Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 20, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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, $0.01 par value | |
Trading Symbol | WEX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 43,593,058 | |
Entity Central Index Key | 0001309108 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Total revenues | $ 616,129 | $ 482,764 | $ 1,731,901 | $ 1,353,004 |
Cost of services | ||||
Processing costs | 146,316 | 121,207 | 416,258 | 347,177 |
Service fees | 16,614 | 14,246 | 47,220 | 39,151 |
Provision for credit losses | 54,030 | 14,127 | 121,856 | 32,148 |
Operating interest | 7,887 | 2,124 | 13,384 | 7,019 |
Depreciation and amortization | 27,265 | 28,226 | 79,900 | 83,871 |
Total cost of services | 252,112 | 179,930 | 678,618 | 509,366 |
General and administrative | 86,506 | 79,486 | 248,651 | 245,460 |
Sales and marketing | 80,882 | 82,225 | 235,267 | 246,177 |
Depreciation and amortization | 38,855 | 40,301 | 118,186 | 118,360 |
Impairment charges | 136,486 | 0 | 136,486 | 0 |
Operating income | 21,288 | 100,822 | 314,693 | 233,641 |
Financing interest expense | (34,419) | (32,493) | (95,928) | (98,250) |
Change in fair value of contingent consideration | (30,300) | 2,800 | (135,100) | (44,900) |
Other income | 0 | 3,617 | 0 | 3,617 |
Net foreign currency loss | (23,445) | (9,962) | (37,847) | (11,375) |
Net unrealized gain on financial instruments | 23,540 | 6,424 | 90,261 | 19,470 |
(Loss) income before income taxes | (43,336) | 71,208 | 136,079 | 102,203 |
Income tax expense | 809 | 19,340 | 57,309 | 16,924 |
Net (loss) income | (44,145) | 51,868 | 78,770 | 85,279 |
Less: Net income from non-controlling interests | 0 | 134 | 268 | 1,099 |
Net (loss) income attributable to WEX Inc. | (44,145) | 51,734 | 78,502 | 84,180 |
Change in value of redeemable non-controlling interest | 0 | (3,416) | 34,245 | (72,283) |
Net (loss) income attributable to shareholders | $ (44,145) | $ 48,318 | $ 112,747 | $ 11,897 |
Net (loss) income attributable to shareholders per share: | ||||
Basic (in dollars per share) | $ (1) | $ 1.08 | $ 2.53 | $ 0.27 |
Diluted (in dollars per share) | $ (1) | $ 1.07 | $ 2.51 | $ 0.26 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 44,229 | 44,861 | 44,644 | 44,664 |
Diluted (in shares) | 44,229 | 45,279 | 44,972 | 45,334 |
Payment processing revenue | ||||
Revenues | ||||
Total revenues | $ 309,032 | $ 226,126 | $ 860,815 | $ 627,941 |
Account servicing revenue | ||||
Revenues | ||||
Total revenues | 138,324 | 137,724 | 415,903 | 389,344 |
Finance fee revenue | ||||
Revenues | ||||
Total revenues | 96,698 | 67,769 | 260,590 | 179,421 |
Other revenue | ||||
Revenues | ||||
Total revenues | $ 72,075 | $ 51,145 | $ 194,593 | $ 156,298 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (44,145) | $ 51,868 | $ 78,770 | $ 85,279 |
Other comprehensive loss, net of tax: | ||||
Unrealized losses on available-for-sale debt securities | (56,764) | 0 | (150,495) | 0 |
Foreign currency translation | (42,331) | (20,368) | (83,769) | (29,927) |
Other comprehensive loss, net of tax | (99,095) | (20,368) | (234,264) | (29,927) |
Comprehensive (loss) income | (143,240) | 31,500 | (155,494) | 55,352 |
Less: Comprehensive income attributable to non-controlling interests | 0 | 134 | 268 | 781 |
Comprehensive (loss) income attributable to WEX Inc. | $ (143,240) | $ 31,366 | $ (155,762) | $ 54,571 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 759,375 | $ 588,923 |
Restricted cash | 942,132 | 667,915 |
Accounts receivable (net of allowances of $102,260 in 2022 and $66,306 in 2021) | 3,830,178 | 2,891,242 |
Investment securities | 1,379,411 | 948,677 |
Securitized accounts receivable, restricted | 143,252 | 125,186 |
Prepaid expenses and other current assets | 144,379 | 77,569 |
Total current assets | 7,198,727 | 5,299,512 |
Property, equipment and capitalized software (net of accumulated depreciation of $514,607 in 2022 and $458,093 in 2021) | 186,819 | 179,531 |
Goodwill | 2,702,998 | 2,908,057 |
Other intangible assets (net of accumulated amortization of $1,123,052 in 2022 and $1,009,601 in 2021) | 1,513,689 | 1,643,296 |
Investment securities | 36,005 | 39,650 |
Deferred income taxes, net | 20,667 | 5,635 |
Other assets | 250,243 | 231,147 |
Total assets | 11,909,148 | 10,306,828 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 1,561,033 | 1,021,911 |
Accrued expenses | 567,036 | 476,971 |
Restricted cash payable | 942,153 | 668,014 |
Short-term deposits | 3,145,770 | 2,026,420 |
Short-term debt, net | 156,483 | 155,769 |
Other current liabilities | 41,782 | 50,614 |
Total current liabilities | 6,414,257 | 4,399,699 |
Long-term debt, net | 2,644,478 | 2,695,365 |
Long-term deposits | 489,942 | 652,214 |
Deferred income taxes, net | 155,536 | 192,965 |
Other liabilities | 573,849 | 273,706 |
Total liabilities | 10,278,062 | 8,213,949 |
Commitments and contingencies | ||
Redeemable non-controlling interest | 0 | 254,106 |
Stockholders’ Equity | ||
Common stock $0.01 par value; 175,000 shares authorized; 49,512 shares issued in 2022 and 49,255 in 2021; 44,130 shares outstanding in 2022 and 44,827 in 2021 | 495 | 492 |
Additional paid-in capital | 907,486 | 844,051 |
Retained earnings | 1,401,836 | 1,289,089 |
Accumulated other comprehensive loss | (356,781) | (122,517) |
Treasury stock at cost; 5,382 and 4,428 shares in 2022 and 2021, respectively | (321,950) | (172,342) |
Total stockholders’ equity | 1,631,086 | 1,838,773 |
Total liabilities and stockholders’ equity | $ 11,909,148 | $ 10,306,828 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowances | $ 102,260 | $ 66,306 |
Property, equipment and capitalized software, accumulated depreciation | 514,607 | 458,093 |
Accumulated amortization | $ 1,123,052 | $ 1,009,601 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 175,000 | 175,000 |
Common stock, shares issued (in shares) | 49,512 | 49,255 |
Common stock, shares, outstanding (in shares) | 44,130 | 44,827 |
Treasury stock, shares (in shares) | 5,382 | 4,428 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Issued | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Treasury Stock | Retained Earnings | Non-Controlling Interest |
Beginning balance (in shares) at Dec. 31, 2020 | 48,616 | ||||||
Beginning balance at Dec. 31, 2020 | $ 1,877,911 | $ 485 | $ 830,729 | $ (82,935) | $ (172,342) | $ 1,288,952 | $ 13,022 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued under share-based compensation plans (in shares) | 394 | ||||||
Stock issued under share-based compensation plans | 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 (loss) | 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 |
Beginning balance (in shares) at Dec. 31, 2020 | 48,616 | ||||||
Beginning balance at Dec. 31, 2020 | 1,877,911 | $ 485 | 830,729 | (82,935) | (172,342) | 1,288,952 | 13,022 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Unrealized losses on available-for-sale debt securities | 0 | ||||||
Foreign currency translation | (29,927) | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 49,245 | ||||||
Ending balance at Sep. 30, 2021 | 1,844,245 | $ 491 | 830,074 | (114,827) | (172,342) | 1,300,849 | 0 |
Beginning balance (in shares) at Mar. 31, 2021 | 49,010 | ||||||
Beginning 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 under share-based compensation plans (in shares) | 214 | ||||||
Stock issued under share-based compensation plans | 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 (loss) | 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued under share-based compensation plans (in shares) | 21 | ||||||
Stock issued under share-based compensation plans | 704 | 704 | |||||
Share repurchases for tax withholdings | (1,066) | (1,066) | |||||
Stock-based compensation expense | 21,735 | 21,735 | |||||
Unrealized losses on available-for-sale debt securities | 0 | ||||||
Change in value of redeemable non-controlling interest | (3,416) | (3,416) | |||||
Foreign currency translation | (20,368) | (20,368) | |||||
Net income (loss) | 51,734 | 51,734 | |||||
Ending balance (in shares) at Sep. 30, 2021 | 49,245 | ||||||
Ending balance at Sep. 30, 2021 | $ 1,844,245 | $ 491 | 830,074 | (114,827) | (172,342) | 1,300,849 | 0 |
Beginning balance (in shares) at Dec. 31, 2021 | 49,255 | 49,255 | |||||
Beginning balance at Dec. 31, 2021 | $ 1,838,773 | $ 492 | 844,051 | (122,517) | (172,342) | 1,289,089 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued under share-based compensation plans (in shares) | 154 | ||||||
Stock issued under share-based compensation plans | 772 | $ 2 | 770 | ||||
Share repurchases for tax withholdings | (12,178) | (12,178) | |||||
Stock-based compensation expense | 23,682 | 23,682 | |||||
Unrealized losses on available-for-sale debt securities | (51,668) | (51,668) | |||||
Change in value of redeemable non-controlling interest | 34,245 | 34,245 | |||||
Foreign currency translation | 4,306 | 4,306 | 0 | ||||
Net income (loss) | 88,518 | 88,518 | 0 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 49,409 | ||||||
Ending balance at Mar. 31, 2022 | $ 1,926,450 | $ 494 | 856,325 | (169,879) | (172,342) | 1,411,852 | 0 |
Beginning balance (in shares) at Dec. 31, 2021 | 49,255 | 49,255 | |||||
Beginning balance at Dec. 31, 2021 | $ 1,838,773 | $ 492 | 844,051 | (122,517) | (172,342) | 1,289,089 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Purchase of shares of treasury stock | (149,608) | ||||||
Unrealized losses on available-for-sale debt securities | (150,495) | ||||||
Foreign currency translation | $ (83,769) | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 49,512 | 49,512 | |||||
Ending balance at Sep. 30, 2022 | $ 1,631,086 | $ 495 | 907,486 | (356,781) | (321,950) | 1,401,836 | 0 |
Beginning balance (in shares) at Mar. 31, 2022 | 49,409 | ||||||
Beginning balance at Mar. 31, 2022 | 1,926,450 | $ 494 | 856,325 | (169,879) | (172,342) | 1,411,852 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued under share-based compensation plans (in shares) | 73 | ||||||
Stock issued under share-based compensation plans | 2,325 | $ 1 | 2,324 | ||||
Share repurchases for tax withholdings | (3,053) | (3,053) | |||||
Purchase of shares of treasury stock | (80,599) | (80,599) | |||||
Stock-based compensation expense | 24,922 | 24,922 | |||||
Unrealized losses on available-for-sale debt securities | (42,063) | (42,063) | |||||
Foreign currency translation | (45,744) | (45,744) | |||||
Net income (loss) | 34,129 | 34,129 | |||||
Ending balance (in shares) at Jun. 30, 2022 | 49,482 | ||||||
Ending balance at Jun. 30, 2022 | 1,816,367 | $ 495 | 880,518 | (257,686) | (252,941) | 1,445,981 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued under share-based compensation plans (in shares) | 30 | ||||||
Stock issued under share-based compensation plans | 682 | 682 | |||||
Share repurchases for tax withholdings | (1,870) | (1,870) | |||||
Purchase of shares of treasury stock | (69,009) | (69,009) | |||||
Stock-based compensation expense | 28,156 | 28,156 | |||||
Unrealized losses on available-for-sale debt securities | (56,764) | (56,764) | |||||
Foreign currency translation | (42,331) | (42,331) | |||||
Net income (loss) | $ (44,145) | (44,145) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 49,512 | 49,512 | |||||
Ending balance at Sep. 30, 2022 | $ 1,631,086 | $ 495 | $ 907,486 | $ (356,781) | $ (321,950) | $ 1,401,836 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Redeemable non-controlling interest, net of tax expense | $ 3.5 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Cash flows from operating activities | |||
Net income | $ 78,770 | $ 85,279 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Change in fair value of contingent consideration | 135,100 | 44,900 | |
Stock-based compensation | 76,760 | 60,250 | |
Depreciation and amortization | 198,086 | 202,231 | |
Gain on sale of equity investment | 0 | (3,617) | |
Amortization of premiums on investment securities | 3,958 | 0 | |
Debt issuance cost amortization and accretion expense | 12,595 | 13,315 | |
Deferred tax benefit | (54,085) | (8,829) | |
Provision for credit losses | 121,856 | 32,148 | |
Impairment charges | 136,486 | 0 | |
Other non-cash gains | (58,159) | (7,499) | |
Changes in operating assets and liabilities, net of effects of business acquisitions: | |||
Accounts receivable and securitized accounts receivable | (1,147,791) | (1,138,233) | |
Prepaid expenses and other current and other long-term assets | (11,233) | 13,212 | |
Accounts payable | 568,438 | 517,455 | |
Accrued expenses and restricted cash payable | 389,896 | 211,855 | |
Income taxes | 10,838 | (12,363) | |
Other current and other long-term liabilities | (4,871) | (20,459) | |
Net cash provided by (used for) operating activities | 456,644 | (10,355) | |
Cash flows from investing activities | |||
Purchases of property, equipment and capitalized software | (75,476) | (55,484) | |
Cash proceeds from sale of equity investment | 0 | 3,117 | |
Purchases of equity securities | (267) | (250) | |
Maturities of equity securities | 0 | 130 | |
Purchases of available-for-sale debt securities | (632,782) | 0 | |
Sales and maturities of available-for-sale debt securities | 47,972 | 0 | |
Acquisition of intangible assets | (3,338) | 0 | |
Acquisitions, net of cash and restricted cash acquired | 0 | (558,247) | |
Net cash used for investing activities | (663,891) | (610,734) | |
Cash flows from financing activities | |||
Repurchase of share-based awards to satisfy tax withholdings | (17,101) | (23,012) | |
Purchase of treasury shares | (149,608) | 0 | |
Proceeds from stock option exercises | 3,779 | 43,744 | |
Net change in deposits | 960,551 | 558,042 | |
Net activity on other debt | 28,448 | 21,500 | |
Borrowings on revolving credit facility | 1,825,400 | 1,176,300 | |
Repayments on revolving credit facility | (1,856,999) | (962,900) | |
Borrowings on term loans | 0 | 112,819 | |
Repayments on term loans | (47,506) | (47,824) | |
Redemption of Notes | 0 | (400,000) | |
Debt issuance costs | 0 | (8,934) | |
Net change in securitized debt | 6,417 | 8,004 | |
Net cash provided by financing activities | 753,381 | 477,739 | |
Effect of exchange rates on cash, cash equivalents and restricted cash | (101,465) | (24,037) | |
Net change in cash, cash equivalents and restricted cash | 444,669 | (167,387) | |
Cash, cash equivalents and restricted cash at beginning of period | [1] | 1,256,838 | 1,329,653 |
Cash, cash equivalents and restricted cash at end of period | [1] | 1,701,507 | 1,162,266 |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |||
Capital expenditures incurred but not paid | 7,364 | 5,451 | |
Initial deferred liability from acquisition of remaining interest in PO Holding | 216,594 | 0 | |
Non-cash contribution from non-controlling interest | 0 | 12,457 | |
Deferred cash consideration as part of asset acquisition | 0 | 47,408 | |
Contingent consideration as part of asset acquisition | 0 | 27,200 | |
Promissory note received in exchange for sale of equity investment | 0 | 500 | |
Cash, Cash Equivalents, Restricted Cash And Restricted Cash Equivalents [Roll Forward] | |||
Cash and cash equivalents at beginning of period | 588,923 | 852,033 | |
Restricted cash at beginning of period | 667,915 | 477,620 | |
Cash, cash equivalents and restricted cash at beginning of period | [1] | 1,256,838 | 1,329,653 |
Cash and cash equivalents at end of period | 759,375 | 533,830 | |
Restricted cash at end of period | 942,132 | 628,436 | |
Cash, cash equivalents and restricted cash at end of period | [1] | $ 1,701,507 | $ 1,162,266 |
[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 | 9 Months Ended |
Sep. 30, 2022 | |
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 exclude certain disclosures required by GAAP for a complete set of financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements that are included in the Company’s Annual Report on Form 10–K for the year ended December 31, 2021, filed with the SEC on March 1, 2022. In the opinion of management, all adjustments considered necessary for a fair presentation in accordance with GAAP, which are of a normal recurring nature, have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results for any future periods or the year ending December 31, 2022. We have applied the same accounting policies in preparing these quarterly financial statements as we did in preparing our 2021 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements and Supplemental Information | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements and Supplemental Information | 2. Recent Accounting Pronouncements and Supplemental Information Recent Accounting Pronouncements The following table provides a brief description of (i) recent accounting pronouncements adopted during the nine months ended September 30, 2022 and (ii) those not yet adopted, that could have a material effect on our financial statements. Standard Description Date of Adoption Method of adoptions and effect on financial statements or other significant matters Adopted During the Nine Months Ended September 30, 2022 ASU 2021-08, Business Combinations This standard requires acquirers within the scope of Subtopic 805-10, Business Combinations to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. This will generally result in an acquirer recognizing and measuring acquired contract assets and liabilities consistent with how they were recognized and measured in an acquiree’s financial statements if such financial statements were prepared in accordance with GAAP. Previously, contract assets and contract liabilities acquired were recognized at their fair value on the acquisition date. Effective for fiscal years beginning after December 15, 2022. The Company early adopted this ASU effective January 1, 2022. Adoption had no material effect on the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2022. The guidelines of this ASU will be applied prospectively for business combinations in the scope of ASC 805. Not Adopted as of September 30, 2022 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 optional and 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. The Company has not yet determined if it will adopt these standards, which are not expected to have a material effect on the Company’s condensed consolidated financial statements. Impairment of Goodwill Our goodwill is tested for impairment annually as of October 1, or more frequently, if events or conditions indicate the carrying amount of goodwill may not be recoverable. During the third quarter of 2022, certain triggering events were identified in our international fleet reporting units, including increasing interest rates, decreasing market valuations and inflationary pressures, leading to a decline in projected cash flows primarily in Europe, requiring us to perform an interim impairment test. We compared the carrying value of each reporting unit with assigned goodwill to its fair value, which was estimated using a combination of an income-based discounted cash flow method and a market-based guideline public company method. As a result of the financial impacts of the identified triggering events, our test concluded that the carrying value of two of our reporting units exceeded their estimated fair value, resulting in the recognition of an estimated impairment charge of $136.5 million to our Fleet Solutions segment. No triggering events were identified during the third quarter of 2022 with respect to our other reporting units. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2022 | |
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 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, substantially all of which relate to services transferred to the customer over time: Three Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 188,586 $ 101,533 $ 18,913 $ 309,032 Account servicing revenue 4,718 10,748 85,944 101,410 Other revenue 21,337 66 7,511 28,914 Total Topic 606 revenues $ 214,641 $ 112,347 $ 112,368 $ 439,356 Non-Topic 606 revenues 163,453 1,628 11,692 176,773 Total revenues $ 378,094 $ 113,975 $ 124,060 $ 616,129 Three Months Ended September 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 130,006 $ 79,815 $ 16,305 $ 226,126 Account servicing revenue 4,457 10,908 83,145 98,510 Other revenue 21,376 (636) 5,909 26,649 Total Topic 606 revenues $ 155,839 $ 90,087 $ 105,359 $ 351,285 Non-Topic 606 revenues 130,522 915 42 131,479 Total revenues $ 286,361 $ 91,002 $ 105,401 $ 482,764 Nine Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 542,851 $ 255,216 $ 62,748 $ 860,815 Account servicing revenue 13,620 31,906 256,062 301,588 Other revenue 63,511 461 23,940 87,912 Total Topic 606 revenues $ 619,982 $ 287,583 $ 342,750 $ 1,250,315 Non-Topic 606 revenues 456,474 4,053 21,059 481,586 Total revenues $ 1,076,456 $ 291,636 $ 363,809 $ 1,731,901 Nine Months Ended September 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 367,032 $ 205,345 $ 55,564 $ 627,941 Account servicing revenue 13,162 32,817 230,572 $ 276,551 Other revenue 64,044 2,820 18,763 85,627 Total Topic 606 revenues $ 444,238 $ 240,982 $ 304,899 $ 990,119 Non-Topic 606 revenues 360,348 2,424 113 362,885 Total revenues $ 804,586 $ 243,406 $ 305,012 $ 1,353,004 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 our 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 to customers under long-term contracts and are recorded upon the later of when the Company recognizes revenue for the transfer of the related goods or services or when the Company pays or promises to pay the consideration. The resulting asset is amortized against revenue as the Company satisfies its performance obligations under these arrangements. The Company’s contract liabilities consist of customer payments received before the Company has satisfied the associated performance obligations. The following table provides information about these contract balances: (In thousands) Contract balance Location on the condensed consolidated balance sheets September 30, 2022 December 31, 2021 Receivables Accounts receivable, net $ 47,917 $ 49,303 Contract assets Prepaid expenses and other current assets 19,406 8,975 Contract assets Other assets 35,005 40,718 Contract liabilities Other current liabilities 5,301 9,123 Contract liabilities Other liabilities 71,721 58,900 During the three and nine months ended September 30, 2022, the Company recognized revenue of $9.6 million and $18.7 million, respectively, related to contract liabilities existing as of December 31, 2021. Remaining Performance Obligations The Company’s unsatisfied or partially unsatisfied performance obligations as of September 30, 2022 represent the remaining minimum monthly fees on a portion of contracts across the lines of business, deferred revenue associated with stand ready payment processing obligations 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. (In thousands) Remaining 2022 2023 2024 2025 2026 2027 Thereafter Total Minimum monthly fees 1 $ 18,273 $ 45,106 $ 27,442 $ 14,298 $ 4,885 $ 3,687 $ 1,500 $ 115,191 Professional services 2 2,083 2,249 4 4 1 — — 4,341 Other 3 375 3,472 8,453 18,478 27,313 35,943 5,929 99,963 Total remaining performance obligations $ 20,731 $ 50,827 $ 35,899 $ 32,780 $ 32,199 $ 39,630 $ 7,429 $ 219,495 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. Consideration associated with certain relationships is variable and the measurement and estimation of contract consideration is contingent upon payment processing volumes and maintaining volume shares, among others. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 4. Acquisitions 2022 Transactions Asset Acquisition During June 2022, the Company entered into a definitive agreement to purchase a portfolio of certain assets, consisting primarily of branded commercial fleet cards from a third-party. During September 2022, the Company closed on the acquisition of these receivables, paying the seller a preliminary purchase price of $45.1 million, consisting of the face value of the account balances as of the valuation date, plus certain customary adjustments, as defined in the purchase agreement. The actual amount of accounts receivable purchased was less than the balances as of the valuation date, therefore, the Company expects to receive back within the next twelve months approximately $4.3 million in excess funds transferred at closing from the seller. We accounted for this transaction under the asset acquisition method of accounting and have allocated the total cost of the acquisition as follows: (In thousands) Cash consideration transferred to seller $ 45,083 Add: transaction costs 819 Total consideration $ 45,902 Accounts receivable, net of allowance 1, 2 $ 38,282 Receivable due back from seller 1, 2 4,282 Customer relationship intangible asset 3 3,338 $ 45,902 1 Recorded within accounts receivable in the condensed consolidated balance sheet. 2 The accounts receivable purchased have been included within operating activities in the condensed consolidated statement of cash flows. 3 The intangible asset will be amortized to expense over a three-year life. Acquisition of Remaining Interest in PO Holding On March 7, 2022, WEX Inc. and SBI entered into a share purchase agreement (the “Share Purchase Agreement”) whereby WEX Inc. purchased SBI’s remaining 4.53 percent interest in PO Holding for a purchase price of $234.0 million plus any interest accruing pursuant to the terms of the Share Purchase Agreement. The purchase price is payable in three installments of $76.7 million in each of March 2024, 2025 and 2026, with a final payment of $4.0 million also payable in March 2026. Pursuant to the Share Purchase Agreement, WEX Inc. owes SBI interest on the outstanding purchase price balance from March 2024 to March 2025 at the 12-month Secured Overnight Financing Rate (“SOFR”) (as determined on March 1, 2024) plus 1.25 percent and on the outstanding balance from March 2025 to March 2026 at the 12-month SOFR rate (as determined on March 3, 2025) plus 2.25 percent, except that no interest accrues on the $4.0 million payment due in March 2026. Using a discount rate of 3.4 percent as of the acquisition date, the Company recorded the deferred liability under this Share Purchase Agreement at its initial net present value of $216.6 million. The associated discount relative to the purchase price is being amortized as interest expense using the effective interest method over the repayment term. This transaction makes PO Holding, the direct parent of WEX Health, a wholly owned subsidiary of WEX Inc. to which the Company is solely entitled to the economic benefits. See Note 14, Redeemable Non-Controlling Interest, for more information. 2021 Transactions Asset Acquisition On April 1, 2021, WEX Inc. completed the acquisition of certain contractual rights to serve as custodian or sub-custodian to over $3 billion of HSAs from the HealthcareBank division of Bell Bank, which is owned by State Bankshares, Inc. This acquisition increased 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. The Company is required to make two additional cash payments to Bell Bank in association with this acquisition of $25.0 million in July 2023 and $12.5 million in January 2024, which are reflected within accrued expenses and other liabilities, respectively, on the condensed consolidated balance sheet as of September 30, 2022. The purchase agreement also includes potential additional consideration payable to Bell Bank 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 extends 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 rights asset as of the acquisition date, with a weighted average life of 5.6 years. As part of this acquisition WEX Inc. allocated $11.2 million of the initial cash consideration to the repurchase of SBI’s then non-controlling interest in the U.S. Health business, reducing SBI’s ownership percentage to 4.53 percent at that time. 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. See Note 13, Fair Value, for further information on the valuation of the derivative liability. 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 acquired the remaining interest in WEX Europe Services, 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 as 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, resulting in a reduction of additional paid-in capital by $81.6 million, a $13.1 million elimination of the 25 percent non-controlling interest in WEX Europe Services and a reduction of accumulated other comprehensive income by $2.3 million. 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, 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 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. The benefitexpress Acquisition has 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. The table below summarizes the allocation of such fair value of assets acquired and liabilities assumed. No measurement period adjustments were recorded during the six months ended June 30, 2022, when the purchase accounting for the acquisition became final. The following is a summary of the final allocation of the purchase price to the assets and liabilities acquired, based on the fair value at the date of acquisition: (In thousands) Cash consideration transferred, net of $15.0 million in cash and restricted cash acquired $ 259,061 Less: Accounts receivable 3,103 Customer relationships (1)(4) 84,400 Developed technologies (2)(4) 19,600 Non-compete (3)(4) 2,150 Other assets 4,387 Accrued expenses (3,498) Restricted cash payable (14,328) Other liabilities (5,177) Recorded goodwill $ 168,424 (1) Weighted average life - 9.3 years. (2) Weighted average life - 3.6 years. (3) Weighted average life - 2.5 years. (4) The weighted average life of the $106.2 million of amortizable intangible assets acquired in this business combination is 8.1 years. |
Accounts Receivable, Net of All
Accounts Receivable, Net of Allowances | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net of Allowances | 5. Accounts Receivable, Net of Allowances 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 by paying the merchant for the purchase price less the fees it retains and records as revenue, then subsequently collecting the total purchase price from the cardholder. The Company also extends revolving credit to certain small fleets. The Company had approximately $182.6 million and $93.7 million in gross receivables with revolving credit balances as of September 30, 2022 and December 31, 2021, respectively. The gross receivables balance as of September 30, 2022 is inclusive of the accounts acquired as part of the asset acquisition discussed in Note 4, Acquisitions. The allowance for accounts receivable consists of reserves for both credit and fraud losses, reflecting management’s current estimate of uncollectible balances on its accounts receivable. The following tables present changes in the accounts receivable allowances by portfolio segment: Three Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 89,224 $ 10,396 $ 987 $ 100,607 Net provision for credit losses 1 53,002 684 344 54,030 Charges to other accounts 2 11,296 — — 11,296 Charge-offs (65,093) (787) (164) (66,044) Recoveries of amounts previously charged-off 3,572 — 8 3,580 Currency translation (637) (572) — (1,209) Balance, end of period $ 91,364 $ 9,721 $ 1,175 $ 102,260 Three Months Ended September 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 49,716 $ 7,519 $ 536 $ 57,771 Provision for credit losses 1 10,231 3,816 80 14,127 Charges to other accounts 2 4,046 5 — 4,051 Charge-offs (10,872) (602) (92) (11,566) Recoveries of amounts previously charged-off 1,691 163 53 1,907 Currency translation (392) (206) — (598) Balance, end of period $ 54,420 $ 10,695 $ 577 $ 65,692 Nine Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 55,758 $ 9,931 $ 617 $ 66,306 Provision for credit losses 1 118,672 2,105 1,079 121,856 Charges to other accounts 2 29,913 169 (101) 29,981 Charge-offs (120,388) (1,234) (438) (122,060) Recoveries of amounts previously charged-off 8,802 — 18 8,820 Currency translation (1,393) (1,250) — (2,643) Balance, end of period $ 91,364 $ 9,721 $ 1,175 $ 102,260 Nine Months Ended September 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 26,359 5,568 221 32,148 Charges to other accounts 2 12,267 5 — 12,272 Charge-offs (37,239) (4,462) (120) (41,821) Recoveries of amounts previously charged-off 4,572 176 206 4,954 Currency translation (806) (202) — (1,008) Balance, end of period $ 54,420 $ 10,695 $ 577 $ 65,692 1 The provision is comprised of estimated credit losses based on the Company’s loss-rate experience and includes 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 relationship goodwill. Charges to other accounts substantially represent the offset against the late fee revenue recognized when the Company establishes a reserve for such waived amounts. Concentration of Credit Risk The receivables portfolio primarily consists of a large group of homogeneous balances across a wide range of industries, which are collectively evaluated for impairment. No individual customer had a receivable balance representing 10 percent or more of the outstanding receivables balance at September 30, 2022 or December 31, 2021. The following table presents the outstanding balance of trade accounts receivable that are less than 30 and 60 days past due, shown in each case as a percentage of total trade accounts receivable: Delinquency Status September 30, 2022 December 31, 2021 Less than 30 days past due 98 % 98 % Less than 60 days past due 99 % 99 % |
Repurchases of Common Stock
Repurchases of Common Stock | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Repurchases of Common Stock | 6. Repurchases of Common Stock Under share buyback plans authorized by our board of directors from time to time, the Company may repurchase up to specified dollar values of shares of its common stock through open market purchases, privately negotiated transactions, block trades or otherwise. The number of shares repurchased by the Company during the three and nine months ended September 30, 2022 pursuant to repurchase programs have been recorded as treasury stock in our condensed consolidated balance sheet and are included in the following table. There were no shares repurchased pursuant to repurchase programs during the three and nine months ended September 30, 2021. (In thousands, except for per share amounts) Shares Total Cost Average Cost Per Share Treasury stock purchased during the three months ended September 30, 2022 434 $ 69,009 $ 158.79 Treasury stock purchased during the nine months ended September 30, 2022 954 $ 149,608 $ 156.76 |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 7. 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 upon conversion of the Convertible Notes under the “if-converted” method, unless the effect is anti-dilutive. Additionally, diluted earnings per share includes the assumed exercise of dilutive options, the assumed issuance of unvested restricted stock units, performance-based awards for which the performance condition has been met as of the date of determination and contingently issuable shares that would be issuable if the end of the reporting period was the end of the contingency period, using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options and the average unrecognized compensation expense for unvested share-based compensation awards, would be used to purchase the Company’s common stock at the average market price during the period. The following table summarizes net (loss) income attributable to shareholders and reconciles basic and diluted shares outstanding used in the earnings per share computations: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Net (loss) income attributable to shareholders $ (44,145) $ 48,318 $ 112,747 $ 11,897 Weighted average common shares outstanding – Basic 44,229 44,861 44,644 44,664 Dilutive impact of share-based compensation awards 1 — 418 328 670 Weighted average common shares outstanding – Diluted 2, 3 44,229 45,279 44,972 45,334 1 For the three months ended September 30, 2022, 0.3 million incremental shares, which would otherwise have been dilutive but for the Company’s net loss position, are excluded from the table above as the effect of including those shares would be anti-dilutive. 2 For both the three and nine months ended September 30, 2022, 0.6 million 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 nine months ended September 30, 2021, 0.7 million and 0.9 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 | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 8. Derivative Instruments The Company is exposed to certain market risks relating to its ongoing business operations. From time to time, the Company enters into derivative instrument arrangements to manage various risks including interest rate risk. Interest rate swap contracts The Company has entered into interest rate swap contracts to manage the interest rate risk associated with its outstanding variable-interest rate borrowings. Such 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. A summary of the Company’s interest rate swap contracts with a collective notional amount of $1.9 billion outstanding as of September 30, 2022 is as follows: Contract Inception Contract End Fixed Interest Rates 1 Notional Amount at inception ( in thousands ) December 2017 December 2022 2.204% $ 300,000 March 2020 March 2023 1.954% 150,000 March 2019 March 2023 1.956% 100,000 March 2019 March 2023 2.413% 200,000 March 2020 December 2023 1.862% 200,000 May 2021 May 2024 0.435% 150,000 May 2021 May 2024 0.440% 150,000 May 2021 May 2025 0.678% 300,000 May 2021 May 2026 0.909% 150,000 May 2021 May 2026 0.910% 150,000 1 Fixed interest rates 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 interest rate swap gains and losses: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations 2022 2021 2022 2021 Interest rate swap contracts – unrealized portion Net unrealized gain on financial instruments $ 24,610 $ 6,527 $ 93,481 $ 20,008 Interest rate swap contracts – realized portion Financing interest expense $ 3,721 $ (7,037) $ (5,191) $ (18,575) 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 13, Fair Value, for more information regarding the valuation of the Company’s derivatives. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Deposits | 9. 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 19, Supplementary Regulatory Capital Disclosure, for further information concerning these FDIC requirements. WEX Bank accepts its deposits through certain customers as required collateral for credit that has been extended (“customer deposits”) and contractual arrangements for brokered and non-brokered certificate of deposit and money market deposit products. Additionally, WEX Bank holds HSA deposits. Customer deposits are generally non-interest bearing, certificates of deposit are issued at fixed rates, money market deposits are issued at both fixed and variable interest rates based on LIBOR or the Federal Funds rate and HSA deposits are issued at rates as defined within the consumer account agreements. The following table presents the composition of deposits, which are classified as short-term or long-term based on their contractual maturities: (In thousands) September 30, 2022 December 31, 2021 Customer deposits $ 142,700 $ 129,180 Contractual deposits with maturities within 1 year 1,2 706,971 566,427 Interest-bearing money market deposits 1 226,097 370,813 HSA deposits 3 2,070,002 960,000 Short-term contractual deposits 3,145,770 2,026,420 Contractual deposits with maturities greater than 1 year and less than 5 years 1,2 489,942 652,214 Total deposits $ 3,635,712 $ 2,678,634 Weighted average cost of HSA deposits outstanding 0.05 % 0.03 % Weighted average cost of funds on contractual deposits outstanding 1.41 % 0.48 % Weighted average cost of interest-bearing money market deposits outstanding 3.10 % 0.20 % 1 As of September 30, 2022 and December 31, 2021, all certificates of deposit and money market deposits were in denominations of $250,000 or less, corresponding to FDIC deposit insurance limits. 2 Includes certificates of deposit and certain money market deposits, which have a fixed maturity and interest rate. 3 Deposits held associated with the HSA custodial assets. HSA deposits are recorded within short-term deposits on the condensed consolidated balance sheet as the funds can be withdrawn by the account holders on demand. |
Financing and Other Debt
Financing and Other Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Financing and Other Debt | 10. Financing and Other Debt The following table summarizes the Company’s total outstanding debt by type as of September 30, 2022 and December 31, 2021. (In thousands) September 30, 2022 December 31, 2021 Term loans: Tranche A Term Loans $ 905,050 $ 941,742 Tranche B Term Loans 1,420,370 1,431,185 Total term loans $ 2,325,420 $ 2,372,927 Borrowings on Revolving Credit Facility 88,200 119,800 Convertible Notes 310,000 310,000 Securitized debt 93,896 100,861 Participation debt 29,948 1,500 Total gross debt 1 $ 2,847,464 $ 2,905,088 1 See Note 13, Fair Value, for 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) September 30, 2022 December 31, 2021 Current portion of gross debt $ 166,452 $ 165,703 Less: Unamortized debt issuance costs/debt discount (9,969) (9,934) Short-term debt, net $ 156,483 $ 155,769 Long-term portion of gross debt $ 2,681,012 $ 2,739,385 Less: Unamortized debt issuance costs/debt discount (36,534) (44,020) Long-term debt, net $ 2,644,478 $ 2,695,365 Supplemental information: Letters of credit 1 $ 30,988 $ 51,392 Remaining borrowing capacity on Revolving Credit Facility 2 $ 810,812 $ 758,808 1 Credit support 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 As part of the Amended and Restated Credit Agreement, we have senior secured tranche A term loans (the “Tranche A Term Loans”), senior secured tranche B term loans (the “Tranche B Term Loans”) and revolving credit commitments in an aggregate amount of $930.0 million under the Company’s secured revolving credit facility (the “Revolving Credit Facility”). 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. Borrowings under the Revolving Credit Facility can generally be rolled forward with interest rate resets through maturity. 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. As of September 30, 2022 and December 31, 2021, amounts outstanding under the Amended and Restated Credit Agreement bore a weighted average effective interest rate of 5.2 percent and 2.2 percent, respectively. The Company maintains interest rate swap contracts to manage the interest rate risk associated with its outstanding variable-interest rate borrowings. See Note 8, Derivative Instruments, for further discussion. In addition, the Company pays a quarterly commitment fee at a rate per annum ranging, as of September 30, 2022, from 0.25 percent to 0.50 percent of the daily unused portion of the Revolving Credit Facility (which was 0.30 percent and 0.40 percent at September 30, 2022 and December 31, 2021, respectively) determined based on the Company’s consolidated leverage ratio. Debt issuance costs incurred and capitalized in conjunction with the Amended and Restated Credit Agreement are being amortized into interest expense over the term of the Amended and Restated Credit Agreement using the effective interest method. Convertible Notes The Company has issued Convertible Notes in an aggregate principal amount of $310.0 million due on July 15, 2027 to an affiliate of Warburg Pincus LLC (together with its affiliate, “Warburg Pincus”). Interest on the Convertible Notes 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, subject to customary adjustments as set forth in the indenture. The Company may settle conversions of Convertible Notes, at its election, in cash, shares of the Company’s common stock, or a combination thereof. Based on the closing price of the Company’s common stock as of September 30, 2022, the “if-converted” value of the Convertible Notes was less than the respective principal amount. 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 exceeds certain thresholds, as defined within the indenture. 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. No such repurchase has occurred through September 30, 2022. The Company accounts for the Convertible Notes and its conversion feature as a single unit of account. The debt discount and debt issuance costs associated with the Convertible Notes are amortized to interest expense using the effective interest rate method over the seven-year contractual life of the Convertible Notes. As of both September 30, 2022 and December 31, 2021, the Convertible Notes had an effective interest rate of 7.5 percent. The Convertible Notes consist of the following: (In thousands) September 30, 2022 December 31, 2021 Principal 1 $ 310,000 $ 310,000 Less: Unamortized discounts (11,391) (12,844) Less: Unamortized issuance cost (1,834) (2,068) Net carrying amount of Convertible Notes $ 296,775 $ 295,088 1 Recorded within long-term debt, net on the condensed consolidated balance sheets, offset by the long-term portion of unamortized discounts and issuance cost. The following table sets forth total interest expense recognized for the Convertible Notes: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Interest on 6.5 percent coupon $ 5,038 $ 5,038 $ 15,113 $ 15,113 Amortization of debt discount and debt issuance costs 553 512 1,687 1,566 $ 5,591 $ 5,550 $ 16,800 $ 16,679 Securitization Facilities The Company is party to two securitized debt agreements with MUFG Bank, Ltd., both through April 2023. Under the terms of these agreements, each month on a revolving basis, the Company sells certain of its Australian and European receivables to bankruptcy-remote subsidiaries consolidated by the Company, which in turn use the receivables as collateral to issue securitized debt, which is recorded in short-term debt, net on the condensed consolidated balance sheets. Amounts collected on the securitized receivables are restricted to pay the securitized debt and are not available for general corporate purposes. The Company pays interest on the outstanding balance of the securitized debt based on variable interest rates plus an applicable margin. The effective interest rate on the total outstanding securitized debt balance was 2.39 percent and 0.91 percent as of September 30, 2022 and December 31, 2021, respectively. Participation Debt From time to time, WEX Bank enters into participation agreements with third-party banks to fund customers’ balances that exceed WEX Bank’s lending limit to individual customers. Associated unsecured borrowings generally carry a variable interest rate set according to an applicable reference rate plus a margin, which ranged from 2.25 percent to 2.50 percent as of September 30, 2022. As of September 30, 2022, the Company had outstanding participation agreements for the borrowing of up to $60.0 million through May 31, 2023 and up to $40.0 million thereafter through December 31, 2023. As of September 30, 2022 and December 31, 2021, there was $29.9 million and $1.5 million borrowed against these participation agreements, respectively. Outstanding participation debt of $9.2 million and $1.5 million was recorded within short-term debt, net on the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively, with the remaining outstanding balance of $20.7 million as of September 30, 2022 recorded within long-term debt, net. As of September 30, 2022 and December 31, 2021, the average interest rate on these agreements was 5.50 percent and 2.54 percent, respectively. Borrowed Federal Funds WEX Bank borrows from uncommitted federal funds lines to supplement the financing of the Company’s accounts receivable. There were no outstanding borrowings as of September 30, 2022 and December 31, 2021. Other |
Off-Balance Sheet Arrangements
Off-Balance Sheet Arrangements | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Off-Balance Sheet Arrangements | 11. Off-Balance Sheet Arrangements WEX Europe Services and WEX Bank are each party to separate accounts receivable factoring arrangements with unrelated third-party financial institutions to sell certain of their accounts receivable balances. Each subsidiary continues to service these receivables post-transfer with no participating interest. The Company obtained true-sale opinions from independent attorneys, stating that each respective factoring agreement provides legal isolation upon bankruptcy or receivership under local law. As such, transfers under these arrangements 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 buyers. Proceeds received, which are recorded net of applicable costs or negotiated discount rates, are recorded in operating activities in the condensed consolidated statements of cash flows. Losses on factoring are recorded within cost of services in the condensed consolidated statements of operations. The WEX Europe Services agreement automatically renews each January 1 unless either party gives not less than 90 days written notice of their intention to withdraw. Under this agreement, accounts receivable are sold without recourse to the extent that the customer balances are maintained at or below the credit limit established by the buyer. If customer receivable balances exceed the buyer’s credit limit, the Company maintains the risk of default. The Company sold $149.6 million and $454.2 million of accounts receivable during the three and nine months ended September 30, 2022, respectively, and $148.0 million and $411.6 million during the three and nine months ended September 30, 2021, respectively, under this arrangement. Losses on factoring were insignificant for both the three months ended September 30, 2022 and 2021. For the nine months ended September 30, 2022 and 2021, the losses on factoring were $2.3 million and $2.0 million, respectively. As of September 30, 2022 and December 31, 2021, the amounts of outstanding transferred receivables in excess of established credit limits were immaterial. Charge-backs on balances in excess of the credit limits during each of the three and nine months ended September 30, 2022 and 2021 were immaterial. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 12. Investment Securities The Company’s investment securities consist of (i) custodial assets deposited with, managed and invested by WEX Bank through an investment manager, which are reflected within current assets on the condensed consolidated balance sheets and (ii) securities purchased and held by WEX Bank primarily to meet the requirements of the Community Reinvestment Act, which are reflected within non-current assets on the condensed consolidated balance sheets. Investment securities are reflected at fair value and are classified as current or long-term based on management’s determination of whether such securities are available for use in current operations, regardless of the securities’ stated maturity dates. Accrued interest on investment securities is recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets. As of September 30, 2022 and December 31, 2021, accrued interest on investment securities was $9.2 million and $4.2 million, respectively. The cost basis of investment securities is based on the specific identification method. Purchases, sales and maturities associated with investment securities are treated as investing activities within the condensed consolidated statements of cash flows. The Company’s amortized cost and estimated fair value of investment securities as of September 30, 2022 and December 31, 2021 are presented below: (In thousands) Amortized Cost Total Total Fair Value 1 As of September 30, 2022 Current: Debt securities: U.S. treasury notes $ 405,690 — 44,449 361,241 Corporate debt securities 537,393 — 59,020 478,373 Municipal bonds 53,024 — 7,893 45,131 Asset-backed securities 200,730 — 10,438 190,292 Mortgage-backed securities 338,688 12 34,326 304,374 Total $ 1,535,525 $ 12 $ 156,126 $ 1,379,411 Non-current: Debt securities: Municipal bonds $ 2,951 $ — $ 498 $ 2,453 Asset-backed securities 140 1 — 141 Mortgage-backed securities 114 — 1 113 Fixed income mutual fund 28,265 — 3,967 24,298 Pooled investment fund 9,000 — — 9,000 Total $ 40,470 $ 1 $ 4,466 $ 36,005 Total investment securities 2 $ 1,575,995 $ 13 $ 160,592 $ 1,415,416 (In thousands) Amortized Cost Total Total Fair Value 1 As of December 31, 2021 Current: Debt securities: U.S. treasury notes $ 308,058 $ 250 $ 1,113 $ 307,195 Corporate debt securities 355,102 30 3,289 351,843 Municipal bonds 31,273 44 149 31,168 Asset-backed securities 120,774 24 587 120,211 Mortgage-backed securities 139,590 11 1,341 138,260 Total $ 954,797 $ 359 $ 6,479 $ 948,677 Non-current: Debt securities: Municipal bonds $ 3,107 $ 1 $ — $ 3,108 Asset-backed securities 167 1 — 168 Mortgage-backed securities 121 2 — 123 Fixed income mutual fund 27,999 — 748 27,251 Pooled investment fund 9,000 — — 9,000 Total $ 40,394 $ 4 $ 748 $ 39,650 Total investment securities 2 $ 995,191 $ 363 $ 7,227 $ 988,327 1 The Company’s methods for measuring the fair value of its investment securities are discussed in Note 13, Fair Value. 2 Excludes $10.5 million and $11.3 million in equity securities as of September 30, 2022 and December 31, 2021, respectively, included in prepaid expenses and other current assets and other assets on the condensed consolidated balance sheets. The following table presents estimated fair value and gross unrealized losses of debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security category. There are no expected credit losses that have been recorded against our investment securities as of September 30, 2022 and December 31, 2021. Balance at September 30, 2022 Balance at December 31, 2021 (In thousands) Fair Value Gross Unrealized Losses 1 Fair Value Gross Unrealized Losses 1 Investment-grade rated debt securities: U.S. treasury notes $ 361,241 $ 44,449 $ 268,839 $ 1,113 Corporate debt securities $ 478,373 $ 59,020 $ 336,777 $ 3,289 Municipal bonds $ 47,574 $ 8,391 $ 24,049 $ 149 Asset-backed securities $ 190,292 $ 10,438 $ 101,983 $ 587 Mortgage-backed securities $ 301,260 $ 34,327 $ 132,737 $ 1,341 1 All investments above have been in a continuous unrealized loss position for less than 12 months. The above table includes 355 securities at September 30, 2022, where the current fair value is less than the related amortized cost. Unrealized losses on the Company’s debt securities included in the above table are not considered to be credit-related based upon an analysis that considered the extent to which the fair value is less than the amortized basis of a security, adverse conditions specifically related to the security, changes to credit rating of the instrument subsequent to Company purchase, and the strength of the underlying collateral, if any. Additionally, the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases. The following table summarizes the contractual maturity dates of the Company’s debt securities. September 30, 2022 (In thousands) Amortized Cost Fair Value Due after 1 year through year 5 489,539 447,301 Due after 5 years through year 10 582,727 510,215 Due after 10 years 466,464 424,602 Total $ 1,538,730 $ 1,382,118 Changes in the fair value of the Company’s equity securities are recognized within net unrealized gain on financial instruments on the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021. During the three and nine months ended September 30, 2022, unrealized losses recognized on equity securities still held as of September 30, 2022 approximated $1.1 million and $3.2 million, respectively. During the three and nine months ended September 30, 2021, unrealized gains and losses related to equity securities still held as of September 30, 2021 were immaterial. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 13. 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 assets and liabilities, 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 September 30, 2022 December 31, 2021 Assets: Money market mutual funds 1 1 $ 17,437 $ 3,670 Investment securities, current: Debt securities: U.S. treasury notes 2 $ 361,241 $ 307,195 Corporate debt securities 2 478,373 351,843 Municipal bonds 2 45,131 31,168 Asset-backed securities 2 190,292 120,211 Mortgage-backed securities 2 304,374 138,260 Total $ 1,379,411 $ 948,677 Investment securities, non-current: Debt securities: Municipal bonds 2 $ 2,453 $ 3,108 Asset-backed securities 2 141 168 Mortgage-backed securities 2 113 123 Fixed-income mutual fund 1 24,298 27,251 Pooled investment fund measured at NAV 2 9,000 9,000 Total $ 36,005 $ 39,650 Executive deferred compensation plan trust 3 1 $ 10,503 $ 11,303 Interest rate swaps 4 2 $ 88,529 $ 15,031 Liabilities Interest rate swaps 4 2 $ — $ 19,982 Contingent consideration 5 3 $ 202,400 $ 67,300 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 September 30, 2022, $1.8 million and $8.7 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. At December 31, 2021, $1.6 million an d $9.7 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 September 30, 2022, $41.8 million and $46.7 million in fair value is recorded in prepaid expenses and other current assets and other assets, respectively. At December 31, 2021, $0.1 million and $14.9 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. At December 31, 2021, $17.6 million and $2.4 million in fair value is recorded within other current liabilities and other liabilities, respectively. 5 The fair value is recorded as current or long-term based on the timing of expected payments. At September 30, 2022, $24.2 million and $178.2 million in fair value is recorded within other current liabilities and other liabilities, respectively. At December 31, 2021, $67.3 million in 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 for identical instruments in an active market. Debt Securities The Company determines the fair value of U.S. treasury notes using quoted market prices for similar or identical instruments in a market that is not active. For corporate debt securities, municipal bonds, and asset-backed and mortgage-backed securities, 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 September 30, 2022 $ 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. Fixed Income Mutual Fund The Company determines the fair value of its fixed income mutual fund investment using quoted market prices for identical instruments in an active market; such inputs are classified as Level 1 of the fair value hierarchy. Executive Deferred Compensation Plan Trust The investments held in the executive deferred compensation plan trust, which consist primarily of mutual funds, are classified as Level 1 in the fair value hierarchy because the fair value is determined using quoted market 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 during 2021, the Company is obligated to pay additional consideration to Bell Bank contingent upon increases in the Federal Funds 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 discount rate, which was 3.75 percent as of September 30, 2022 and 1.45 percent as of December 31, 2021. Significant increases or decreases in the Federal Funds 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 derivative liability are measured at fair value on a recurring basis using unobservable inputs (Level 3) and are as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Beginning balance $ 172,100 $ 74,900 $ 67,300 $ — Fair value recorded as a result of the acquisition — — — 27,200 Change in fair value of contingent consideration 30,300 (2,800) 135,100 44,900 Contingent consideration $ 202,400 $ 72,100 $ 202,400 $ 72,100 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The fair value of our non-financial assets and liabilities, which include goodwill, intangible assets and property, equipment and capitalized software, are measured on a non-recurring basis. Fair value adjustments are made in the period an impairment charge is recognized. During the three and nine months ended September 30, 2022, we recognized impairment charges of $136.5 million related to our goodwill. The fair value of our reporting units are classified as Level 3 within the fair value hierarchy due to the significant unobservable inputs developed using company-specific information. For additional information, see the discussion of our impairment charges in Note 2, Recent Accounting Pronouncements and Supplemental Information, including the valuation methods and inputs used in the fair value measurements. Assets and Liabilities Measured at Carrying Value, for which Fair Value is Disclosed The fair value of the Company’s financial instruments, which are measured and reported at carrying value, is as follows for the periods indicated: (In thousands) September 30, 2022 December 31, 2021 Carrying value Fair value Carrying value Fair value Tranche A Term Loans 1 $ 905,050 $ 884,687 $ 941,742 ** Tranche B Term Loans 1 1,420,370 1,382,205 1,431,185 ** Outstanding borrowings on Revolving Credit Facility 1 88,200 ** 119,800 ** Convertible Notes 2 310,000 280,209 310,000 327,670 Contractual deposits with maturities in excess of one year 3 489,942 452,950 652,214 ** ** Fair value approximates carrying value. 1 The Company determines the fair value of borrowings on the Revolving Credit Facility and Tranche A Term Loans and Tranche B Term Loans based on market rates for the issuance of the Company’s debt, which are Level 2 inputs in the fair value hierarchy. 2 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. 3 The Company determines the fair value of its contractual deposits with maturities in excess of one year using current market interest rates for deposits of similar remaining maturities, which are Level 2 inputs in the fair value hierarchy. Other Assets and Liabilities |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 9 Months Ended |
Sep. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | 14. 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 then newly formed parent company of WEX Health and Discovery Benefits. As part of WEX Inc.’s purchase of the HSA contractual rights from Bell Bank on April 1, 2021, as more fully described in Note 4, Acquisitions, SBI’s ownership percentage was reduced to 4.53 percent. The original agreement provided SBI with a put right and the Company with a call right for the equity interest, which could be exercised no earlier than seven years following the date of acquisition. Upon exercise of the put or call right, the purchase price was to be 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 made the non-controlling interest redeemable and, therefore, the non-controlling interest was classified as temporary equity outside of stockholders’ equity. Any resulting change in the value of the redeemable non-controlling interest was offset against retained earnings and impacted earnings per share. On March 7, 2022, in complete satisfaction of any rights under the PO Holding operating agreement, WEX Inc. and SBI entered into the Share Purchase Agreement whereby WEX Inc. purchased SBI’s remaining 4.53 percent interest in PO Holding. The purchase price for the shares in PO Holding was $234.0 million plus any interest accruing pursuant to the terms of the Share Purchase Agreement. The initial liability associated with the future payment of the purchase price was recorded at a net present value of $216.6 million, as more fully described in Note 4, Acquisitions. The carrying value of the redeemable non-controlling interest immediately prior to the acquisition date was $254.4 million. The $37.8 million excess carrying value as of the acquisition date was recorded within the change in value of redeemable non-controlling interest on the condensed consolidated statements of operations. This change in value of redeemable non-controlling interest was offset by $3.5 million of deferred tax expense resulting from the difference between the book and tax bases of the deferred liability payable to SBI. As a result of the acquisition, the carrying value of the redeemable non-controlling interest was reduced to zero and WEX Inc. owns 100 percent of PO Holding. The following table presents the changes in the Company’s redeemable non-controlling interest: (In thousands) 2022 2021 Balance at January 1 $ 254,106 $ 117,219 Net income attributable to redeemable non-controlling interest 268 353 Change in value of redeemable non-controlling interest (37,780) 25,044 Repurchase of non-controlling interest (216,594) — Balance at March 31 $ — $ 142,616 Net income attributable to redeemable non-controlling interest — 232 Repurchase of non-controlling interest — (11,191) Contribution from non-controlling interest — 12,457 Change in value of redeemable non-controlling interest — 43,823 Balance at June 30 $ — $ 187,937 Net income attributable to redeemable non-controlling interest — 134 Change in value of redeemable non-controlling interest — 3,416 Balance at September 30 $ — $ 191,487 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The Company’s effective tax rate was (1.9) percent and 42.1 percent for the three and nine months ended September 30, 2022, respectively, and 27.2 percent and 16.6 percent for the three and nine months ended September 30, 2021, 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 Company’s effective tax rates for the three and nine months ended September 30, 2022 were adversely impacted primarily by a discrete tax adjustment of $12.7 million relating to the establishment of a valuation allowance recorded against a portion of deferred tax assets resulting from goodwill impairment charges. The Company’s effective tax rate for the nine months ended September 30, 2022 was also adversely impacted by a discrete tax item of $7.5 million recorded during the first quarter of 2022, primarily associated with an uncertain tax position. The effective tax rate for the nine months ended September 30, 2021 was favorably impacted primarily by significant excess tax benefits arising from stock-based compensation. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. 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 were probable and reasonably estimable. As such, the Company recorded charges incurred under this initiative of $5.4 million during the nine months ended September 30, 2021, within general and administrative expenses on the condensed consolidated statements of operations. There were no accrued charges related to this initiative as of December 31, 2021 and no further charges were incurred during the nine months ended September 30, 2022. Litigation and Regulatory Matters 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 During June 2022, the Company and its European fuel suppliers amended existing contracts, modifying both prior period and future minimum volume commitments through 2025. As a result of these amendments, the Company reversed previously accrued penalties totaling approximately $7 million as revenue within the condensed consolidated statement of operations during the nine months ended September 30, 2022. During the three and nine months ended September 30, 2022, the Company incurred shortfall penalties of approximately $0.6 million and $1.6 million, respectively, under the amended agreements. Other Commitments Other significant commitments and contingencies as of September 30, 2022 are consistent with those discussed in Note 20, Commitments and Contingencies, to the consolidated financial statements in the Annual Report on Form 10–K for the year ended December 31, 2021. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 17. Stock–Based Compensation The Company regularly grants equity awards in the form of stock options, restricted stock, restricted stock units and other stock-based awards under its stockholder-approved Amended and Restated 2019 Equity and Incentive Plan to certain employees and directors. Stock-based compensation expense was $28.2 million and $76.8 million for the three and nine months ended September 30, 2022, respectively, and $21.7 million and $60.3 million for the three and nine months ended September 30, 2021, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 18. 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 payment processing, transaction processing, and information management services specifically designed for the needs of fleets of all sizes from small businesses to federal and state government fleets and over-the-road carriers. • Travel and Corporate Solutions focuses on the complex payment environment of global B2B payments, enabling customers to utilize our payments solutions to integrate into their own workflows and manage their accounts payable automation and spend management functions. • Health and Employee Benefit Solutions provides a SaaS platform for consumer directed healthcare benefits and a full-service benefit enrollment solution, bringing together benefits administration, certain compliance services and consumer-directed and benefits accounts. Additionally, the Company serves as the non-bank custodian to certain HSA assets. The following tables present the Company’s reportable segment revenues: Three Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Total Payment processing revenue $ 188,586 $ 101,533 $ 18,913 $ 309,032 Account servicing revenue 41,632 10,748 85,944 138,324 Finance fee revenue 96,495 162 41 96,698 Other revenue 51,381 1,532 19,162 72,075 Total revenues $ 378,094 $ 113,975 $ 124,060 $ 616,129 Three Months Ended September 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 130,006 $ 79,815 $ 16,305 $ 226,126 Account servicing revenue 43,671 10,908 83,145 137,724 Finance fee revenue 67,529 200 40 67,769 Other revenue 45,155 79 5,911 51,145 Total revenues $ 286,361 $ 91,002 $ 105,401 $ 482,764 Nine Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Total Payment processing revenue $ 542,851 $ 255,216 $ 62,748 $ 860,815 Account servicing revenue 127,935 31,906 256,062 415,903 Finance fee revenue 259,967 519 104 260,590 Other revenue 145,703 3,995 44,895 194,593 Total revenues $ 1,076,456 $ 291,636 $ 363,809 $ 1,731,901 Nine Months Ended September 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 367,032 $ 205,345 $ 55,564 $ 627,941 Account servicing revenue 125,955 32,817 230,572 389,344 Finance fee revenue 178,627 693 101 179,421 Other revenue 132,972 4,551 18,775 156,298 Total revenues $ 804,586 $ 243,406 $ 305,012 $ 1,353,004 The CODM evaluates the financial performance of each segment using segment adjusted operating income, which excludes: (i) unallocated corporate expenses; (ii) acquisition-related intangible amortization; (iii) other acquisition and divestiture related items; (iv) debt restructuring costs; (v) stock-based compensation; (vi) other costs and (vii) impairment charges. Additionally, we do not allocate financing interest expense, foreign currency gains and losses, other income, change in fair value of contingent consideration and net unrealized gains and losses on financial instruments to our operating segments. The following table reconciles total segment adjusted operating income to (loss) income before income taxes: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Segment adjusted operating income Fleet Solutions $ 174,521 $ 144,853 $ 527,591 $ 400,976 Travel and Corporate Solutions 60,289 31,057 139,635 55,229 Health and Employee Benefit Solutions 30,261 23,863 94,068 83,487 Total segment adjusted operating income $ 265,071 $ 199,773 $ 761,294 $ 539,692 Reconciliation: Total segment adjusted operating income $ 265,071 $ 199,773 $ 761,294 $ 539,692 Less: Unallocated corporate expenses 23,918 20,977 63,915 54,360 Acquisition-related intangible amortization 42,486 46,965 127,743 134,713 Other acquisition and divestiture related items 4,142 7,012 15,143 32,498 Debt restructuring costs 72 120 43 6,056 Stock-based compensation 27,873 22,166 78,360 62,771 Other costs 8,806 1,711 24,911 15,653 Impairment charges 136,486 — 136,486 — Operating income 21,288 100,822 314,693 233,641 Financing interest expense (34,419) (32,493) (95,928) (98,250) Net foreign currency loss (23,445) (9,962) (37,847) (11,375) Other income — 3,617 — 3,617 Change in fair value of contingent consideration (30,300) 2,800 (135,100) (44,900) Net unrealized gain on financial instruments 23,540 6,424 90,261 19,470 (Loss) income before income taxes $ (43,336) $ 71,208 $ 136,079 $ 102,203 |
Supplementary Regulatory Capita
Supplementary Regulatory Capital Disclosure | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Supplementary Regulatory Capital Disclosure | 19. Supplementary Regulatory Capital Disclosure The Company’s subsidiary, WEX Bank, is subject to various regulatory capital requirements administered by the FDIC and the UDFI. 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 business activities and have a material effect on the Company’s 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 September 30, 2022, 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 September 30, 2022 Total Capital to risk-weighted assets $ 605,824 13.96 % $ 347,154 8.00 % $ 433,943 10.00 % Tier 1 Capital to average assets $ 551,526 9.49 % $ 232,525 4.00 % $ 290,656 5.00 % Common equity to risk-weighted assets $ 551,526 12.71 % $ 195,274 4.50 % $ 282,063 6.50 % Tier 1 Capital to risk-weighted assets $ 551,526 12.71 % $ 260,366 6.00 % $ 347,154 8.00 % December 31, 2021 Total Capital to risk-weighted assets $ 402,406 12.63 % $ 254,984 8.00 % $ 318,731 10.00 % Tier 1 Capital to average assets $ 366,121 8.75 % $ 167,317 4.00 % $ 209,147 5.00 % Common equity to risk-weighted assets $ 366,121 11.49 % $ 143,429 4.50 % $ 207,175 6.50 % Tier 1 Capital to risk-weighted assets $ 366,121 11.49 % $ 191,238 6.00 % $ 254,984 8.00 % |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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 exclude certain disclosures required by GAAP for a complete set of financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements that are included in the Company’s Annual Report on Form 10–K for the year ended December 31, 2021, filed with the SEC on March 1, 2022. In the opinion of management, all adjustments considered necessary for a fair presentation in accordance with GAAP, which are of a normal recurring nature, have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results for any future periods or the year ending December 31, 2022.We have applied the same accounting policies in preparing these quarterly financial statements as we did in preparing our 2021 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. |
Recent Accounting Pronouncements | Standard Description Date of Adoption Method of adoptions and effect on financial statements or other significant matters Adopted During the Nine Months Ended September 30, 2022 ASU 2021-08, Business Combinations This standard requires acquirers within the scope of Subtopic 805-10, Business Combinations to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. This will generally result in an acquirer recognizing and measuring acquired contract assets and liabilities consistent with how they were recognized and measured in an acquiree’s financial statements if such financial statements were prepared in accordance with GAAP. Previously, contract assets and contract liabilities acquired were recognized at their fair value on the acquisition date. Effective for fiscal years beginning after December 15, 2022. The Company early adopted this ASU effective January 1, 2022. Adoption had no material effect on the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2022. The guidelines of this ASU will be applied prospectively for business combinations in the scope of ASC 805. Not Adopted as of September 30, 2022 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 optional and 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. The Company has not yet determined if it will adopt these standards, which are not expected to have a material effect on the Company’s condensed consolidated financial statements. |
Revenues | In accordance with Topic 606, revenue is recognized when, or as, performance obligations are satisfied as defined by the terms of the contract, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for goods or services provided. |
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 upon conversion of the Convertible Notes under the “if-converted” method, unless the effect is anti-dilutive. Additionally, diluted earnings per share includes the assumed exercise of dilutive options, the assumed issuance of unvested restricted stock units, performance-based awards for which the performance condition has been met as of the date of determination and contingently issuable shares that would be issuable if the end of the reporting period was the end of the contingency period, using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options and the average unrecognized compensation expense for unvested share-based compensation awards, would be used to purchase the Company’s common stock at the average market price during the period. |
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 assets and liabilities, 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. 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 for identical instruments in an active market. Debt Securities The Company determines the fair value of U.S. treasury notes using quoted market prices for similar or identical instruments in a market that is not active. For corporate debt securities, municipal bonds, and asset-backed and mortgage-backed securities, 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. Fixed Income Mutual Fund The Company determines the fair value of its fixed income mutual fund investment using quoted market prices for identical instruments in an active market; such inputs are classified as Level 1 of the fair value hierarchy. Executive Deferred Compensation Plan Trust The investments held in the executive deferred compensation plan trust, which consist primarily of mutual funds, are classified as Level 1 in the fair value hierarchy because the fair value is determined using quoted market 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 payment processing, transaction processing, and information management services specifically designed for the needs of fleets of all sizes from small businesses to federal and state government fleets and over-the-road carriers. • Travel and Corporate Solutions focuses on the complex payment environment of global B2B payments, enabling customers to utilize our payments solutions to integrate into their own workflows and manage their accounts payable automation and spend management functions. • Health and Employee Benefit Solutions provides a SaaS platform for consumer directed healthcare benefits and a full-service benefit enrollment solution, bringing together benefits administration, certain compliance services and consumer-directed and benefits accounts. Additionally, the Company serves as the non-bank custodian to certain HSA assets. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements and Supplemental Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table provides a brief description of (i) recent accounting pronouncements adopted during the nine months ended September 30, 2022 and (ii) those not yet adopted, that could have a material effect on our financial statements. Standard Description Date of Adoption Method of adoptions and effect on financial statements or other significant matters Adopted During the Nine Months Ended September 30, 2022 ASU 2021-08, Business Combinations This standard requires acquirers within the scope of Subtopic 805-10, Business Combinations to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. This will generally result in an acquirer recognizing and measuring acquired contract assets and liabilities consistent with how they were recognized and measured in an acquiree’s financial statements if such financial statements were prepared in accordance with GAAP. Previously, contract assets and contract liabilities acquired were recognized at their fair value on the acquisition date. Effective for fiscal years beginning after December 15, 2022. The Company early adopted this ASU effective January 1, 2022. Adoption had no material effect on the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2022. The guidelines of this ASU will be applied prospectively for business combinations in the scope of ASC 805. Not Adopted as of September 30, 2022 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 optional and 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. The Company has not yet determined if it will adopt these standards, which are not expected to have a material effect on the Company’s condensed consolidated financial statements. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables disaggregate the Company’s consolidated revenues, substantially all of which relate to services transferred to the customer over time: Three Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 188,586 $ 101,533 $ 18,913 $ 309,032 Account servicing revenue 4,718 10,748 85,944 101,410 Other revenue 21,337 66 7,511 28,914 Total Topic 606 revenues $ 214,641 $ 112,347 $ 112,368 $ 439,356 Non-Topic 606 revenues 163,453 1,628 11,692 176,773 Total revenues $ 378,094 $ 113,975 $ 124,060 $ 616,129 Three Months Ended September 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 130,006 $ 79,815 $ 16,305 $ 226,126 Account servicing revenue 4,457 10,908 83,145 98,510 Other revenue 21,376 (636) 5,909 26,649 Total Topic 606 revenues $ 155,839 $ 90,087 $ 105,359 $ 351,285 Non-Topic 606 revenues 130,522 915 42 131,479 Total revenues $ 286,361 $ 91,002 $ 105,401 $ 482,764 Nine Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 542,851 $ 255,216 $ 62,748 $ 860,815 Account servicing revenue 13,620 31,906 256,062 301,588 Other revenue 63,511 461 23,940 87,912 Total Topic 606 revenues $ 619,982 $ 287,583 $ 342,750 $ 1,250,315 Non-Topic 606 revenues 456,474 4,053 21,059 481,586 Total revenues $ 1,076,456 $ 291,636 $ 363,809 $ 1,731,901 Nine Months Ended September 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Topic 606 revenues Payment processing revenue $ 367,032 $ 205,345 $ 55,564 $ 627,941 Account servicing revenue 13,162 32,817 230,572 $ 276,551 Other revenue 64,044 2,820 18,763 85,627 Total Topic 606 revenues $ 444,238 $ 240,982 $ 304,899 $ 990,119 Non-Topic 606 revenues 360,348 2,424 113 362,885 Total revenues $ 804,586 $ 243,406 $ 305,012 $ 1,353,004 |
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 September 30, 2022 December 31, 2021 Receivables Accounts receivable, net $ 47,917 $ 49,303 Contract assets Prepaid expenses and other current assets 19,406 8,975 Contract assets Other assets 35,005 40,718 Contract liabilities Other current liabilities 5,301 9,123 Contract liabilities Other liabilities 71,721 58,900 |
Schedule of Remaining Performance Obligations | The following table includes revenue expected to be recognized related to remaining performance obligations at the end of the reporting period. (In thousands) Remaining 2022 2023 2024 2025 2026 2027 Thereafter Total Minimum monthly fees 1 $ 18,273 $ 45,106 $ 27,442 $ 14,298 $ 4,885 $ 3,687 $ 1,500 $ 115,191 Professional services 2 2,083 2,249 4 4 1 — — 4,341 Other 3 375 3,472 8,453 18,478 27,313 35,943 5,929 99,963 Total remaining performance obligations $ 20,731 $ 50,827 $ 35,899 $ 32,780 $ 32,199 $ 39,630 $ 7,429 $ 219,495 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. Consideration associated with certain relationships is variable and the measurement and estimation of contract consideration is contingent upon payment processing volumes and maintaining volume shares, among others. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Asset Acquisition Cost Allocation | We accounted for this transaction under the asset acquisition method of accounting and have allocated the total cost of the acquisition as follows: (In thousands) Cash consideration transferred to seller $ 45,083 Add: transaction costs 819 Total consideration $ 45,902 Accounts receivable, net of allowance 1, 2 $ 38,282 Receivable due back from seller 1, 2 4,282 Customer relationship intangible asset 3 3,338 $ 45,902 1 Recorded within accounts receivable in the condensed consolidated balance sheet. 2 The accounts receivable purchased have been included within operating activities in the condensed consolidated statement of cash flows. 3 The intangible asset will be amortized to expense over a three-year life. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following is a summary of the final allocation of the purchase price to the assets and liabilities acquired, based on the fair value at the date of acquisition: (In thousands) Cash consideration transferred, net of $15.0 million in cash and restricted cash acquired $ 259,061 Less: Accounts receivable 3,103 Customer relationships (1)(4) 84,400 Developed technologies (2)(4) 19,600 Non-compete (3)(4) 2,150 Other assets 4,387 Accrued expenses (3,498) Restricted cash payable (14,328) Other liabilities (5,177) Recorded goodwill $ 168,424 (1) Weighted average life - 9.3 years. (2) Weighted average life - 3.6 years. (3) Weighted average life - 2.5 years. (4) The weighted average life of the $106.2 million of amortizable intangible assets acquired in this business combination is 8.1 years. |
Accounts Receivable, Net of A_2
Accounts Receivable, Net of Allowances (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 89,224 $ 10,396 $ 987 $ 100,607 Net provision for credit losses 1 53,002 684 344 54,030 Charges to other accounts 2 11,296 — — 11,296 Charge-offs (65,093) (787) (164) (66,044) Recoveries of amounts previously charged-off 3,572 — 8 3,580 Currency translation (637) (572) — (1,209) Balance, end of period $ 91,364 $ 9,721 $ 1,175 $ 102,260 Three Months Ended September 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 49,716 $ 7,519 $ 536 $ 57,771 Provision for credit losses 1 10,231 3,816 80 14,127 Charges to other accounts 2 4,046 5 — 4,051 Charge-offs (10,872) (602) (92) (11,566) Recoveries of amounts previously charged-off 1,691 163 53 1,907 Currency translation (392) (206) — (598) Balance, end of period $ 54,420 $ 10,695 $ 577 $ 65,692 Nine Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Balance, beginning of period $ 55,758 $ 9,931 $ 617 $ 66,306 Provision for credit losses 1 118,672 2,105 1,079 121,856 Charges to other accounts 2 29,913 169 (101) 29,981 Charge-offs (120,388) (1,234) (438) (122,060) Recoveries of amounts previously charged-off 8,802 — 18 8,820 Currency translation (1,393) (1,250) — (2,643) Balance, end of period $ 91,364 $ 9,721 $ 1,175 $ 102,260 Nine Months Ended September 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 26,359 5,568 221 32,148 Charges to other accounts 2 12,267 5 — 12,272 Charge-offs (37,239) (4,462) (120) (41,821) Recoveries of amounts previously charged-off 4,572 176 206 4,954 Currency translation (806) (202) — (1,008) Balance, end of period $ 54,420 $ 10,695 $ 577 $ 65,692 1 The provision is comprised of estimated credit losses based on the Company’s loss-rate experience and includes 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 relationship goodwill. Charges to other accounts substantially represent 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, shown in each case as a percentage of total trade accounts receivable: Delinquency Status September 30, 2022 December 31, 2021 Less than 30 days past due 98 % 98 % Less than 60 days past due 99 % 99 % |
Repurchases of Common Stock (Ta
Repurchases of Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Class of Treasury Stock | The number of shares repurchased by the Company during the three and nine months ended September 30, 2022 pursuant to repurchase programs have been recorded as treasury stock in our condensed consolidated balance sheet and are included in the following table. There were no shares repurchased pursuant to repurchase programs during the three and nine months ended September 30, 2021. (In thousands, except for per share amounts) Shares Total Cost Average Cost Per Share Treasury stock purchased during the three months ended September 30, 2022 434 $ 69,009 $ 158.79 Treasury stock purchased during the nine months ended September 30, 2022 954 $ 149,608 $ 156.76 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Net Income (Loss) 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 September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Net (loss) income attributable to shareholders $ (44,145) $ 48,318 $ 112,747 $ 11,897 Weighted average common shares outstanding – Basic 44,229 44,861 44,644 44,664 Dilutive impact of share-based compensation awards 1 — 418 328 670 Weighted average common shares outstanding – Diluted 2, 3 44,229 45,279 44,972 45,334 1 For the three months ended September 30, 2022, 0.3 million incremental shares, which would otherwise have been dilutive but for the Company’s net loss position, are excluded from the table above as the effect of including those shares would be anti-dilutive. 2 For both the three and nine months ended September 30, 2022, 0.6 million 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 nine months ended September 30, 2021, 0.7 million and 0.9 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) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | A summary of the Company’s interest rate swap contracts with a collective notional amount of $1.9 billion outstanding as of September 30, 2022 is as follows: Contract Inception Contract End Fixed Interest Rates 1 Notional Amount at inception ( in thousands ) December 2017 December 2022 2.204% $ 300,000 March 2020 March 2023 1.954% 150,000 March 2019 March 2023 1.956% 100,000 March 2019 March 2023 2.413% 200,000 March 2020 December 2023 1.862% 200,000 May 2021 May 2024 0.435% 150,000 May 2021 May 2024 0.440% 150,000 May 2021 May 2025 0.678% 300,000 May 2021 May 2026 0.909% 150,000 May 2021 May 2026 0.910% 150,000 1 Fixed interest rates 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 interest rate swap gains and losses: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in the Condensed Consolidated Statement of Operations 2022 2021 2022 2021 Interest rate swap contracts – unrealized portion Net unrealized gain on financial instruments $ 24,610 $ 6,527 $ 93,481 $ 20,008 Interest rate swap contracts – realized portion Financing interest expense $ 3,721 $ (7,037) $ (5,191) $ (18,575) |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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) September 30, 2022 December 31, 2021 Customer deposits $ 142,700 $ 129,180 Contractual deposits with maturities within 1 year 1,2 706,971 566,427 Interest-bearing money market deposits 1 226,097 370,813 HSA deposits 3 2,070,002 960,000 Short-term contractual deposits 3,145,770 2,026,420 Contractual deposits with maturities greater than 1 year and less than 5 years 1,2 489,942 652,214 Total deposits $ 3,635,712 $ 2,678,634 Weighted average cost of HSA deposits outstanding 0.05 % 0.03 % Weighted average cost of funds on contractual deposits outstanding 1.41 % 0.48 % Weighted average cost of interest-bearing money market deposits outstanding 3.10 % 0.20 % 1 As of September 30, 2022 and December 31, 2021, all certificates of deposit and money market deposits were in denominations of $250,000 or less, corresponding to FDIC deposit insurance limits. 2 Includes certificates of deposit and certain money market deposits, which have a fixed maturity and interest rate. 3 Deposits held associated with the HSA custodial assets. HSA deposits are recorded within short-term deposits on the condensed consolidated balance sheet as the funds can be withdrawn by the account holders on demand. |
Financing and Other Debt (Table
Financing and Other Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the Company’s total outstanding debt by type as of September 30, 2022 and December 31, 2021. (In thousands) September 30, 2022 December 31, 2021 Term loans: Tranche A Term Loans $ 905,050 $ 941,742 Tranche B Term Loans 1,420,370 1,431,185 Total term loans $ 2,325,420 $ 2,372,927 Borrowings on Revolving Credit Facility 88,200 119,800 Convertible Notes 310,000 310,000 Securitized debt 93,896 100,861 Participation debt 29,948 1,500 Total gross debt 1 $ 2,847,464 $ 2,905,088 1 See Note 13, Fair Value, for 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) September 30, 2022 December 31, 2021 Current portion of gross debt $ 166,452 $ 165,703 Less: Unamortized debt issuance costs/debt discount (9,969) (9,934) Short-term debt, net $ 156,483 $ 155,769 Long-term portion of gross debt $ 2,681,012 $ 2,739,385 Less: Unamortized debt issuance costs/debt discount (36,534) (44,020) Long-term debt, net $ 2,644,478 $ 2,695,365 Supplemental information: Letters of credit 1 $ 30,988 $ 51,392 Remaining borrowing capacity on Revolving Credit Facility 2 $ 810,812 $ 758,808 1 Credit support 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) September 30, 2022 December 31, 2021 Principal 1 $ 310,000 $ 310,000 Less: Unamortized discounts (11,391) (12,844) Less: Unamortized issuance cost (1,834) (2,068) Net carrying amount of Convertible Notes $ 296,775 $ 295,088 1 Recorded within long-term debt, net on the condensed consolidated balance sheets, offset by the long-term portion of unamortized discounts and issuance cost. The following table sets forth total interest expense recognized for the Convertible Notes: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Interest on 6.5 percent coupon $ 5,038 $ 5,038 $ 15,113 $ 15,113 Amortization of debt discount and debt issuance costs 553 512 1,687 1,566 $ 5,591 $ 5,550 $ 16,800 $ 16,679 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-For-Sale Securities | The Company’s amortized cost and estimated fair value of investment securities as of September 30, 2022 and December 31, 2021 are presented below: (In thousands) Amortized Cost Total Total Fair Value 1 As of September 30, 2022 Current: Debt securities: U.S. treasury notes $ 405,690 — 44,449 361,241 Corporate debt securities 537,393 — 59,020 478,373 Municipal bonds 53,024 — 7,893 45,131 Asset-backed securities 200,730 — 10,438 190,292 Mortgage-backed securities 338,688 12 34,326 304,374 Total $ 1,535,525 $ 12 $ 156,126 $ 1,379,411 Non-current: Debt securities: Municipal bonds $ 2,951 $ — $ 498 $ 2,453 Asset-backed securities 140 1 — 141 Mortgage-backed securities 114 — 1 113 Fixed income mutual fund 28,265 — 3,967 24,298 Pooled investment fund 9,000 — — 9,000 Total $ 40,470 $ 1 $ 4,466 $ 36,005 Total investment securities 2 $ 1,575,995 $ 13 $ 160,592 $ 1,415,416 (In thousands) Amortized Cost Total Total Fair Value 1 As of December 31, 2021 Current: Debt securities: U.S. treasury notes $ 308,058 $ 250 $ 1,113 $ 307,195 Corporate debt securities 355,102 30 3,289 351,843 Municipal bonds 31,273 44 149 31,168 Asset-backed securities 120,774 24 587 120,211 Mortgage-backed securities 139,590 11 1,341 138,260 Total $ 954,797 $ 359 $ 6,479 $ 948,677 Non-current: Debt securities: Municipal bonds $ 3,107 $ 1 $ — $ 3,108 Asset-backed securities 167 1 — 168 Mortgage-backed securities 121 2 — 123 Fixed income mutual fund 27,999 — 748 27,251 Pooled investment fund 9,000 — — 9,000 Total $ 40,394 $ 4 $ 748 $ 39,650 Total investment securities 2 $ 995,191 $ 363 $ 7,227 $ 988,327 1 The Company’s methods for measuring the fair value of its investment securities are discussed in Note 13, Fair Value. |
Schedule of Estimated Fair Value and Gross Unrealized Losses of Debt Securities in an Unrealized Loss Position | The following table presents estimated fair value and gross unrealized losses of debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security category. There are no expected credit losses that have been recorded against our investment securities as of September 30, 2022 and December 31, 2021. Balance at September 30, 2022 Balance at December 31, 2021 (In thousands) Fair Value Gross Unrealized Losses 1 Fair Value Gross Unrealized Losses 1 Investment-grade rated debt securities: U.S. treasury notes $ 361,241 $ 44,449 $ 268,839 $ 1,113 Corporate debt securities $ 478,373 $ 59,020 $ 336,777 $ 3,289 Municipal bonds $ 47,574 $ 8,391 $ 24,049 $ 149 Asset-backed securities $ 190,292 $ 10,438 $ 101,983 $ 587 Mortgage-backed securities $ 301,260 $ 34,327 $ 132,737 $ 1,341 1 All investments above have been in a continuous unrealized loss position for less than 12 months. |
Maturity Dates Of Available-For-Sale Securities | The following table summarizes the contractual maturity dates of the Company’s debt securities. September 30, 2022 (In thousands) Amortized Cost Fair Value Due after 1 year through year 5 489,539 447,301 Due after 5 years through year 10 582,727 510,215 Due after 10 years 466,464 424,602 Total $ 1,538,730 $ 1,382,118 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 December 31, 2021 Assets: Money market mutual funds 1 1 $ 17,437 $ 3,670 Investment securities, current: Debt securities: U.S. treasury notes 2 $ 361,241 $ 307,195 Corporate debt securities 2 478,373 351,843 Municipal bonds 2 45,131 31,168 Asset-backed securities 2 190,292 120,211 Mortgage-backed securities 2 304,374 138,260 Total $ 1,379,411 $ 948,677 Investment securities, non-current: Debt securities: Municipal bonds 2 $ 2,453 $ 3,108 Asset-backed securities 2 141 168 Mortgage-backed securities 2 113 123 Fixed-income mutual fund 1 24,298 27,251 Pooled investment fund measured at NAV 2 9,000 9,000 Total $ 36,005 $ 39,650 Executive deferred compensation plan trust 3 1 $ 10,503 $ 11,303 Interest rate swaps 4 2 $ 88,529 $ 15,031 Liabilities Interest rate swaps 4 2 $ — $ 19,982 Contingent consideration 5 3 $ 202,400 $ 67,300 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 September 30, 2022, $1.8 million and $8.7 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. At December 31, 2021, $1.6 million an d $9.7 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 September 30, 2022, $41.8 million and $46.7 million in fair value is recorded in prepaid expenses and other current assets and other assets, respectively. At December 31, 2021, $0.1 million and $14.9 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. At December 31, 2021, $17.6 million and $2.4 million in fair value is recorded within other current liabilities and other liabilities, respectively. 5 The fair value is recorded as current or long-term based on the timing of expected payments. At September 30, 2022, $24.2 million and $178.2 million in fair value is recorded within other current liabilities and other liabilities, respectively. At December 31, 2021, $67.3 million in fair value is recorded in other liabilities. The fair value of the Company’s financial instruments, which are measured and reported at carrying value, is as follows for the periods indicated: (In thousands) September 30, 2022 December 31, 2021 Carrying value Fair value Carrying value Fair value Tranche A Term Loans 1 $ 905,050 $ 884,687 $ 941,742 ** Tranche B Term Loans 1 1,420,370 1,382,205 1,431,185 ** Outstanding borrowings on Revolving Credit Facility 1 88,200 ** 119,800 ** Convertible Notes 2 310,000 280,209 310,000 327,670 Contractual deposits with maturities in excess of one year 3 489,942 452,950 652,214 ** ** Fair value approximates carrying value. 1 The Company determines the fair value of borrowings on the Revolving Credit Facility and Tranche A Term Loans and Tranche B Term Loans based on market rates for the issuance of the Company’s debt, which are Level 2 inputs in the fair value hierarchy. 2 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. |
Schedule of Pooled Investment Fund | Pooled Investment Fund (In thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Pooled investment fund, as of September 30, 2022 $ 9,000 — Monthly 30 days |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in the contingent consideration derivative liability are measured at fair value on a recurring basis using unobservable inputs (Level 3) and are as follows for the periods indicated: Three Months Ended Nine Months Ended (In thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Beginning balance $ 172,100 $ 74,900 $ 67,300 $ — Fair value recorded as a result of the acquisition — — — 27,200 Change in fair value of contingent consideration 30,300 (2,800) 135,100 44,900 Contingent consideration $ 202,400 $ 72,100 $ 202,400 $ 72,100 |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The following table presents the changes in the Company’s redeemable non-controlling interest: (In thousands) 2022 2021 Balance at January 1 $ 254,106 $ 117,219 Net income attributable to redeemable non-controlling interest 268 353 Change in value of redeemable non-controlling interest (37,780) 25,044 Repurchase of non-controlling interest (216,594) — Balance at March 31 $ — $ 142,616 Net income attributable to redeemable non-controlling interest — 232 Repurchase of non-controlling interest — (11,191) Contribution from non-controlling interest — 12,457 Change in value of redeemable non-controlling interest — 43,823 Balance at June 30 $ — $ 187,937 Net income attributable to redeemable non-controlling interest — 134 Change in value of redeemable non-controlling interest — 3,416 Balance at September 30 $ — $ 191,487 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Results | The following tables present the Company’s reportable segment revenues: Three Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Total Payment processing revenue $ 188,586 $ 101,533 $ 18,913 $ 309,032 Account servicing revenue 41,632 10,748 85,944 138,324 Finance fee revenue 96,495 162 41 96,698 Other revenue 51,381 1,532 19,162 72,075 Total revenues $ 378,094 $ 113,975 $ 124,060 $ 616,129 Three Months Ended September 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 130,006 $ 79,815 $ 16,305 $ 226,126 Account servicing revenue 43,671 10,908 83,145 137,724 Finance fee revenue 67,529 200 40 67,769 Other revenue 45,155 79 5,911 51,145 Total revenues $ 286,361 $ 91,002 $ 105,401 $ 482,764 Nine Months Ended September 30, 2022 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Total Payment processing revenue $ 542,851 $ 255,216 $ 62,748 $ 860,815 Account servicing revenue 127,935 31,906 256,062 415,903 Finance fee revenue 259,967 519 104 260,590 Other revenue 145,703 3,995 44,895 194,593 Total revenues $ 1,076,456 $ 291,636 $ 363,809 $ 1,731,901 Nine Months Ended September 30, 2021 (In thousands) Fleet Solutions Travel and Corporate Solutions Health and Employee Benefit Solutions Total Payment processing revenue $ 367,032 $ 205,345 $ 55,564 $ 627,941 Account servicing revenue 125,955 32,817 230,572 389,344 Finance fee revenue 178,627 693 101 179,421 Other revenue 132,972 4,551 18,775 156,298 Total revenues $ 804,586 $ 243,406 $ 305,012 $ 1,353,004 |
Reconciliation Of Adjusted Net Income To Net Income Before Income Taxess | The following table reconciles total segment adjusted operating income to (loss) income before income taxes: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2022 2021 2022 2021 Segment adjusted operating income Fleet Solutions $ 174,521 $ 144,853 $ 527,591 $ 400,976 Travel and Corporate Solutions 60,289 31,057 139,635 55,229 Health and Employee Benefit Solutions 30,261 23,863 94,068 83,487 Total segment adjusted operating income $ 265,071 $ 199,773 $ 761,294 $ 539,692 Reconciliation: Total segment adjusted operating income $ 265,071 $ 199,773 $ 761,294 $ 539,692 Less: Unallocated corporate expenses 23,918 20,977 63,915 54,360 Acquisition-related intangible amortization 42,486 46,965 127,743 134,713 Other acquisition and divestiture related items 4,142 7,012 15,143 32,498 Debt restructuring costs 72 120 43 6,056 Stock-based compensation 27,873 22,166 78,360 62,771 Other costs 8,806 1,711 24,911 15,653 Impairment charges 136,486 — 136,486 — Operating income 21,288 100,822 314,693 233,641 Financing interest expense (34,419) (32,493) (95,928) (98,250) Net foreign currency loss (23,445) (9,962) (37,847) (11,375) Other income — 3,617 — 3,617 Change in fair value of contingent consideration (30,300) 2,800 (135,100) (44,900) Net unrealized gain on financial instruments 23,540 6,424 90,261 19,470 (Loss) income before income taxes $ (43,336) $ 71,208 $ 136,079 $ 102,203 |
Supplementary Regulatory Capi_2
Supplementary Regulatory Capital Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 Total Capital to risk-weighted assets $ 605,824 13.96 % $ 347,154 8.00 % $ 433,943 10.00 % Tier 1 Capital to average assets $ 551,526 9.49 % $ 232,525 4.00 % $ 290,656 5.00 % Common equity to risk-weighted assets $ 551,526 12.71 % $ 195,274 4.50 % $ 282,063 6.50 % Tier 1 Capital to risk-weighted assets $ 551,526 12.71 % $ 260,366 6.00 % $ 347,154 8.00 % December 31, 2021 Total Capital to risk-weighted assets $ 402,406 12.63 % $ 254,984 8.00 % $ 318,731 10.00 % Tier 1 Capital to average assets $ 366,121 8.75 % $ 167,317 4.00 % $ 209,147 5.00 % Common equity to risk-weighted assets $ 366,121 11.49 % $ 143,429 4.50 % $ 207,175 6.50 % Tier 1 Capital to risk-weighted assets $ 366,121 11.49 % $ 191,238 6.00 % $ 254,984 8.00 % |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements and Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Impairment charges | $ 136,486 | $ 0 | $ 136,486 | $ 0 |
Fleet Solutions | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Impairment charges | $ 136,500 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | $ 439,356 | $ 351,285 | $ 1,250,315 | $ 990,119 |
Non-Topic 606 revenues | 176,773 | 131,479 | 481,586 | 362,885 |
Total revenues | 616,129 | 482,764 | 1,731,901 | 1,353,004 |
Fleet Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 214,641 | 155,839 | 619,982 | 444,238 |
Non-Topic 606 revenues | 163,453 | 130,522 | 456,474 | 360,348 |
Total revenues | 378,094 | 286,361 | 1,076,456 | 804,586 |
Travel and Corporate Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 112,347 | 90,087 | 287,583 | 240,982 |
Non-Topic 606 revenues | 1,628 | 915 | 4,053 | 2,424 |
Total revenues | 113,975 | 91,002 | 291,636 | 243,406 |
Health and Employee Benefit Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 112,368 | 105,359 | 342,750 | 304,899 |
Non-Topic 606 revenues | 11,692 | 42 | 21,059 | 113 |
Total revenues | 124,060 | 105,401 | 363,809 | 305,012 |
Payment processing revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 309,032 | 226,126 | 860,815 | 627,941 |
Total revenues | 309,032 | 226,126 | 860,815 | 627,941 |
Payment processing revenue | Fleet Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 188,586 | 130,006 | 542,851 | 367,032 |
Total revenues | 188,586 | 130,006 | 542,851 | 367,032 |
Payment processing revenue | Travel and Corporate Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 101,533 | 79,815 | 255,216 | 205,345 |
Total revenues | 101,533 | 79,815 | 255,216 | 205,345 |
Payment processing revenue | Health and Employee Benefit Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 18,913 | 16,305 | 62,748 | 55,564 |
Total revenues | 18,913 | 16,305 | 62,748 | 55,564 |
Account servicing revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 101,410 | 98,510 | 301,588 | 276,551 |
Total revenues | 138,324 | 137,724 | 415,903 | 389,344 |
Account servicing revenue | Fleet Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 4,718 | 4,457 | 13,620 | 13,162 |
Total revenues | 41,632 | 43,671 | 127,935 | 125,955 |
Account servicing revenue | Travel and Corporate Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 10,748 | 10,908 | 31,906 | 32,817 |
Total revenues | 10,748 | 10,908 | 31,906 | 32,817 |
Account servicing revenue | Health and Employee Benefit Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 85,944 | 83,145 | 256,062 | 230,572 |
Total revenues | 85,944 | 83,145 | 256,062 | 230,572 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 28,914 | 26,649 | 87,912 | 85,627 |
Total revenues | 72,075 | 51,145 | 194,593 | 156,298 |
Other revenue | Fleet Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 21,337 | 21,376 | 63,511 | 64,044 |
Total revenues | 51,381 | 45,155 | 145,703 | 132,972 |
Other revenue | Travel and Corporate Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 66 | (636) | 461 | 2,820 |
Total revenues | 1,532 | 79 | 3,995 | 4,551 |
Other revenue | Health and Employee Benefit Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 7,511 | 5,909 | 23,940 | 18,763 |
Total revenues | $ 19,162 | $ 5,911 | $ 44,895 | $ 18,775 |
Revenues - Contract Assets and
Revenues - Contract Assets and Liabilities From Contracts with Customers (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | $ 3,145,770 | $ 2,026,420 |
Contract liabilities | 489,942 | 652,214 |
Accounts receivable, net | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 47,917 | 49,303 |
Prepaid expenses and other current assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 19,406 | 8,975 |
Other assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 35,005 | 40,718 |
Other current liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | 5,301 | 9,123 |
Other liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | $ 71,721 | $ 58,900 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized related to contract liabilities | $ 9.6 | $ 18.7 |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligation (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 219,495 |
Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 115,191 |
Professional Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 4,341 |
Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 99,963 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 20,731 |
Performance obligations expected to be satisfied, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 18,273 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Professional Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 2,083 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 375 |
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 | $ 50,827 |
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 | $ 45,106 |
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 | 2,249 |
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 | 3,472 |
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 | $ 35,899 |
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 | $ 27,442 |
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 | 4 |
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 | 8,453 |
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 | $ 32,780 |
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 | $ 14,298 |
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 | 4 |
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 | 18,478 |
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 | $ 32,199 |
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 | $ 4,885 |
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 | 1 |
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 | 27,313 |
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 | $ 39,630 |
Performance obligations expected to be satisfied, expected timing | 1 year |
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 | $ 3,687 |
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 | 35,943 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 7,429 |
Performance obligations expected to be satisfied, expected timing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 1,500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | 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]: 2028-01-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 5,929 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
Mar. 07, 2022 USD ($) installment | Jun. 01, 2021 USD ($) | Apr. 13, 2021 USD ($) | Apr. 01, 2021 USD ($) cashPayment | Mar. 31, 2026 USD ($) | Mar. 31, 2025 USD ($) | Mar. 31, 2024 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||||||||||
Cash consideration transferred to seller | $ 45,083 | |||||||||||||
Deferred payments to be received | $ 4,300 | |||||||||||||
Number of installments | installment | 3 | |||||||||||||
Final payment | $ 4,000 | |||||||||||||
Discount rate of deferred liability | 3.40% | |||||||||||||
Deferred liability | $ 216,600 | |||||||||||||
HSA assets amount serving as custodian or sub-custodian | $ 3,000,000 | |||||||||||||
Asset acquisition, contingent consideration arrangements, range of outcomes, value, high | 225,000 | |||||||||||||
Repurchase of non-controlling interest | 11,200 | $ 0 | $ 216,594 | $ 11,191 | $ 0 | |||||||||
Contingent consideration as part of asset acquisition | 27,200 | $ 0 | $ 27,200 | |||||||||||
Acquisition of non-controlling interest | $ 96,992 | |||||||||||||
Health Savings Account Assets of Bell Bank’s Healthcare Bank Division | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Cash consideration transferred to seller | $ 200,000 | |||||||||||||
Number of additional cash payments required | cashPayment | 2 | |||||||||||||
Finite-lived intangible assets acquired | $ 263,400 | |||||||||||||
Weighted average life (in years) | 5 years 7 months 6 days | |||||||||||||
Deferred liability | $ 47,400 | |||||||||||||
Health Savings Account Assets of Bell Bank’s Healthcare Bank Division | Asset Acquisition, Payment Tranche One | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Deferred payments | 25,000 | |||||||||||||
Health Savings Account Assets of Bell Bank’s Healthcare Bank Division | Asset Acquisition, Payment Tranche Two | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Deferred payments | $ 12,500 | |||||||||||||
U.S. Health | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Ownership percentage by noncontrolling interest | 4.53% | |||||||||||||
WEX Europe Services | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Ownership percentage | 100% | |||||||||||||
SOFR rate | March 2024 to March 2025 at 12-month SOFR | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Margin on variable rate, percent | 1.25% | |||||||||||||
SOFR rate | March 2025 to March 2026 at 12-month SOFR | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Margin on variable rate, percent | 2.25% | |||||||||||||
PO Holding | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting interests acquired | 4.53% | |||||||||||||
Purchase price | $ 234,000 | |||||||||||||
Deferred liability | 216,600 | |||||||||||||
Repurchase of non-controlling interest | $ 254,400 | |||||||||||||
PO Holding | Forecast | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Payable purchase price | $ 76,700 | $ 76,700 | $ 76,700 | |||||||||||
Final payment | $ 4,000 | |||||||||||||
WEX Europe Services | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting interests acquired | 25% | |||||||||||||
Purchase price | $ 97,000 | |||||||||||||
Unrealized loss on available-for-sale debt securities | 81,600 | |||||||||||||
Acquisition of non-controlling interest | $ 13,100 | |||||||||||||
Reduction of interest (in percent) | 25% | |||||||||||||
Accumulated other comprehensive income | $ 2,300 | |||||||||||||
Benefitexpress | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase price | $ 275,000 | |||||||||||||
Weighted average life (in years) | 8 years 1 month 6 days |
Acquisitions - Schedule of Asse
Acquisitions - Schedule of Asset Acquisition Cost Allocation (Details) $ in Thousands | 1 Months Ended |
Sep. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Cash consideration transferred to seller | $ 45,083 |
Add: transaction costs | 819 |
Total consideration | 45,902 |
Accounts receivable, net of allowance | 38,282 |
Receivable due back from seller | 4,282 |
Net identifiable assets acquired | $ 45,902 |
Weighted average life (in years) | 3 years |
Customer Relationships | |
Business Acquisition [Line Items] | |
Customer relationship intangible asset | $ 3,338 |
Acquisitions - Schedules of Ass
Acquisitions - Schedules of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | 9 Months Ended | 16 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Cash consideration transferred, net of $15.0 million in cash and restricted cash acquired | $ 0 | $ 558,247 | ||
Less: | ||||
Recorded goodwill | 2,702,998 | $ 2,702,998 | $ 2,908,057 | |
Benefitexpress | ||||
Business Acquisition [Line Items] | ||||
Cash acquired from acquisition | 15,000 | |||
Cash consideration transferred, net of $15.0 million in cash and restricted cash acquired | 259,061 | |||
Less: | ||||
Accounts receivable | 3,103 | 3,103 | ||
Intangible assets | 106,200 | 106,200 | ||
Other assets | 4,387 | 4,387 | ||
Accrued expenses | (3,498) | (3,498) | ||
Restricted cash payable | (14,328) | (14,328) | ||
Other liabilities | (5,177) | (5,177) | ||
Recorded goodwill | $ 168,424 | 168,424 | ||
Weighted average life (in years) | 8 years 1 month 6 days | |||
Benefitexpress | Customer Relationships | ||||
Less: | ||||
Intangible assets | $ 84,400 | 84,400 | ||
Weighted average life (in years) | 9 years 3 months 18 days | |||
Benefitexpress | Developed Technologies | ||||
Less: | ||||
Intangible assets | $ 19,600 | 19,600 | ||
Weighted average life (in years) | 3 years 7 months 6 days | |||
Benefitexpress | Noncompete Agreements | ||||
Less: | ||||
Intangible assets | $ 2,150 | $ 2,150 | ||
Weighted average life (in years) | 2 years 6 months |
Accounts Receivable, Net of A_3
Accounts Receivable, Net of Allowances - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Revolving Line-of-credit Facility under 2016 Credit Agreement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables with revolving credit balances | $ 182.6 | $ 93.7 |
Accounts Receivable, Net of A_4
Accounts Receivable, Net of Allowances - Changes in Reserves for Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||||
Balance, beginning of period | $ 100,607 | $ 57,771 | $ 66,306 | $ 59,147 |
Net provision for credit losses | 54,030 | 14,127 | 121,856 | 32,148 |
Charges to other accounts | 11,296 | 4,051 | 29,981 | 12,272 |
Charge-offs | (66,044) | (11,566) | (122,060) | (41,821) |
Recoveries of amounts previously charged-off | 3,580 | 1,907 | 8,820 | 4,954 |
Currency translation | (1,209) | (598) | (2,643) | (1,008) |
Balance, end of period | 102,260 | 65,692 | 102,260 | 65,692 |
Fleet Solutions | ||||
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||||
Balance, beginning of period | 89,224 | 49,716 | 55,758 | 49,267 |
Net provision for credit losses | 53,002 | 10,231 | 118,672 | 26,359 |
Charges to other accounts | 11,296 | 4,046 | 29,913 | 12,267 |
Charge-offs | (65,093) | (10,872) | (120,388) | (37,239) |
Recoveries of amounts previously charged-off | 3,572 | 1,691 | 8,802 | 4,572 |
Currency translation | (637) | (392) | (1,393) | (806) |
Balance, end of period | 91,364 | 54,420 | 91,364 | 54,420 |
Travel and Corporate Solutions | ||||
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||||
Balance, beginning of period | 10,396 | 7,519 | 9,931 | 9,610 |
Net provision for credit losses | 684 | 3,816 | 2,105 | 5,568 |
Charges to other accounts | 0 | 5 | 169 | 5 |
Charge-offs | (787) | (602) | (1,234) | (4,462) |
Recoveries of amounts previously charged-off | 0 | 163 | 0 | 176 |
Currency translation | (572) | (206) | (1,250) | (202) |
Balance, end of period | 9,721 | 10,695 | 9,721 | 10,695 |
Health and Employee Benefit Solutions | ||||
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||||
Balance, beginning of period | 987 | 536 | 617 | 270 |
Net provision for credit losses | 344 | 80 | 1,079 | 221 |
Charges to other accounts | 0 | 0 | 101 | 0 |
Charge-offs | (164) | (92) | (438) | (120) |
Recoveries of amounts previously charged-off | 8 | 53 | 18 | 206 |
Currency translation | 0 | 0 | 0 | 0 |
Balance, end of period | $ 1,175 | $ 577 | $ 1,175 | $ 577 |
Accounts Receivable, Net of A_5
Accounts Receivable, Net of Allowances - Concentration of Credit Risk (Details) - Credit Concentration Risk - Accounts receivable, net | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Less than 30 days past due | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 98% | 98% |
Less than 60 days past due | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 99% | 99% |
Repurchases of Common Stock (De
Repurchases of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | |||||
Treasury stock purchased (in shares) | 434 | 0 | 954 | 0 | |
Purchase of shares of treasury stock | $ 69,009 | $ 80,599 | $ 149,608 | ||
Treasury stock average cost (in dollars per share) | $ 158.79 | $ 156.76 |
Earnings per Share - Summary of
Earnings per Share - Summary of Net Income (Loss) Attributable to Shareholders and Reconciliation of Basic and Diluted Shares (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net (loss) income attributable to shareholders | $ (44,145) | $ 48,318 | $ 112,747 | $ 11,897 |
Weighted average common shares outstanding – Basic (in shares) | 44,229 | 44,861 | 44,644 | 44,664 |
Dilutive impact of share-based compensation awards (in shares) | 0 | 418 | 328 | 670 |
Weighted average common shares outstanding – Diluted (in shares) | 44,229 | 45,279 | 44,972 | 45,334 |
Incremental Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (in shares) | 300 | |||
Share-Based Payment Arrangement | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (in shares) | 600 | 700 | 600 | 900 |
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 | 1,600 | 1,600 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Interest Rate Swaps (Details) - Derivatives Not Designated as Hedging Instruments $ in Thousands | Sep. 30, 2022 USD ($) |
Derivative [Line Items] | |
Notional amount at inception | $ 1,900,000 |
December 2022 | |
Derivative [Line Items] | |
Fixed interest rate | 2.204% |
Notional amount at inception | $ 300,000 |
March 2023 | |
Derivative [Line Items] | |
Fixed interest rate | 1.954% |
Notional amount at inception | $ 150,000 |
March 2023 | Minimum | |
Derivative [Line Items] | |
Fixed interest rate | 1.956% |
Notional amount at inception | $ 100,000 |
March 2023 | Maximum | |
Derivative [Line Items] | |
Fixed interest rate | 2.413% |
Notional amount at inception | $ 200,000 |
December 2023 | |
Derivative [Line Items] | |
Fixed interest rate | 1.862% |
Notional amount at inception | $ 200,000 |
May 2024 | Minimum | |
Derivative [Line Items] | |
Fixed interest rate | 0.435% |
Notional amount at inception | $ 150,000 |
May 2024 | Maximum | |
Derivative [Line Items] | |
Fixed interest rate | 0.44% |
Notional amount at inception | $ 150,000 |
May 2025 | |
Derivative [Line Items] | |
Fixed interest rate | 0.678% |
Notional amount at inception | $ 300,000 |
May 2026 | Minimum | |
Derivative [Line Items] | |
Fixed interest rate | 0.909% |
Notional amount at inception | $ 150,000 |
May 2026 | Maximum | |
Derivative [Line Items] | |
Fixed interest rate | 0.91% |
Notional amount at inception | $ 150,000 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net unrealized gain on financial instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate swap gains (losses) | $ 24,610 | $ 6,527 | $ 93,481 | $ 20,008 |
Financing interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate swap gains (losses) | $ 3,721 | $ (7,037) | $ (5,191) | $ (18,575) |
Deposits - Schedule of Composit
Deposits - Schedule of Composition of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Banking and Thrift, Interest [Abstract] | ||
Customer deposits | $ 142,700 | $ 129,180 |
Certificates of deposit with maturities within 1 year | 706,971 | 566,427 |
Interest-bearing brokered money market deposits | 226,097 | 370,813 |
HSA deposits | 2,070,002 | 960,000 |
Short-term contractual deposits | 3,145,770 | 2,026,420 |
Certificates of deposit with maturities greater than 1 year and less than 5 years | 652,214 | |
Total deposits | $ 3,635,712 | $ 2,678,634 |
Weighted average cost of demand deposits outstanding (as a percent) | 0.05% | 0.03% |
Weighted average cost of funds on certificates of deposit outstanding (as a percent) | 1.41% | 0.48% |
Weighted average cost of interest-bearing money market deposits outstanding (as a percent) | 3.10% | 0.20% |
Certificates of deposits denominations in dollar amount | $ 250 | $ 250 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Banking and Thrift, Interest [Abstract] | ||
Required reserve based on the outstanding customer deposits | $ 0 | $ 0 |
Financing and Other Debt - Sche
Financing and Other Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total gross debt | $ 2,847,464 | $ 2,905,088 |
Current portion of gross debt | 166,452 | 165,703 |
Less: Unamortized debt issuance costs/debt discount | (9,969) | (9,934) |
Short-term debt, net | 156,483 | 155,769 |
Long-term portion of gross debt | 2,681,012 | 2,739,385 |
Less: Unamortized debt issuance costs/debt discount | (36,534) | (44,020) |
Long-term debt, net | 2,644,478 | 2,695,365 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Securitized debt | 93,896 | 100,861 |
Participation debt | ||
Debt Instrument [Line Items] | ||
Carrying value | 29,948 | 1,500 |
Revolving Line-of-credit Facility under 2016 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Carrying value | 119,800 | |
Revolving Line-of-credit Facility under 2016 Credit Agreement | Level 2 | ||
Debt Instrument [Line Items] | ||
Carrying value | 88,200 | 119,800 |
Revolving Line-of-credit Facility under 2016 Credit Agreement | 2016 Credit Agreement | Letter of Credit | ||
Supplemental information: | ||
Letters of credit | 30,988 | 51,392 |
Remaining borrowing capacity on revolving credit facility | 810,812 | 758,808 |
Secured Debt | Line of Credit | Amended and Restated Credit Agreement | ||
Debt Instrument [Line Items] | ||
Carrying value | 2,325,420 | 2,372,927 |
Secured Debt | Line of Credit | Amended and Restated Credit Agreement Tranche A | ||
Debt Instrument [Line Items] | ||
Carrying value | 941,742 | |
Secured Debt | Line of Credit | Amended and Restated Credit Agreement Tranche A | Level 2 | ||
Debt Instrument [Line Items] | ||
Carrying value | 905,050 | |
Secured Debt | Line of Credit | Amended and Restated Credit Agreement Tranche B | ||
Debt Instrument [Line Items] | ||
Carrying value | 1,431,185 | |
Secured Debt | Line of Credit | Amended and Restated Credit Agreement Tranche B | Level 2 | ||
Debt Instrument [Line Items] | ||
Carrying value | 1,420,370 | |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Carrying value | 310,000 | |
Convertible Debt | Level 2 | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 310,000 | $ 310,000 |
Financing and Other Debt - Narr
Financing and Other Debt - Narrative (Details) | 9 Months Ended | 12 Months Ended | |
Jul. 01, 2020 USD ($) $ / shares | Sep. 30, 2022 USD ($) securitized_debt_agreement | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||
Number of securitized debt agreements | securitized_debt_agreement | 2 | ||
Participation agreements short term and long term debt | $ 2,847,464,000 | $ 2,905,088,000 | |
Participation securities current maturities | 156,483,000 | 155,769,000 | |
Long-term debt, net | 2,644,478,000 | 2,695,365,000 | |
Borrowed federal funds | 0 | ||
Accounts receivable pledged as collateral | 3,830,178,000 | 2,891,242,000 | |
Asset Pledged as Collateral | Fleet Solutions | |||
Debt Instrument [Line Items] | |||
Accounts receivable pledged as collateral | 266,400,000 | ||
Period One | |||
Debt Instrument [Line Items] | |||
Borrowings under guaranteed investment agreements | 60,000,000 | ||
Period Two | |||
Debt Instrument [Line Items] | |||
Borrowings under guaranteed investment agreements | $ 40,000,000 | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Borrowed federal funds | $ 0 | ||
Amended and Restated Credit Agreement | |||
Debt Instrument [Line Items] | |||
Weighted average effective interest rate (as a percent) | 5.20% | 2.20% | |
Commitment fee percentage | 0.30% | 0.40% | |
Amended and Restated Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 0.25% | ||
Amended and Restated 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 | ||
Interest rate, stated percentage | 6.50% | 0.065% | |
Conversion price (in dollars per share) | $ / shares | $ 200 | ||
Redemption price, percent | 105% | ||
Repayments of convertible debt | $ 0 | ||
Debt instrument, term (in years) | 7 years | ||
Effective interest rate on the liability component (as a percent) | 7.50% | 7.50% | |
European Securitization Facility | |||
Debt Instrument [Line Items] | |||
Interest rate during period (as a percent) | 2.39% | 0.91% | |
Revolving Line-of-credit Facility under 2016 Credit Agreement | Federal Reserve Bank | |||
Debt Instrument [Line Items] | |||
Current borrowing capacity | $ 210,300,000 | $ 268,600,000 | |
Letters of credit | 0 | $ 0 | |
Revolving Line-of-credit Facility under 2016 Credit Agreement | Amended and Restated Credit Agreement | |||
Debt Instrument [Line Items] | |||
Amounts Available | 930,000,000 | ||
Credit Facility Term Loans | Amended and Restated Credit Agreement Tranche A | |||
Debt Instrument [Line Items] | |||
Line of credit facility, periodic payment | 12,200,000 | ||
Credit Facility Term Loans | Amended and Restated Credit Agreement Tranche B | |||
Debt Instrument [Line Items] | |||
Line of credit facility, periodic payment | $ 3,600,000 | ||
Credit Facility Term Loans | Amended and Restated Credit Agreement Tranche B | Base Rate | |||
Debt Instrument [Line Items] | |||
Margin on variable rate, percent | 1.25% | ||
Credit Facility Term Loans | Amended and Restated Credit Agreement Tranche B | Eurocurrency Rate | |||
Debt Instrument [Line Items] | |||
Margin on variable rate, percent | 2.25% | ||
Participation Debt | Line of Credit | |||
Debt Instrument [Line Items] | |||
Weighted average effective interest rate (as a percent) | 5.50% | 2.54% | |
Participation agreements short term and long term debt | $ 29,900,000 | $ 1,500,000 | |
Participation securities current maturities | 9,200,000 | $ 1,500,000 | |
Long-term debt, net | $ 20,700,000 | ||
Participation Debt | London Interbank Offered Rate (LIBOR) | Minimum | Line of Credit | |||
Debt Instrument [Line Items] | |||
Margin on variable rate, percent | 2.25% | ||
Participation Debt | London Interbank Offered Rate (LIBOR) | Maximum | Line of Credit | |||
Debt Instrument [Line Items] | |||
Margin on variable rate, percent | 2.50% |
Financing and Other Debt - Sc_2
Financing and Other Debt - Schedule of Convertible Notes (Details) - Convertible Debt - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal | $ 310,000 | |
Convertible Senior Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Principal | $ 310,000 | 310,000 |
Less: Unamortized discounts | (11,391) | (12,844) |
Less: Unamortized issuance cost | (1,834) | (2,068) |
Net carrying amount of Convertible Notes | $ 296,775 | $ 295,088 |
Financing and Other Debt - Sc_3
Financing and Other Debt - Schedule of Total Interest Expense for Convertible Note (Details) - Convertible Debt - Convertible Senior Notes Due 2027 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 01, 2020 | |
Debt Instrument [Line Items] | |||||
Interest on 6.5 percent coupon | $ 5,038 | $ 5,038 | $ 15,113 | $ 15,113 | |
Amortization of debt discount and debt issuance costs | 553 | 512 | 1,687 | 1,566 | |
Operating interest | $ 5,591 | $ 5,550 | $ 16,800 | $ 16,679 | |
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 | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable in excess of credit limits | $ 0 | $ 0 | $ 0 | ||
Charge-backs in excess of credit limits | 0 | $ 0 | 0 | $ 0 | |
WEX Europe Services | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sale of factoring receivables | 149.6 | 148 | 454.2 | 411.6 | |
Loss on sale of factoring receivables | 0 | 0 | 2.3 | 2 | |
Wex Bank | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sale of factoring receivables | 2,300 | 1,300 | 4,600 | 1,900 | |
Losses on factoring | $ 0 | $ 0 | $ 1.1 | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Accrued investment interest | $ 9.2 | $ 9.2 | $ 4.2 | ||
Unrealized losses related to equity securities | $ 1.1 | $ 0 | $ 3.2 | $ 0 |
Investment Securities - Investm
Investment Securities - Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | $ 1,535,525 | $ 954,797 |
Accumulated gross unrealized gain, current | 12 | 359 |
Accumulated gross unrealized loss, current | 156,126 | 6,479 |
Debt securities, current | 1,379,411 | 948,677 |
Amortized cost, noncurrent | 40,470 | 40,394 |
Accumulated gross unrealized gain, noncurrent | 1 | 4 |
Accumulated gross unrealized loss, noncurrent | 4,466 | 748 |
Fair Value | 36,005 | 39,650 |
Amortized Cost | 1,575,995 | 995,191 |
Total Unrealized Gains | 13 | 363 |
Total Unrealized Losses | 160,592 | 7,227 |
Fair Value | 1,415,416 | 988,327 |
Executive deferred compensation plan trust | 10,500 | 11,300 |
U.S. treasury notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 405,690 | 308,058 |
Accumulated gross unrealized gain, current | 0 | 250 |
Accumulated gross unrealized loss, current | 44,449 | 1,113 |
Debt securities, current | 361,241 | 307,195 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 537,393 | 355,102 |
Accumulated gross unrealized gain, current | 0 | 30 |
Accumulated gross unrealized loss, current | 59,020 | 3,289 |
Debt securities, current | 478,373 | 351,843 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 53,024 | 31,273 |
Accumulated gross unrealized gain, current | 0 | 44 |
Accumulated gross unrealized loss, current | 7,893 | 149 |
Debt securities, current | 45,131 | 31,168 |
Amortized cost, noncurrent | 2,951 | 3,107 |
Accumulated gross unrealized gain, noncurrent | 0 | 1 |
Accumulated gross unrealized loss, noncurrent | 498 | 0 |
Fair Value | 2,453 | 3,108 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 200,730 | 120,774 |
Accumulated gross unrealized gain, current | 0 | 24 |
Accumulated gross unrealized loss, current | 10,438 | 587 |
Debt securities, current | 190,292 | 120,211 |
Amortized cost, noncurrent | 140 | 167 |
Accumulated gross unrealized gain, noncurrent | 1 | 1 |
Accumulated gross unrealized loss, noncurrent | 0 | 0 |
Fair Value | 141 | 168 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 338,688 | 139,590 |
Accumulated gross unrealized gain, current | 12 | 11 |
Accumulated gross unrealized loss, current | 34,326 | 1,341 |
Debt securities, current | 304,374 | 138,260 |
Amortized cost, noncurrent | 114 | 121 |
Accumulated gross unrealized gain, noncurrent | 0 | 2 |
Accumulated gross unrealized loss, noncurrent | 1 | 0 |
Fair Value | 113 | 123 |
Fixed income mutual fund | ||
Debt Securities, Available-for-sale [Line Items] | ||
Accumulated gross unrealized gain, noncurrent | 0 | 0 |
Accumulated gross unrealized loss, noncurrent | 3,967 | 748 |
Fair Value | 24,298 | 27,251 |
Equity Securities FV-NI Cost Noncurrent | 28,265 | 27,999 |
Pooled investment fund | ||
Debt Securities, Available-for-sale [Line Items] | ||
Accumulated gross unrealized gain, noncurrent | 0 | 0 |
Accumulated gross unrealized loss, noncurrent | 0 | 0 |
Fair Value | 9,000 | 9,000 |
Equity Securities FV-NI Cost Noncurrent | $ 9,000 | $ 9,000 |
Investment Securities - Unreali
Investment Securities - Unrealized losses On Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
U.S. treasury notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 361,241 | $ 268,839 |
Gross Unrealized Losses | 44,449 | 1,113 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 478,373 | 336,777 |
Gross Unrealized Losses | 59,020 | 3,289 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 47,574 | 24,049 |
Gross Unrealized Losses | 8,391 | 149 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 190,292 | 101,983 |
Gross Unrealized Losses | 10,438 | 587 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 301,260 | 132,737 |
Gross Unrealized Losses | $ 34,327 | $ 1,341 |
Investment Securities - Maturit
Investment Securities - Maturity Dates Of Available-For-Sale Securities (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Amortized Cost | |
Due after 1 year through year 5 | $ 489,539 |
Due after 5 years through year 10 | 582,727 |
Due after 10 years | 466,464 |
Net Carrying Amount | 1,538,730 |
Fair Value | |
Due after 1 year through year 5 | 447,301 |
Due after 5 years through year 10 | 510,215 |
Due after 10 years | 424,602 |
Fair Value | $ 1,382,118 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value and Related Hierarchy Levels (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investment securities, current: | ||
Debt securities, current | $ 1,379,411 | $ 948,677 |
Investment securities, non-current: | ||
Fair Value | 36,005 | 39,650 |
Executive deferred compensation plan trust | 10,500 | 11,300 |
Liabilities | ||
Derivative liability | 67,300 | |
Prepaid expenses and other current assets | ||
Investment securities, non-current: | ||
Executive deferred compensation plan trust | 1,800 | 1,600 |
Derivative asset | 100 | |
Other assets | ||
Investment securities, non-current: | ||
Executive deferred compensation plan trust | 8,700 | 9,700 |
Derivative asset | 14,900 | |
Other current liabilities | ||
Liabilities | ||
Derivative liability | 24,200 | |
Other liabilities | ||
Liabilities | ||
Derivative liability | 178,200 | |
Corporate debt securities | ||
Investment securities, current: | ||
Debt securities, current | 478,373 | 351,843 |
Municipal bonds | ||
Investment securities, current: | ||
Debt securities, current | 45,131 | 31,168 |
Investment securities, non-current: | ||
Fair Value | 2,453 | 3,108 |
Asset-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 190,292 | 120,211 |
Investment securities, non-current: | ||
Fair Value | 141 | 168 |
Mortgage-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 304,374 | 138,260 |
Investment securities, non-current: | ||
Fair Value | 113 | 123 |
Mutual Fund [Member] | ||
Investment securities, non-current: | ||
Fair Value | 24,298 | 27,251 |
Pooled investment fund measured at NAV | ||
Investment securities, non-current: | ||
Fair Value | 9,000 | 9,000 |
Interest Rate Swaps | Prepaid expenses and other current assets | ||
Investment securities, non-current: | ||
Derivative asset | 41,800 | |
Interest Rate Swaps | Other assets | ||
Investment securities, non-current: | ||
Derivative asset | 46,700 | |
Interest Rate Swaps | Other current liabilities | ||
Liabilities | ||
Derivative liability | 17,600 | |
Interest Rate Swaps | Other liabilities | ||
Liabilities | ||
Derivative liability | 2,400 | |
Level 1 | ||
Investment securities, non-current: | ||
Executive deferred compensation plan trust | 10,503 | 11,303 |
Level 1 | Money market funds | ||
Assets: | ||
Money market funds | 17,437 | 3,670 |
Level 1 | Mutual Fund [Member] | ||
Investment securities, non-current: | ||
Fair Value | 24,298 | 27,251 |
Level 2 | US Treasury Securities | ||
Investment securities, current: | ||
Debt securities, current | 361,241 | 307,195 |
Level 2 | Corporate debt securities | ||
Investment securities, current: | ||
Debt securities, current | 478,373 | 351,843 |
Level 2 | Municipal bonds | ||
Investment securities, current: | ||
Debt securities, current | 45,131 | 31,168 |
Investment securities, non-current: | ||
Fair Value | 2,453 | 3,108 |
Level 2 | Asset-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 190,292 | 120,211 |
Investment securities, non-current: | ||
Fair Value | 141 | 168 |
Level 2 | Mortgage-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 304,374 | 138,260 |
Investment securities, non-current: | ||
Fair Value | 113 | 123 |
Level 2 | Interest Rate Swaps | ||
Investment securities, non-current: | ||
Derivative asset | 88,529 | 15,031 |
Liabilities | ||
Derivative liability | 0 | 19,982 |
Net Asset Value | Pooled investment fund measured at NAV | ||
Investment securities, non-current: | ||
Fair Value | 9,000 | 9,000 |
Level 3 | Contingent consideration derivative | ||
Liabilities | ||
Derivative liability | $ 202,400 | $ 67,300 |
Fair Value - Pooled Investment
Fair Value - Pooled Investment Fund (Details) - Net Asset Value - Pooled investment fund measured at NAV $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Unfunded Commitments | $ 0 |
Redemption Notice Period | 30 days |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of goodwill | $ 136.5 | $ 136.5 | |
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 | 0.0375 | 0.0375 | 0.0145 |
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 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Contingent consideration, beginning balance | $ 172,100 | $ 74,900 | $ 67,300 | $ 0 |
Fair value recorded as a result of the acquisition | 0 | 0 | 0 | 27,200 |
Change in fair value of contingent consideration | 30,300 | (2,800) | 135,100 | 44,900 |
Contingent consideration, ending balance | $ 202,400 | $ 72,100 | $ 202,400 | $ 72,100 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value of The Company's Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contractual deposits with maturities in excess of one year | $ 652,214 | |
Convertible Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 310,000 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contractual deposits with maturities in excess of one year | $ 489,942 | 652,214 |
Contractual deposits with maturities in excess of one year | 452,950 | |
Level 2 | Convertible Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 310,000 | 310,000 |
Convertible notes | 280,209 | 327,670 |
Line of Credit | Tranche A Term Loans | Level 2 | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 941,742 | |
Term Loans, fair value | 884,687 | |
Line of Credit | Tranche B Term Loans | Level 2 | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 1,431,185 | |
Term Loans, fair value | 1,382,205 | |
Line of Credit | Amended and Restated Credit Agreement Tranche A | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 941,742 | |
Line of Credit | Amended and Restated Credit Agreement Tranche A | Level 2 | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 905,050 | |
Line of Credit | Amended and Restated Credit Agreement Tranche B | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 1,431,185 | |
Line of Credit | Amended and Restated Credit Agreement Tranche B | Level 2 | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 1,420,370 | |
Revolving Line-of-credit Facility under 2016 Credit Agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 119,800 | |
Revolving Line-of-credit Facility under 2016 Credit Agreement | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | $ 88,200 | $ 119,800 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Mar. 07, 2022 | Apr. 01, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Mar. 05, 2019 | |
Noncontrolling Interest [Line Items] | ||||||||||
Deferred liability | $ 216,600 | |||||||||
Repurchase of non-controlling interest | $ 11,200 | $ 0 | $ 216,594 | $ 11,191 | $ 0 | |||||
Change in value of redeemable non-controlling interest | $ 0 | $ 0 | $ (37,780) | $ 3,416 | $ 43,823 | $ 25,044 | $ (37,800) | |||
Noncontrolling interest, deferred tax expense | $ 3,500 | |||||||||
PO Holding | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Percentage of voting interests acquired | 4.53% | |||||||||
Purchase price | $ 234,000 | |||||||||
Deferred liability | 216,600 | |||||||||
Repurchase of non-controlling interest | $ 254,400 | |||||||||
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 | |||||||||
Wex Bank | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Ownership percentage by noncontrolling interest | 4.53% | |||||||||
Ownership percentage | 100% |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest - Schedule of Redeemable Non-Controlling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Apr. 01, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Beginning balance | $ 142,616 | $ 0 | $ 0 | $ 254,106 | $ 187,937 | $ 142,616 | $ 117,219 | $ 254,106 |
Net income attributable to redeemable non-controlling interest | 0 | 0 | 268 | 134 | 232 | 353 | ||
Repurchase of non-controlling interest | $ (11,200) | 0 | (216,594) | (11,191) | 0 | |||
Contribution from non-controlling interest | 0 | 12,457 | ||||||
Change in value of redeemable non-controlling interest | 0 | 0 | (37,780) | 3,416 | 43,823 | 25,044 | (37,800) | |
Ending balance | $ 0 | $ 0 | $ 0 | $ 191,487 | $ 187,937 | $ 142,616 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||||
Effective tax rate | (1.90%) | 27.20% | 42.10% | 16.60% | ||
Uncertain tax position | $ 12.7 | $ 7.5 | $ 12.7 | |||
Undistributed earnings of certain foreign subsidiaries | $ 157.1 | $ 157.1 | $ 133 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Restructuring (reversals) charges | $ 0 | $ 5,400,000 | $ 0 | |
Incurred penalties reversed | 7,000,000 | |||
Shortfall penalties | $ 600,000 | $ 1,600,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 28.2 | $ 21.7 | $ 76.8 | $ 60.3 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Revenue b
Segment Information - Revenue by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 616,129 | $ 482,764 | $ 1,731,901 | $ 1,353,004 |
Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 378,094 | 286,361 | 1,076,456 | 804,586 |
Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 113,975 | 91,002 | 291,636 | 243,406 |
Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 124,060 | 105,401 | 363,809 | 305,012 |
Payment processing revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 309,032 | 226,126 | 860,815 | 627,941 |
Payment processing revenue | Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 188,586 | 130,006 | 542,851 | 367,032 |
Payment processing revenue | Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 101,533 | 79,815 | 255,216 | 205,345 |
Payment processing revenue | Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 18,913 | 16,305 | 62,748 | 55,564 |
Account servicing revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 138,324 | 137,724 | 415,903 | 389,344 |
Account servicing revenue | Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 41,632 | 43,671 | 127,935 | 125,955 |
Account servicing revenue | Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 10,748 | 10,908 | 31,906 | 32,817 |
Account servicing revenue | Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 85,944 | 83,145 | 256,062 | 230,572 |
Finance fee revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 96,698 | 67,769 | 260,590 | 179,421 |
Finance fee revenue | Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 96,495 | 67,529 | 259,967 | 178,627 |
Finance fee revenue | Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 162 | 200 | 519 | 693 |
Finance fee revenue | Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 41 | 40 | 104 | 101 |
Other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 72,075 | 51,145 | 194,593 | 156,298 |
Other revenue | Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 51,381 | 45,155 | 145,703 | 132,972 |
Other revenue | Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,532 | 79 | 3,995 | 4,551 |
Other revenue | Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 19,162 | $ 5,911 | $ 44,895 | $ 18,775 |
Segment Information - Reconcili
Segment Information - Reconciliation of Adjusted Operating Income to Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | $ 265,071 | $ 199,773 | $ 761,294 | $ 539,692 |
Stock-based compensation | 76,760 | 60,250 | ||
Impairment charges | 136,486 | 0 | 136,486 | 0 |
Operating income | 21,288 | 100,822 | 314,693 | 233,641 |
Financing interest expense | (34,419) | (32,493) | (95,928) | (98,250) |
Net foreign currency loss | (23,445) | (9,962) | (37,847) | (11,375) |
Other income | 0 | 3,617 | 0 | 3,617 |
Change in fair value of contingent consideration | (30,300) | 2,800 | (135,100) | (44,900) |
Net unrealized gain on financial instruments | 23,540 | 6,424 | 90,261 | 19,470 |
(Loss) income before income taxes | (43,336) | 71,208 | 136,079 | 102,203 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate expenses | 23,918 | 20,977 | 63,915 | 54,360 |
Acquisition-related intangible amortization | 42,486 | 46,965 | 127,743 | 134,713 |
Other acquisition and divestiture related items | 4,142 | 7,012 | 15,143 | 32,498 |
Debt restructuring costs | 72 | 120 | 43 | 6,056 |
Stock-based compensation | 27,873 | 22,166 | 78,360 | 62,771 |
Other costs | 8,806 | 1,711 | 24,911 | 15,653 |
Impairment charges | 136,486 | 0 | 136,486 | 0 |
Fleet Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | 174,521 | 144,853 | 527,591 | 400,976 |
Impairment charges | 136,500 | |||
Travel and Corporate Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | 60,289 | 31,057 | 139,635 | 55,229 |
Health and Employee Benefit Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | $ 30,261 | $ 23,863 | $ 94,068 | $ 83,487 |
Supplementary Regulatory Capi_3
Supplementary Regulatory Capital Disclosure (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Debt Disclosure [Abstract] | ||
Total Capital to risk-weighted assets, Actual Amount | $ 605,824 | $ 402,406 |
Total Capital to risk-weighted assets, Actual, Ratio | 0.1396 | 0.1263 |
Total Capital to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 347,154 | $ 254,984 |
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 | $ 433,943 | $ 318,731 |
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 | $ 551,526 | $ 366,121 |
Tier 1 Capital to average assets, Actual, Ratio | 0.0949 | 0.0875 |
Tier 1 Capital to average assets, Minimum for Capital Adequacy Purposes Amount | $ 232,525 | $ 167,317 |
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 | $ 290,656 | $ 209,147 |
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 | $ 551,526 | $ 366,121 |
Common equity to risk-weighted assets, Actual, Ratio | 12.71% | 11.49% |
Common equity to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 195,274 | $ 143,429 |
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 | $ 282,063 | $ 207,175 |
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 | $ 551,526 | $ 366,121 |
Tier 1 Capital to risk-weighted assets, Actual, Ratio | 0.1271 | 0.1149 |
Tier 1 Capital to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 260,366 | $ 191,238 |
Tier 1 Capital to risk-weighted assets, Ratio | 0.0600 | 0.0600 |
Tier 1 Capital to risk-weighted assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 347,154 | $ 254,984 |
Tier 1 Capital to risk-weighted assets, Ratio | 0.0800 | 0.0800 |