | |
Minimum volume purchase commitments | $ 2,400,000 |
Dividend Restrictions (Details)
Dividend Restrictions (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Ratio of funded indebtedness to EBITDA (no more than) | 2.50 |
Maximum restricted payments, including dividends, per annum | $ 50,000,000 |
Percentage of eligible carry over of unused restricted dividend payments | 100.00% |
Percentage of transfer to surplus fund | 10.00% |
Required percentage of surplus to capital stock | 100.00% |
Capital stock | $ 5,300,000 |
Capital surplus as percent of capital stock | 100.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | May 09, 2019shares | May 31, 2017day | Dec. 31, 2019USD ($)awardshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | shares | 3,700,000 | ||||
Share-based compensation arrangement by share-based payment award, number of additional shares authorized (in shares) | shares | 1,500,000 | ||||
Number of stock-based compensation plans | award | 4 | ||||
Total stock-based compensation cost recognized | $ 45.6 | $ 33.9 | $ 30.5 | ||
Total unrecognized compensation cost | 5.5 | ||||
Tax benefit from stock option and restricted stock units | 9.9 | 8 | 7.3 | ||
Shares exercised, total intrinsic value | 5.7 | 1.9 | 0.6 | ||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost | $ 34.9 | ||||
Compensation cost expected recognition weighted average period (in years) | 1 year 10 months 24 days | ||||
Shares granted fair value | $ 34 | 16.8 | 11.7 | ||
Shares vested fair value | $ 7.6 | $ 9.2 | 7.3 | ||
Deferred stock units (in shares) | shares | 260,000 | 167,000 | |||
Performance Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost | $ 23.7 | ||||
Compensation cost expected recognition weighted average period (in years) | 1 year 8 months 12 days | ||||
Shares granted fair value | $ 19 | $ 18.3 | 15 | ||
Shares vested fair value | $ 9.3 | $ 12 | 15.9 | ||
Deferred stock units (in shares) | shares | 449,000 | 419,000 | |||
Performance Based Restricted Stock Units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance goals tracking period | 1 year | ||||
Performance Based Restricted Stock Units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance goals tracking period | 3 years | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Number of consecutive trading days | day | 20 | ||||
Derived service period | 3 years | ||||
Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost | $ 9.4 | ||||
Vesting period (in years) | 3 years | ||||
Compensation cost expected recognition weighted average period (in years) | 1 year 2 months 12 days | ||||
Expiration period | 10 years | ||||
Grant date fair value of shares | $ 7.2 | $ 5.2 | $ 20.5 | ||
Deferred Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 200 days | ||||
Deferred stock units (in shares) | shares | 63,000 | 74,000 | |||
First anniversary | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 33.00% | ||||
Second anniversary | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 33.00% | ||||
Third anniversary | Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 33.00% | ||||
Common Stock Issued | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Units of common stock available for grant (in shares) | shares | 3,600,000 | ||||
Non-Employee Directors | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 12 months | ||||
Certain Employees | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Units | |
Unvested at beginning of period (in shares) | 167 |
Granted (in shares) | 171 |
Vested, including shares withheld for tax (in shares) | (64) |
Forfeited (in shares) | (14) |
Unvested at end of period (in shares) | 260 |
Restricted shares withheld for tax (in shares) | 20 |
Weighted-Average Grant-Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 138.58 |
Granted (in dollars per share) | $ / shares | 198.03 |
Vested (in dollars per share) | $ / shares | 117.81 |
Forfeited (in dollars per share) | $ / shares | 172.38 |
Unvested at end of period (in dollars per share) | $ / shares | $ 181.23 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Performance Based Restricted Stock Units (Details) - Performance Based Restricted Stock Units shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Units | |
Unvested at beginning of period (in shares) | 419 |
Granted (in shares) | 102 |
Forfeited (in shares) | (52) |
Vested, including shares withheld for tax (in shares) | (114) |
Performance adjustment (in shares) | 94 |
Unvested at end of period (in shares) | 449 |
Restricted shares withheld for tax (in shares) | 37 |
Weighted-Average Grant-Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 113.58 |
Granted (in dollars per share) | $ / shares | 185.92 |
Forfeited (in dollars per share) | $ / shares | 136.83 |
Vested (in dollars per share) | $ / shares | 81.87 |
Performance adjustment (in dollars per share) | $ / shares | 144.37 |
Unvested at end of period (in dollars per share) | $ / shares | $ 140.58 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Assumptions Used (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price (in dollars per share) | $ 99.69 | ||
Expected stock price volatility | 31.14% | ||
Risk-free interest rate | 2.18% | ||
Weighted average fair value (in dollars per share) | $ 28.69 | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price (in dollars per share) | $ 184.81 | $ 158.23 | $ 104.95 |
Expected stock price volatility | 27.21% | 27.35% | 30.67% |
Risk-free interest rate | 2.37% | 2.69% | 2.13% |
Weighted average fair value (in dollars per share) | $ 58.28 | $ 51.27 | $ 35.58 |
Weighted average expected term (in years) | 6 years | 6 years | 6 years |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Shares | |
Outstanding at beginning of period (in shares) | shares | 891 |
Granted (in shares) | shares | 124 |
Exercised (in shares) | shares | (53) |
Forfeited (in shares) | shares | (70) |
Outstanding at end of period (in shares) | shares | 892 |
Exercisable (in shares) | shares | 182 |
Vested and expected to vest (in shares) | shares | 685 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 104.62 |
Granted (in dollars per share) | $ / shares | 184.81 |
Exercised (in dollars per share) | $ / shares | 93 |
Forfeited or expired (in dollars per share) | $ / shares | 112.10 |
Outstanding at end of period (in dollars per share) | $ / shares | 115.82 |
Exercisable (in dollars per share) | $ / shares | 103.32 |
Vested and expected to vest (in dollars per share) | $ / shares | $ 119.23 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted average remaining contractual term, Outstanding | 7 years 6 months 7 days |
Weighted average remaining contractual term, Exercisable | 6 years 8 months 15 days |
Weighted average remaining contractual term, Vested and expected to vest | 7 years 8 months 23 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 83,543 |
Aggregate Intrinsic Value, Exercisable | $ | 19,289 |
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 61,769 |
Impairment and Restructuring _2
Impairment and Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Goodwill impairment | $ 3,200 | $ 3,225 | |||
Impairment charges | $ 0 | 5,649 | $ 44,171 | ||
Restructuring charges incurred to date | 27,600 | ||||
Severance charges | $ 2,800 | ||||
Travel and Corporate Solutions Segment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Goodwill impairment | 0 | ||||
Fleet solutions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Goodwill impairment | 3,225 | ||||
Computer software impairment | 6,000 | ||||
Impairment charges | $ 16,200 | ||||
Software under development | Travel and Corporate Solutions Segment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of software under development | $ 22,000 | ||||
Computer software, including internal-use software | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of computer software | $ 2,400 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Reportabl
Segment Information - Reportable Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | $ 440,045 | $ 459,963 | $ 441,807 | $ 381,876 | $ 381,196 | $ 386,617 | $ 370,798 | $ 354,028 | $ 1,723,691 | $ 1,492,639 | $ 1,248,577 |
Revenue Not from Contract with Customer | 516,243 | 495,876 | |||||||||
Interest income | 9,304 | 16,167 | 31,905 | ||||||||
Fleet solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 1,038,395 | 975,140 | 823,110 | ||||||||
Revenue Not from Contract with Customer | 479,677 | 413,396 | |||||||||
Interest income | 6,249 | 3,503 | 3,681 | ||||||||
Travel and corporate solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 367,826 | 303,344 | 224,047 | ||||||||
Revenue Not from Contract with Customer | 17,808 | 57,887 | |||||||||
Interest income | 1,521 | 958 | 717 | ||||||||
Health and Employee Benefit Solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 317,470 | 214,155 | 201,420 | ||||||||
Revenue Not from Contract with Customer | 18,758 | 24,593 | |||||||||
Interest income | 1,534 | 11,706 | 27,507 | ||||||||
Payment processing revenue | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 825,592 | 723,991 | 569,166 | ||||||||
Payment processing revenue | Fleet solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 457,244 | 464,980 | 360,158 | ||||||||
Payment processing revenue | Travel and corporate solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 303,385 | 203,289 | 158,660 | ||||||||
Payment processing revenue | Health and Employee Benefit Solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 64,963 | 55,722 | 50,348 | ||||||||
Account servicing revenue | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 413,552 | 308,096 | 276,570 | ||||||||
Revenue Not from Contract with Customer | 147,026 | 132,277 | |||||||||
Account servicing revenue | Fleet solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 164,735 | 162,662 | 165,083 | ||||||||
Revenue Not from Contract with Customer | 147,026 | 132,277 | |||||||||
Account servicing revenue | Travel and corporate solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 43,293 | 37,262 | 7,531 | ||||||||
Revenue Not from Contract with Customer | 0 | 0 | |||||||||
Account servicing revenue | Health and Employee Benefit Solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 205,524 | 108,172 | 103,956 | ||||||||
Revenue Not from Contract with Customer | 0 | 0 | |||||||||
Finance fee revenue | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 247,318 | 208,627 | 188,792 | ||||||||
Revenue Not from Contract with Customer | 247,318 | 208,627 | |||||||||
Finance fee revenue | Fleet solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 190,528 | 159,336 | |||||||||
Revenue Not from Contract with Customer | 245,082 | 190,528 | |||||||||
Finance fee revenue | Travel and corporate solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 1,391 | 760 | |||||||||
Revenue Not from Contract with Customer | 2,086 | 1,391 | |||||||||
Finance fee revenue | Health and Employee Benefit Solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 16,708 | 28,696 | |||||||||
Revenue Not from Contract with Customer | 150 | 16,708 | |||||||||
Other revenue | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 237,229 | 251,925 | 214,049 | ||||||||
Revenue Not from Contract with Customer | 121,899 | 154,972 | |||||||||
Other revenue | Fleet solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 171,334 | 156,970 | 138,533 | ||||||||
Revenue Not from Contract with Customer | 87,569 | 90,591 | |||||||||
Other revenue | Travel and corporate solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 19,062 | 61,402 | 57,096 | ||||||||
Revenue Not from Contract with Customer | 15,722 | 56,496 | |||||||||
Other revenue | Health and Employee Benefit Solutions | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Total revenues | 46,833 | 33,553 | $ 18,420 | ||||||||
Revenue Not from Contract with Customer | $ 18,608 | $ 7,885 |
Segment Information - Reconcili
Segment Information - Reconciliation of Adjusted Net Income to Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating income | $ 103,858 | $ 118,311 | $ 94,737 | $ 68,935 | $ 93,791 | $ 102,564 | $ 100,424 | $ 83,859 | $ 385,841 | $ 380,638 | $ 233,423 |
Acquisition-related intangible amortization | 159,400 | 138,200 | 153,800 | ||||||||
Stock-based compensation | 45,811 | 33,887 | 30,487 | ||||||||
Gain on divestiture | 0 | 0 | (20,958) | ||||||||
Financing interest expense | (134,677) | (105,023) | (107,067) | ||||||||
Net foreign currency (loss) gain | (926) | (38,800) | 31,487 | ||||||||
Non-cash adjustments related to tax receivable agreement | 932 | (775) | 15,259 | ||||||||
Net unrealized (loss) gain on financial instruments | (34,654) | 2,579 | 1,314 | ||||||||
Income before income taxes | 216,516 | 238,619 | 174,416 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 734,608 | 639,956 | 513,378 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Unallocated corporate expenses | 67,982 | 58,095 | 53,753 | ||||||||
Acquisition-related intangible amortization | 159,431 | 138,186 | 153,810 | ||||||||
Other acquisition and divestiture related items | 37,675 | 4,143 | 5,000 | ||||||||
Debt restructuring costs | 11,062 | 4,425 | 2,563 | ||||||||
Stock-based compensation | 47,511 | 35,103 | 30,487 | ||||||||
Restructuring and other costs | 25,106 | 13,717 | 11,129 | ||||||||
Impairment charges | 0 | 5,649 | 44,171 | ||||||||
Gain on divestiture | 0 | 0 | (20,958) | ||||||||
Fleet solutions | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 485,539 | 459,646 | 369,872 | ||||||||
Travel and Corporate Solutions Segment | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 168,786 | 135,379 | 96,660 | ||||||||
Health and Employee Benefit Solutions | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | $ 80,283 | $ 44,931 | $ 46,846 |
Segment Information - Schedule
Segment Information - Schedule of Revenue and Property and Equipment By Geographic Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenues | $ 440,045 | $ 459,963 | $ 441,807 | $ 381,876 | $ 381,196 | $ 386,617 | $ 370,798 | $ 354,028 | $ 1,723,691 | $ 1,492,639 | $ 1,248,577 |
Net property, equipment and capitalized software | 212,475 | 187,868 | 212,475 | 187,868 | 163,908 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenues | 1,535,985 | 1,287,405 | 1,037,322 | ||||||||
Net property, equipment and capitalized software | 200,101 | 176,111 | 200,101 | 176,111 | 148,490 | ||||||
Other international | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenues | 187,706 | 205,234 | 211,255 | ||||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net property, equipment and capitalized software | $ 12,374 | $ 11,757 | $ 12,374 | $ 11,757 | $ 15,418 |
Supplementary Regulatory Capi_3
Supplementary Regulatory Capital Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Total Capital to risk-weighted assets, Actual Amount | $ 329,276 | $ 323,178 |
Total Capital to risk-weighted assets, Ratio | 13.54% | 12.82% |
Total Capital to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 194,566 | $ 201,749 |
Total Capital to risk-weighted assets, Ratio | 8.00% | 8.00% |
Total Capital to risk-weighted assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 243,208 | $ 252,186 |
Total Capital to risk-weighted assets, Ratio | 10.00% | 10.00% |
Tier 1 Capital to average assets, Actual Amount | $ 314,466 | $ 305,734 |
Tier 1 Capital to average assets, Ratio | 10.88% | 10.88% |
Tier 1 Capital to average assets, Minimum for Capital Adequacy Purposes Amount | $ 115,583 | $ 112,401 |
Tier 1 Capital to average assets, Ratio | 4.00% | 4.00% |
Tier 1 Capital to average assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 144,479 | $ 140,501 |
Tier 1 Capital to average assets, Ratio | 5.00% | 5.00% |
Common equity to risk-weighted assets, Actual Amount | $ 314,466 | $ 305,734 |
Common equity to risk-weighted assets, Ratio | 12.93% | 12.12% |
Common equity to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 109,443 | $ 113,484 |
Common equity to risk-weighted assets, Ratio | 4.50% | 4.50% |
Common equity to risk-weighted assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 158,085 | $ 163,921 |
Common equity to risk-weighted assets, Ratio | 6.50% | 6.50% |
Tier 1 Capital to risk-weighted assets, Actual Amount | $ 314,466 | $ 305,734 |
Tier 1 Capital to risk-weighted assets, Ratio | 12.93% | 12.12% |
Tier 1 Capital to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 145,925 | $ 151,312 |
Tier 1 Capital to risk-weighted assets, Ratio | 6.00% | 6.00% |
Tier 1 Capital to risk-weighted assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 194,566 | $ 201,749 |
Tier 1 Capital to risk-weighted assets, Ratio | 8.00% | 8.00% |
Quarterly Financial Results (_3
Quarterly Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Total revenues | $ 440,045 | $ 459,963 | $ 441,807 | $ 381,876 | $ 381,196 | $ 386,617 | $ 370,798 | $ 354,028 | $ 1,723,691 | $ 1,492,639 | $ 1,248,577 |
Operating income | 103,858 | 118,311 | 94,737 | 68,935 | 93,791 | 102,564 | 100,424 | 83,859 | 385,841 | 380,638 | 233,423 |
Net income attributable to shareholders | $ 54,446 | $ 14,619 | $ 13,807 | $ 16,134 | $ 21,257 | $ 56,644 | $ 38,424 | $ 51,970 | $ 99,006 | $ 168,295 | $ 160,062 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 1.26 | $ 0.34 | $ 0.32 | $ 0.37 | $ 0.49 | $ 1.31 | $ 0.89 | $ 1.21 | $ 2.29 | $ 3.90 | $ 3.72 |
Diluted (in dollars per share) | $ 1.24 | $ 0.33 | $ 0.32 | $ 0.37 | $ 0.49 | $ 1.30 | $ 0.88 | $ 1.20 | $ 2.26 | $ 3.86 | $ 3.71 |
Sales and marketing | $ (259,869) | $ (229,234) | $ (163,654) | ||||||||
Out-of-period adjustment | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Total revenues | $ (14,300) | ||||||||||
Earnings per share: | |||||||||||
Sales and marketing | $ 14,300 |
Related Party Transaction (Deta
Related Party Transaction (Details) - USD ($) $ in Millions | Nov. 19, 2019 | Mar. 05, 2019 |
Related Party Transaction [Line Items] | ||
Borrowed federal funds | $ 50 | |
Discovery Benefits, Inc. | ||
Related Party Transaction [Line Items] | ||
Ownership percentage by noncontrolling interest | 4.90% |
Subsequent Events (Details)
Subsequent Events (Details) shares in Millions | Jan. 24, 2020USD ($)shares | Feb. 10, 2020USD ($) | Jan. 18, 2019USD ($) |
Revolving line-of-credit facility under 2016 Credit Agreement | 2016 Credit Agreement | |||
Subsequent Event [Line Items] | |||
Additional borrowing capacity added | $ 25,000,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Consideration transferred | $ 1,300,000,000 | ||
Shares of common stock issued (in shares) | shares | 2 | ||
Subsequent Event | Secured Debt | Term Loan B Facility | |||
Subsequent Event [Line Items] | |||
Debt instrument, term | 7 years | ||
Subsequent Event | Secured Credit Facilities | Secured Debt | |||
Subsequent Event [Line Items] | |||
Remaining borrowing capacity | $ 2,800,000,000 | ||
Subsequent Event | Secured Credit Facilities | Secured Debt | Term Loan B Facility | |||
Subsequent Event [Line Items] | |||
Face amount | 2,000,000,000 | ||
Subsequent Event | Secured Credit Facilities | Secured Debt | Term Loan B Facility, planned acquisition funding | |||
Subsequent Event [Line Items] | |||
Face amount | 1,100,000,000 | ||
Subsequent Event | Secured Credit Facilities | Secured Debt | Term Loan B Facility, Backstop to refinance Term A loans | |||
Subsequent Event [Line Items] | |||
Face amount | 924,000,000 | ||
Subsequent Event | Secured Credit Facilities | Secured Debt | Term Loan B Facility, Backstop to replace existing revolving credit facility | |||
Subsequent Event [Line Items] | |||
Face amount | 820,000,000 | ||
Subsequent Event | Senior Unsecured Bridge Facility | Unsecured Debt | |||
Subsequent Event [Line Items] | |||
Remaining borrowing capacity | $ 300,000,000 | ||
Subsequent Event | Revolving line-of-credit facility under 2016 Credit Agreement | 2016 Credit Agreement | |||
Subsequent Event [Line Items] | |||
Additional borrowing capacity added | $ 1,400,000,000 | ||
Subsequent Event | Revolving line-of-credit facility under 2016 Credit Agreement | 2016 Credit Agreement | December 31, 2019 | |||
Subsequent Event [Line Items] | |||
Leverage ratio | 5.75 | ||
Subsequent Event | Revolving line-of-credit facility under 2016 Credit Agreement | 2016 Credit Agreement | December 31, 2020 | |||
Subsequent Event [Line Items] | |||
Leverage ratio | 5.50 | ||
Subsequent Event | Revolving line-of-credit facility under 2016 Credit Agreement | 2016 Credit Agreement | December 31, 2021 | |||
Subsequent Event [Line Items] | |||
Leverage ratio | 5 | ||
Subsequent Event | Revolving line-of-credit facility under 2016 Credit Agreement | 2016 Credit Agreement | December 31, 2022 and thereafter | |||
Subsequent Event [Line Items] | |||
Leverage ratio | 4.75 |
Uncategorized Items - wex201912
Label | Element | Value | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 1,630,738,000 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 638,000 | [1] |
Additional Paid-in Capital [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 569,319,000 | |
Treasury Stock [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (172,342,000) | |
AOCI Attributable to Parent [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (89,230,000) | |
Noncontrolling Interest [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 9,220,000 | |
Common Stock [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 473,000 | |
Shares, Issued | us-gaap_SharesIssued | 47,352,000 | |
Retained Earnings [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 1,313,298,000 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 638,000 | [1] |
[1] | Includes the impact of the Company’s modified retrospective adoption as part of Topic 606. |