Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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, $0.01 par value | |
Trading Symbol | WEX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,797,826 | |
Entity Central Index Key | 0001309108 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Total revenues | $ 459,483 | $ 347,084 | $ 870,240 | $ 778,763 |
Cost of services | ||||
Processing costs | 116,208 | 99,991 | 225,970 | 204,908 |
Service fees | 13,759 | 9,700 | 24,905 | 23,454 |
Provision for credit losses | 12,962 | 20,581 | 18,021 | 54,568 |
Operating interest | 2,271 | 6,504 | 4,895 | 14,889 |
Depreciation and amortization | 26,451 | 25,124 | 55,645 | 49,913 |
Total cost of services | 171,651 | 161,900 | 329,436 | 347,732 |
General and administrative | 79,543 | 62,265 | 165,974 | 124,301 |
Sales and marketing | 85,605 | 54,744 | 163,952 | 123,526 |
Depreciation and amortization | 40,406 | 39,393 | 78,059 | 79,593 |
Operating income | 82,278 | 28,782 | 132,819 | 103,611 |
Financing interest expense | (32,473) | (28,832) | (65,757) | (60,863) |
Change in fair value of contingent consideration | (47,700) | 0 | (47,700) | 0 |
Net foreign currency gain (loss) | 1,342 | (2,462) | (1,413) | (31,189) |
Net unrealized gain (loss) on financial instruments | 6,013 | (3,842) | 13,046 | (35,889) |
Income (loss) before income taxes | 9,460 | (6,354) | 30,995 | (24,330) |
Income tax benefit | (746) | (19,747) | (2,416) | (25,454) |
Net income | 10,206 | 13,393 | 33,411 | 1,124 |
Less: Net income from non-controlling interests | 239 | 675 | 965 | 2,038 |
Net income (loss) attributable to WEX Inc. | 9,967 | 12,718 | 32,446 | (914) |
Change in value of redeemable non-controlling interest | (43,823) | 59,940 | (68,867) | 57,316 |
Net (loss) income attributable to shareholders | $ (33,856) | $ 72,658 | $ (36,421) | $ 56,402 |
Net (loss) income attributable to shareholders per share: | ||||
Basic (in dollars per share) | $ (0.76) | $ 1.67 | $ (0.82) | $ 1.30 |
Diluted (in dollars per share) | $ (0.76) | $ 1.66 | $ (0.82) | $ 1.28 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 44,788 | 43,574 | 44,566 | 43,495 |
Diluted (in shares) | 44,788 | 43,779 | 44,566 | 43,896 |
Payment processing revenue | ||||
Revenues | ||||
Total revenues | $ 213,426 | $ 147,461 | $ 401,815 | $ 351,498 |
Account servicing revenue | ||||
Revenues | ||||
Total revenues | 132,997 | 109,479 | 251,620 | 223,319 |
Finance fee revenue | ||||
Revenues | ||||
Total revenues | 59,499 | 42,711 | 111,652 | 98,638 |
Other revenue | ||||
Revenues | ||||
Total revenues | $ 53,561 | $ 47,433 | $ 105,153 | $ 105,308 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 10,206 | $ 13,393 | $ 33,411 | $ 1,124 |
Foreign currency translation | (2,682) | 23,344 | (9,559) | (18,060) |
Comprehensive income (loss) | 7,524 | 36,737 | 23,852 | (16,936) |
Less: Comprehensive income attributable to non-controlling interests | 239 | 896 | 647 | 1,790 |
Comprehensive income (loss) attributable to WEX Inc. | $ 7,285 | $ 35,841 | $ 23,205 | $ (18,726) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 425,322,000 | $ 852,033,000 |
Restricted cash | 576,209,000 | 477,620,000 |
Accounts receivable (net of allowances of $57,771 in 2021 and $59,147 in 2020) | 2,861,445,000 | 1,993,329,000 |
Securitized accounts receivable, restricted | 132,549,000 | 93,236,000 |
Prepaid expenses and other current assets | 98,397,000 | 86,629,000 |
Total current assets | 4,093,922,000 | 3,502,847,000 |
Property, equipment and capitalized software (net of accumulated depreciation of $444,364 in 2021 and $402,406 in 2020) | 180,049,000 | 188,340,000 |
Goodwill | 2,925,583,000 | 2,688,138,000 |
Other intangible assets (net of accumulated amortization of $919,679 in 2021 and $835,163 in 2020) | 1,738,570,000 | 1,552,012,000 |
Investment securities | 36,931,000 | 37,273,000 |
Deferred income taxes, net | 34,166,000 | 17,524,000 |
Other assets | 218,389,000 | 197,227,000 |
Total assets | 9,227,610,000 | 8,183,361,000 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 1,247,995,000 | 778,207,000 |
Accrued expenses | 384,306,000 | 362,472,000 |
Restricted cash payable | 574,934,000 | 477,620,000 |
Short-term deposits | 1,109,222,000 | 911,395,000 |
Short-term debt, net | 146,470,000 | 152,730,000 |
Other current liabilities | 52,832,000 | 58,429,000 |
Total current liabilities | 3,515,759,000 | 2,740,853,000 |
Long-term debt, net | 2,867,270,000 | 2,874,113,000 |
Long-term deposits | 401,440,000 | 148,591,000 |
Deferred income taxes, net | 196,032,000 | 220,122,000 |
Other liabilities | 264,250,000 | 164,546,000 |
Total liabilities | 7,244,751,000 | 6,148,225,000 |
Commitments and contingencies | ||
Redeemable non-controlling interest | 187,937,000 | 117,219,000 |
Stockholders’ Equity | ||
Common stock $0.01 par value; 175,000 shares authorized; 49,224 shares issued in 2021 and 48,616 in 2020; 44,796 shares outstanding in 2021 and 44,188 in 2020 | 491,000 | 485,000 |
Additional paid-in capital | 808,701,000 | 872,711,000 |
Retained earnings | 1,252,531,000 | 1,286,976,000 |
Accumulated other comprehensive loss | (94,459,000) | (82,935,000) |
Treasury stock at cost; 4,428 shares in 2021 and 2020 | (172,342,000) | (172,342,000) |
Total WEX Inc. stockholders’ equity | 1,794,922,000 | 1,904,895,000 |
Non-controlling interest | 0 | 13,022,000 |
Total stockholders’ equity | 1,794,922,000 | 1,917,917,000 |
Total liabilities and stockholders’ equity | $ 9,227,610,000 | $ 8,183,361,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Long-term debt, net | $ 57,771 | $ 59,147 |
Property, equipment and capitalized software, accumulated depreciation | 444,364 | 402,406 |
Accumulated amortization | $ 919,679 | $ 835,163 |
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) | 49,224,000 | 48,616,000 |
Common stock, shares outstanding (in shares) | 44,796,000 | 44,188,000 |
Treasury stock, shares (in shares) | 4,428,000 | 4,428,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | [1] | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock Issued | Common Stock IssuedCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjustment | [1] | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | [1] | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Non-Controlling Interest | Non-Controlling InterestCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning Balance (in shares) at Dec. 31, 2019 | 47,749 | |||||||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 1,927,745 | $ 477 | $ 675,060 | $ (115,449) | $ (172,342) | $ 1,530,614 | $ 9,385 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Stock issued (in shares) | 189 | |||||||||||||||||||
Stock issued | 1,952 | $ 2 | 1,950 | |||||||||||||||||
Share repurchases for tax withholdings | (8,817) | (8,817) | ||||||||||||||||||
Stock-based compensation expense | 12,533 | 12,533 | ||||||||||||||||||
Change in value of redeemable non-controlling interest | (2,624) | (2,624) | ||||||||||||||||||
Foreign currency translation | (41,404) | (40,935) | (469) | |||||||||||||||||
Net income | (12,411) | (13,632) | 1,221 | |||||||||||||||||
Ending Balance (in shares) at Mar. 31, 2020 | 47,938 | |||||||||||||||||||
Ending balance at Mar. 31, 2020 | 1,876,974 | $ 479 | 680,726 | (156,384) | (172,342) | 1,514,358 | 10,137 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Stock issued (in shares) | 5 | |||||||||||||||||||
Stock issued | 184 | 184 | ||||||||||||||||||
Share repurchases for tax withholdings | (76) | (76) | ||||||||||||||||||
Stock-based compensation expense | 14,219 | 14,219 | ||||||||||||||||||
Change in value of redeemable non-controlling interest | 59,940 | 59,940 | ||||||||||||||||||
Foreign currency translation | 23,344 | 23,123 | 221 | |||||||||||||||||
Net income | 13,294 | 12,718 | 576 | |||||||||||||||||
Ending Balance (in shares) at Jun. 30, 2020 | 47,943 | |||||||||||||||||||
Ending balance at Jun. 30, 2020 | 1,987,879 | $ 479 | 695,053 | (133,261) | (172,342) | 1,587,016 | 10,934 | |||||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | 48,616 | 48,616 | ||||||||||||||||||
Beginning balance at Dec. 31, 2020 | 1,917,917 | $ (40,006) | $ 1,877,911 | $ 485 | $ 485 | 872,711 | $ (41,982) | $ 830,729 | (82,935) | $ (82,935) | (172,342) | $ (172,342) | 1,286,976 | $ 1,976 | $ 1,288,952 | 13,022 | $ 13,022 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Stock issued (in shares) | 394 | |||||||||||||||||||
Stock issued | 22,559 | $ 4 | 22,555 | |||||||||||||||||
Share repurchases for tax withholdings | (21,062) | (21,062) | ||||||||||||||||||
Stock-based compensation expense | 17,886 | 17,886 | ||||||||||||||||||
Change in value of redeemable non-controlling interest | (25,044) | (25,044) | ||||||||||||||||||
Foreign currency translation | (6,877) | (6,558) | (319) | |||||||||||||||||
Net income | 22,853 | 22,479 | 374 | |||||||||||||||||
Ending Balance (in shares) at Mar. 31, 2021 | 49,010 | |||||||||||||||||||
Ending balance at Mar. 31, 2021 | 1,888,226 | $ 489 | 850,108 | (89,493) | (172,342) | 1,286,387 | 13,077 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Stock issued (in shares) | 214 | |||||||||||||||||||
Stock issued | 20,481 | $ 2 | 20,479 | |||||||||||||||||
Share repurchases for tax withholdings | (884) | (884) | ||||||||||||||||||
Stock-based compensation expense | 20,629 | 20,629 | ||||||||||||||||||
Acquisition of non controlling interest | (96,992) | (81,631) | (2,284) | (13,077) | ||||||||||||||||
Change in value of redeemable non-controlling interest | (43,823) | (43,823) | ||||||||||||||||||
Foreign currency translation | (2,682) | (2,682) | ||||||||||||||||||
Net income | 9,967 | 9,967 | ||||||||||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 49,224 | |||||||||||||||||||
Ending balance at Jun. 30, 2021 | $ 1,794,922 | $ 491 | $ 808,701 | $ (94,459) | $ (172,342) | $ 1,252,531 | $ 0 | |||||||||||||
[1] | Reflects the impact of the Company’s modified retrospective adoption of ASU 2020-06 (See Note 2, Recent Accounting Pronouncements). |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Cash flows from operating activities | |||
Net income | $ 33,411 | $ 1,124 | |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | |||
Net unrealized (gain) loss | (10,578) | 55,032 | |
Change in fair value of contingent consideration | 47,700 | 0 | |
Stock-based compensation | 38,515 | 26,752 | |
Depreciation and amortization | 133,704 | 129,506 | |
Debt restructuring and debt issuance cost amortization | 10,576 | 3,895 | |
Deferred tax benefit | (15,778) | (31,712) | |
Provision for credit losses | 18,021 | 54,568 | |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable and securitized accounts receivable | (925,792) | 645,123 | |
Prepaid expenses and other current and other long-term assets | 14,158 | 2,914 | |
Accounts payable | 474,469 | (115,031) | |
Accrued expenses and restricted cash payable | 87,871 | (48,315) | |
Income taxes | (13,050) | 6,164 | |
Other current and other long-term liabilities | (15,209) | (4,074) | |
Net cash (used for) provided by operating activities | (121,982) | 725,946 | |
Cash flows from investing activities | |||
Purchases of property, equipment and capitalized software | (37,040) | (41,458) | |
Purchases of investment securities | (175) | (250) | |
Maturities of investment securities | 81 | 99 | |
Acquisitions, net of cash and restricted cash acquired | (558,273) | 0 | |
Net cash used for investing activities | (595,407) | (41,609) | |
Cash flows from financing activities | |||
Repurchase of share-based awards to satisfy tax withholdings | (21,946) | (8,893) | |
Proceeds from stock option exercises | 43,040 | 2,136 | |
Net change in deposits | 451,291 | (34,675) | |
Net activity on other debt | (20,000) | (87,016) | |
Borrowings on revolving credit facility | 719,800 | 300,000 | |
Repayments on revolving credit facility | (454,800) | (300,000) | |
Borrowings on term loans | 112,819 | 0 | |
Repayments on term loans | (31,988) | (32,305) | |
Redemption of Notes | (400,000) | 0 | |
Debt issuance costs | (8,934) | (4,273) | |
Net change in securitized debt | 9,497 | (38,802) | |
Net cash provided by (used for) financing activities | 398,779 | (203,828) | |
Effect of exchange rates on cash, cash equivalents and restricted cash | (9,512) | (12,197) | |
Net change in cash, cash equivalents and restricted cash | (328,122) | 468,312 | |
Cash, cash equivalents and restricted cash at beginning of period | [1] | 1,329,653 | 981,381 |
Cash, cash equivalents and restricted cash at end of period | [1] | 1,001,531 | 1,449,693 |
Supplemental disclosure of non-cash investing and financing activities | |||
Capital expenditures incurred but not paid | 1,979 | 2,400 | |
Non-cash contribution from non-controlling interest | 12,457 | 0 | |
Non-cash contribution from non-controlling interest | 47,408 | 0 | |
Contingent consideration as part of asset acquisition | 27,200 | 0 | |
Cash, Cash Equivalents, Restricted Cash And Restricted Cash Equivalents [Roll Forward] | |||
Cash and cash equivalents at beginning of period | 852,033 | 810,932 | |
Restricted cash at beginning of period | 477,620 | 170,449 | |
Cash, cash equivalents and restricted cash at beginning of period | [1] | 1,329,653 | 981,381 |
Cash and cash equivalents at end of period | 425,322 | 1,271,523 | |
Restricted cash at end of period | 576,209 | 178,170 | |
Cash, cash equivalents and restricted cash at end of period | [1] | $ 1,001,531 | $ 1,449,693 |
[1] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our condensed consolidated balance sheets to amounts within our condensed consolidated statements of cash flows. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10–Q and Rule 10–01 of Regulation S–X. Accordingly, they do not include all information and notes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statements that are included in the Company’s Annual Report on Form 10–K for the year ended December 31, 2020, filed with the SEC on March 1, 2021. In the opinion of management, all adjustments considered necessary for a fair presentation, which are of a normal recurring nature, have been included. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results for any future periods or the year ending December 31, 2021. With the exception of the accounting policy over convertible debt, which was impacted by the early adoption of ASU 2020–06 effective January 1, 2021 (refer to Adoption of a New Accounting Standard later within this Note and Note 2, Recent Accounting Pronouncements), we have applied the same accounting policies in preparing these quarterly financial statements as we did in preparing our 2020 annual financial statements. The Company rounds amounts in the condensed consolidated financial statements to thousands and calculates all per-share data from underlying whole-dollar amounts. Thus, certain amounts may not foot, crossfoot or recalculate based on reported numbers due to rounding. Adoption of a New Accounting Standard The Company early adopted ASU 2020-06 on January 1, 2021, utilizing the modified-retrospective approach, recognizing the cumulative adjustment to retained earnings as of the effective date, without restatement of prior period amounts. ASU 2020-06 simplifies accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. This standard eliminates the bifurcation of the equity component associated with the cash conversion feature for convertible notes, which were previously recorded within equity. As a result of adoption, the Convertible Notes and its conversion feature are now accounted for as a single unit of account. The following table illustrates the adoption impact of ASU 2020-06: January 1, 2021 (In thousands) Prior to adoption Impact of As reported Long-term debt, net $ 2,874,113 $ 52,115 $ 2,926,228 Deferred income taxes, net (within total liabilities) $ 220,122 $ (12,109) $ 208,013 Additional paid-in capital $ 872,711 $ (41,982) $ 830,729 Retained earnings $ 1,286,976 $ 1,976 $ 1,288,952 The Company continues to apply the if-converted method to calculate the impact of the Convertible Notes on the diluted earnings per share as required by ASU 2020-06. See Note 6, Earnings per Share, for more information. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements The following table provides a brief description of accounting pronouncements adopted during the six months ended June 30, 2021 and recent accounting pronouncements not yet adopted that 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 Six Months Ended June 30, 2021 ASU 2020–06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging –Contracts in Entity's Own Equity (Subtopic 815-40) This standard simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. Among other changes, this standard removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible debt instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. The standard also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. The Company early adopted ASU 2020–06 effective January 1, 2021, using the modified-retrospective approach. Refer to Note 1, Basis of Presentation, for a summary of the financial statement effects as a result of this ASU adoption. Additionally, interest expense related to the amortization of the debt discount on our Convertible Notes is expected to decline approximately $5.5 million during the year ending December 31, 2021 as a result of the adoption of this ASU. Not Adopted as of June 30, 2021 ASU 2020–04, Reference Rate Reform and ASU 2021–01, Reference Rate Reform: Scope These standards provide optional guidance for a limited period of time to ease the potential financial reporting burden in accounting for (or recognizing the effects of) the discontinuation of LIBOR resulting from reference rate reform. The amendments provide optional expedients and exceptions for applying GAAP to contracts and other transactions impacted by reference rate reform. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. Election is available through December 31, 2022. The Company is currently evaluating the implications of these amendments to its current efforts for reference rate reform implementation and any impact the adoption of these ASUs would have on its financial condition and results of operations. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 3. Revenues In accordance with Topic 606, revenue is recognized when, or as, performance obligations are satisfied as defined by the terms of the applicable 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 the Company’s consolidated revenues: Three Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue 126,450 $ 68,282 $ 18,694 $ 213,426 Account servicing revenue 4,336 11,222 79,482 95,040 Other revenue 22,422 1,656 5,109 29,187 Total Topic 606 revenues $ 153,208 $ 81,160 $ 103,285 $ 337,653 Non-Topic 606 revenues 121,180 602 48 121,830 Total revenues $ 274,388 $ 81,762 $ 103,333 $ 459,483 Three Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 90,147 $ 43,261 $ 14,053 $ 147,461 Account servicing revenue 4,339 10,183 62,602 77,124 Other revenue 17,731 345 10,465 28,541 Total Topic 606 revenues $ 112,217 $ 53,789 $ 87,120 $ 253,126 Non-Topic 606 revenues 92,163 706 1,089 93,958 Total revenues $ 204,380 $ 54,495 $ 88,209 $ 347,084 Six Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 237,026 $ 125,530 $ 39,259 $ 401,815 Account servicing revenue 8,705 21,909 147,427 178,041 Other revenue 42,668 3,456 12,854 58,978 Total Topic 606 revenues $ 288,399 $ 150,895 $ 199,540 $ 638,834 Non-Topic 606 revenues 229,826 1,509 71 231,406 Total revenues $ 518,225 $ 152,404 $ 199,611 $ 870,240 Six Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 203,470 $ 113,529 $ 34,499 $ 351,498 Account servicing revenue 8,710 21,246 126,171 156,127 Other revenue 39,019 1,116 19,488 59,623 Total Topic 606 revenues $ 251,199 $ 135,891 $ 180,158 $ 567,248 Non-Topic 606 revenues 203,028 2,963 5,524 211,515 Total revenues $ 454,227 $ 138,854 $ 185,682 $ 778,763 Substantially all revenues relate to services transferred to the customer over time. Contract Balances The majority of the Company’s receivables, which are excluded from the table below, are either due from cardholders who have not been deemed the Company’s customer as it relates to interchange income or from revenues earned outside of the scope of Topic 606. 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 condensed consolidated balance sheets June 30, 2021 December 31, 2020 Receivables Accounts receivable, net $ 47,676 $ 43,541 Contract assets Prepaid expenses and other current assets 11,350 5,495 Contract assets Other assets 39,284 19,927 Contract liabilities Other current liabilities 3,038 8,530 Contract liabilities Other liabilities 28,293 24,614 Refund liabilities Accrued expenses 5,265 5,265 During the three and six months ended June 30, 2021, the Company recognized revenue of $0.7 million and $3.5 million, respectively, related to contract liabilities existing as of December 31, 2020. Remaining Performance Obligations The Company’s unsatisfied or partially unsatisfied performance obligations as of June 30, 2021 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. The following table includes revenue expected to be recognized related to remaining performance obligations at the end of the reporting period and is not indicative of the Company’s future revenue, as it relates to an insignificant portion of the Company’s operations. (In thousands) Remaining 2021 2022 2023 2024 2025 2026 Thereafter Total Minimum monthly fees 1 $ 36,330 $ 47,326 $ 33,465 $ 12,563 $ 5,697 $ 1,290 $ — $ 136,671 Professional services 2 2,780 157 21 6 — — — 2,964 Other 3 258 3,896 3,338 6,951 10,323 12,710 20,374 57,850 Total remaining performance obligations $ 39,368 $ 51,379 $ 36,824 $ 19,520 $ 16,020 $ 14,000 $ 20,374 $ 197,485 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. 3 Represents deferred revenue and contractual minimums associated with payment processing service obligations. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions Asset Acquisition On April 1, 2021, WEX Inc. completed the acquisition of certain contractual rights to serve as custodian or sub-custodian to certain health savings accounts from the Healthcare Bank division of Bell Bank, which is owned by State Bankshares, Inc. This acquisition increases the Company’s role in its customer-directed healthcare ecosystem and aligns with its growth strategy. On the closing of the acquisition, WEX Inc. paid Bell Bank initial cash consideration of $200.0 million. Pursuant to the purchase agreement, WEX Inc. agreed to make an additional deferred cash payment of $25.0 million in July 2023 and a second additional deferred cash payment of $25.0 million in January 2024. As of June 1, 2021, in connection with the acquisition by WEX Health of Cirrus Holdings, LLC further discussed below in this Note 4, the second deferred payment of $25.0 million was reduced by the amount of $12.5 million (the “Payment Reduction”). As a result of the Payment Reduction, WEX Inc. continues to owe Bell Bank $12.5 million for the second additional deferred cash payment, which is due and payable in January 2024. The purchase agreement also includes potential additional consideration payable annually that is calculated on a quarterly basis and is contingent, and based, upon any future increases in the Federal Funds rate. The contingent payment period began on July 1, 2021 and shall extend until the earlier of (i) the year ending December 31, 2030, or (ii) the date when the cumulative amount paid as contingent consideration equals $225.0 million. Given the acquisition does not meet the definition of a business, the Company accounted for this transaction as an asset acquisition, recognizing $263.4 million as a definite-lived intangible asset as of the acquisition date, with a weighted average life of 5.6 years. As more fully described in Note 13, Redeemable Non-Controlling Interest, as part of this acquisition WEX Inc. allocated $11.2 million of the initial cash consideration to the repurchase of SBI’s non-controlling interest in the U.S. Health business, reducing SBI’s ownership percentage to 4.53 percent. Additionally, the Company recorded an initial deferred liability of $47.4 million equal to the present value of the deferred cash payments and a derivative liability of $27.2 million related to the additional consideration contingent upon future increases in the Federal Funds rate. Refer to Note 12, Fair Value, for further information on the valuation of the derivative liability. The deferred payments and derivative liability are presented as other liabilities within the condensed consolidated balance sheet as of June 30, 2021. Transaction costs related to the acquisition were immaterial and expensed as incurred. Acquisition of Remaining Interest in WEX Europe Services On April 13, 2021, the Company both entered into a share purchase agreement for, and consummated the acquisition of, the remaining interest in WEX Europe Services it did not own previously, which consisted of 25 percent of the issued ordinary share capital, for a purchase price of $97.0 million. As a result of the transaction, the Company now owns 100 percent of the issued ordinary share capital of WEX Europe Services, which operates part of our European Fleet business. This transaction further streamlines the European Fleet business in order to create revenue synergies and increases our ability to manage the associated cost structure. Given the Company had a controlling interest in WEX Europe Services prior to the transaction, the acquisition has been accounted for as an equity transaction. (In thousands) Purchase price $ 96,992 Reduction in: Non-controlling interest 1 (13,077) Accumulated other comprehensive income (2,284) Additional paid-in capital (81,631) 1 Reduces non-controlling interest to zero as of the acquisition date. Business Acquisitions The following acquisitions have been accounted for using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their respective fair values on the acquisition date. Acquisition-related costs on completed business combinations were $1.9 million and $2.4 million for the three and six months ended June 30, 2021, respectively, and immaterial for the same periods of 2020. benefitexpress Acquisition On June 1, 2021, WEX Inc.’s subsidiary, WEX Health, completed the acquisition of Cirrus Holdings, LLC, the indirect owner of Benefit Express Services, LLC, which is a provider of highly configurable, cloud-based benefits administration technologies and services doing business under the name benefitexpress (the “benefitexpress Acquisition”). The transaction expanded the Company’s role in the healthcare ecosystem, bringing together benefit administration, compliance services, and consumer-directed health and lifestyle spending accounts together to form a full-service benefits marketplace. Pursuant to the terms of the definitive purchase agreement, WEX Health consummated the benefitexpress Acquisition for total consideration of approximately $275 million, subject to certain working capital and other adjustments. WEX Health is owned by WEX Inc.’s subsidiary PO Holding LLC (“PO Holding”), which is majority owned by WEX Inc., with a non-controlling interest being held by SBI, which is owned by State Bankshares, Inc., the owner of Bell Bank. To facilitate the benefitexpress Acquisition, WEX Inc., PO Holding, SBI and Bell Bank entered into a subscription agreement with respect to PO Holding (the “Subscription Agreement”). Pursuant to the Subscription Agreement, on June 1 2021, WEX Inc. purchased approximately $262.5 million in value of shares in PO Holding and SBI acquired approximately $12.5 million in value of shares in PO Holding in exchange for SBI granting the Payment Reduction to WEX Inc. with respect to the asset acquisition from Bell Bank. The table below summarizes the preliminary allocation of fair value to the assets acquired and liabilities assumed on the acquisition date. These fair values may continue to be revised during the measurement period as third-party valuations on the intangible assets are finalized, further information becomes available and additional analyses are performed, and these adjustments could have a material impact on the purchase price allocation. 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 transferred, net of $15.0 million in cash and restricted cash acquired $ 259,087 Less: Accounts receivable 3,103 Customer relationships (a)(c) 86,100 Developed technologies (b)(c) 19,600 Other assets 4,387 Accrued expenses (3,498) Restricted cash payable (14,328) Other liabilities (5,177) Recorded goodwill $ 168,900 (a) Weighted average life -11.5 years. (b) Weighted average life - 5.5 years. (c) The weighted average life of the $105.7 million of amortizable intangible assets acquired in this business combination is 10.4 years Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the anticipated synergies of acquiring the businesses. The goodwill recognized as a result of the acquisition is expected to be deductible for tax purposes. Since the acquisition date through June 30, 2021, benefitexpress has contributed $2.9 million in total revenues, and the amount of income before income taxes contributed to Company operations was immaterial. No pro forma information has been included in these financial statements, as the operations of benefitexpress 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. eNett and Optal On January 24, 2020, the Company entered into a purchase agreement (the “Original Purchase Agreement”) to purchase eNett, a leading provider of B2B payment solutions to the travel industry, and Optal, a company that specializes in optimizing B2B payments transactions. The parties’ obligations to consummate the acquisition were subject to customary closing conditions, including the absence of a Material Adverse Effect (as defined in the Original Purchase Agreement between WEX, eNett and Optal, among others) . The Company subsequently concluded that the COVID-19 pandemic and conditions arising in connection with it had a Material Adverse Effect on the businesses, which was disproportionate to the effect on others in the relevant industry. Because of this Material Adverse Effect, WEX formally advised eNett and Optal on May 4, 2020 that it was not required to close the transaction pursuant to the terms of the purchase agreement. On May 11, 2020, the shareholders of eNett and Optal each initiated separate legal proceedings in the High Court of Justice of England and Wales in the United Kingdom against the Company seeking a declaration that no Material Adverse Effect had occurred and an order for specific performance of WEX's obligations under the Original Purchase Agreement. A London court held a trial of certain preliminary issues from September 21, 2020 through September 29, 2020 and handed down its judgement on October 12, 2020. The Company and the claimants each sought permission to appeal certain portions of the Court’s judgment. On December 15, 2020, the Company entered into a Deed of Settlement (the “Settlement Deed”) between the Company, eNett, Optal and the other parties thereto, providing for, among other things, (i) the dismissal with prejudice of the legal proceedings and appeals described above, (ii) the amendment of the Original Purchase Agreement (as amended by the Settlement Deed, the “Amended Purchase Agreement”) and (iii) the release of all claims capable of arising out of, or in any way connected with or relating to the COVID-19 pandemic, but excluding any of the claims arising under the Amended Purchase Agreement. The closing of the acquisition occurred concurrent with the execution of the Settlement Deed on December 15, 2020. The Amended Purchase Agreement provided for, among other things, a reduction of the aggregate purchase price for the acquisition to $577.5 million, subject to certain working capital and other adjustments as described in the Amended Purchase Agreement, which resulted in a total cash payment of $615.5 million, after a $1.9 million working capital adjustment for Optal received by the Company during the first quarter of 2021 and a $2.0 million working capital adjustment for eNett paid by the Company during the second quarter of 2021. The Company purchased these businesses to complement its existing Travel and Corporate Solutions segment and expand its international footprint, creating synergies from the increased scale of our operations. The Company determined that the aggregate purchase price represents consideration paid for the businesses acquired and for the settlement of the legal proceedings described above. The preliminary fair value of the businesses acquired was estimated to be $415.0 million using a discounted cash flow analysis and guideline transaction method. Since the Company was not able to reliably estimate the fair value of the legal settlement, the residual value of $162.5 million has been allocated to the settlement of the legal proceedings, which was included in legal settlement expense during the fourth quarter of 2020. The table below summarizes the allocated fair values of the assets acquired and liabilities assumed on the acquisition date. These fair values may continue to be revised during the measurement period as third-party valuations on the intangible assets are finalized, further information becomes available and additional analyses are performed, and these adjustments could have a material impact on the purchase price allocation. The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired, based on the fair value at the date of acquisition: (In thousands) As Reported Measurement Period Adjustments As Reported Cash consideration transferred, net of $232,155 in cash and restricted cash acquired $ 383,204 $ 119 $ 383,323 Less: legal settlement (162,500) — (162,500) Total consideration, net $ 220,704 $ 119 $ 220,823 Less: Accounts receivable 14,449 — 14,449 Property and equipment 876 — 876 Customer relationships (a)(c) 79,923 (32,323) 47,600 Developed technologies (b)(c) 63,125 (56,825) 6,300 License agreements 4,208 (4,208) — Deferred income tax asset 9,424 — 9,424 Other assets 16,605 — 16,605 Accounts payable (16,244) — (16,244) Accrued expenses (21,898) — (21,898) Restricted cash payable (186,956) — (186,956) Deferred income tax liability (20,152) 12,951 (7,201) Other liabilities (14,540) 3,552 (10,988) Recorded goodwill $ 291,884 $ 76,972 $ 368,856 (a) Weighted average life - 7.3 years. (b) Weighted average life - 0.5 years. (c) The weighted average life of the $53.9 million of amortizable intangible assets acquired in this business combination is 6.5 years. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the anticipated synergies of acquiring the businesses. The majority of the goodwill recognized as a result of the acquisition is not expected to be deductible for tax purposes. The pro forma information below gives effect to the eNett and Optal acquisitions as if they had been completed on January 1, 2019. These pro forma results have been calculated after applying the Company’s accounting policies, adjustments to reflect amortization associated with intangibles acquired and related income tax results. The pro forma financial information is presented 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, 2019. The following represents unaudited pro forma operational results: (In thousands, except per share data) Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Total revenues $ 351,359 $ 803,780 Net income attributable to shareholders $ 63,979 $ 52,285 Net income attributable to shareholders per share: Basic $ 1.47 $ 1.20 Diluted $ 1.46 $ 1.19 |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | 5. Accounts Receivable Accounts receivable consists of amounts billed to and due from customers across a wide range of industries and other third parties. The Company often extends short-term credit to cardholders and pays the merchant for the purchase price, less the fees it retains and records as revenue. The Company subsequently collects the total purchase price from the cardholder. In general, the Company’s trade receivables provide for payment terms of 30 days or less. Receivables not paid in full by payment due dates as stated within the terms of the agreement are generally considered past due and subject to late fees and interest based upon the outstanding receivables balance. The Company discontinues late fee and interest income accruals on outstanding receivables once customers are 90 and 120 days past the invoice due date, respectively. Payments received subsequent to discontinuing late fee and interest income accruals are first applied to outstanding late fees and interest, and the Company resumes accruing interest and late fee income as earned on future receivables balances. Receivables are generally written off when they are 180 days past invoice origination date or upon declaration of bankruptcy of the customer, subject to local regulatory restrictions. The Company extends revolving credit to certain small fleets. These accounts are also subject to late fees and balances that are not paid in full are subject to interest charges based on the revolving balance. The Company had approximately $78.9 million and $60.2 million in receivables with revolving credit balances as of June 30, 2021 and December 31, 2020, respectively. The allowance for accounts receivable consists primarily of reserves for credit losses, reflecting management’s current estimate of uncollectible balances on its accounts receivable. Accounts receivable are evaluated for impairment on a pooling basis based on similar risk characteristics including industry of the borrower, historical or expected credit loss patterns, risk ratings or classification, and geographic location. The following tables present changes in the accounts receivable allowances by portfolio segment: Three Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 46,181 $ 8,650 $ 312 $ 55,143 Provision for credit losses 1 11,764 1,117 81 12,962 Charges to other accounts 2 3,848 — — 3,848 Charge-offs (13,593) (2,328) (10) (15,931) Recoveries of amounts previously charged-off 1,365 7 153 1,525 Currency translation 151 73 — 224 Balance, end of period $ 49,716 $ 7,519 $ 536 $ 57,771 Three Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 53,177 $ 16,601 $ 5,648 $ 75,426 Provision for credit losses 1,3 18,285 2,241 55 20,581 Charges to other accounts 2 5,210 — — 5,210 Charge-offs (32,742) (2,706) (5,318) (40,766) Recoveries of amounts previously charged-off 3,078 1 17 3,096 Currency translation 101 5 190 296 Balance, end of period $ 47,109 $ 16,142 $ 592 $ 63,843 Six Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 49,267 $ 9,610 $ 270 $ 59,147 Provision for credit losses 1 16,128 1,752 141 18,021 Charges to other accounts 2 8,221 — — 8,221 Charge-offs (26,367) (3,860) (28) (30,255) Recoveries of amounts previously charged-off 2,881 13 153 3,047 Currency translation (414) 4 — (410) Balance, end of period $ 49,716 $ 7,519 $ 536 $ 57,771 Six Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 50,010 $ 5,765 $ 8,076 63,851 Provision for credit losses 1,3 38,892 15,505 171 54,568 Charges to other accounts 2 10,730 — — 10,730 Charge-offs (57,377) (5,065) (5,318) (67,760) Recoveries of amounts previously charged-off 4,888 28 17 4,933 Currency translation (34) (91) (2,354) (2,479) Balance, end of period $ 47,109 $ 16,142 $ 592 $ 63,843 1 The provision is comprised of estimated credit losses based on the Company’s loss-rate experience and adjustments required for forecasted credit loss information. The provision for credit losses reported within this table also includes the provision for fraud losses. 2 The Company earns revenue by assessing monthly finance fees on accounts with overdue balances. These fees are recognized as revenue at the time 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 relationship goodwill. Charges to other accounts represents the offset against the late fee revenue recognized when the Company establishes a reserve for such waived amounts. 3 The provision for the three and six months ended June 30, 2020 reflects an increase in expected credit losses as a result of COVID-19. 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 and individually evaluated for impairment. No one customer receivable balance represented 10 percent or more of the outstanding receivables balance at June 30, 2021 or December 31, 2020. The following table presents the outstanding balance of trade accounts receivable that are less than 30 and 60 days past due, in each case, as a percentage of total trade accounts receivable: Delinquency Status June 30, 2021 December 31, 2020 29 days or less past due 99 % 97 % 59 days or less past due 99 % 98 % |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 6. Earnings per Share Basic earnings per share is computed by dividing net (loss) 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 numerator is increased for tax effected interest expense associated with our Convertible Notes and the denominator is increased for the assumed issuance of common shares issuable on convertible securities under the if-converted method unless the effect is antidilutive. Additionally, diluted earnings per share includes the assumed exercise of dilutive options and the assumed issuance of unvested restricted stock units 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 antidilutive. 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 (loss) income attributable to shareholders and reconciles basic and diluted shares outstanding used in the earnings per share computations: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2021 2020 2021 2020 Net (loss) income attributable to shareholders $ (33,856) $ 72,658 $ (36,421) $ 56,402 Weighted average common shares outstanding – Basic 44,788 43,574 44,566 43,495 Dilutive impact of share-based compensation awards 1 — 205 — 401 Weighted average common shares outstanding – Diluted 44,788 43,779 44,566 43,896 1 For the three and six months ended June 30, 2021, 0.9 million and 1.0 million, respectively, of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share under the treasury stock method, as the effect of including these awards would be anti-dilutive. For the three and six months ended June 30, 2020, 0.6 million and 0.2 million, respectively, of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share under the treasury stock method, as the effect of including these awards would be anti-dilutive. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 7. 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. Interest rate swap contracts As of December 31, 2020, the Company had six interest rate swap contracts in effect with a collective notional amount at inception of $1.4 billion, with maturity dates ranging from December 31, 2021 to December 30, 2023. During the three months ended June 30, 2021, the Company entered into five additional interest rate swap contracts with a collective notional amount of $0.9 billion, with maturity dates ranging from May 31, 2024 to May 29, 2026. As of June 30, 2021, outstanding interest rate swap contracts are intended to economically hedge the LIBOR component of future interest payments associated with outstanding borrowings under the Company’s Amended and Restated Credit Agreement. The following table presents relevant information for the Company’s outstanding interest rate swap contracts as of June 30, 2021. Tranche A Tranche B Tranche C Tranche D Tranche E Tranche F Notional amount at inception (in thousands) 150,000 100,000 200,000 300,000 200,000 485,000 Maturity date 3/13/2023 3/12/2023 3/12/2023 12/30/2022 12/30/2023 12/31/2021 Fixed interest rate 2 1.954% 1.956% 2.413% 2.204% 1.862% 0.743% Tranche G 1 Tranche H 1 Tranche I 1 Tranche J 1 Tranche K 1 Notional amount at inception (in thousands) 150,000 150,000 300,000 150,000 150,000 Maturity date 5/29/2026 5/29/2026 5/30/2025 5/31/2024 5/31/2024 Fixed interest rate 2 0.909% 0.910% 0.678% 0.440% 0.435% 1 New interest rate swap contracts effective May 28, 2021. 2 Fixed interest rate is payable by WEX. Counterparties pay floating rate equal to the one-month USD LIBOR. The following table presents information on the location and amounts of gains and losses from derivatives: (In thousands) Three Months Ended June 30, Six Months Ended June 30, Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in the Statement of Operations 2021 2020 2021 2020 Interest rate swap contracts – unrealized portion Net unrealized gain (loss) on financial instruments $ 5,962 $ (4,053) $ 13,481 $ (36,496) Interest rate swap contracts – realized portion Financing interest expense $ (6,081) $ (4,106) $ (11,538) $ (4,898) Derivative instruments and their related gains and losses are reported within cash flows from operating activities within the condensed consolidated statements of cash flows. See Note 12, Fair Value, for more information regarding the valuation of the Company’s derivatives. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2021 | |
Banking and Thrift, Interest [Abstract] | |
Deposits | 8. 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 18, 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”) and (ii) contractual arrangements with brokerage firms for both certificate of deposit and brokered money market deposit products. Customer deposits are generally non-interest bearing, certificates of deposit are issued at fixed rates and brokered money market deposits are issued at both fixed and variable interest rates based on LIBOR or the Federal Funds rate. The following table presents the composition of deposits, which are classified as short-term or long-term based on their contractual maturities: (In thousands) June 30, 2021 December 31, 2020 Interest-bearing brokered money market deposits 1 $ 443,974 $ 439,894 Customer deposits 131,311 116,694 Certificates of deposit with maturities within 1 year 1,2,3 533,937 354,807 Short-term deposits 1,109,222 911,395 Certificates of deposit with maturities greater than 1 year and less than 5 years 1,2,3 401,440 148,591 Total deposits $ 1,510,662 $ 1,059,986 Weighted average cost of funds on certificates of deposit outstanding 0.64 % 1.81 % Weighted average cost of interest-bearing brokered money market deposits 0.23 % 0.27 % 1 As of June 30, 2021 and December 31, 2020 , all certificates of deposit and brokered money market deposits we re in denominations of $250 thousand or less, corresponding to FDIC deposit insurance limits. 2 Original maturities range from 9 months to 5 years, with coupon interest rates ranging from 0.12 percent to 3.52 percent as of June 30, 2021. At December 31, 2020, original maturities ranged from 1 year to 5 years with coupon interest rates ranging from 1.35 percent to 3.52 percent. 3 Certificates of deposit include certain brokered money market deposits, which have a fixed maturity and interest rate. In accordance with regulatory requirements, WEX Bank normally maintains reserves against a portion of its outstanding customer deposits by keeping balances with the Federal Reserve Bank, however, due to temporarily relaxed Federal Reserve requirements enacted in response to the COVID-19 pandemic, there was no required reserve at June 30, 2021 and December 31, 2020. ICS Purchases |
Financing and Other Debt
Financing and Other Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing and Other Debt | 9. Financing and Other Debt The following table summarizes the Company’s total outstanding debt by type as of June 30, 2021 and December 31, 2020. (In thousands) June 30, 2021 December 31, 2020 Borrowings on Revolving Credit Facility $ 265,000 $ — Term loans: Tranche A Term Loans 966,202 873,777 Tranche B Term Loans 1,438,395 1,442,368 Total term loans 2,404,597 2,316,145 Notes outstanding — 400,000 Convertible Notes 310,000 310,000 Securitized debt 93,044 85,945 Borrowed federal funds — 20,000 Total gross debt 1 $ 3,072,641 $ 3,132,090 1 See Note 12, Fair Value, for more information regarding the fair value of the Company’s debt. The following table summarizes the Company’s total outstanding debt by balance sheet classification: (In thousands) June 30, 2021 December 31, 2020 Current portion of gross debt $ 156,385 $ 170,556 Less: Unamortized debt issuance costs/debt discount (9,915) (17,826) Short-term debt, net $ 146,470 $ 152,730 Long-term portion of gross debt $ 2,916,256 $ 2,961,534 Less: Unamortized debt issuance costs/debt discount (48,986) (87,421) Long-term debt, net $ 2,867,270 $ 2,874,113 Supplemental information: Letters of credit 1 $ 51,700 $ 51,628 Remaining borrowing capacity on Revolving Credit Facility 2 $ 613,300 $ 818,372 1 Collateral for lease agreements, virtual card and fuel payment processing activity at the Company’s foreign subsidiaries. 2 Contingent on maintaining compliance with the financial covenants as defined in the Company’s Amended and Restated Credit Agreement. Amended and Restated Credit Agreement On April 1, 2021, the Company amended and restated the 2016 Credit Agreement (the “Amended and Restated Credit Agreement”). As part of the Amended and Restated Credit Agreement, the lenders agreed to (i) increase commitments under the Company’s secured revolving credit facility from $870.0 million to $930.0 million (the “Revolving Credit Facility”), (ii) provide additional senior secured tranche A term loans (the “Tranche A Term Loans”) resulting in an aggregate outstanding principal amount of the Tranche A Term Loans equal to $978.4 million, (iii) re-establish the senior secured tranche B term loans’ aggregate principal amount at $1,442.0 million (the “Tranche B Term Loans”), (iv) eliminate the 0.75 percent eurocurrency rate floor with respect to the Revolving Credit Facility, and (v) make certain other changes to the previously existing 2016 Credit Agreement, including without limitation, (a) extending the maturity dates for the Tranche A Term Loans and Revolving Credit Facility to April 1, 2026 and the maturity date for the Tranche B Term Loans to April 1, 2028, (b) providing additional flexibility with respect to certain negative covenants, prepayments and other provisions of the Company’s previously existing 2016 Credit Agreement, and (c) revising the Company’s maximum consolidated leverage ratio for all future quarters, including a reduction from 7.50 to 1:00 to 6.25 to 1:00 for quarters ending through September 30, 2021, with step-downs in periods thereafter. The Revolving Credit Facility and the Tranche A Term Loans bear interest at variable rates, at the Company’s option, plus an applicable margin determined based on the Company’s consolidated leverage ratio. The Tranche B Term Loans bear interest at variable rates, at the Company’s option, plus an applicable margin, which is fixed at 1.25 percent for base rate borrowings and 2.25 percent with respect to eurocurrency rate borrowings. Prior to maturity, the Tranche A Term Loans and Tranche B Term Loans require scheduled quarterly payments of $12.2 million and $3.6 million, respectively, due on the last day of each March, June, September and December. As of June 30, 2021, the Company had an outstanding principal amount of $966.2 million on the Tranche A Term Loans, an outstanding principal amount of $1,438.4 million on the Tranche B Term Loans, borrowings on the Revolving Credit Facility of $265.0 million and letters of credit of $51.7 million drawn against the Revolving Credit Facility. As of June 30, 2021, amounts outstanding under the Amended and Restated Credit Agreement bore a weighted average effective interest rate of 2.2 percent. As of December 31, 2020, amounts outstanding under the 2016 Credit Agreement bore a weighted average effective interest rate of 2.3 percent. The Company maintains interest rate swap contracts to manage the interest rate risk associated with its outstanding variable-interest rate borrowings. See Note 7, Derivative Instruments, for further discussion. In addition, the Company agreed to pay a quarterly commitment fee at a rate per annum ranging, as of June 30, 2021, from 0.25 percent to 0.50 percent of the daily unused portion of the Revolving Credit Facility (which was 0.40 percent at both June 30, 2021 and December 31, 2020) determined based on the Company’s consolidated leverage ratio. The Company accounted for the amendment and restatement of the 2016 Credit Agreement as both a debt modification and extinguishment, and consequently recorded a loss on extinguishment of debt of $3.4 million related to the write-off of unamortized debt issuance costs during the three and six-months ended June 30, 2021. During the three and six months ended June 30, 2021, the Company incurred $5.5 million of third-party debt restructuring costs associated with the amendment and restatement, which have been classified within general and administrative expenses in our condensed consolidated statements of operations. Debt discounts and financing fees totaling $16.1 million, incurred in conjunction with the amendment and restatement, were capitalized during the three and six months ended June 30, 2021, and are being amortized into interest expense over the term of the respective debt facilities using the effective interest method. Debt Covenants The Amended and Restated Credit Agreement contains various affirmative, negative and financial maintenance covenants affecting the Company and its subsidiaries including, in certain limited circumstances, WEX Bank and the Company’s other regulated subsidiaries. As of June 30, 2021, the Company was in compliance with all material covenants of its Amended and Restated Credit Agreement. Notes Outstanding On March 15, 2021, the Company redeemed $400.0 million of Notes outstanding, which were otherwise scheduled to mature on February 1, 2023. The redemption price of the Notes was $400.0 million plus accrued and unpaid interest through the redemption date. Prior to redemption, interest was payable semiannually in arrears on February 1 and August 1 of each year. Unamortized debt issuance costs previously incurred and capitalized in conjunction with the Notes were accelerated as of the redemption date and amortized in full to interest expense of $1.4 million during the six months ended June 30, 2021. Convertible Notes Pursuant to a purchase agreement dated June 29, 2020, on July 1, 2020, the Company closed on a private placement with an affiliate of Warburg Pincus LLC (together with its affiliate, "Warburg Pincus"), pursuant to which the Company issued the Convertible Notes due on July 15, 2027 in an aggregate principal amount of $310.0 million and 577,254 shares of the Company's common stock for an aggregate purchase price of $389.2 million, of which $90.0 million constituted the purchase price for the shares, reflecting a purchase price of $155.91 per share. The issuance of the Convertible Notes provided the Company with net proceeds of approximately $299.2 million after original issue discount. The Convertible Notes have a seven-year term maturing July 15, 2027, unless earlier converted, repurchased or redeemed. Interest is calculated at a fixed rate of 6.5 percent per annum, payable semi-annually in arrears on January 15 and July 15 of each year. At the Company's option, interest is either payable in cash, through accretion to the principal amount of the Convertible Notes, or a combination of cash and accretion. The Convertible Notes may be converted at the option of the holders at any time prior to maturity, or earlier redemption or repurchase of the Convertible Notes, based upon an initial conversion price of $200 per share of common stock. The Company may settle conversions of Convertible Notes, at its election, in cash, shares of the Company’s common stock, or a combination thereof. The initial conversion price is subject to adjustments customary for convertible debt securities and a weighted average adjustment in the event of issuances of equity and equity linked securities by the Company at prices below the then applicable conversion price for the Convertible Notes or the then market price of the Company’s common stock, subject to certain exceptions, including exceptions with respect to underwritten offerings, Rule 144A offerings, private placements at discounts not exceeding a specified amount, issuances as acquisition consideration and equity compensation related issuances. The Company will have the right, at any time after July 1, 2023, to redeem the Convertible Notes in whole or in part if the closing price of WEX's common stock is at least 200 percent of the conversion price of the Convertible Notes for 20 trading days (whether or not consecutive) out of any 30 consecutive trading day period prior to the time the Company delivers a redemption notice, (including at least one of the five trading days immediately preceding the last day of such 30 trading day period), subject to the right of holders of the Convertible Notes to convert its Convertible Notes prior to the redemption date. In the event of certain fundamental change transactions, including certain change of control transactions and delisting events involving the Company, holders of the Convertible Notes will have the right to require the Company to repurchase its Convertible Notes at 105 percent of the outstanding principal amount of the Convertible Notes, plus the present value of future interest payments through the date of maturity. There were no shares issued upon conversion, exercise or satisfaction of required conditions under these Convertible Notes during the three months ended June 30, 2021. Until January 1, 2021, the Convertible Notes were separated into liability and equity components. Effective January 1, 2021, the Company adopted ASU 2020-06 using the modified-retrospective approach under which separation of the conversion feature into an equity component is no longer required, and the Company now accounts for the Convertible Notes and its conversion feature as a single unit of account. The remaining debt discount and debt issuance costs associated with the Convertible Notes will be amortized to interest expense using the effective interest rate method over the seven-year contractual life of the Convertible Notes. As of June 30, 2021, the Convertible Notes have an effective interest rate of 7.5 percent. Based on the closing price of the Company's common stock as of June 30, 2021, the “if-converted” value of the Convertible Notes was less than the respective principal amount. The Convertible Notes consist of the following: (In thousands) June 30, 2021 December 31, 2020 Principal $ 310,000 $ 310,000 Less: Unamortized discounts (13,733) (66,755) Less: Unamortized issuance cost (2,211) (2,358) Net carrying amount of Convertible Notes 1 $ 294,056 $ 240,887 Equity component 2 $ — $ 54,689 1 Recorded within long-term debt, net on our condensed consolidated balance sheet. 2 Represents the proceeds allocated to the conversion option, or debt discount, recorded within additional paid-in capital on the condensed consolidated balance sheet through December 31, 2020. Additional paid-in capital on the condensed consolidated balance sheet through December 31, 2020 was further reduced by $0.6 million of issuance costs and $13.6 million in taxes associated with the equity component. Effective January 1, 2021, the Convertible Notes and its conversion feature were accounted for as a single unit of account. The following table sets forth total interest expense recognized for the Convertible Notes: (In thousands) Three Months Ended Six Months Ended Interest on 6.5 percent coupon $ 5,038 $ 10,075 Amortization of debt discount and debt issuance costs 501 1,054 $ 5,539 $ 11,129 Australian Securitization Facility The Company has a securitized debt agreement with MUFG Bank, Ltd. through April 2022. 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, which in turn uses the receivables as collateral to issue asset-backed commercial paper (“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 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 0.91 percent and 0.97 percent as of June 30, 2021 and December 31, 2020, respectively. The Company had $65.9 million and $62.6 million of securitized debt under this facility as of June 30, 2021 and December 31, 2020, respectively, recorded in short-term debt, net. European Securitization Facility Under the terms of the Company’s securitized debt agreement with MUFG Bank, Ltd., each month on a revolving basis, the Company sells certain of its receivables from selected European countries to its European Securitization Subsidiary, which 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. During April 2021, the securitized debt agreement was amended to extend the maturity date through April 2022. The Company pays a variable interest rate on the outstanding balance of the securitized debt, based on the Sterling Overnight Index Average, plus an applicable margin. The interest rate was 1.01 percent and 0.98 percent as of June 30, 2021 and December 31, 2020, respectively. The Company had $27.2 million and $23.4 million of securitized debt under this facility as of June 30, 2021 and December 31, 2020, respectively, recorded in short-term debt, net. 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 generally carry a variable interest rate of 1 month to 3 month LIBOR plus a margin of 225 basis points. As of June 30, 2021 and December 31, 2020, the Company had an outstanding participation agreement for the borrowing of up to $60.0 million through December 31, 2021. There were no amounts borrowed against this participation agreement as of June 30, 2021 or December 31, 2020. Borrowed Federal Funds WEX Bank borrows from uncommitted federal funds lines to supplement the financing of the Company’s accounts receivable. Our federal funds lines of credit were $568.0 million and $376.0 million as of June 30, 2021 and December 31, 2020, respectively. There were no outstanding borrowings as of June 30, 2021 and $20.0 million of outstanding borrowings as of December 31, 2020. Other |
Off-Balance Sheet Arrangements
Off-Balance Sheet Arrangements | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Off-Balance Sheet Arrangements | 10. Off–Balance Sheet Arrangements WEX Europe Services Accounts Receivable Factoring Under a factoring arrangement between WEX Europe Services and an unrelated third-party financial institution, 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. The agreement remains in effect through December 31, 2021, after which the agreement automatically renews annually unless either party gives not less than 90 days written notice of their intention to withdraw. 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 sol d $144.7 million and $263.7 million of accounts receivable under this arrangement during the three and six months ended June 30, 2021, respectively. For the three and six months ended June 30, 2020, the Company sold $75.9 million and $204.7 million of accounts receivable under this arrangement, respectively. Proceeds received, which are recorded net of applicable costs, including interest and commissions, are recorded in operating activities in the condensed consolidated statements of cash flows. The loss on factoring, recorded within cost of services in the condensed consolidated statements of operations, was $0.7 million and $1.3 million for the three and six months ended June 30, 2021, respectively. For the three and six months ended June 30, 2020, the loss on factoring was $0.4 million and $1.1 million, respectively. As of each of June 30, 2021 and December 31, 2020, 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 each of the six months ended June 30, 2021 and June 30, 2020 were immaterial. WEX Bank Accounts Receivable Factoring Under a factoring agreement with an unrelated third-party financial institution, WEX Bank sells certain of its trade accounts receivable under non-recourse transactions. Subsequent to June 30, 2021, the agreement was extended through August 2022, after which the agreement can be renewed for successive one-year periods assuming WEX provides advance written notice that is accepted by the purchaser. 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 $0.4 billion and $0.6 billion of trade accounts receivable under this arrangement during the three and six months ended June 30, 2021, respectively. During the three and six months ended June 30, 2020, the Company sold $0.2 billion and $2.9 billion of accounts receivable under this arrangement, respectively. Proceeds received, which are reported net of a negotiated discount rate, are recorded in operating activities in the statements of cash flows. The loss on factoring, which is recorded within cost of services in the condensed consolidated statements of operations, was immaterial for the three and six months ended June 30, 2021 and 2020, respectively. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 11. Investment Securities The Company’s investment securities were purchased and are held by WEX Bank primarily to meet the requirements of the Community Reinvestment Act. Changes in the fair value of the Company’s equity securities are recognized within net unrealized gain (loss) on financial instruments on the condensed consolidated statements of operations for the three and six months ended June 30, 2021 and 2020. The Company’s debt securities, and any changes in their fair values, are not material individually or in the aggregate as of June 30, 2021 and December 31, 2020. Purchases, sales and maturities associated with investment securities are treated as investing activities within the condensed consolidated statements of cash flows. Refer to Note 12, Fair Value, for further information. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 12. Fair Value Certain of the Company’s financial assets and liabilities are recorded 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. 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. 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: (In thousands) Fair Value Hierarchy June 30, 2021 December 31, 2020 Financial Assets: Money market mutual funds 1 1 $ 155 $ 335,449 Investment securities Municipal bonds 2 $ 145 $ 197 Asset-backed securities 2 186 210 Mortgage-backed securities 2 131 138 Pooled investment fund measured at NAV 2 9,000 9,000 Fixed-income mutual fund 1 27,469 27,728 Total investment securities $ 36,931 $ 37,273 Executive deferred compensation plan trust 3 1 $ 10,877 $ 9,586 Interest rate swaps 4 2 $ 5,858 $ — Liabilities Interest rate swaps 4 2 $ 37,315 $ 44,938 Contingent consideration 5 3 $ 74,900 $ — 1 The fair value is recorded in cash and cash equivalents. 2 The fair value of this security is measured at NAV as a practical expedient and has not been classified within the fair value hierarchy. The amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated balance sheets. 3 The fair value is recorded as current or long-term based on the timing of the Company’s executive deferred compensation plan payment obligations. At June 30, 2021, $1.5 million and $9.4 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. At December 31, 2020, $0.9 million an d $8.7 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. 4 The fair value is recorded as current or long-term depending on the timing of expected discounted cash flows. At June 30, 2021, $5.9 million of fair value was recorded in other assets. At June 30, 2021 , $25.1 million and $12.3 million in fair value is recorded within other current liabilities and other liabilities, respectively. At December 31, 2020, $22.0 million an d $22.9 million in fair value is recorded within other current liabilities and other liabilities, respectively. 5 The fair value is recorded in other liabilities. Money Market Mutual Funds A portion of the Company’s cash and cash equivalents are invested in money market mutual 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 June 30, 2021 $ 9,000 — Monthly 30 days The pooled investment fund is a Community Reinvestment Act-eligible investment fund, which seeks to provide bank investors with 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. Contingent Consideration As part of the asset acquisition from Bell Bank discussed in Note 4, Acquisitions, the Company is obligated to pay additional consideration contingent upon increases in the Federal Fund rate. The Company determined the fair value of this contingent consideration derivative liability based on discounted cash flows using the difference between the baseline Federal Funds rate in the purchase agreement with Bell Bank and future forecasted Federal Funds rates over the agreement term. The forecasted Federal Funds rates represent a Level 3 input within the fair value hierarchy. The resulting probability-weighted contingent consideration amounts were discounted using a weighted average discount rate of 1.41 percent. Significant increases or decreases in the Federal Fund rates could result in material increases or decreases, respectively, to the fair value of the Company’s contingent consideration derivative liability. The Company records changes in the estimated fair value of the contingent consideration in the condensed consolidated statements of operations. Changes in the contingent consideration liability are measured at fair value on a recurring basis using unobservable inputs (Level 3) and during the six months ended June 30, 2021 are as follows: (In thousands) Fair Value Contingent consideration – December 31, 2020 $ — Contingent consideration recorded as a result of the acquisition (Note 4) $ 27,200 Change in estimated fair value $ 47,700 Contingent consideration – June 30, 2021 $ 74,900 Assets and Liabilities Measured at Carrying Value, for which Fair Value is Disclosed Term Loans and borrowings on Revolving Credit Facility The Company determines the fair value of the Tranche A and Tranche B Term Loans outstanding 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 June 30, 2021 and December 31, 2020, the carrying value of both the Tranche A Term Loans and Tranche B Term Loans, approximated fair value. The principal amount of the outstanding borrowings on the Revolving Credit Facility under the Amended and Restated Credit Agreement approximate fair value, as the interest rate on this facility is a variable market-based rate. Convertible Notes The Company determines the fair value of the Convertible Notes outstanding using our stock price and volatility, the conversion premium on the Convertible Notes and effective interest rates for similarly-rated credit issuances, all of which are Level 2 inputs in the fair value hierarchy. As of June 30, 2021 and December 31, 2020, the fair value of our Convertible Notes approximated $392.2 million and $405.6 million, respectively. Other Assets and Liabilities |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | 13. Redeemable Non-Controlling Interest On March 5, 2019, the Company acquired Discovery Benefits, an employee benefits administrator. The seller of Discovery Benefits, SBI, obtained a 4.9 percent equity interest in PO Holding, the newly formed parent company of WEX Health and Discovery Benefits. SBI’s 4.9 percent non-controlling interest in PO Holding was initially established at both carrying value and fair value. The agreement provides SBI 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. 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 PO Holding) 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 Company calculates the redemption value of the non-controlling interest on a quarterly basis using revenue multiples as determined in accordance with the operating agreement for PO Holding and as described above. 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. Any resulting change in the value of the redeemable non-controlling interest is offset against retained earnings and impacts earnings per share. As part of WEX Inc.’s purchase of the HSA contractual rights from Bell Bank, as further described in Note 4, Acquisitions, on April 1, 2021, WEX Inc. and SBI entered into that certain Second Amended and Restated Limited Liability Company Operating Agreement of PO Holding LLC (“PO Holding Operating Agreement”), which reflected the Company’s purchase of $11.2 million of SBI’s non-controlling interest in PO Holding, which reduced SBI’s ownership percentage to 4.53 percent and amended the calculation of the price payable by WEX Inc. upon its exercise of its call right or upon SBI’s exercise of its put right to account for revenue generated by the assets acquired from Bell Bank. Pursuant to the PO Holding Operating Agreement, SBI subsequently elected to participate in the equity financing of the benefitexpress Acquisition. As part of the Subscription Agreement more fully described in Note 4, Acquisitions, SBI agreed to pay the Company $12.5 million, which was equal to 4.53 percent of the purchase price. This receivable was ultimately settled through the Payment Reduction described in Note 4, Acquisitions. The following table presents the changes in the Company’s redeemable non-controlling interest: (In thousands) 2021 2020 Balance at December 31 117,219 156,879 Net income attributable to redeemable non-controlling interest 353 142 Change in value of redeemable non-controlling interest 25,044 2,624 Balance at March 31 $ 142,616 $ 159,645 Net income attributable to redeemable non-controlling interest 232 99 Repurchase of non-controlling interest (11,191) — Contribution from non-controlling interest 12,457 — Change in value of redeemable non-controlling interest 43,823 (59,940) Balance at June 30 $ 187,937 $ 99,804 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The Company’s effective tax rate was (7.9) percent and (7.8) percent for the three and six months ended June 30, 2021, respectively, as compared to 310.8 percent and 104.6 percent for the three and six months ended June 30, 2020, respectively. Income tax expense is based on an estimated annual effective rate, which requires the Company to make its best estimate of annual pretax income or loss. The significant decrease in the Company’s current year tax rate was primarily due to excess tax benefits arising from stock-based compensation. Effective tax rates were higher in the prior year primarily due to the jurisdictional earnings mix and decrease in estimated income before income taxes with relatively significant non-deductible expenses. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Restructuring Activities In connection with the acquisition of eNett and Optal, during the first quarter of 2021, the Company initiated a restructuring program within the Travel and Corporate Solutions segment. The restructuring initiative consisted of employee separation costs, which the Company determined are probable and reasonably estimable. As such, the Company recorded charges incurred under this initiative of $5.4 million for the six months ended June 30, 2021, within general and administrative expenses on the condensed consolidated statements of operations. Charges incurred under this initiative were immaterial during the three months ended June 30, 2021. 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. Commitments Minimum Volume Commitments Certain of the Company’s subsidiaries are required to purchase a minimum amount of fuel from suppliers on an annual basis. If the minimum requirement is not fulfilled, they are subject to penalties based on the amount of spend below the minimum annual volume commitment. The Company incurred penalties of $1.5 million and $3.0 million during the three and six months ended June 30, 2021, respectively, as a result of lower volumes resulting from COVID-19, which are offset against revenues on the condensed consolidated statements of operations. Other Commitments Other significant commitments and contingencies as of June 30, 2021 are consistent with those discussed in Note 21, Commitments and Contingencies, to the consolidated financial statements in the Annual Report on Form 10–K for the year ended December 31, 2020. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 16. Stock–Based Compensation On June 4, 2021, our stockholders approved the Amended and Restated 2019 Equity and Incentive Plan (the “Amended 2019 Plan”), which had previously been adopted by the Company’s Board of Directors subject to stockholder approval. The Amended 2019 Plan amends and restates the Company’s 2019 Equity and Incentive Plan (the "Original 2019 Plan") to provide that (i) 4,500,000 shares of the Company’s common stock, reduced by the number of shares of the Company’s common stock subject to awards granted under the Original 2019 Plan between March 21, 2021 and June 4, 2021, will be available for the issuance of new awards under the Amended 2019 Plan after the date of the annual meeting of stockholders which occurred on June 4, 2021, (ii) 1,235,669 shares of the Company’s common stock will be reserved for issuance in respect of awards granted under the Original 2019 Plan between May 9, 2019 and March 21, 2021, and (iii) the number of shares of the Company’s common stock as is equal to the number of shares of the Company’s common stock subject to awards granted under the Company’s 2010 Equity and Incentive Plan, which awards expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by the Company pursuant to a contractual repurchase right will be made available for the issuance of awards under the Amended 2019 Plan. Under the Amended 2019 Plan, the Company regularly grants equity awards in the form of stock options, restricted stock, restricted stock units and other stock-based awards to certain employees and directors. The fair value of restricted stock units, DSUs and performance-based restricted stock units, excluding awards that include a TSR provision, is based on the closing market price of the Company’s stock on the grant date as reported by the NYSE. The fair value of each service-based stock option award is estimated on the grant date using a Black-Scholes-Merton option-pricing model. The fair value of awards with market-based performance conditions, including those with TSR provisions, is estimated on the grant date using a Monte-Carlo simulation pricing model. Stock-based compensation expense was $20.6 million and $38.5 million for the three and six months ended June 30, 2021, respectively, as compared to $14.2 million and $26.8 million for the three and six months ended June 30, 2020, respectively. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 17. Segment Information The Company determines its operating segments and reports segment information in accordance with how the Company’s 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 B2B 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. Prior to the sale of WEX Latin America in September 2020, this operating segment additionally provided payroll related benefits to customers. The following tables present the Company’s reportable segment revenues: Three Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Total Payment processing revenue $ 126,450 $ 68,282 $ 18,694 $ 213,426 Account servicing revenue 42,293 11,222 79,482 132,997 Finance fee revenue 59,258 199 42 59,499 Other revenue 46,387 2,059 5,115 53,561 Total revenues $ 274,388 $ 81,762 $ 103,333 $ 459,483 Interest income $ 705 $ 2 $ 6 $ 713 Three Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 90,147 $ 43,261 $ 14,053 $ 147,461 Account servicing revenue 36,694 10,183 62,602 109,479 Finance fee revenue 42,463 220 28 42,711 Other revenue 35,076 831 11,526 47,433 Total revenues $ 204,380 $ 54,495 $ 88,209 $ 347,084 Interest income $ 635 $ 28 $ 275 $ 938 Six Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Total Payment processing revenue $ 237,026 $ 125,530 $ 39,259 $ 401,815 Account servicing revenue 82,284 21,909 147,427 251,620 Finance fee revenue 111,098 493 61 111,652 Other revenue 87,817 4,472 12,864 105,153 Total revenues $ 518,225 $ 152,404 $ 199,611 $ 870,240 Interest income $ 1,016 $ 10 $ 10 $ 1,036 Six Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 203,470 $ 113,529 $ 34,499 $ 351,498 Account servicing revenue 75,902 21,246 126,171 223,319 Finance fee revenue 97,805 755 78 98,638 Other revenue 77,050 3,324 24,934 105,308 Total revenues $ 454,227 $ 138,854 $ 185,682 $ 778,763 Interest income $ 1,901 $ 253 $ 694 $ 2,848 The CODM evaluates the financial performance of each segment using segment adjusted operating income, which excludes: (i) acquisition and divestiture related expenses (including acquisition-related intangible amortization); (ii) stock-based compensation; (iii) other costs; (iv) debt restructuring costs; and (v) 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, change in fair value of contingent consideration, income taxes and adjustments attributable to non-controlling interests to our operating segments. The following table reconciles total segment adjusted operating income to income (loss) before income taxes: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2021 2020 2021 2020 Segment adjusted operating income Fleet Solutions $ 137,865 $ 77,180 $ 256,123 $ 181,788 Travel and Corporate Solutions 17,157 10,961 24,172 32,876 Health and Employee Benefit Solutions 29,080 25,258 59,624 54,725 Total segment adjusted operating income $ 184,102 $ 113,399 $ 339,919 $ 269,389 Reconciliation: Total segment adjusted operating income $ 184,102 $ 113,399 $ 339,919 $ 269,389 Less: Unallocated corporate expenses 17,174 13,953 33,383 30,496 Acquisition-related intangible amortization 45,294 42,478 87,748 85,016 Other acquisition and divestiture related items 10,690 7,735 25,486 15,677 Debt restructuring costs 5,299 687 5,936 765 Stock-based compensation 21,662 15,069 40,605 26,889 Other costs 1,705 4,695 13,942 6,935 Operating income 82,278 28,782 132,819 103,611 Financing interest expense (32,473) (28,832) (65,757) (60,863) Net foreign currency loss 1,342 (2,462) (1,413) (31,189) Change in fair value of contingent consideration (47,700) — (47,700) — Net unrealized gain (loss) on financial instruments 6,013 (3,842) 13,046 (35,889) Income (loss) before income taxes $ 9,460 $ (6,354) $ 30,995 $ (24,330) |
Supplementary Regulatory Capita
Supplementary Regulatory Capital Disclosure | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Supplementary Regulatory Capital Disclosure | 18. 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 June 30, 2021, 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: (In thousands) Actual Amount Ratio Minimum for Capital Adequacy Purposes Amount Ratio Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio June 30, 2021 Total Capital to risk-weighted assets $ 319,796 11.69 % $ 218,761 8.00 % $ 273,451 10.00 % Tier 1 Capital to average assets $ 291,969 9.94 % $ 117,465 4.00 % $ 146,831 5.00 % Common equity to risk-weighted assets $ 291,969 10.68 % $ 123,053 4.50 % $ 177,743 6.50 % Tier 1 Capital to risk-weighted assets $ 291,969 10.68 % $ 164,071 6.00 % $ 218,761 8.00 % December 31, 2020 Total Capital to risk-weighted assets $ 299,136 15.04 % $ 159,148 8.00 % $ 198,935 10.00 % Tier 1 Capital to average assets $ 287,570 12.71 % $ 90,514 4.00 % $ 113,143 5.00 % Common equity to risk-weighted assets $ 287,570 14.46 % $ 89,521 4.50 % $ 129,308 6.50 % Tier 1 Capital to risk-weighted assets $ 287,570 14.46 % $ 119,361 6.00 % $ 159,148 8.00 % |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10–Q and Rule 10–01 of Regulation S–X. Accordingly, they do not include all information and notes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statements that are included in the Company’s Annual Report on Form 10–K for the year ended December 31, 2020, filed with the SEC on March 1, 2021. In the opinion of management, all adjustments considered necessary for a fair presentation, which are of a normal recurring nature, have been included. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results for any future periods or the year ending December 31, 2021. With the exception of the accounting policy over convertible debt, which was impacted by the early adoption of ASU 2020–06 effective January 1, 2021 (refer to Adoption of a New Accounting Standard later within this Note and Note 2, Recent Accounting Pronouncements), we have applied the same accounting policies in preparing these quarterly financial statements as we did in preparing our 2020 annual financial statements. The Company rounds amounts in the condensed consolidated financial statements to thousands and calculates all per-share data from underlying whole-dollar amounts. Thus, certain amounts may not foot, crossfoot or recalculate based on reported numbers due to rounding. |
New Accounting Standards | Standard Description Date/Method of Adoption Effect on financial statements or other significant matters Adopted During the Six Months Ended June 30, 2021 ASU 2020–06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging –Contracts in Entity's Own Equity (Subtopic 815-40) This standard simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. Among other changes, this standard removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible debt instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. The standard also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. The Company early adopted ASU 2020–06 effective January 1, 2021, using the modified-retrospective approach. Refer to Note 1, Basis of Presentation, for a summary of the financial statement effects as a result of this ASU adoption. Additionally, interest expense related to the amortization of the debt discount on our Convertible Notes is expected to decline approximately $5.5 million during the year ending December 31, 2021 as a result of the adoption of this ASU. Not Adopted as of June 30, 2021 ASU 2020–04, Reference Rate Reform and ASU 2021–01, Reference Rate Reform: Scope These standards provide optional guidance for a limited period of time to ease the potential financial reporting burden in accounting for (or recognizing the effects of) the discontinuation of LIBOR resulting from reference rate reform. The amendments provide optional expedients and exceptions for applying GAAP to contracts and other transactions impacted by reference rate reform. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. Election is available through December 31, 2022. The Company is currently evaluating the implications of these amendments to its current efforts for reference rate reform implementation and any impact the adoption of these ASUs would have on its financial condition and results of operations. |
Receivables | Accounts receivable consists of amounts billed to and due from customers across a wide range of industries and other third parties. The Company often extends short-term credit to cardholders and pays the merchant for the purchase price, less the fees it retains and records as revenue. The Company subsequently collects the total purchase price from the cardholder. In general, the Company’s trade receivables provide for payment terms of 30 days or less. Receivables not paid in full by payment due dates as stated within the terms of the agreement are generally considered past due and subject to late fees and interest based upon the outstanding receivables balance. The Company discontinues late fee and interest income accruals on outstanding receivables once customers are 90 and 120 days past the invoice due date, respectively. Payments received subsequent to discontinuing late fee and interest income accruals are first applied to outstanding late fees and interest, and the Company resumes accruing interest and late fee income as earned on future receivables balances. Receivables are generally written off when they are 180 days past invoice origination date or upon declaration of bankruptcy of the customer, subject to local regulatory restrictions. |
Earnings per Share | Basic earnings per share is computed by dividing net (loss) 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 numerator is increased for tax effected interest expense associated with our Convertible Notes and the denominator is increased for the assumed issuance of common shares issuable on convertible securities under the if-converted method unless the effect is antidilutive. Additionally, diluted earnings per share includes the assumed exercise of dilutive options and the assumed issuance of unvested restricted stock units 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 antidilutive. 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. |
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 |
Fair Value of Financial Instruments | Certain of the Company’s financial assets and liabilities are recorded 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. 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. Money Market Mutual Funds A portion of the Company’s cash and cash equivalents are invested in money market mutual 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. The pooled investment fund is a Community Reinvestment Act-eligible investment fund, which seeks to provide bank investors with 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. |
Segment Information | The Company determines its operating segments and reports segment information in accordance with how the Company’s 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 B2B payments, providing customers with payment processing solutions for their corporate payment and transaction monitoring needs. • Health and Employee Benefit Solutions |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table illustrates the adoption impact of ASU 2020-06: January 1, 2021 (In thousands) Prior to adoption Impact of As reported Long-term debt, net $ 2,874,113 $ 52,115 $ 2,926,228 Deferred income taxes, net (within total liabilities) $ 220,122 $ (12,109) $ 208,013 Additional paid-in capital $ 872,711 $ (41,982) $ 830,729 Retained earnings $ 1,286,976 $ 1,976 $ 1,288,952 The following table provides a brief description of accounting pronouncements adopted during the six months ended June 30, 2021 and recent accounting pronouncements not yet adopted that 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 Six Months Ended June 30, 2021 ASU 2020–06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging –Contracts in Entity's Own Equity (Subtopic 815-40) This standard simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. Among other changes, this standard removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible debt instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. The standard also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. The Company early adopted ASU 2020–06 effective January 1, 2021, using the modified-retrospective approach. Refer to Note 1, Basis of Presentation, for a summary of the financial statement effects as a result of this ASU adoption. Additionally, interest expense related to the amortization of the debt discount on our Convertible Notes is expected to decline approximately $5.5 million during the year ending December 31, 2021 as a result of the adoption of this ASU. Not Adopted as of June 30, 2021 ASU 2020–04, Reference Rate Reform and ASU 2021–01, Reference Rate Reform: Scope These standards provide optional guidance for a limited period of time to ease the potential financial reporting burden in accounting for (or recognizing the effects of) the discontinuation of LIBOR resulting from reference rate reform. The amendments provide optional expedients and exceptions for applying GAAP to contracts and other transactions impacted by reference rate reform. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. Election is available through December 31, 2022. The Company is currently evaluating the implications of these amendments to its current efforts for reference rate reform implementation and any impact the adoption of these ASUs would have on its financial condition and results of operations. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table illustrates the adoption impact of ASU 2020-06: January 1, 2021 (In thousands) Prior to adoption Impact of As reported Long-term debt, net $ 2,874,113 $ 52,115 $ 2,926,228 Deferred income taxes, net (within total liabilities) $ 220,122 $ (12,109) $ 208,013 Additional paid-in capital $ 872,711 $ (41,982) $ 830,729 Retained earnings $ 1,286,976 $ 1,976 $ 1,288,952 The following table provides a brief description of accounting pronouncements adopted during the six months ended June 30, 2021 and recent accounting pronouncements not yet adopted that 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 Six Months Ended June 30, 2021 ASU 2020–06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging –Contracts in Entity's Own Equity (Subtopic 815-40) This standard simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. Among other changes, this standard removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible debt instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. The standard also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. The Company early adopted ASU 2020–06 effective January 1, 2021, using the modified-retrospective approach. Refer to Note 1, Basis of Presentation, for a summary of the financial statement effects as a result of this ASU adoption. Additionally, interest expense related to the amortization of the debt discount on our Convertible Notes is expected to decline approximately $5.5 million during the year ending December 31, 2021 as a result of the adoption of this ASU. Not Adopted as of June 30, 2021 ASU 2020–04, Reference Rate Reform and ASU 2021–01, Reference Rate Reform: Scope These standards provide optional guidance for a limited period of time to ease the potential financial reporting burden in accounting for (or recognizing the effects of) the discontinuation of LIBOR resulting from reference rate reform. The amendments provide optional expedients and exceptions for applying GAAP to contracts and other transactions impacted by reference rate reform. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. Election is available through December 31, 2022. The Company is currently evaluating the implications of these amendments to its current efforts for reference rate reform implementation and any impact the adoption of these ASUs would have on its financial condition and results of operations. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables disaggregate the Company’s consolidated revenues: Three Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue 126,450 $ 68,282 $ 18,694 $ 213,426 Account servicing revenue 4,336 11,222 79,482 95,040 Other revenue 22,422 1,656 5,109 29,187 Total Topic 606 revenues $ 153,208 $ 81,160 $ 103,285 $ 337,653 Non-Topic 606 revenues 121,180 602 48 121,830 Total revenues $ 274,388 $ 81,762 $ 103,333 $ 459,483 Three Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 90,147 $ 43,261 $ 14,053 $ 147,461 Account servicing revenue 4,339 10,183 62,602 77,124 Other revenue 17,731 345 10,465 28,541 Total Topic 606 revenues $ 112,217 $ 53,789 $ 87,120 $ 253,126 Non-Topic 606 revenues 92,163 706 1,089 93,958 Total revenues $ 204,380 $ 54,495 $ 88,209 $ 347,084 Six Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 237,026 $ 125,530 $ 39,259 $ 401,815 Account servicing revenue 8,705 21,909 147,427 178,041 Other revenue 42,668 3,456 12,854 58,978 Total Topic 606 revenues $ 288,399 $ 150,895 $ 199,540 $ 638,834 Non-Topic 606 revenues 229,826 1,509 71 231,406 Total revenues $ 518,225 $ 152,404 $ 199,611 $ 870,240 Six Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 203,470 $ 113,529 $ 34,499 $ 351,498 Account servicing revenue 8,710 21,246 126,171 156,127 Other revenue 39,019 1,116 19,488 59,623 Total Topic 606 revenues $ 251,199 $ 135,891 $ 180,158 $ 567,248 Non-Topic 606 revenues 203,028 2,963 5,524 211,515 Total revenues $ 454,227 $ 138,854 $ 185,682 $ 778,763 |
Schedule of Contract Assets and Liabilities | The following table provides information about these contract balances: (In thousands) Contract balance Location on the condensed consolidated balance sheets June 30, 2021 December 31, 2020 Receivables Accounts receivable, net $ 47,676 $ 43,541 Contract assets Prepaid expenses and other current assets 11,350 5,495 Contract assets Other assets 39,284 19,927 Contract liabilities Other current liabilities 3,038 8,530 Contract liabilities Other liabilities 28,293 24,614 Refund liabilities Accrued expenses 5,265 5,265 |
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 and is not indicative of the Company’s future revenue, as it relates to an insignificant portion of the Company’s operations. (In thousands) Remaining 2021 2022 2023 2024 2025 2026 Thereafter Total Minimum monthly fees 1 $ 36,330 $ 47,326 $ 33,465 $ 12,563 $ 5,697 $ 1,290 $ — $ 136,671 Professional services 2 2,780 157 21 6 — — — 2,964 Other 3 258 3,896 3,338 6,951 10,323 12,710 20,374 57,850 Total remaining performance obligations $ 39,368 $ 51,379 $ 36,824 $ 19,520 $ 16,020 $ 14,000 $ 20,374 $ 197,485 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. 3 Represents deferred revenue and contractual minimums associated with payment processing service obligations. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | (In thousands) Purchase price $ 96,992 Reduction in: Non-controlling interest 1 (13,077) Accumulated other comprehensive income (2,284) Additional paid-in capital (81,631) 1 Reduces non-controlling interest to zero as of the acquisition date. The following is a summary of the preliminary allocation of the purchase price to the assets and liabilities acquired, based on the fair value at the date of acquisition: (In thousands) As Reported Measurement Period Adjustments As Reported Cash consideration transferred, net of $232,155 in cash and restricted cash acquired $ 383,204 $ 119 $ 383,323 Less: legal settlement (162,500) — (162,500) Total consideration, net $ 220,704 $ 119 $ 220,823 Less: Accounts receivable 14,449 — 14,449 Property and equipment 876 — 876 Customer relationships (a)(c) 79,923 (32,323) 47,600 Developed technologies (b)(c) 63,125 (56,825) 6,300 License agreements 4,208 (4,208) — Deferred income tax asset 9,424 — 9,424 Other assets 16,605 — 16,605 Accounts payable (16,244) — (16,244) Accrued expenses (21,898) — (21,898) Restricted cash payable (186,956) — (186,956) Deferred income tax liability (20,152) 12,951 (7,201) Other liabilities (14,540) 3,552 (10,988) Recorded goodwill $ 291,884 $ 76,972 $ 368,856 (a) Weighted average life - 7.3 years. (b) Weighted average life - 0.5 years. (c) The weighted average life of the $53.9 million of amortizable intangible assets acquired in this business combination is 6.5 years. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | 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 transferred, net of $15.0 million in cash and restricted cash acquired $ 259,087 Less: Accounts receivable 3,103 Customer relationships (a)(c) 86,100 Developed technologies (b)(c) 19,600 Other assets 4,387 Accrued expenses (3,498) Restricted cash payable (14,328) Other liabilities (5,177) Recorded goodwill $ 168,900 (a) Weighted average life -11.5 years. (b) Weighted average life - 5.5 years. (c) The weighted average life of the $105.7 million of amortizable intangible assets acquired in this business combination is 10.4 years |
Business Acquisition, Pro Forma Information | The following represents unaudited pro forma operational results: (In thousands, except per share data) Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Total revenues $ 351,359 $ 803,780 Net income attributable to shareholders $ 63,979 $ 52,285 Net income attributable to shareholders per share: Basic $ 1.47 $ 1.20 Diluted $ 1.46 $ 1.19 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Changes in Reserves for Credit Losses Related to Accounts Receivable | The following tables present changes in the accounts receivable allowances by portfolio segment: Three Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 46,181 $ 8,650 $ 312 $ 55,143 Provision for credit losses 1 11,764 1,117 81 12,962 Charges to other accounts 2 3,848 — — 3,848 Charge-offs (13,593) (2,328) (10) (15,931) Recoveries of amounts previously charged-off 1,365 7 153 1,525 Currency translation 151 73 — 224 Balance, end of period $ 49,716 $ 7,519 $ 536 $ 57,771 Three Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 53,177 $ 16,601 $ 5,648 $ 75,426 Provision for credit losses 1,3 18,285 2,241 55 20,581 Charges to other accounts 2 5,210 — — 5,210 Charge-offs (32,742) (2,706) (5,318) (40,766) Recoveries of amounts previously charged-off 3,078 1 17 3,096 Currency translation 101 5 190 296 Balance, end of period $ 47,109 $ 16,142 $ 592 $ 63,843 Six Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 49,267 $ 9,610 $ 270 $ 59,147 Provision for credit losses 1 16,128 1,752 141 18,021 Charges to other accounts 2 8,221 — — 8,221 Charge-offs (26,367) (3,860) (28) (30,255) Recoveries of amounts previously charged-off 2,881 13 153 3,047 Currency translation (414) 4 — (410) Balance, end of period $ 49,716 $ 7,519 $ 536 $ 57,771 Six Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 50,010 $ 5,765 $ 8,076 63,851 Provision for credit losses 1,3 38,892 15,505 171 54,568 Charges to other accounts 2 10,730 — — 10,730 Charge-offs (57,377) (5,065) (5,318) (67,760) Recoveries of amounts previously charged-off 4,888 28 17 4,933 Currency translation (34) (91) (2,354) (2,479) Balance, end of period $ 47,109 $ 16,142 $ 592 $ 63,843 1 The provision is comprised of estimated credit losses based on the Company’s loss-rate experience and adjustments required for forecasted credit loss information. The provision for credit losses reported within this table also includes the provision for fraud losses. 2 The Company earns revenue by assessing monthly finance fees on accounts with overdue balances. These fees are recognized as revenue at the time 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 relationship goodwill. Charges to other accounts represents the offset against the late fee revenue recognized when the Company establishes a reserve for such waived amounts. |
Schedule of Past Due Financing Receivables | The following table presents the outstanding balance of trade accounts receivable that are less than 30 and 60 days past due, in each case, as a percentage of total trade accounts receivable: Delinquency Status June 30, 2021 December 31, 2020 29 days or less past due 99 % 97 % 59 days or less past due 99 % 98 % |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Income and Share Data Used in Basic and Diluted Earnings Per Share Computations | The following table summarizes net (loss) income attributable to shareholders and reconciles basic and diluted shares outstanding used in the earnings per share computations: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2021 2020 2021 2020 Net (loss) income attributable to shareholders $ (33,856) $ 72,658 $ (36,421) $ 56,402 Weighted average common shares outstanding – Basic 44,788 43,574 44,566 43,495 Dilutive impact of share-based compensation awards 1 — 205 — 401 Weighted average common shares outstanding – Diluted 44,788 43,779 44,566 43,896 1 For the three and six months ended June 30, 2021, 0.9 million and 1.0 million, respectively, of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share under the treasury stock method, as the effect of including these awards would be anti-dilutive. For the three and six months ended June 30, 2020, 0.6 million and 0.2 million, respectively, of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share under the treasury stock method, as the effect of including these awards would be anti-dilutive. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table presents relevant information for the Company’s outstanding interest rate swap contracts as of June 30, 2021. Tranche A Tranche B Tranche C Tranche D Tranche E Tranche F Notional amount at inception (in thousands) 150,000 100,000 200,000 300,000 200,000 485,000 Maturity date 3/13/2023 3/12/2023 3/12/2023 12/30/2022 12/30/2023 12/31/2021 Fixed interest rate 2 1.954% 1.956% 2.413% 2.204% 1.862% 0.743% Tranche G 1 Tranche H 1 Tranche I 1 Tranche J 1 Tranche K 1 Notional amount at inception (in thousands) 150,000 150,000 300,000 150,000 150,000 Maturity date 5/29/2026 5/29/2026 5/30/2025 5/31/2024 5/31/2024 Fixed interest rate 2 0.909% 0.910% 0.678% 0.440% 0.435% 1 New interest rate swap contracts effective May 28, 2021. 2 Fixed interest rate is payable by WEX. Counterparties pay floating rate equal to the one-month USD LIBOR. |
Schedule of Location and Amounts of Derivative Gains and Losses in Condensed Consolidated Statements of Income | The following table presents information on the location and amounts of gains and losses from derivatives: (In thousands) Three Months Ended June 30, Six Months Ended June 30, Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in the Statement of Operations 2021 2020 2021 2020 Interest rate swap contracts – unrealized portion Net unrealized gain (loss) on financial instruments $ 5,962 $ (4,053) $ 13,481 $ (36,496) Interest rate swap contracts – realized portion Financing interest expense $ (6,081) $ (4,106) $ (11,538) $ (4,898) |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Banking and Thrift, Interest [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: (In thousands) June 30, 2021 December 31, 2020 Interest-bearing brokered money market deposits 1 $ 443,974 $ 439,894 Customer deposits 131,311 116,694 Certificates of deposit with maturities within 1 year 1,2,3 533,937 354,807 Short-term deposits 1,109,222 911,395 Certificates of deposit with maturities greater than 1 year and less than 5 years 1,2,3 401,440 148,591 Total deposits $ 1,510,662 $ 1,059,986 Weighted average cost of funds on certificates of deposit outstanding 0.64 % 1.81 % Weighted average cost of interest-bearing brokered money market deposits 0.23 % 0.27 % 1 As of June 30, 2021 and December 31, 2020 , all certificates of deposit and brokered money market deposits we re in denominations of $250 thousand or less, corresponding to FDIC deposit insurance limits. 2 Original maturities range from 9 months to 5 years, with coupon interest rates ranging from 0.12 percent to 3.52 percent as of June 30, 2021. At December 31, 2020, original maturities ranged from 1 year to 5 years with coupon interest rates ranging from 1.35 percent to 3.52 percent. 3 Certificates of deposit include certain brokered money market deposits, which have a fixed maturity and interest rate. |
Financing and Other Debt (Table
Financing and Other Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the Company’s total outstanding debt by type as of June 30, 2021 and December 31, 2020. (In thousands) June 30, 2021 December 31, 2020 Borrowings on Revolving Credit Facility $ 265,000 $ — Term loans: Tranche A Term Loans 966,202 873,777 Tranche B Term Loans 1,438,395 1,442,368 Total term loans 2,404,597 2,316,145 Notes outstanding — 400,000 Convertible Notes 310,000 310,000 Securitized debt 93,044 85,945 Borrowed federal funds — 20,000 Total gross debt 1 $ 3,072,641 $ 3,132,090 1 See Note 12, Fair Value, for more information regarding the fair value of the Company’s debt. The following table summarizes the Company’s total outstanding debt by balance sheet classification: (In thousands) June 30, 2021 December 31, 2020 Current portion of gross debt $ 156,385 $ 170,556 Less: Unamortized debt issuance costs/debt discount (9,915) (17,826) Short-term debt, net $ 146,470 $ 152,730 Long-term portion of gross debt $ 2,916,256 $ 2,961,534 Less: Unamortized debt issuance costs/debt discount (48,986) (87,421) Long-term debt, net $ 2,867,270 $ 2,874,113 Supplemental information: Letters of credit 1 $ 51,700 $ 51,628 Remaining borrowing capacity on Revolving Credit Facility 2 $ 613,300 $ 818,372 1 Collateral for lease agreements, virtual card and fuel payment processing activity at the Company’s foreign subsidiaries. 2 Contingent on maintaining compliance with the financial covenants as defined in the Company’s Amended and Restated Credit Agreement. |
Schedule of Convertible Notes | The Convertible Notes consist of the following: (In thousands) June 30, 2021 December 31, 2020 Principal $ 310,000 $ 310,000 Less: Unamortized discounts (13,733) (66,755) Less: Unamortized issuance cost (2,211) (2,358) Net carrying amount of Convertible Notes 1 $ 294,056 $ 240,887 Equity component 2 $ — $ 54,689 1 Recorded within long-term debt, net on our condensed consolidated balance sheet. 2 Represents the proceeds allocated to the conversion option, or debt discount, recorded within additional paid-in capital on the condensed consolidated balance sheet through December 31, 2020. Additional paid-in capital on the condensed consolidated balance sheet through December 31, 2020 was further reduced by $0.6 million of issuance costs and $13.6 million in taxes associated with the equity component. Effective January 1, 2021, the Convertible Notes and its conversion feature were accounted for as a single unit of account. The following table sets forth total interest expense recognized for the Convertible Notes: (In thousands) Three Months Ended Six Months Ended Interest on 6.5 percent coupon $ 5,038 $ 10,075 Amortization of debt discount and debt issuance costs 501 1,054 $ 5,539 $ 11,129 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | The following table presents the Company’s financial instruments that are measured at fair value on a recurring basis: (In thousands) Fair Value Hierarchy June 30, 2021 December 31, 2020 Financial Assets: Money market mutual funds 1 1 $ 155 $ 335,449 Investment securities Municipal bonds 2 $ 145 $ 197 Asset-backed securities 2 186 210 Mortgage-backed securities 2 131 138 Pooled investment fund measured at NAV 2 9,000 9,000 Fixed-income mutual fund 1 27,469 27,728 Total investment securities $ 36,931 $ 37,273 Executive deferred compensation plan trust 3 1 $ 10,877 $ 9,586 Interest rate swaps 4 2 $ 5,858 $ — Liabilities Interest rate swaps 4 2 $ 37,315 $ 44,938 Contingent consideration 5 3 $ 74,900 $ — 1 The fair value is recorded in cash and cash equivalents. 2 The fair value of this security is measured at NAV as a practical expedient and has not been classified within the fair value hierarchy. The amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated balance sheets. 3 The fair value is recorded as current or long-term based on the timing of the Company’s executive deferred compensation plan payment obligations. At June 30, 2021, $1.5 million and $9.4 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. At December 31, 2020, $0.9 million an d $8.7 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. 4 The fair value is recorded as current or long-term depending on the timing of expected discounted cash flows. At June 30, 2021, $5.9 million of fair value was recorded in other assets. At June 30, 2021 , $25.1 million and $12.3 million in fair value is recorded within other current liabilities and other liabilities, respectively. At December 31, 2020, $22.0 million an d $22.9 million in fair value is recorded within other current liabilities and other liabilities, respectively. 5 The fair value is recorded in other liabilities. |
Schedule of Pooled Investment Fund | (In thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Pooled investment fund, as of June 30, 2021 $ 9,000 — Monthly 30 days |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in the contingent consideration liability are measured at fair value on a recurring basis using unobservable inputs (Level 3) and during the six months ended June 30, 2021 are as follows: (In thousands) Fair Value Contingent consideration – December 31, 2020 $ — Contingent consideration recorded as a result of the acquisition (Note 4) $ 27,200 Change in estimated fair value $ 47,700 Contingent consideration – June 30, 2021 $ 74,900 |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The following table presents the changes in the Company’s redeemable non-controlling interest: (In thousands) 2021 2020 Balance at December 31 117,219 156,879 Net income attributable to redeemable non-controlling interest 353 142 Change in value of redeemable non-controlling interest 25,044 2,624 Balance at March 31 $ 142,616 $ 159,645 Net income attributable to redeemable non-controlling interest 232 99 Repurchase of non-controlling interest (11,191) — Contribution from non-controlling interest 12,457 — Change in value of redeemable non-controlling interest 43,823 (59,940) Balance at June 30 $ 187,937 $ 99,804 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Results | The following tables present the Company’s reportable segment revenues: Three Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Total Payment processing revenue $ 126,450 $ 68,282 $ 18,694 $ 213,426 Account servicing revenue 42,293 11,222 79,482 132,997 Finance fee revenue 59,258 199 42 59,499 Other revenue 46,387 2,059 5,115 53,561 Total revenues $ 274,388 $ 81,762 $ 103,333 $ 459,483 Interest income $ 705 $ 2 $ 6 $ 713 Three Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 90,147 $ 43,261 $ 14,053 $ 147,461 Account servicing revenue 36,694 10,183 62,602 109,479 Finance fee revenue 42,463 220 28 42,711 Other revenue 35,076 831 11,526 47,433 Total revenues $ 204,380 $ 54,495 $ 88,209 $ 347,084 Interest income $ 635 $ 28 $ 275 $ 938 Six Months Ended June 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Total Payment processing revenue $ 237,026 $ 125,530 $ 39,259 $ 401,815 Account servicing revenue 82,284 21,909 147,427 251,620 Finance fee revenue 111,098 493 61 111,652 Other revenue 87,817 4,472 12,864 105,153 Total revenues $ 518,225 $ 152,404 $ 199,611 $ 870,240 Interest income $ 1,016 $ 10 $ 10 $ 1,036 Six Months Ended June 30, 2020 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 203,470 $ 113,529 $ 34,499 $ 351,498 Account servicing revenue 75,902 21,246 126,171 223,319 Finance fee revenue 97,805 755 78 98,638 Other revenue 77,050 3,324 24,934 105,308 Total revenues $ 454,227 $ 138,854 $ 185,682 $ 778,763 Interest income $ 1,901 $ 253 $ 694 $ 2,848 |
Schedule of Reconciliation of Adjusted Net Income to Income Before Income Taxes | The following table reconciles total segment adjusted operating income to income (loss) before income taxes: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2021 2020 2021 2020 Segment adjusted operating income Fleet Solutions $ 137,865 $ 77,180 $ 256,123 $ 181,788 Travel and Corporate Solutions 17,157 10,961 24,172 32,876 Health and Employee Benefit Solutions 29,080 25,258 59,624 54,725 Total segment adjusted operating income $ 184,102 $ 113,399 $ 339,919 $ 269,389 Reconciliation: Total segment adjusted operating income $ 184,102 $ 113,399 $ 339,919 $ 269,389 Less: Unallocated corporate expenses 17,174 13,953 33,383 30,496 Acquisition-related intangible amortization 45,294 42,478 87,748 85,016 Other acquisition and divestiture related items 10,690 7,735 25,486 15,677 Debt restructuring costs 5,299 687 5,936 765 Stock-based compensation 21,662 15,069 40,605 26,889 Other costs 1,705 4,695 13,942 6,935 Operating income 82,278 28,782 132,819 103,611 Financing interest expense (32,473) (28,832) (65,757) (60,863) Net foreign currency loss 1,342 (2,462) (1,413) (31,189) Change in fair value of contingent consideration (47,700) — (47,700) — Net unrealized gain (loss) on financial instruments 6,013 (3,842) 13,046 (35,889) Income (loss) before income taxes $ 9,460 $ (6,354) $ 30,995 $ (24,330) |
Supplementary Regulatory Capi_2
Supplementary Regulatory Capital Disclosure (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [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: (In thousands) Actual Amount Ratio Minimum for Capital Adequacy Purposes Amount Ratio Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio June 30, 2021 Total Capital to risk-weighted assets $ 319,796 11.69 % $ 218,761 8.00 % $ 273,451 10.00 % Tier 1 Capital to average assets $ 291,969 9.94 % $ 117,465 4.00 % $ 146,831 5.00 % Common equity to risk-weighted assets $ 291,969 10.68 % $ 123,053 4.50 % $ 177,743 6.50 % Tier 1 Capital to risk-weighted assets $ 291,969 10.68 % $ 164,071 6.00 % $ 218,761 8.00 % December 31, 2020 Total Capital to risk-weighted assets $ 299,136 15.04 % $ 159,148 8.00 % $ 198,935 10.00 % Tier 1 Capital to average assets $ 287,570 12.71 % $ 90,514 4.00 % $ 113,143 5.00 % Common equity to risk-weighted assets $ 287,570 14.46 % $ 89,521 4.50 % $ 129,308 6.50 % Tier 1 Capital to risk-weighted assets $ 287,570 14.46 % $ 119,361 6.00 % $ 159,148 8.00 % |
Basis of Presentation - Impact
Basis of Presentation - Impact of Topic 326 (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Long-term debt, net | $ 2,874,113 | ||
Deferred income taxes, net (within total liabilities) | $ 196,032 | 220,122 | $ 220,122 |
Additional paid-in capital | 808,701 | 872,711 | 872,711 |
Retained earnings | $ 1,252,531 | 1,286,976 | $ 1,286,976 |
Impact of adoption | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Long-term debt, net | 52,115 | ||
Deferred income taxes, net (within total liabilities) | (12,109) | ||
Additional paid-in capital | (41,982) | ||
Retained earnings | 1,976 | ||
As reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Long-term debt, net | 2,926,228 | ||
Deferred income taxes, net (within total liabilities) | 208,013 | ||
Additional paid-in capital | 830,729 | ||
Retained earnings | $ 1,288,952 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Forecast | Accounting Standards Update 2020-06 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Decrease in convertible interest payable | $ 5.5 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | $ 337,653 | $ 253,126 | $ 638,834 | $ 567,248 |
Non-Topic 606 revenues | 121,830 | 93,958 | 231,406 | 211,515 |
Total revenues | 459,483 | 347,084 | 870,240 | 778,763 |
Fleet Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 153,208 | 112,217 | 288,399 | 251,199 |
Non-Topic 606 revenues | 121,180 | 92,163 | 229,826 | 203,028 |
Total revenues | 274,388 | 204,380 | 518,225 | 454,227 |
Travel and Corporate Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 81,160 | 53,789 | 150,895 | 135,891 |
Non-Topic 606 revenues | 602 | 706 | 1,509 | 2,963 |
Total revenues | 81,762 | 54,495 | 152,404 | 138,854 |
Health and Employee Benefit Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 103,285 | 87,120 | 199,540 | 180,158 |
Non-Topic 606 revenues | 48 | 1,089 | 71 | 5,524 |
Total revenues | 103,333 | 88,209 | 199,611 | 185,682 |
Payment processing revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 213,426 | 147,461 | 401,815 | 351,498 |
Total revenues | 213,426 | 147,461 | 401,815 | 351,498 |
Payment processing revenue | Fleet Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 126,450 | 90,147 | 237,026 | 203,470 |
Total revenues | 126,450 | 90,147 | 237,026 | 203,470 |
Payment processing revenue | Travel and Corporate Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 68,282 | 43,261 | 125,530 | 113,529 |
Total revenues | 68,282 | 43,261 | 125,530 | 113,529 |
Payment processing revenue | Health and Employee Benefit Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 18,694 | 14,053 | 39,259 | 34,499 |
Total revenues | 18,694 | 14,053 | 39,259 | 34,499 |
Account servicing revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 95,040 | 77,124 | 178,041 | 156,127 |
Total revenues | 132,997 | 109,479 | 251,620 | 223,319 |
Account servicing revenue | Fleet Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 4,336 | 4,339 | 8,705 | 8,710 |
Total revenues | 42,293 | 36,694 | 82,284 | 75,902 |
Account servicing revenue | Travel and Corporate Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 11,222 | 10,183 | 21,909 | 21,246 |
Total revenues | 11,222 | 10,183 | 21,909 | 21,246 |
Account servicing revenue | Health and Employee Benefit Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 79,482 | 62,602 | 147,427 | 126,171 |
Total revenues | 79,482 | 62,602 | 147,427 | 126,171 |
Other revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 29,187 | 28,541 | 58,978 | 59,623 |
Total revenues | 53,561 | 47,433 | 105,153 | 105,308 |
Other revenue | Fleet Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 22,422 | 17,731 | 42,668 | 39,019 |
Total revenues | 46,387 | 35,076 | 87,817 | 77,050 |
Other revenue | Travel and Corporate Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 1,656 | 345 | 3,456 | 1,116 |
Total revenues | 2,059 | 831 | 4,472 | 3,324 |
Other revenue | Health and Employee Benefit Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total Topic 606 revenues | 5,109 | 10,465 | 12,854 | 19,488 |
Total revenues | $ 5,115 | $ 11,526 | $ 12,864 | $ 24,934 |
Revenues - Contract Assets and
Revenues - Contract Assets and Liabilities From Contracts with Customers (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | $ 1,109,222 | $ 911,395 |
Contract liabilities | 401,440 | 148,591 |
Accounts receivable, net | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract assets | 47,676 | 43,541 |
Prepaid expenses and other current assets | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract assets | 11,350 | 5,495 |
Other assets | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Noncurrent other assets | 39,284 | 19,927 |
Other current liabilities | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | 3,038 | 8,530 |
Other liabilities | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | 28,293 | 24,614 |
Accrued expenses | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | $ 5,265 | $ 5,265 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized related to contract liabilities | $ 0.7 | $ 3.5 |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligation (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 197,485 |
Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 136,671 |
Professional Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 2,964 |
Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 57,850 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 39,368 |
Performance obligations expected to be satisfied, expected timing | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 36,330 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | Professional Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 2,780 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 258 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 51,379 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 47,326 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Professional Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 157 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 3,896 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 36,824 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 33,465 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Professional Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 21 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 3,338 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 19,520 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 12,563 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Professional Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 6,951 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 16,020 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 5,697 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Professional Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 10,323 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 14,000 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,290 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Professional Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 12,710 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 20,374 |
Performance obligations expected to be satisfied, expected timing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Professional Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 20,374 |
Acquisitions - Asset Acquisitio
Acquisitions - Asset Acquisition (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Apr. 01, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||||||
Asset acquisition, contingent consideration arrangements, range of outcomes, value, high | $ 225,000 | |||||
Repurchase of non-controlling interest | $ 11,200 | $ 11,191 | $ 0 | |||
Contingent consideration as part of asset acquisition | $ 27,200 | $ 0 | ||||
U.S. Health | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage by noncontrolling interest | 4.53% | |||||
Health Savings Account Assets of Bell Bank’s Healthcare Bank Division | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 200,000 | |||||
Deferred payments | 25,000 | |||||
Additional deferred payments | 25,000 | |||||
Decrease in payment of acquire business | $ 12,500 | |||||
Additional deferred payments to acquire business | $ 12,500 | |||||
Finite-lived intangible assets acquired | $ 263,400 | |||||
Weighted average life (in years) | 5 years 7 months 6 days | |||||
Deferred liability | $ 47,400 |
Acquisitions - Acquisition of N
Acquisitions - Acquisition of Non-Controlling Interest (Details) $ in Thousands | Apr. 13, 2021USD ($) |
WEX Europe Services | |
Business Acquisition [Line Items] | |
Percentage of voting interests acquired | 25.00% |
Purchase price | $ 96,992 |
WEX Europe Services | |
Business Acquisition [Line Items] | |
Ownership percentage | 100.00% |
Acquisitions - Schedule of Busi
Acquisitions - Schedule of Business Acquisitions (Details) - USD ($) | Apr. 13, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Non-controlling interest | $ 0 | $ 0 | $ 13,022,000 |
WEX Europe Services | |||
Business Acquisition [Line Items] | |||
Purchase price | 96,992,000 | ||
Change in value of redeemable non-controlling interest | (13,077,000) | ||
Accumulated other comprehensive income | (2,284,000) | ||
Additional paid-in capital | $ (81,631,000) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Dec. 15, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||||||
Acquisition and merger costs related to business combinations | $ 1,900 | $ 0 | $ 2,400 | $ 0 | ||||
Revenue of acquiree since acquisition date | 2,900 | |||||||
Benefitexpress | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price | $ 275,000 | |||||||
Purchase price of acquisition, net of cash acquired | 259,087,000 | |||||||
PO Holding | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price of acquisition, net of cash acquired | 262,500 | |||||||
PO Holding | SBI Investments Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses and interest in affiliates | $ 12,500 | |||||||
Original Purchase Agreement | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price | $ 577,500 | |||||||
Purchase price of acquisition, net of cash acquired | $ 383,323 | $ 383,204 | ||||||
Cash to be paid | 615,500 | |||||||
Working capital adjustment received | $ 2,000 | $ 1,900 | ||||||
Incremental revolving commitments | 415,000 | |||||||
Payments for legal settlements | $ 162,500 |
Acquisitions - Schedules of Ass
Acquisitions - Schedules of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Dec. 15, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Less: | ||||
Recorded goodwill | $ 2,925,583 | $ 2,688,138 | ||
Benefitexpress | ||||
Business Acquisition [Line Items] | ||||
Cash consideration transferred, net of $232,155 in cash and restricted cash acquired | $ 259,087,000 | |||
Less: | ||||
Accounts receivable | 3,103,000 | |||
Other assets | 4,387,000 | |||
Accrued expenses | (3,498,000) | |||
Restricted cash payable | (14,328,000) | |||
Other liabilities | (5,177,000) | |||
Recorded goodwill | 168,900,000 | |||
Cash paid on sale of subsidiary | $ 15,000 | |||
Weighted average life (in years) | 10 years 4 months 24 days | |||
Acquisition-related intangible amortization | $ 105,700 | |||
Benefitexpress | Customer Relationships | ||||
Less: | ||||
Intangible assets | $ 86,100,000 | |||
Weighted average life (in years) | 11 years 6 months | |||
Benefitexpress | Developed Technologies | ||||
Less: | ||||
Intangible assets | $ 19,600,000 | |||
Weighted average life (in years) | 5 years 6 months | |||
Original Purchase Agreement | ||||
Business Acquisition [Line Items] | ||||
Cash consideration transferred, net of $232,155 in cash and restricted cash acquired | 383,323 | 383,204 | ||
Measurement period adjustments, cash acquired | 119 | |||
Less: legal settlement | (162,500) | (162,500) | ||
Measurement period adjustments, legal settlement | 0 | |||
Total consideration, net | 220,823 | 220,704 | ||
Measurement period adjustments, total consideration | 119 | |||
Less: | ||||
Accounts receivable | 14,449 | 14,449 | ||
Measurement period adjustments, accounts receivable | 0 | |||
Property and equipment | 876 | 876 | ||
Measurement period adjustments, property and equipment | 0 | |||
Deferred income tax asset | 9,424 | 9,424 | ||
Measurement period adjustments, deferred income taxes asset | 0 | |||
Other assets | 16,605 | 16,605 | ||
Measurement period adjustments, other assets | 0 | |||
Accounts payable | (16,244) | (16,244) | ||
Measurement period adjustments, accounts payable | 0 | |||
Accrued expenses | (21,898) | (21,898) | ||
Measurement period adjustments, accrued expenses | 0 | |||
Restricted cash payable | (186,956) | (186,956) | ||
Measurement period adjustments, restricted cash payable | 0 | |||
Deferred income tax liability | (7,201) | (20,152) | ||
Measurement period adjustments, deferred income tax liability | 12,951 | |||
Other liabilities | (10,988) | (14,540) | ||
Measurement period adjustments, other liabilities | 3,552 | |||
Recorded goodwill | 368,856 | 291,884 | ||
Measurement period adjustments, recorded goodwill | 76,972 | |||
Cash paid on sale of subsidiary | $ 232,155 | |||
Weighted average life (in years) | 6 years 6 months | |||
Acquisition-related intangible amortization | $ 53,900 | |||
Original Purchase Agreement | Customer Relationships | ||||
Less: | ||||
Intangible assets | 47,600 | 79,923 | ||
Measurement period adjustments, intangible assets | (32,323) | |||
Weighted average life (in years) | 7 years 3 months 18 days | |||
Original Purchase Agreement | Developed Technologies | ||||
Less: | ||||
Intangible assets | 6,300 | 63,125 | ||
Measurement period adjustments, intangible assets | (56,825) | |||
Weighted average life (in years) | 6 months | |||
Original Purchase Agreement | Licensing Agreements | ||||
Less: | ||||
Intangible assets | 0 | $ 4,208 | ||
Measurement period adjustments, intangible assets | $ (4,208) |
Acquisitions - Schedule of Pro
Acquisitions - Schedule of Pro Forma Information (Details) - Original Purchase Agreement - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total revenues | $ 351,359 | $ 803,780 |
Net income attributable to shareholders | $ 63,979 | $ 52,285 |
Net income attributable to shareholders per share: | ||
Basic (in dollars per share) | $ 1.47 | $ 1.20 |
Diluted (in dollars per share) | $ 1.46 | $ 1.19 |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable payments terms (30 days or less) | 30 days | |
Accounts receivable, late fee discontinued period | 90 days | |
Accounts receivable, interest income accrual discontinued period | 120 days | |
Threshold period past due for write-off of trade accounts receivable | 180 days | |
Revolving Line-of-credit Facility under 2016 Credit Agreement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables with revolving credit balances | $ 78.9 | $ 60.2 |
Accounts Receivable - Changes i
Accounts Receivable - Changes in Reserves for Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||||
Balance, beginning of period | $ 55,143 | $ 75,426 | $ 59,147 | $ 63,851 |
Provision for credit losses | 12,962 | 20,581 | 18,021 | 54,568 |
Charges to other accounts | 3,848 | 5,210 | 8,221 | 10,730 |
Charge-offs | (15,931) | (40,766) | (30,255) | (67,760) |
Recoveries of amounts previously charged-off | 1,525 | 3,096 | 3,047 | 4,933 |
Currency translation | 224 | 296 | (410) | (2,479) |
Balance, end of period | 57,771 | 63,843 | 57,771 | 63,843 |
Fleet Solutions | ||||
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||||
Balance, beginning of period | 46,181 | 53,177 | 49,267 | 50,010 |
Provision for credit losses | 11,764 | 18,285 | 16,128 | 38,892 |
Charges to other accounts | 3,848 | 5,210 | 8,221 | 10,730 |
Charge-offs | (13,593) | (32,742) | (26,367) | (57,377) |
Recoveries of amounts previously charged-off | 1,365 | 3,078 | 2,881 | 4,888 |
Currency translation | 151 | 101 | (414) | (34) |
Balance, end of period | 49,716 | 47,109 | 49,716 | 47,109 |
Travel and Corporate Solutions | ||||
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||||
Balance, beginning of period | 8,650 | 16,601 | 9,610 | 5,765 |
Provision for credit losses | 1,117 | 2,241 | 1,752 | 15,505 |
Charges to other accounts | 0 | 0 | 0 | 0 |
Charge-offs | (2,328) | (2,706) | (3,860) | (5,065) |
Recoveries of amounts previously charged-off | 7 | 1 | 13 | 28 |
Currency translation | 73 | 5 | 4 | (91) |
Balance, end of period | 7,519 | 16,142 | 7,519 | 16,142 |
Health and Employee Benefit Solutions | ||||
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||||
Balance, beginning of period | 312 | 5,648 | 270 | 8,076 |
Provision for credit losses | 81 | 55 | 141 | 171 |
Charges to other accounts | 0 | 0 | 0 | 0 |
Charge-offs | (10) | (5,318) | (28) | (5,318) |
Recoveries of amounts previously charged-off | 153 | 17 | 153 | 17 |
Currency translation | 0 | 190 | 0 | (2,354) |
Balance, end of period | $ 536 | $ 592 | $ 536 | $ 592 |
Accounts Receivable - Concentra
Accounts Receivable - Concentration of Credit Risk (Details) - Credit Concentration Risk - Accounts receivable, net | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
29 days or less past due | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 99.00% | 97.00% |
59 days or less past due | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 99.00% | 98.00% |
Earnings per Share - Summary of
Earnings per Share - Summary of Net (Loss) Earning Attributable to Shareholders and Reconciliation of Basic and Diluted Shares (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net (loss) income attributable to shareholders | $ (33,856) | $ 72,658 | $ (36,421) | $ 56,402 |
Weighted average common shares outstanding – Basic (in shares) | 44,788 | 43,574 | 44,566 | 43,495 |
Dilutive impact of share-based compensation awards (in shares) | 0 | 205 | 0 | 401 |
Weighted average common shares outstanding – Diluted (in shares) | 44,788 | 43,779 | 44,566 | 43,896 |
Antidilutive securities excluded from computation of earnings (in shares) | 900 | 600 | 1,000 | 200 |
Convertible Debt Securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (in shares) | 1,600 | 1,600 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Billions | Jun. 30, 2021USD ($)contract | Dec. 31, 2020USD ($)contract |
Derivative [Line Items] | ||
Number of interest rate swap contracts entered into | 6 | |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Collective notional amount | $ | $ 0.9 | $ 1.4 |
Number of interest rate swap contracts extended | 5 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Interest Rate Swaps (Details) - Derivatives Not Designated as Hedging Instruments $ in Thousands | Jun. 30, 2021USD ($) |
Tranche A | |
Derivative [Line Items] | |
Notional amount at inception | $ 150 |
Fixed interest rate | 1.954% |
Tranche B | |
Derivative [Line Items] | |
Notional amount at inception | $ 100 |
Fixed interest rate | 1.956% |
Tranche C | |
Derivative [Line Items] | |
Notional amount at inception | $ 200 |
Fixed interest rate | 2.413% |
Tranche D | |
Derivative [Line Items] | |
Notional amount at inception | $ 300 |
Fixed interest rate | 2.204% |
Tranche E | |
Derivative [Line Items] | |
Notional amount at inception | $ 200 |
Fixed interest rate | 1.862% |
Tranche F | |
Derivative [Line Items] | |
Notional amount at inception | $ 485 |
Fixed interest rate | 0.743% |
Tranche G | |
Derivative [Line Items] | |
Notional amount at inception | $ 150 |
Fixed interest rate | 0.00909% |
Tranche H | |
Derivative [Line Items] | |
Notional amount at inception | $ 150 |
Fixed interest rate | 0.0091% |
Tranche I | |
Derivative [Line Items] | |
Notional amount at inception | $ 300 |
Fixed interest rate | 0.00678% |
Tranche J | |
Derivative [Line Items] | |
Notional amount at inception | $ 150 |
Fixed interest rate | 0.0044% |
Tranche K | |
Derivative [Line Items] | |
Notional amount at inception | $ 150 |
Fixed interest rate | 0.00435% |
Derivative Instruments - Locati
Derivative Instruments - Location and Amounts of Interest Rate Swap Gains and Losses (Details) - Derivatives Not Designated as Hedging Instruments - Interest Rate Swaps - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net unrealized gain (loss) on financial instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate swap gains (losses) | $ 5,962 | $ (4,053) | $ 13,481 | $ (36,496) |
Financing interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate swap gains (losses) | $ (6,081) | $ (4,106) | $ (11,538) | $ (4,898) |
Deposits - Schedule of Composit
Deposits - Schedule of Composition of Deposits (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Interest-bearing brokered money market deposits | $ 443,974,000 | $ 439,894,000 |
Customer deposits | 131,311,000 | 116,694,000 |
Certificates of deposit with maturities within 1 year | 533,937,000 | 354,807,000 |
Short-term deposits | 1,109,222,000 | 911,395,000 |
Certificates of deposit with maturities greater than 1 year and less than 5 years | 401,440,000 | 148,591,000 |
Total deposits | $ 1,510,662,000 | $ 1,059,986,000 |
Weighted average cost of funds on certificates of deposit outstanding (as a percent) | 0.64% | 1.81% |
Weighted average cost of interest-bearing money market deposits (as a percent) | 0.23% | 0.27% |
Certificates of deposits denominations in dollar amount | $ 250,000 | $ 250,000 |
Minimum | ||
Debt Instrument [Line Items] | ||
Certificate of deposits maturities period | 9 months | 1 year |
Certificate of deposits, fixed interest rates range (as a percent) | 0.12% | 1.35% |
Maximum | ||
Debt Instrument [Line Items] | ||
Certificate of deposits maturities period | 5 years | 5 years |
Certificate of deposits, fixed interest rates range (as a percent) | 3.52% | 3.52% |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | ||
Required reserve based on the outstanding customer deposits | $ 0 | $ 0 |
Maximum money market and demand deposit accounts purchasable | 125,000,000 | |
Outstanding balance of ICS purchases | $ 0 | $ 0 |
Financing and Other Debt - Sche
Financing and Other Debt - Schedule of Debt (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal | $ 3,072,641,000 | $ 3,132,090,000 |
Current portion of gross debt | 156,385,000 | 170,556,000 |
Less: Unamortized debt issuance costs/debt discount | (9,915,000) | (17,826,000) |
Short-term debt, net | 146,470,000 | 152,730,000 |
Long-term portion of gross debt | 2,916,256,000 | 2,961,534,000 |
Less: Unamortized debt issuance costs/debt discount | (48,986,000) | (87,421,000) |
Long-term debt, net | 2,867,270,000 | 2,874,113,000 |
Supplemental information: | ||
Letters of credit | 51,700,000 | 51,628,000 |
Remaining borrowing capacity on revolving credit facility | 613,300,000 | 818,372,000 |
Borrowed federal funds | ||
Debt Instrument [Line Items] | ||
Principal | 0 | 20,000,000 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Principal | 93,044,000 | 85,945,000 |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Principal | 310,000,000 | 310,000,000 |
Revolving Line-of-credit Facility under 2016 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Principal | 265,000,000 | 0 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Principal | 0 | 20,000,000 |
Line of Credit | Secured Debt | 2016 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Principal | 2,404,597,000 | 2,316,145,000 |
Line of Credit | Secured Debt | Tranche A Term Loans | ||
Debt Instrument [Line Items] | ||
Principal | 966,202,000 | 873,777,000 |
Line of Credit | Secured Debt | Tranche B Term Loans | ||
Debt Instrument [Line Items] | ||
Principal | 1,438,395,000 | 1,442,368,000 |
Notes outstanding | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 0 | $ 400,000,000 |
Financing and Other Debt - Narr
Financing and Other Debt - Narrative (Details) | Apr. 01, 2021USD ($) | Mar. 15, 2021USD ($) | Jul. 01, 2020USD ($)trading_day$ / sharesshares | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Jan. 01, 2021USD ($) |
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 3,072,641,000 | $ 3,072,641,000 | $ 3,132,090,000 | |||||
Letters of credit | 51,700,000 | 51,700,000 | 51,628,000 | |||||
Gain (loss) on extinguishment of debt | 3,400,000 | 3,400,000 | ||||||
General and administrative expenses incurred | 5,500,000 | 5,500,000 | ||||||
Less: Unamortized issuance cost | 16,100,000 | 16,100,000 | ||||||
Redemption price | $ 400,000,000 | |||||||
Operating interest | 1,400,000 | |||||||
Borrowings under guaranteed investment agreements | 60,000,000 | 60,000,000 | 60,000,000 | |||||
Long-term debt, net | $ 2,874,113,000 | |||||||
Pledged receivables held as collateral | 369,200,000 | 369,200,000 | ||||||
Private Placement | Common Stock Issued | ||||||||
Debt Instrument [Line Items] | ||||||||
Sale of stock, number of shares Issued in transaction (in shares) | shares | 577,254 | |||||||
Sale of stock, consideration received on transaction | $ 90,000,000 | |||||||
Sale of stock, price per share ( in dollars per share) | $ / shares | $ 155.91 | |||||||
Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 93,044,000 | 93,044,000 | 85,945,000 | |||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining borrowing capacity on revolving credit facility | 568,000,000 | 568,000,000 | 376,000,000 | |||||
Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 310,000,000 | $ 310,000,000 | $ 310,000,000 | |||||
Redemption of Notes | $ 389,200,000 | |||||||
2016 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted average effective interest rate | 2.20% | 2.20% | 2.30% | |||||
Commitment fee percentage | 0.40% | 0.40% | ||||||
2016 Credit Agreement | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.25% | |||||||
2016 Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.50% | |||||||
Convertible Senior Notes Due 2027 | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate amount | 310,000,000 | |||||||
Long-term debt | $ 310,000,000 | $ 310,000,000 | $ 310,000,000 | |||||
Operating interest | $ 5,539,000 | $ 11,129,000 | ||||||
Redemption of Notes | $ 299,200,000 | |||||||
Debt instrument, term | 7 years | |||||||
Interest rate, stated percentage | 6.50% | 0.065% | 0.065% | |||||
Conversion price (in dollars per share) | $ / shares | $ 200 | |||||||
Threshold percentage | 200.00% | |||||||
Number trading days | trading_day | 20 | |||||||
Number of consecutive trading days | trading_day | 30 | |||||||
Redemption price, percent | 105.00% | |||||||
Effective interest rate on the liability component | 7.50% | 7.50% | ||||||
Long-term debt, net | $ 294,056,000 | $ 294,056,000 | $ 240,887,000 | |||||
Convertible Senior Notes Due 2027 | Convertible Debt | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Number trading days | trading_day | 5 | |||||||
Australian Securitization Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate during period, percent | 0.91% | 0.97% | ||||||
Short-term debt, net | 65,900,000 | $ 65,900,000 | $ 62,600,000 | |||||
European Securitization Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate during period, percent | 1.01% | 0.98% | ||||||
Securitized debt | 27,200,000 | $ 27,200,000 | $ 23,400,000 | |||||
Revolving Line-of-credit Facility under 2016 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 265,000,000 | 265,000,000 | 0 | |||||
Revolving Line-of-credit Facility under 2016 Credit Agreement | Federal Reserve Bank | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit | 0 | 0 | 0 | |||||
Current borrowing capacity | 268,000,000 | 268,000,000 | 188,400,000 | |||||
Revolving Line-of-credit Facility under 2016 Credit Agreement | Minimum | Eurocurrency Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin on variable rate, percent | 0.75% | |||||||
Revolving Line-of-credit Facility under 2016 Credit Agreement | 2016 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining borrowing capacity on revolving credit facility | $ 930,000,000 | $ 870,000,000 | ||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 0 | 0 | 20,000,000 | |||||
Line of Credit | 2016 Credit Agreement | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 2,404,597,000 | 2,404,597,000 | 2,316,145,000 | |||||
Line of Credit | Tranche A Term Loans | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate amount | 978,400,000 | |||||||
Long-term debt | 966,202,000 | 966,202,000 | 873,777,000 | |||||
Line of Credit | Tranche B Term Loans | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate amount | $ 1,442,000,000 | |||||||
Long-term debt | 1,438,395,000 | 1,438,395,000 | 1,442,368,000 | |||||
Credit Facility Term Loans | 2016 Credit Agreement | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Consolidated leverage ratio | 7.50 | |||||||
Credit Facility Term Loans | 2016 Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Consolidated leverage ratio | 6.25 | |||||||
Credit Facility Term Loans | Tranche A Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, periodic payment | $ 12,200,000 | |||||||
Credit Facility Term Loans | Tranche B Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, periodic payment | $ 3,600,000 | |||||||
Credit Facility Term Loans | Tranche B Term Loans | Eurocurrency Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin on variable rate, percent | 2.25% | |||||||
Credit Facility Term Loans | Tranche B Term Loans | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin on variable rate, percent | 1.25% | |||||||
Notes outstanding | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 0 | 0 | 400,000,000 | |||||
Long-term deposits | $ 400,000,000 | |||||||
Participation Debt | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, net | $ 0 | $ 0 | $ 0 | |||||
Participation Debt | Line of Credit | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin on variable rate, percent | 2.25% |
Financing and Other Debt - Sc_2
Financing and Other Debt - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Jun. 30, 2021 | Jan. 01, 2021 | |
Debt Instrument [Line Items] | |||
Principal | $ 3,132,090 | $ 3,072,641 | |
Net carrying amount of Convertible Notes | $ 2,874,113 | ||
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Principal | 310,000 | 310,000 | |
Convertible Debt | Convertible Senior Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Principal | 310,000 | 310,000 | |
Less: Unamortized discounts | (66,755) | (13,733) | |
Less: Unamortized issuance cost | (2,358) | (2,211) | |
Net carrying amount of Convertible Notes | 240,887 | $ 294,056 | |
Equity component | 54,689 | ||
Debt financing costs | 600 | ||
Adjustments to additional paid in capital, equity component of convertible debt | $ 13,600 |
Financing and Other Debt - Sc_3
Financing and Other Debt - Schedule of Total Interest Expense for Convertible Note (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jul. 01, 2020 | |
Debt Instrument [Line Items] | |||
Operating interest | $ 1,400 | ||
Convertible Debt | Convertible Senior Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Interest on 6.5 percent coupon | $ 5,038 | 10,075 | |
Amortization of debt discount and debt issuance costs | 501 | 1,054 | |
Operating interest | $ 5,539 | $ 11,129 | |
Interest rate, stated percentage | 0.065% | 0.065% | 6.50% |
Off-Balance Sheet Arrangements
Off-Balance Sheet Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of factoring receivables | $ 400 | $ 200 | $ 600 | $ 2,900 |
WEX Europe Services | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of factoring receivables | 144.7 | 75.9 | 263.7 | 204.7 |
Gain (loss) on sale of factoring receivables | $ 0.7 | $ 0.4 | $ 1.3 | $ 1.1 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value and Related Hierarchy Levels (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Total investment securities | $ 36,931 | $ 37,273 |
Prepaid expenses and other current assets | ||
Financial Assets: | ||
Executive deferred compensation plan trust | 1,500 | 900 |
Other assets | ||
Financial Assets: | ||
Executive deferred compensation plan trust | 9,400 | 8,700 |
Interest Rate Swaps | ||
Financial Assets: | ||
Interest rate swaps | 5,900 | |
Interest Rate Swaps | Other current liabilities | ||
Liabilities | ||
Interest rate swaps | 25,100 | 22,000 |
Interest Rate Swaps | Other Liabilities | ||
Liabilities | ||
Interest rate swaps | 12,300 | 22,900 |
Level 1 | ||
Financial Assets: | ||
Executive deferred compensation plan trust | 10,877 | 9,586 |
Level 1 | Money market funds | ||
Financial Assets: | ||
Money market funds | 155 | 335,449 |
Level 1 | Fixed-income mutual fund | ||
Financial Assets: | ||
Total investment securities | 27,469 | 27,728 |
Level 2 | Municipal bonds | ||
Financial Assets: | ||
Total investment securities | 145 | 197 |
Level 2 | Asset-backed securities | ||
Financial Assets: | ||
Total investment securities | 186 | 210 |
Level 2 | Mortgage-backed securities | ||
Financial Assets: | ||
Total investment securities | 131 | 138 |
Level 2 | Interest Rate Swaps | ||
Financial Assets: | ||
Interest rate swaps | 5,858 | 0 |
Liabilities | ||
Interest rate swaps | 37,315 | 44,938 |
Level 3 | Contingent consideration derivative | ||
Liabilities | ||
Interest rate swaps | 74,900 | 0 |
Net Asset Value | Pooled investment fund measured at NAV | ||
Financial Assets: | ||
Total investment securities | $ 9,000 | $ 9,000 |
Fair Value - Pooled Investment
Fair Value - Pooled Investment Fund (Details) - Net Asset Value - Pooled Investment Fund $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
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 | $ 9,000 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) $ in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt, fair value | $ 392.2 | $ 405.6 |
Level 3 | Recurring | Valuation, Market Approach | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, liability, measurement input | 0.0141 |
Fair Value - Contingent Conside
Fair Value - Contingent Consideration Liability are Measured at Fair Value on a Recurring Basis Using Unobservable Inputs (Level 3) (Details) - Obligations $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Contingent consideration, beginning balance | $ 0 |
Contingent consideration recorded as a result of the acquisition | 27,200 |
Change in estimated fair value | 47,700 |
Contingent consideration, endling balance | $ 74,900 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest - Narrative (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Apr. 01, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Mar. 05, 2019 |
Noncontrolling Interest [Line Items] | ||||||
Repurchase of non-controlling interest | $ 11,200 | $ 11,191 | $ 0 | |||
Proceeds from noncontrolling interests | $ 12,500 | $ 12,457 | $ 0 | |||
Discovery Benefits | ||||||
Noncontrolling Interest [Line Items] | ||||||
Ownership percentage by noncontrolling interest | 4.90% | |||||
Discovery Benefits | Maximum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Call rights, exercise period | 7 years | |||||
Healthcare Bank | ||||||
Noncontrolling Interest [Line Items] | ||||||
Ownership percentage by noncontrolling interest | 4.53% | 4.53% |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest - Schedule of Redeemable Non-Controlling Interest (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Apr. 01, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Beginning balance | $ 142,616 | $ 142,616 | $ 117,219 | $ 159,645 | $ 156,879 | |
Net income attributable to redeemable non-controlling interest | 232 | 353 | 99 | 142 | ||
Change in value of redeemable non-controlling interest | 43,823 | 25,044 | (59,940) | 2,624 | ||
Repurchase of non-controlling interest | $ (11,200) | (11,191) | 0 | |||
Contribution from non-controlling interest | $ 12,500 | 12,457 | 0 | |||
Ending balance | $ 187,937 | $ 142,616 | $ 99,804 | $ 159,645 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | (7.90%) | 310.80% | (7.80%) | 104.60% | |
Undistributed earnings of certain foreign subsidiaries | $ 88.5 | $ 88.5 | $ 58.5 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Restructuring (reversals) charges | $ 5.4 | |
Incurred penalties | $ 1.5 | $ 3 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 04, 2021 | Mar. 21, 2021 | |
Share-based Payment Arrangement [Abstract] | ||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | 4,500,000 | 1,235,669 | ||||
Share-based payment arrangement, expense | $ 20.6 | $ 14.2 | $ 38.5 | $ 26.8 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Revenue b
Segment Information - Revenue by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 459,483 | $ 347,084 | $ 870,240 | $ 778,763 |
Interest income | 713 | 938 | 1,036 | 2,848 |
Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 274,388 | 204,380 | 518,225 | 454,227 |
Interest income | 705 | 635 | 1,016 | 1,901 |
Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 81,762 | 54,495 | 152,404 | 138,854 |
Interest income | 2 | 28 | 10 | 253 |
Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 103,333 | 88,209 | 199,611 | 185,682 |
Interest income | 6 | 275 | 10 | 694 |
Payment processing revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 213,426 | 147,461 | 401,815 | 351,498 |
Payment processing revenue | Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 126,450 | 90,147 | 237,026 | 203,470 |
Payment processing revenue | Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 68,282 | 43,261 | 125,530 | 113,529 |
Payment processing revenue | Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 18,694 | 14,053 | 39,259 | 34,499 |
Account servicing revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 132,997 | 109,479 | 251,620 | 223,319 |
Account servicing revenue | Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 42,293 | 36,694 | 82,284 | 75,902 |
Account servicing revenue | Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 11,222 | 10,183 | 21,909 | 21,246 |
Account servicing revenue | Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 79,482 | 62,602 | 147,427 | 126,171 |
Finance fee revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 59,499 | 42,711 | 111,652 | 98,638 |
Finance fee revenue | Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 59,258 | 42,463 | 111,098 | 97,805 |
Finance fee revenue | Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 199 | 220 | 493 | 755 |
Finance fee revenue | Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 42 | 28 | 61 | 78 |
Other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 53,561 | 47,433 | 105,153 | 105,308 |
Other revenue | Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 46,387 | 35,076 | 87,817 | 77,050 |
Other revenue | Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2,059 | 831 | 4,472 | 3,324 |
Other revenue | Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 5,115 | $ 11,526 | $ 12,864 | $ 24,934 |
Segment Information - Reconcili
Segment Information - Reconciliation of Adjusted Operating Income to Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | $ 184,102 | $ 113,399 | $ 339,919 | $ 269,389 |
Stock-based compensation | 38,515 | 26,752 | ||
Other costs | 5,400 | |||
Operating income | 82,278 | 28,782 | 132,819 | 103,611 |
Financing interest expense | (32,473) | (28,832) | (65,757) | (60,863) |
Net foreign currency gain (loss) | 1,342 | (2,462) | (1,413) | (31,189) |
Change in fair value of contingent consideration | (47,700) | 0 | (47,700) | 0 |
Net unrealized gain (loss) on financial instruments | 6,013 | (3,842) | 13,046 | (35,889) |
Income (loss) before income taxes | 9,460 | (6,354) | 30,995 | (24,330) |
Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | 137,865 | 77,180 | 256,123 | 181,788 |
Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | 17,157 | 10,961 | 24,172 | 32,876 |
Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | 29,080 | 25,258 | 59,624 | 54,725 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate expenses | 17,174 | 13,953 | 33,383 | 30,496 |
Acquisition-related intangible amortization | 45,294 | 42,478 | 87,748 | 85,016 |
Other acquisition and divestiture related items | 10,690 | 7,735 | 25,486 | 15,677 |
Debt restructuring costs | 5,299 | 687 | 5,936 | 765 |
Stock-based compensation | 21,662 | 15,069 | 40,605 | 26,889 |
Other costs | $ 1,705 | $ 4,695 | $ 13,942 | $ 6,935 |
Supplementary Regulatory Capi_3
Supplementary Regulatory Capital Disclosure (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | ||
Total Capital to risk-weighted assets, Actual Amount | $ 319,796 | $ 299,136 |
Total Capital to risk-weighted assets, Actual, Ratio | 0.1169 | 0.1504 |
Total Capital to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 218,761 | $ 159,148 |
Total Capital to risk-weighted assets, Minimum for Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
Total Capital to risk-weighted assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 273,451 | $ 198,935 |
Total Capital to risk-weighted assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.1000 | 0.1000 |
Tier 1 Capital to average assets, Actual Amount | $ 291,969 | $ 287,570 |
Tier 1 Capital to average assets, Actual, Ratio | 0.0994 | 0.1271 |
Tier 1 Capital to average assets, Minimum for Capital Adequacy Purposes Amount | $ 117,465 | $ 90,514 |
Tier 1 Capital to average assets, Minimum for Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
Tier 1 Capital to average assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 146,831 | $ 113,143 |
Tier 1 Capital to average assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provision, Ratio | 0.0500 | 0.0500 |
Common equity to risk-weighted assets, Actual Amount | $ 291,969 | $ 287,570 |
Common equity to risk-weighted assets, Actual, Ratio | 10.68% | 14.46% |
Common equity to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 123,053 | $ 89,521 |
Common equity to risk-weighted assets, Minimum for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common equity to risk-weighted assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 177,743 | $ 129,308 |
Common equity to risk-weighted assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital to risk-weighted assets, Actual Amount | $ 291,969 | $ 287,570 |
Tier 1 Capital to risk-weighted assets, Actual, Ratio | 0.1068 | 0.1446 |
Tier 1 Capital to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 164,071 | $ 119,361 |
Tier 1 Capital to risk-weighted assets, Minimum for Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
Tier 1 Capital to risk-weighted assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 218,761 | $ 159,148 |
Tier 1 capital to risk-weighted assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Ratio | 0.0800 | 0.0800 |