Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 20, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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, $0.01 par value | |
Trading Symbol | WEX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 42,840,681 | |
Entity Central Index Key | 0001309108 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | ||
Total revenues | $ 612 | $ 517.5 |
Cost of services | ||
Processing costs | 145.6 | 132.5 |
Service fees | 18.3 | 15.8 |
Provision for credit losses | 45.4 | 25.6 |
Operating interest | 12.8 | 2.3 |
Depreciation and amortization | 25.2 | 26 |
Total cost of services | 247.3 | 202.2 |
General and administrative | 88.9 | 78.7 |
Sales and marketing | 79.9 | 73.9 |
Depreciation and amortization | 41.6 | 40.5 |
Operating income | 154.3 | 122.3 |
Financing interest expense | (38.4) | (29.7) |
Change in fair value of contingent consideration | (1.8) | (16.6) |
Net foreign currency (loss) gain | (1.4) | 5 |
Net unrealized (loss) gain on financial instruments | (14.5) | 49.8 |
Income before income taxes | 98.2 | 130.8 |
Income tax expense | 30.2 | 42 |
Net income | 68 | 88.8 |
Less: Net income from non-controlling interests | 0 | 0.3 |
Net income attributable to WEX Inc. | 68 | 88.5 |
Change in value of redeemable non-controlling interest | 0 | 34.2 |
Net income attributable to shareholders | $ 68 | $ 122.8 |
Net income attributable to shareholders per share: | ||
Basic (in dollars per share) | $ 1.58 | $ 2.73 |
Diluted (in dollars per share) | $ 1.56 | $ 2.71 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 43.1 | 44.9 |
Diluted (in shares) | 43.6 | 45.3 |
Payment processing revenue | ||
Revenues | ||
Total revenues | $ 288.1 | $ 239.5 |
Account servicing revenue | ||
Revenues | ||
Total revenues | 160.7 | 139.9 |
Finance fee revenue | ||
Revenues | ||
Total revenues | 80.7 | 78.6 |
Other revenue | ||
Revenues | ||
Total revenues | $ 82.5 | $ 59.5 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 68 | $ 88.8 |
Other comprehensive income (loss), net of tax: | ||
Unrealized gains (losses) on available-for-sale debt securities | 22.2 | (51.7) |
Foreign currency translation | 0.8 | 4.3 |
Other comprehensive income (loss), net of tax | 23 | (47.4) |
Comprehensive income | 91 | 41.4 |
Less: Comprehensive income attributable to non-controlling interests | 0 | 0.3 |
Comprehensive income attributable to WEX Inc. | $ 91 | $ 41.2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 921.7 | $ 922 |
Restricted cash | 958.7 | 937.8 |
Accounts receivable, net | 3,400.1 | 3,275.7 |
Investment securities | 2,478.5 | 1,395.3 |
Securitized accounts receivable, restricted | 147.3 | 143.2 |
Prepaid expenses and other current assets | 144.9 | 143.3 |
Total current assets | 8,051.2 | 6,817.1 |
Property, equipment and capitalized software (net of accumulated depreciation of $552.0 in 2023 and $529.9 in 2022) | 209.8 | 202.2 |
Goodwill | 2,725.9 | 2,728.9 |
Other intangible assets (net of accumulated amortization of $1,216.8 in 2023 and $1,173.2 in 2022) | 1,438 | 1,473.6 |
Investment securities | 48.8 | 48 |
Deferred income taxes, net | 14.1 | 13.4 |
Other assets | 239.5 | 246 |
Total assets | 12,727.3 | 11,529.2 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 1,432.9 | 1,365.8 |
Accrued expenses and other current liabilities | 713.4 | 643.9 |
Restricted cash payable | 958.1 | 937.1 |
Short-term deposits | 4,107.8 | 3,144.6 |
Short-term debt, net | 290.4 | 202.6 |
Total current liabilities | 7,502.6 | 6,294.1 |
Long-term debt, net | 2,631.3 | 2,522.2 |
Long-term deposits | 338.7 | 334.2 |
Deferred income taxes, net | 138.2 | 142.2 |
Other liabilities | 446 | 587.1 |
Total liabilities | 11,056.8 | 9,879.7 |
Stockholders’ Equity | ||
Common stock $0.01 par value; 175.0 shares authorized; 49.7 shares issued in 2023 and 49.6 in 2022; 42.8 shares outstanding in 2023 and 43.2 in 2022 | 0.5 | 0.5 |
Additional paid-in capital | 950.8 | 928 |
Retained earnings | 1,558.5 | 1,490.5 |
Accumulated other comprehensive loss | (283.3) | (306.3) |
Treasury stock at cost; 6.9 and 6.3 shares in 2023 and 2022, respectively | (556) | (463.2) |
Total stockholders’ equity | 1,670.5 | 1,649.5 |
Total liabilities and stockholders’ equity | $ 12,727.3 | $ 11,529.2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Property, equipment and capitalized software, accumulated depreciation | $ 552 | $ 529.9 |
Accumulated amortization | $ 1,216.8 | $ 1,173.2 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 175 | 175 |
Common stock, shares issued (in shares) | 49.7 | 49.6 |
Common stock, shares, outstanding (in shares) | 42.8 | 43.2 |
Treasury stock, shares (in shares) | 6.9 | 6.3 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock Issued | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2021 | 49.3 | |||||
Beginning balance at Dec. 31, 2021 | $ 1,838.8 | $ 0.5 | $ 844.1 | $ 1,289.1 | $ (122.5) | $ (172.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued under share-based compensation plans (in shares) | 0.2 | |||||
Stock issued under share-based compensation plans | 0.8 | 0.8 | ||||
Share repurchases for tax withholdings | (12.2) | (12.2) | ||||
Stock-based compensation expense | 23.7 | 23.7 | ||||
Unrealized gain (loss) on available-for-sale debt securities | (51.7) | (51.7) | ||||
Change in value of redeemable non-controlling interest | 34.2 | 34.2 | ||||
Foreign currency translation | 4.3 | 4.3 | ||||
Net Income | 88.5 | 88.5 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 49.4 | |||||
Ending balance at Mar. 31, 2022 | $ 1,926.5 | $ 0.5 | 856.3 | 1,411.9 | (169.9) | (172.3) |
Beginning balance (in shares) at Dec. 31, 2022 | 49.6 | 49.6 | ||||
Beginning balance at Dec. 31, 2022 | $ 1,649.5 | $ 0.5 | 928 | 1,490.5 | (306.3) | (463.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued under share-based compensation plans (in shares) | 0.1 | |||||
Stock issued under share-based compensation plans | 6.3 | 6.3 | ||||
Share repurchases for tax withholdings | (8.8) | (8.8) | ||||
Stock-based compensation expense | 25.3 | |||||
Unrealized gain (loss) on available-for-sale debt securities | 22.2 | 22.2 | ||||
Purchase of shares of treasury stock | (92.8) | (92.8) | ||||
Foreign currency translation | 0.8 | 0.8 | ||||
Net Income | $ 68 | 68 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 49.7 | 49.7 | ||||
Ending balance at Mar. 31, 2023 | $ 1,670.5 | $ 0.5 | $ 950.8 | $ 1,558.5 | $ (283.3) | $ (556) |
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 | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Cash flows from operating activities | |||
Net income | $ 68,000 | $ 88,800 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Change in fair value of contingent consideration | 1,800 | 16,600 | |
Stock-based compensation | 25,300 | 23,700 | |
Depreciation and amortization | 66,800 | 66,500 | |
Deferred tax (benefit) expense | (6,100) | 14,200 | |
Provision for credit losses | 45,400 | 25,600 | |
Other non-cash adjustments | 17,800 | (49,600) | |
Changes in operating assets and liabilities, net of effects of business acquisitions: | |||
Accounts receivable and securitized accounts receivable | (172,400) | (1,030,500) | |
Prepaid expenses and other current and other long-term assets | (10,100) | 26,200 | |
Accounts payable | 40,300 | 695,900 | |
Accrued expenses and other current and long-term liabilities | (80,400) | (70,700) | |
Income taxes | 30,700 | 24,800 | |
Net cash provided by (used for) operating activities | 27,100 | (168,700) | |
Cash flows from investing activities | |||
Purchases of property, equipment and capitalized software | (30,600) | (24,200) | |
Purchases of available-for-sale debt securities | (1,107,400) | (97,700) | |
Sales and maturities of available-for-sale debt securities | 80,500 | 15,300 | |
Acquisition of intangible assets | (4,500) | 0 | |
Net cash used for investing activities | (1,062,000) | (106,600) | |
Cash flows from financing activities | |||
Net activity from share-based compensation plans | (2,500) | (11,400) | |
Purchase of treasury shares | (100,900) | 0 | |
Net change in deposits | 967,400 | 197,500 | |
Net change in restricted cash payable | 12,500 | 7,600 | |
Net (repayments) borrowings on other debt | (12,100) | 31,800 | |
Borrowings on revolving credit facility | 704,400 | 585,000 | |
Repayments on revolving credit facility | (582,000) | (524,500) | |
Repayments on term loans | (15,800) | (15,800) | |
Net borrowing of federal funds | 100,000 | 0 | |
Payment of contingent consideration | (27,200) | 0 | |
Net cash provided by financing activities | 1,043,800 | 270,200 | |
Effect of exchange rates on cash, cash equivalents and restricted cash | 11,700 | (2,400) | |
Net change in cash, cash equivalents and restricted cash | 20,600 | (7,500) | |
Cash, cash equivalents and restricted cash at beginning of period | [1] | 1,859,800 | 1,256,800 |
Cash, cash equivalents and restricted cash at end of period | [1] | 1,880,400 | 1,249,300 |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |||
Capital expenditures incurred but not paid | 7,600 | 3,000 | |
Purchases of available-for-sale debt securities, unsettled as of period-end | 33,900 | 0 | |
Initial deferred liability from acquisition of remaining interest in PO Holding | 0 | 216,600 | |
Cash, Cash Equivalents, Restricted Cash And Restricted Cash Equivalents [Roll Forward] | |||
Cash and cash equivalents at beginning of period | 922,000 | 588,900 | |
Restricted cash at beginning of period | 937,800 | 667,900 | |
Cash, cash equivalents and restricted cash at beginning of period | [1] | 1,859,800 | 1,256,800 |
Cash and cash equivalents at end of period | 921,700 | 577,500 | |
Restricted cash at end of period | 958,700 | 671,800 | |
Cash, cash equivalents and restricted cash at end of period | [1] | $ 1,880,400 | $ 1,249,300 |
[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. Three Months Ended March 31, 2023 2022 Cash and cash equivalents at beginning of period $ 922.0 $ 588.9 Restricted cash at beginning of period 937.8 667.9 Cash, cash equivalents and restricted cash at beginning of period $ 1,859.8 $ 1,256.8 Cash and cash equivalents at end of period $ 921.7 $ 577.5 Restricted cash at end of period 958.7 671.8 Cash, cash equivalents and restricted cash at end of period $ 1,880.4 $ 1,249.3 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying condensed consolidated financial statements, which include the accounts of WEX Inc. and its wholly and majority-owned subsidiaries, 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. Unless the context suggests otherwise, references in this Quarterly Report on Form 10-Q to “WEX,” the “Company,” “we” or “our” refer to WEX Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. 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 months ended March 31, 2023 are not necessarily indicative of the results for any future periods or the year ending December 31, 2023. 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, 2022, filed with the SEC on February 28, 2023. We have applied the same accounting policies in preparing these quarterly financial statements as we did in preparing our 2022 annual financial statements. The Company rounds amounts in the condensed consolidated financial statements to millions and calculates all percentages and per-share data from underlying whole-dollar amounts. Thus, certain amounts may not foot, crossfoot or recalculate based on reported numbers due to rounding. We have included certain terms and abbreviations used throughout this Quarterly Report on Form 10-Q within “Acronyms and Abbreviations” in the front of this document. In connection with a rebranding initiative, during the first quarter of 2023 the Company renamed its existing reportable segments. The Fleet Solutions segment was renamed to Mobility, the Travel and Corporate Solutions segment was renamed to Corporate Payments and the Health and Employee Benefits Solutions segment was renamed to Benefits. These notes to the condensed consolidated financial statements incorporate these changes. There were no changes to the composition of our reportable segments. Reclassifications Beginning December 31, 2022, within the condensed consolidated statements of cash flows, accrued expenses are combined with other current and long-term liabilities within cash flows from operating activities and the change in restricted cash payable is presented separately. The change in restricted cash payable, which had previously been presented within cash flows from operating activities, is reflected within cash flows from financing activities. Prior period amounts have been reclassified to conform to the current period presentation, which includes the reclassification of restricted cash payable inflows of $7.6 million from operating cash flows to financing cash flows for the three months ended March 31, 2022. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements as of and for the three months ended March 31, 2023, are consistent with those discussed in “Note 1, Basis of Presentation and Summary of Significant Accounting Policies” to the consolidated financial statements in our 2022 Annual Report. Recent Accounting Pronouncements There are no recent accounting pronouncements adopted during the three months ended March 31, 2023, or not yet adopted as of March 31, 2023, that could have a material effect on our financial statements. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 171.5 $ 90.1 $ 26.5 $ 288.1 Account servicing revenue 4.4 10.6 109.8 124.8 Other revenue 23.3 — 7.8 31.1 Total Topic 606 revenues $ 199.2 $ 100.7 $ 144.1 $ 444.0 Non-Topic 606 revenues 143.1 4.1 20.8 168.0 Total revenues $ 342.3 $ 104.8 $ 164.9 $ 612.0 Three Months Ended March 31, 2022 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 151.9 $ 65.1 $ 22.5 $ 239.5 Account servicing revenue 4.3 10.8 86.7 101.8 Other revenue 19.9 0.3 8.1 28.3 Total Topic 606 revenues $ 176.1 $ 76.2 $ 117.3 $ 369.6 Non-Topic 606 revenues 143.0 1.1 3.8 147.9 Total revenues $ 319.1 $ 77.3 $ 121.1 $ 517.5 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 millions) Contract balance Location on the condensed consolidated balance sheets March 31, 2023 December 31, 2022 Receivables Accounts receivable, net $ 55.0 $ 53.6 Contract assets Prepaid expenses and other current assets 15.6 13.6 Contract assets Other assets 38.1 37.9 Contract liabilities Accrued expenses and other current liabilities 8.7 8.1 Contract liabilities Other liabilities 86.2 87.0 During the three months ended March 31, 2023, the Company recognized revenue of $1.7 million related to contract liabilities existing as of December 31, 2022. Remaining Performance Obligations The Company’s unsatisfied or partially unsatisfied performance obligations as of March 31, 2023 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 total remaining performance obligations below are not indicative of the Company’s future revenue, as they relate to a small portion of the Company’s operations. The following table includes revenue expected to be recognized related to remaining performance obligations at the end of the reporting period. (In millions) Remaining 2023 2024 2025 2026 2027 2028 Thereafter Total Minimum monthly fees 1 $ 44.5 $ 33.9 $ 16.9 $ 5.9 $ 4.2 $ 2.8 $ 0.8 $ 109.0 Other 2 4.5 12.8 23.8 33.3 40.1 5.9 — 120.4 Total remaining performance obligations $ 49.0 $ 46.7 $ 40.7 $ 39.2 $ 44.3 $ 8.7 $ 0.8 $ 229.4 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 Substantially 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 | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 4. Acquisitions On January 3, 2023, the Company completed its acquisition of 100 percent of the equity of a newly formed Indian entity, created to carve out the workforce of an existing computer software design and development business. In exchange for total consideration of $6.0 million, the Company acquired an assembled workforce of approximately 180 employees and miscellaneous other assets. This assembled workforce represents additional resources to advance our technological capabilities and service offerings to our customers. Consideration of $4.5 million was payable upon the closing date, with up to $1.5 million payable within eighteen months following the acquisition date, dependent on the calculation of employee attrition as defined per the Share Purchase Agreement. This acquisition has been accounted for as an asset acquisition, resulting in the capitalization of a workforce intangible asset of $8.1 million, inclusive of a $2.1 million gross up resulting from the recognition of a deferred tax liability related to the acquisition date difference between the assigned value of the intangible asset and its tax basis. The workforce intangible asset has an estimated useful life of 4.0 years. Acquisition costs were immaterial. |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net | 5. Accounts Receivable, Net 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 $151.2 million and $157.8 million in gross receivables with revolving credit balances as of March 31, 2023 and December 31, 2022, respectively. 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 March 31, 2023 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 94.6 $ 14.4 $ 0.8 $ 109.8 Net provision for credit losses 1 44.8 0.4 0.2 45.4 Charges to other accounts 2 7.8 — 0.1 7.9 Charge-offs (49.4) (0.6) — (50.0) Recoveries of amounts previously charged-off 4.5 — — 4.5 Currency translation — 0.2 — 0.2 Balance, end of period $ 102.3 $ 14.4 $ 1.1 $ 117.8 Three Months Ended March 31, 2022 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 55.8 $ 9.9 $ 0.6 $ 66.3 Provision for credit losses 1 23.2 2.1 0.3 25.6 Charges to other accounts 2 8.4 — (0.1) 8.3 Charge-offs (25.8) (0.3) (0.1) (26.2) Recoveries of amounts previously charged-off 2.4 — — 2.4 Currency translation (0.1) (0.2) — (0.3) Balance, end of period $ 63.9 $ 11.6 $ 0.7 $ 76.3 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 Consists primarily of charges to other accounts. 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 March 31, 2023 or December 31, 2022. 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 March 31, 2023 December 31, 2022 Less than 30 days past due 98 % 98 % Less than 60 days past due 99 % 99 % |
Repurchases of Common Stock
Repurchases of Common Stock | 3 Months Ended |
Mar. 31, 2023 | |
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 0.5 million shares repurchased by the Company during the three months ended March 31, 2023 pursuant to a repurchase program, have been recorded as treasury stock of $92.8 million in our condensed consolidated balance sheet. Such cost reflects the applicable one percent excise tax imposed by the Inflation Reduction Act of 2022 on the net value |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 7. Earnings per Share Basic earnings per share is computed by dividing net income attributable to shareholders by the weighted average number of shares of common stock and vested DSUs outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the 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 RSUs, 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 income attributable to shareholders and reconciles basic and diluted shares outstanding used in the earnings per share computations: Three Months Ended March 31, (In millions) 2023 2022 Net income attributable to shareholders $ 68.0 $ 122.8 Weighted average common shares outstanding – Basic 43.1 44.9 Dilutive impact of share-based compensation awards 1 0.5 0.4 Weighted average common shares outstanding – Diluted 2 43.6 45.3 1 For the three months ended March 31, 2023 and 2022, 0.4 million and 0.6 million of outstanding share-based compensation awards, respectively, were excluded from the computation of diluted earnings per share under the treasury stock method, as the effect of including those shares would be anti-dilutive. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2023 | |
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 reference rate 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 $1.1 billion outstanding as of March 31, 2023 is as follows: Contract Inception Contract End Fixed Interest Rates 1 Notional Amount at inception ( in millions ) March 2020 December 2023 1.862% 200.0 May 2021 May 2024 0.435% 150.0 May 2021 May 2024 0.440% 150.0 May 2021 May 2025 0.678% 300.0 May 2021 May 2026 0.909% 150.0 May 2021 May 2026 0.910% 150.0 1 Fixed interest rates payable by WEX. Counterparties pay floating rate equal to the one-month USD LIBOR. On April 26, 2023, the Company’s existing interest rate swap contracts were amended primarily to change the floating rate index from the one-month USD LIBOR to the one-month Term SOFR. In conjunction with the amendments to the floating rate index, the fixed interest rates payable by WEX under the contracts were also adjusted to rates ranging from 0.367 percent to 1.7888 percent. There were no changes to notional amounts or maturity dates as a result of these amendments. The following table presents information on the location and amounts of interest rate swap gains and losses: (In millions) Three Months Ended March 31, Derivatives Not Designated as Hedging Instruments Location of (Loss) Gain Recognized in the Condensed Consolidated Statement of Operations 2023 2022 Interest rate swap contracts – unrealized portion Net unrealized (loss) gain on financial instruments $ (14.9) $ 51.1 Interest rate swap contracts – realized portion Financing interest expense $ 12.2 $ (5.9) 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, Financial Instruments − Fair Value and Concentrations of Credit Risk, for more information regarding the valuation of the Company’s derivatives. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2023 | |
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 deposits for the benefit of WEX Inc.’s HSA customers subject to the terms of a deposit agreement. 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 millions) March 31, 2023 December 31, 2022 Customer deposits $ 144.7 $ 146.7 Contractual deposits with maturities within 1 year 1,2 $ 1,216.9 $ 770.7 Interest-bearing money market deposits 1 $ 176.2 $ 157.2 HSA deposits 3 $ 2,570.0 $ 2,070.0 Short-term contractual deposits $ 4,107.8 $ 3,144.6 Contractual deposits with maturities greater than 1 year and less than 5 years 1,2 $ 338.7 $ 334.2 Total deposits $ 4,446.5 $ 3,478.8 Weighted average cost of HSA deposits outstanding 0.11 % 0.04 % Weighted average cost of funds on contractual deposits outstanding 2.66 % 1.48 % Weighted average cost of interest-bearing money market deposits outstanding 4.92 % 4.45 % 1 As of March 31, 2023 and December 31, 2022, 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 HSA deposits are recorded within short-term deposits on the condensed consolidated balance sheets as the funds can be withdrawn by the account holders at any time. |
Financing and Other Debt
Financing and Other Debt | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022. (In millions) March 31, 2023 December 31, 2022 Term loans: Tranche A Term Loans $ 880.6 $ 892.8 Tranche B Term Loans 1,413.2 1,416.8 Total term loans $ 2,293.8 $ 2,309.6 Borrowings on Revolving Credit Facility 122.4 — Convertible Notes 310.0 310.0 Securitized debt 93.9 110.6 Participation debt 43.4 39.0 Borrowed federal funds $ 100.0 $ — Total gross debt 1 $ 2,963.5 $ 2,769.2 1 See Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk, 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 millions) March 31, 2023 December 31, 2022 Current portion of gross debt $ 300.7 $ 212.9 Less: Unamortized debt issuance costs/debt discount (10.3) (10.3) Short-term debt, net $ 290.4 $ 202.6 Long-term portion of gross debt $ 2,662.8 $ 2,556.2 Less: Unamortized debt issuance costs/debt discount (31.5) (34.0) Long-term debt, net $ 2,631.3 $ 2,522.2 Supplemental information: Letters of credit 1 $ 31.3 $ 31.1 Remaining borrowing capacity on Revolving Credit Facility 2 $ 776.3 $ 898.9 1 Collateral for lease agreements, virtual card and fuel payment processing activity at the Company’s foreign subsidiaries. 2 Contingent on maintaining compliance with the financial covenants as defined in the Company’s Amended and Restated Credit Agreement. Amended and Restated Credit Agreement 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. The maturity date for the Tranche A Term Loans and Revolving Credit Facility is April 1, 2026 while the maturity date for the Tranche B Term Loans is April 1, 2028. 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 March 31, 2023 and December 31, 2022, amounts outstanding under the Amended and Restated Credit Agreement bore a weighted average effective interest rate of 6.9 percent and 6.4 percent, respectively. In addition, the Company pays a quarterly commitment fee at a rate per annum ranging, as of March 31, 2023, from 0.25 percent to 0.50 percent of the daily unused portion of the Revolving Credit Facility (which was 0.25 percent and 0.30 percent at March 31, 2023 and December 31, 2022, respectively) determined based on the Company’s consolidated leverage ratio. 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. On April 24, 2023, the Company’s Amended and Restated Credit Agreement was further amended solely for the purpose of replacing the current reference rate with the USD LIBOR successor rate, SOFR (including an applicable credit spread adjustment). No other substantive changes were made to the Amended and Restated Credit Agreement as part of this amendment. 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. For additional information regarding the Company’s Convertible Notes, including their conversion, redemption and settlement features, see Part II - Item 8 - Note 16, Financing and Other Debt, in our Annual Report on Form 10-K for the year ended December 31, 2022. The Convertible Notes consist of the following: (In millions) March 31, 2023 December 31, 2022 Principal 1 $ 310.0 $ 310.0 Less: Unamortized discounts and issuance costs $ (12.0) $ (12.7) Net carrying amount of Convertible Notes $ 298.0 $ 297.3 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 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 March 31, 2023 and December 31, 2022, the Convertible Notes had an effective interest rate of 7.5 percent. During the three months ended March 31, 2023 and 2022, the Company recognized interest expense for these Convertible Notes of $5.7 million and $5.6 million, respectively, of which $5.0 million represented contractual interest expense. Securitization Facilities The Company is party to two securitized debt agreements with MUFG Bank, Ltd., both through April 2024. 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 4.66 percent and 3.83 percent as of March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022. As of March 31, 2023, the Company had three outstanding participation agreements totaling $70.0 million, which expire at various points throughout 2023, unless otherwise agreed to in writing by the parties. As of March 31, 2023 and December 31, 2022, there was $43.4 million and $39.0 million borrowed against these participation agreements, respectively, recorded within short-term debt, net on the condensed consolidated balance sheets. As of March 31, 2023 and December 31, 2022, the average interest rate on these agreements was 7.22 percent and 6.64 percent, respectively. Borrowed Federal Funds WEX Bank borrows from short-term uncommitted federal funds lines to supplement the financing of the Company’s accounts receivable. There were $100.0 million of outstanding borrowings as of March 31, 2023. There were no outstanding borrowings as of December 31, 2022. Other |
Off-Balance Sheet Arrangements
Off-Balance Sheet Arrangements | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Off-Balance Sheet Arrangements | 11. Off-Balance Sheet Arrangements WEX Europe Services and WEX Bank Accounts Receivable Factoring 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, which were immaterial for the three months ended March 31, 2023 and 2022, 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. The Company maintains the risk of default on any customer receivable balances in excess of the buyer’s credit limit, which were immaterial as of March 31, 2023. The Company sold $140.4 million and $145.0 million of accounts receivable during each of the three months ended March 31, 2023 and 2022, respectively, under this arrangement. The WEX Bank agreement extends through July 2023, after which the agreement can be renewed for successive one-year periods assuming WEX Bank provides advance written notice that is accepted by the purchaser. The Company sold $1.9 billion and $0.8 billion of trade accounts receivable during the three months ended March 31, 2023 and 2022, respectively, under this arrangement. Non-Bank Custodial Cash Assets As a non-bank custodian, we contract with depository partners to hold custodial cash assets on behalf of individual account holders. As of March 31, 2023 and December 31, 2022, we were custodian to approximately $3.7 billion and $3.45 billion in HSA cash assets, respectively. Of these custodial balances, $1.1 billion and $1.4 billion at March 31, 2023 and December 31, 2022, respectively, were deposited with and managed by certain third-party depository partners and not recorded on our condensed consolidated balance sheets. Such third-party depository partners are regularly monitored by Management for stability. The remaining balances of $2.6 billion and $2.1 billion in HSA assets as of March 31, 2023 and December 31, 2022, respectively, are deposited with and managed by WEX Bank and are reflected on our condensed consolidated balance sheets. See Note 9, Deposits, for further information about HSA deposits recorded on our condensed consolidated balance sheets. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 12. Investment Securities The Company’s amortized cost and estimated fair value of investment securities as of March 31, 2023 and December 31, 2022 are presented below. Accrued interest on investment securities of $17.2 million and $9.3 million, respectively, as of March 31, 2023 and December 31, 2022, is excluded from total investment securities and recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets. (In millions) Amortized Cost Total Total Fair Value 1 As of March 31, 2023 Current: Debt securities: U.S. treasury notes $ 405.8 — 34.0 371.8 Corporate debt securities 837.4 2.7 44.7 795.4 Municipal bonds 74.3 0.3 6.0 68.6 Asset-backed securities 482.7 0.8 10.0 473.5 Mortgage-backed securities 797.2 1.5 29.5 769.2 Total $ 2,597.4 $ 5.3 $ 124.2 $ 2,478.5 Non-current: Debt securities 3 $ 15.1 $ 0.3 $ 0.6 $ 14.8 Mutual fund 28.5 — 3.5 25.0 Pooled investment fund 9.0 — — 9.0 Total $ 52.6 $ 0.3 $ 4.1 $ 48.8 Total investment securities 2 $ 2,650.0 $ 5.6 $ 128.3 $ 2,527.3 (In millions) Amortized Cost Total Total Fair Value 1 As of December 31, 2022 Current: Debt securities: U.S. treasury notes $ 405.7 $ — $ 41.7 $ 364.1 Corporate debt securities 547.2 0.2 49.5 497.8 Municipal bonds 53.0 — 8.0 45.0 Asset-backed securities 199.8 — 9.1 190.7 Mortgage-backed securities 330.4 — 32.7 297.7 Total $ 1,536.1 $ 0.2 $ 141.1 $ 1,395.3 Non-current: Debt securities 3 $ 15.2 $ 0.1 $ 0.7 $ 14.5 Mutual fund 28.4 — 3.9 24.5 Pooled investment fund 9.0 — — 9.0 Total $ 52.6 $ 0.1 $ 4.7 $ 48.0 Total investment securities 2 $ 1,588.7 $ 0.3 $ 145.8 $ 1,443.3 1 The Company’s methods for measuring the fair value of its investment securities are discussed in Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk. 2 Excludes $13.3 million and $11.1 million in equity securities as of March 31, 2023 and December 31, 2022, respectively, included in prepaid expenses and other current assets and other assets on the condensed consolidated balance sheets. 3 Substantially comprised of municipal bonds. 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 March 31, 2023 and December 31, 2022. As of March 31, 2023 Less than one year One year or longer Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Investment-grade rated debt securities: U.S. treasury notes $ 70.3 $ 2.3 $ 301.4 $ 31.7 $ 371.7 $ 34.0 Corporate debt securities 304.6 10.4 335.8 34.3 640.4 44.7 Municipal bonds 20.8 0.7 28.2 5.9 49.0 6.6 Asset-backed securities 266.9 3.3 109.6 6.7 376.5 10.0 Mortgage-backed securities 412.2 11.0 127.8 18.5 540.0 29.5 Total debt securities $ 1,074.8 $ 27.7 $ 902.8 $ 97.1 $ 1,977.6 $ 124.8 As of December 31, 2022 Less than one year One year or longer Total Investment-grade rated debt securities: U.S. treasury notes $ 123.7 $ 12.5 $ 240.4 $ 29.2 $ 364.1 $ 41.7 Corporate debt securities 196.9 15.1 289.9 34.4 486.8 49.5 Municipal bonds 28.1 3.8 19.1 5.0 47.2 8.8 Asset-backed securities 117.7 4.3 70.2 4.8 187.9 9.1 Mortgage-backed securities 198.1 16.4 96.5 16.3 294.6 32.7 Total debt securities $ 664.4 $ 52.2 $ 716.1 $ 89.7 $ 1,380.5 $ 141.8 The above table includes 429 securities at March 31, 2023, 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. March 31, 2023 (In millions) Amortized Cost Fair Value Due within one year $ 44.0 $ 42.7 Due after 1 year through year 5 529.5 496.5 Due after 5 years through year 10 770.2 719.9 Due after 10 years 1,268.8 1,234.2 Total $ 2,612.5 $ 2,493.3 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. During the three months ended March 31, 2023 and 2022, unrealized gains and losses recognized on equity securities still held as of March 31, 2023 and 2022 were immaterial. |
Financial Instruments _ Fair Va
Financial Instruments − Fair Value and Concentrations of Credit Risk | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments − Fair Value and Concentrations of Credit Risk | 13. Financial Instruments − Fair Value and Concentrations of Credit Risk Financial Instruments 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, as classified within the three-level fair value hierarchy: (In millions) Fair Value Hierarchy March 31, 2023 December 31, 2022 Assets: Money market mutual funds 1 1 $ 45.7 $ 35.1 Investment securities, current: Debt securities: U.S. treasury notes 2 $ 371.8 $ 364.1 Corporate debt securities 2 795.4 497.8 Municipal bonds 2 68.6 45.0 Asset-backed securities 2 473.5 190.7 Mortgage-backed securities 2 769.2 297.7 Total $ 2,478.5 $ 1,395.3 Investment securities, non-current: Debt securities 2 $ 14.8 $ 14.5 Mutual fund 1 25.0 24.5 Pooled investment fund measured at NAV 2 9.0 9.0 Total $ 48.8 $ 48.0 Executive deferred compensation plan trust 3 1 $ 13.3 $ 11.1 Interest rate swaps 4 2 $ 66.5 $ 81.4 Liabilities Contingent consideration 5 3 $ 179.5 $ 206.4 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 March 31, 2023, $1.4 million and $11.9 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. At December 31, 2022, $1.9 million an d $9.2 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 March 31, 2023, $40.4 million and $26.1 million in fair value is recorded in prepaid expenses and other current assets and other assets, respectively. At December 31, 2022, $45.3 million and $36.1 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. 5 The fair value is recorded as current or long-term based on the timing of expected payments. At March 31, 2023, $57.7 million and $121.8 million in fair value is recorded within accrued expenses and other current liabilities and other liabilities, respectively. At December 31, 2022, $28.7 million and $177.7 million in fair value is recorded within accrued expenses and other current liabilities and other liabilities, respectively. 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 to the fair value hierarchy. Pooled Investment Fund (In millions) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Pooled investment fund, as of March 31, 2023 $ 9.0 — Monthly 30 days The pooled investment fund maintains individual capital accounts for each investor, which reflect each individual investor’s share of the NAV of the fund. Mutual Fund The Company determines the fair value of its mutual fund 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 3.50 percent as of March 31, 2023 and 3.52 percent as of December 31, 2022. 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 in the fair value hierarchy) and are as follows for the periods indicated: Three Months Ended (In millions) March 31, 2023 March 31, 2022 Contingent consideration - beginning of period $ 206.4 $ 67.3 Payments of contingent consideration (1) (28.7) — Change in fair value of contingent consideration 1.8 16.6 Contingent consideration - end of period $ 179.5 $ 83.9 (1) The Company has presented $27.2 million of this payment, which represents the fair value of the contingent consideration at acquisition date, within net cash provided by financing activities in the condensed consolidated statement of cash flows. The remainder has been included in net cash provided by (used for) operating activities (specifically within changes in accrued expenses and other current and long-term liabilities). Financial Instruments 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 millions) March 31, 2023 December 31, 2022 Carrying value Fair value Carrying value Fair value Tranche A Term Loans 1 $ 880.6 ** $ 892.8 ** Tranche B Term Loans 1 1,413.2 ** 1,416.8 ** Outstanding borrowings on Revolving Credit Facility 1 122.4 ** — — Convertible Notes 2 310.0 355.0 310.0 330.0 Contractual deposits with maturities in excess of one year 3 338.7 316.0 334.2 308.1 ** 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 The carrying value of certain of the Company’s financial instruments, other than those presented above, including cash, cash equivalents, restricted cash and restricted cash payable, short-term contractual deposits and HSA deposits, accounts receivable and securitized accounts receivable, accounts payable, accrued expenses and other current liabilities and other liabilities, approximate their respective fair values due to their short-term nature or maturities. The carrying value of certain other financial instruments, including interest-bearing money market deposits, securitized debt, participation debt, borrowed federal funds and deferred consideration associated with our acquisitions approximate their respective fair values due to stated interest rates being consistent with current market interest rates. Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, investment securities, trade receivables and interest rate swap contracts. The Company’s cash and cash equivalents, restricted cash and interest rate swap contracts are transacted and maintained with financial institutions with high credit standing. Cash balances at many of these institutions regularly exceed FDIC insured limits; however, Management regularly monitors the financial institutions and the composition of the Company’s accounts. We have not experienced any losses in such accounts and management believes that the financial institutions at which the Company’s cash is held are stable. We attempt to limit our exposure to credit risk with our investment securities by establishing strict investment policies as to minimum investment ratings, diversification of our portfolio and setting risk tolerance levels. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically and industry diverse customers make up our customer base. See Note 5, Accounts Receivable, Net, for further information. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 3 Months Ended |
Mar. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | 14. Redeemable Non-Controlling Interest On March 5, 2019, the Company acquired Discovery Benefits from SBI, who obtained a 4.9 percent equity interest in PO Holding. The equity interest was puttable under the agreement, making the non-controlling interest redeemable and therefore, it was classified as temporary equity outside of stockholders’ equity. As part of WEX Inc.’s purchase of the HSA contractual rights from Bell Bank on April 1, 2021, SBI’s ownership percentage was reduced to 4.53 percent. On March 7, 2022, WEX Inc. purchased SBI’s remaining 4.53 percent interest in PO Holding for a deferred purchase price of $234.0 million plus any interest accruing pursuant to the terms of the purchase agreement and recorded the liability at a net present value of $216.6 million. The carrying value of the redeemable non-controlling interest immediately prior to the acquisition date was $254.4 million and therefore, 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, 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The Company’s effective tax rate was 30.8 percent and 32.1 percent for the three months ended March 31, 2023 and 2022, 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 rate for the three months ended March 31, 2023 was adversely impacted by a tax shortfall arising from stock-based compensation. The Company’s effective tax rate for the three months ended March 31, 2022 was adversely impacted by a discrete tax item primarily associated with an uncertain tax position. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Litigation and Regulatory Matters The Company is subject to litigation, claims and regulatory matters 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 or regulatory proceedings is not material to the Company’s consolidated financial position, results of operations, cash flows or liquidity. Commitments Significant commitments and contingencies as of March 31, 2023 are consistent with those discussed in Note 20, Commitments and Contingencies, to the consolidated financial statements in the Company’s Annual Report on Form 10–K for the year ended December 31, 2022. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
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 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 18. Segment Information The Company determines its operating segments and reports segment information in accordance with how our Chief Executive Officer, the Company’s CODM, allocates resources and assesses performance. The Company has both three operating segments and three reportable segments, as described below. • Mobility 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. • Corporate Payments 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. • Benefits 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 March 31, 2023 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 171.5 $ 90.1 $ 26.5 $ 288.1 Account servicing revenue 40.3 10.6 109.8 160.7 Finance fee revenue 80.4 0.2 0.1 80.7 Other revenue 50.1 3.9 28.5 82.5 Total revenues $ 342.3 $ 104.8 $ 164.9 $ 612.0 Three Months Ended March 31, 2022 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 151.9 $ 65.1 $ 22.5 $ 239.5 Account servicing revenue 42.4 10.8 86.7 139.9 Finance fee revenue 78.4 0.1 — 78.6 Other revenue 46.4 1.3 11.9 59.5 Total revenues $ 319.1 $ 77.3 $ 121.1 $ 517.5 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) stock-based compensation and (v) other costs. 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 income before income taxes: Three Months Ended March 31, (In millions) 2023 2022 Segment adjusted operating income Mobility $ 138.8 $ 160.1 Corporate Payments 49.2 28.3 Benefits 64.5 35.5 Total segment adjusted operating income $ 252.5 $ 223.9 Reconciliation: Total segment adjusted operating income $ 252.5 $ 223.9 Less: Unallocated corporate expenses 22.4 21.0 Acquisition-related intangible amortization 44.1 42.7 Other acquisition and divestiture related items 1.1 4.5 Stock-based compensation 26.1 25.2 Other costs 4.5 8.2 Operating income 154.3 122.3 Financing interest expense (38.4) (29.7) Net foreign currency (loss) gain (1.4) 5.0 Change in fair value of contingent consideration (1.8) (16.6) Net unrealized (loss) gain on financial instruments (14.5) 49.8 Income before income taxes $ 98.2 $ 130.8 |
Supplementary Regulatory Capita
Supplementary Regulatory Capital Disclosure | 3 Months Ended |
Mar. 31, 2023 | |
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. 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 millions) Actual Amount Ratio Minimum for Capital Adequacy Purposes Amount Ratio Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio March 31, 2023 Total Capital to risk-weighted assets $ 673.2 16.20 % $ 332.5 8.00 % $ 415.7 10.00 % Tier 1 Capital to average assets $ 620.9 11.01 % $ 225.5 4.00 % $ 281.9 5.00 % Common equity to risk-weighted assets $ 620.9 14.94 % $ 187.0 4.50 % $ 270.2 6.50 % Tier 1 Capital to risk-weighted assets $ 620.9 14.94 % $ 249.4 6.00 % $ 332.5 8.00 % December 31, 2022 Total Capital to risk-weighted assets $ 595.6 15.16 % $ 314.4 8.00 % $ 393.0 10.00 % Tier 1 Capital to average assets $ 546.2 10.22 % $ 213.7 4.00 % $ 267.1 5.00 % Common equity to risk-weighted assets $ 546.2 13.90 % $ 176.8 4.50 % $ 255.4 6.50 % Tier 1 Capital to risk-weighted assets $ 546.2 13.90 % $ 235.8 6.00 % $ 314.4 8.00 % |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements, which include the accounts of WEX Inc. and its wholly and majority-owned subsidiaries, 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. Unless the context suggests otherwise, references in this Quarterly Report on Form 10-Q to “WEX,” the “Company,” “we” or “our” refer to WEX Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. 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 months ended March 31, 2023 are not necessarily indicative of the results for any future periods or the year ending December 31, 2023. 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, 2022, filed with the SEC on February 28, 2023. We have applied the same accounting policies in preparing these quarterly financial statements as we did in preparing our 2022 annual financial statements. The Company rounds amounts in the condensed consolidated financial statements to millions and calculates all percentages and per-share data from underlying whole-dollar amounts. Thus, certain amounts may not foot, crossfoot or recalculate based on reported numbers due to rounding. We have included certain terms and abbreviations used throughout this Quarterly Report on Form 10-Q within “Acronyms and Abbreviations” in the front of this document. |
Segment Information | In connection with a rebranding initiative, during the first quarter of 2023 the Company renamed its existing reportable segments. The Fleet Solutions segment was renamed to Mobility, the Travel and Corporate Solutions segment was renamed to Corporate Payments and the Health and Employee Benefits Solutions segment was renamed to Benefits. These notes to the condensed consolidated financial statements incorporate these changes. There were no changes to the composition of our reportable segments. The Company determines its operating segments and reports segment information in accordance with how our Chief Executive Officer, the Company’s CODM, allocates resources and assesses performance. The Company has both three operating segments and three reportable segments, as described below. • Mobility 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. • Corporate Payments 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. • Benefits 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. |
Reclassifications | Reclassifications Beginning December 31, 2022, within the condensed consolidated statements of cash flows, accrued expenses are combined with other current and long-term liabilities within cash flows from operating activities and the change in restricted cash payable is presented separately. The change in restricted cash payable, which had previously been presented within cash flows from operating activities, is reflected within cash flows from financing activities. Prior period amounts have been reclassified to conform to the current period presentation, which includes the reclassification of restricted cash payable inflows of $7.6 million from operating cash flows to financing cash flows for the three months ended March 31, 2022. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There are no recent accounting pronouncements adopted during the three months ended March 31, 2023, or not yet adopted as of March 31, 2023, that could have a material effect on our 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 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 RSUs, 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 | 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 to the fair value hierarchy. The pooled investment fund maintains individual capital accounts for each investor, which reflect each individual investor’s share of the NAV of the fund. Mutual Fund The Company determines the fair value of its mutual fund 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. |
Concentrations of Credit Risk | The Company’s financial instruments that are exposed to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, investment securities, trade receivables and interest rate swap contracts. The Company’s cash and cash equivalents, restricted cash and interest rate swap contracts are transacted and maintained with financial institutions with high credit standing. Cash balances at many of these institutions regularly exceed FDIC insured limits; however, Management regularly monitors the financial institutions and the composition of the Company’s accounts. We have not experienced any losses in such accounts and management believes that the financial institutions at which the Company’s cash is held are stable. We attempt to limit our exposure to credit risk with our investment securities by establishing strict investment policies as to minimum investment ratings, diversification of our portfolio and setting risk tolerance levels. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically and industry diverse customers make up our customer base. See Note 5, Accounts Receivable, Net, for further information. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 171.5 $ 90.1 $ 26.5 $ 288.1 Account servicing revenue 4.4 10.6 109.8 124.8 Other revenue 23.3 — 7.8 31.1 Total Topic 606 revenues $ 199.2 $ 100.7 $ 144.1 $ 444.0 Non-Topic 606 revenues 143.1 4.1 20.8 168.0 Total revenues $ 342.3 $ 104.8 $ 164.9 $ 612.0 Three Months Ended March 31, 2022 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 151.9 $ 65.1 $ 22.5 $ 239.5 Account servicing revenue 4.3 10.8 86.7 101.8 Other revenue 19.9 0.3 8.1 28.3 Total Topic 606 revenues $ 176.1 $ 76.2 $ 117.3 $ 369.6 Non-Topic 606 revenues 143.0 1.1 3.8 147.9 Total revenues $ 319.1 $ 77.3 $ 121.1 $ 517.5 |
Schedule of Contract Assets and Liabilities | The following table provides information about these contract balances: (In millions) Contract balance Location on the condensed consolidated balance sheets March 31, 2023 December 31, 2022 Receivables Accounts receivable, net $ 55.0 $ 53.6 Contract assets Prepaid expenses and other current assets 15.6 13.6 Contract assets Other assets 38.1 37.9 Contract liabilities Accrued expenses and other current liabilities 8.7 8.1 Contract liabilities Other liabilities 86.2 87.0 |
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 millions) Remaining 2023 2024 2025 2026 2027 2028 Thereafter Total Minimum monthly fees 1 $ 44.5 $ 33.9 $ 16.9 $ 5.9 $ 4.2 $ 2.8 $ 0.8 $ 109.0 Other 2 4.5 12.8 23.8 33.3 40.1 5.9 — 120.4 Total remaining performance obligations $ 49.0 $ 46.7 $ 40.7 $ 39.2 $ 44.3 $ 8.7 $ 0.8 $ 229.4 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 Substantially 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. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 94.6 $ 14.4 $ 0.8 $ 109.8 Net provision for credit losses 1 44.8 0.4 0.2 45.4 Charges to other accounts 2 7.8 — 0.1 7.9 Charge-offs (49.4) (0.6) — (50.0) Recoveries of amounts previously charged-off 4.5 — — 4.5 Currency translation — 0.2 — 0.2 Balance, end of period $ 102.3 $ 14.4 $ 1.1 $ 117.8 Three Months Ended March 31, 2022 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 55.8 $ 9.9 $ 0.6 $ 66.3 Provision for credit losses 1 23.2 2.1 0.3 25.6 Charges to other accounts 2 8.4 — (0.1) 8.3 Charge-offs (25.8) (0.3) (0.1) (26.2) Recoveries of amounts previously charged-off 2.4 — — 2.4 Currency translation (0.1) (0.2) — (0.3) Balance, end of period $ 63.9 $ 11.6 $ 0.7 $ 76.3 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 Consists primarily of charges to other accounts. 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 March 31, 2023 December 31, 2022 Less than 30 days past due 98 % 98 % Less than 60 days past due 99 % 99 % |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Net Income and Share Data Used in Basic and Diluted Earnings Per Share Computations | The following table summarizes net income attributable to shareholders and reconciles basic and diluted shares outstanding used in the earnings per share computations: Three Months Ended March 31, (In millions) 2023 2022 Net income attributable to shareholders $ 68.0 $ 122.8 Weighted average common shares outstanding – Basic 43.1 44.9 Dilutive impact of share-based compensation awards 1 0.5 0.4 Weighted average common shares outstanding – Diluted 2 43.6 45.3 1 For the three months ended March 31, 2023 and 2022, 0.4 million and 0.6 million of outstanding share-based compensation awards, respectively, were excluded from the computation of diluted earnings per share under the treasury stock method, as the effect of including those shares would be anti-dilutive. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 $1.1 billion outstanding as of March 31, 2023 is as follows: Contract Inception Contract End Fixed Interest Rates 1 Notional Amount at inception ( in millions ) March 2020 December 2023 1.862% 200.0 May 2021 May 2024 0.435% 150.0 May 2021 May 2024 0.440% 150.0 May 2021 May 2025 0.678% 300.0 May 2021 May 2026 0.909% 150.0 May 2021 May 2026 0.910% 150.0 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 millions) Three Months Ended March 31, Derivatives Not Designated as Hedging Instruments Location of (Loss) Gain Recognized in the Condensed Consolidated Statement of Operations 2023 2022 Interest rate swap contracts – unrealized portion Net unrealized (loss) gain on financial instruments $ (14.9) $ 51.1 Interest rate swap contracts – realized portion Financing interest expense $ 12.2 $ (5.9) |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 millions) March 31, 2023 December 31, 2022 Customer deposits $ 144.7 $ 146.7 Contractual deposits with maturities within 1 year 1,2 $ 1,216.9 $ 770.7 Interest-bearing money market deposits 1 $ 176.2 $ 157.2 HSA deposits 3 $ 2,570.0 $ 2,070.0 Short-term contractual deposits $ 4,107.8 $ 3,144.6 Contractual deposits with maturities greater than 1 year and less than 5 years 1,2 $ 338.7 $ 334.2 Total deposits $ 4,446.5 $ 3,478.8 Weighted average cost of HSA deposits outstanding 0.11 % 0.04 % Weighted average cost of funds on contractual deposits outstanding 2.66 % 1.48 % Weighted average cost of interest-bearing money market deposits outstanding 4.92 % 4.45 % 1 As of March 31, 2023 and December 31, 2022, 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 HSA deposits are recorded within short-term deposits on the condensed consolidated balance sheets as the funds can be withdrawn by the account holders at any time. |
Financing and Other Debt (Table
Financing and Other Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the Company’s total outstanding debt by type as of March 31, 2023 and December 31, 2022. (In millions) March 31, 2023 December 31, 2022 Term loans: Tranche A Term Loans $ 880.6 $ 892.8 Tranche B Term Loans 1,413.2 1,416.8 Total term loans $ 2,293.8 $ 2,309.6 Borrowings on Revolving Credit Facility 122.4 — Convertible Notes 310.0 310.0 Securitized debt 93.9 110.6 Participation debt 43.4 39.0 Borrowed federal funds $ 100.0 $ — Total gross debt 1 $ 2,963.5 $ 2,769.2 1 See Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk, 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 millions) March 31, 2023 December 31, 2022 Current portion of gross debt $ 300.7 $ 212.9 Less: Unamortized debt issuance costs/debt discount (10.3) (10.3) Short-term debt, net $ 290.4 $ 202.6 Long-term portion of gross debt $ 2,662.8 $ 2,556.2 Less: Unamortized debt issuance costs/debt discount (31.5) (34.0) Long-term debt, net $ 2,631.3 $ 2,522.2 Supplemental information: Letters of credit 1 $ 31.3 $ 31.1 Remaining borrowing capacity on Revolving Credit Facility 2 $ 776.3 $ 898.9 1 Collateral for lease agreements, virtual card and fuel payment processing activity at the Company’s foreign subsidiaries. 2 Contingent on maintaining compliance with the financial covenants as defined in the Company’s Amended and Restated Credit Agreement. |
Schedule of Convertible Notes | The Convertible Notes consist of the following: (In millions) March 31, 2023 December 31, 2022 Principal 1 $ 310.0 $ 310.0 Less: Unamortized discounts and issuance costs $ (12.0) $ (12.7) Net carrying amount of Convertible Notes $ 298.0 $ 297.3 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. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-For-Sale Securities | The Company’s amortized cost and estimated fair value of investment securities as of March 31, 2023 and December 31, 2022 are presented below. Accrued interest on investment securities of $17.2 million and $9.3 million, respectively, as of March 31, 2023 and December 31, 2022, is excluded from total investment securities and recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets. (In millions) Amortized Cost Total Total Fair Value 1 As of March 31, 2023 Current: Debt securities: U.S. treasury notes $ 405.8 — 34.0 371.8 Corporate debt securities 837.4 2.7 44.7 795.4 Municipal bonds 74.3 0.3 6.0 68.6 Asset-backed securities 482.7 0.8 10.0 473.5 Mortgage-backed securities 797.2 1.5 29.5 769.2 Total $ 2,597.4 $ 5.3 $ 124.2 $ 2,478.5 Non-current: Debt securities 3 $ 15.1 $ 0.3 $ 0.6 $ 14.8 Mutual fund 28.5 — 3.5 25.0 Pooled investment fund 9.0 — — 9.0 Total $ 52.6 $ 0.3 $ 4.1 $ 48.8 Total investment securities 2 $ 2,650.0 $ 5.6 $ 128.3 $ 2,527.3 (In millions) Amortized Cost Total Total Fair Value 1 As of December 31, 2022 Current: Debt securities: U.S. treasury notes $ 405.7 $ — $ 41.7 $ 364.1 Corporate debt securities 547.2 0.2 49.5 497.8 Municipal bonds 53.0 — 8.0 45.0 Asset-backed securities 199.8 — 9.1 190.7 Mortgage-backed securities 330.4 — 32.7 297.7 Total $ 1,536.1 $ 0.2 $ 141.1 $ 1,395.3 Non-current: Debt securities 3 $ 15.2 $ 0.1 $ 0.7 $ 14.5 Mutual fund 28.4 — 3.9 24.5 Pooled investment fund 9.0 — — 9.0 Total $ 52.6 $ 0.1 $ 4.7 $ 48.0 Total investment securities 2 $ 1,588.7 $ 0.3 $ 145.8 $ 1,443.3 1 The Company’s methods for measuring the fair value of its investment securities are discussed in Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk. 2 Excludes $13.3 million and $11.1 million in equity securities as of March 31, 2023 and December 31, 2022, respectively, included in prepaid expenses and other current assets and other assets on the condensed consolidated balance sheets. 3 Substantially comprised of municipal bonds. |
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 March 31, 2023 and December 31, 2022. As of March 31, 2023 Less than one year One year or longer Total (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Investment-grade rated debt securities: U.S. treasury notes $ 70.3 $ 2.3 $ 301.4 $ 31.7 $ 371.7 $ 34.0 Corporate debt securities 304.6 10.4 335.8 34.3 640.4 44.7 Municipal bonds 20.8 0.7 28.2 5.9 49.0 6.6 Asset-backed securities 266.9 3.3 109.6 6.7 376.5 10.0 Mortgage-backed securities 412.2 11.0 127.8 18.5 540.0 29.5 Total debt securities $ 1,074.8 $ 27.7 $ 902.8 $ 97.1 $ 1,977.6 $ 124.8 As of December 31, 2022 Less than one year One year or longer Total Investment-grade rated debt securities: U.S. treasury notes $ 123.7 $ 12.5 $ 240.4 $ 29.2 $ 364.1 $ 41.7 Corporate debt securities 196.9 15.1 289.9 34.4 486.8 49.5 Municipal bonds 28.1 3.8 19.1 5.0 47.2 8.8 Asset-backed securities 117.7 4.3 70.2 4.8 187.9 9.1 Mortgage-backed securities 198.1 16.4 96.5 16.3 294.6 32.7 Total debt securities $ 664.4 $ 52.2 $ 716.1 $ 89.7 $ 1,380.5 $ 141.8 |
Maturity Dates Of Available-For-Sale Securities | The following table summarizes the contractual maturity dates of the Company’s debt securities. March 31, 2023 (In millions) Amortized Cost Fair Value Due within one year $ 44.0 $ 42.7 Due after 1 year through year 5 529.5 496.5 Due after 5 years through year 10 770.2 719.9 Due after 10 years 1,268.8 1,234.2 Total $ 2,612.5 $ 2,493.3 |
Financial Instruments _ Fair _2
Financial Instruments − Fair Value and Concentrations of Credit Risk (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value | The following table presents the Company’s financial instruments that are measured at fair value on a recurring basis, as classified within the three-level fair value hierarchy: (In millions) Fair Value Hierarchy March 31, 2023 December 31, 2022 Assets: Money market mutual funds 1 1 $ 45.7 $ 35.1 Investment securities, current: Debt securities: U.S. treasury notes 2 $ 371.8 $ 364.1 Corporate debt securities 2 795.4 497.8 Municipal bonds 2 68.6 45.0 Asset-backed securities 2 473.5 190.7 Mortgage-backed securities 2 769.2 297.7 Total $ 2,478.5 $ 1,395.3 Investment securities, non-current: Debt securities 2 $ 14.8 $ 14.5 Mutual fund 1 25.0 24.5 Pooled investment fund measured at NAV 2 9.0 9.0 Total $ 48.8 $ 48.0 Executive deferred compensation plan trust 3 1 $ 13.3 $ 11.1 Interest rate swaps 4 2 $ 66.5 $ 81.4 Liabilities Contingent consideration 5 3 $ 179.5 $ 206.4 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 March 31, 2023, $1.4 million and $11.9 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. At December 31, 2022, $1.9 million an d $9.2 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 March 31, 2023, $40.4 million and $26.1 million in fair value is recorded in prepaid expenses and other current assets and other assets, respectively. At December 31, 2022, $45.3 million and $36.1 million in fair value is recorded within prepaid expenses and other current assets and other assets, respectively. 5 The fair value is recorded as current or long-term based on the timing of expected payments. At March 31, 2023, $57.7 million and $121.8 million in fair value is recorded within accrued expenses and other current liabilities and other liabilities, respectively. At December 31, 2022, $28.7 million and $177.7 million in fair value is recorded within accrued expenses and other current liabilities and other liabilities, respectively. 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 millions) March 31, 2023 December 31, 2022 Carrying value Fair value Carrying value Fair value Tranche A Term Loans 1 $ 880.6 ** $ 892.8 ** Tranche B Term Loans 1 1,413.2 ** 1,416.8 ** Outstanding borrowings on Revolving Credit Facility 1 122.4 ** — — Convertible Notes 2 310.0 355.0 310.0 330.0 Contractual deposits with maturities in excess of one year 3 338.7 316.0 334.2 308.1 ** 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 millions) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Pooled investment fund, as of March 31, 2023 $ 9.0 — 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 in the fair value hierarchy) and are as follows for the periods indicated: Three Months Ended (In millions) March 31, 2023 March 31, 2022 Contingent consideration - beginning of period $ 206.4 $ 67.3 Payments of contingent consideration (1) (28.7) — Change in fair value of contingent consideration 1.8 16.6 Contingent consideration - end of period $ 179.5 $ 83.9 (1) The Company has presented $27.2 million of this payment, which represents the fair value of the contingent consideration at acquisition date, within net cash provided by financing activities in the condensed consolidated statement of cash flows. The remainder has been included in net cash provided by (used for) operating activities (specifically within changes in accrued expenses and other current and long-term liabilities). |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Results | The following tables present the Company’s reportable segment revenues: Three Months Ended March 31, 2023 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 171.5 $ 90.1 $ 26.5 $ 288.1 Account servicing revenue 40.3 10.6 109.8 160.7 Finance fee revenue 80.4 0.2 0.1 80.7 Other revenue 50.1 3.9 28.5 82.5 Total revenues $ 342.3 $ 104.8 $ 164.9 $ 612.0 Three Months Ended March 31, 2022 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 151.9 $ 65.1 $ 22.5 $ 239.5 Account servicing revenue 42.4 10.8 86.7 139.9 Finance fee revenue 78.4 0.1 — 78.6 Other revenue 46.4 1.3 11.9 59.5 Total revenues $ 319.1 $ 77.3 $ 121.1 $ 517.5 |
Schedule of Reconciliation Of Segment Adjusted Operating Income To Income Before Income Taxes | The following table reconciles total segment adjusted operating income to income before income taxes: Three Months Ended March 31, (In millions) 2023 2022 Segment adjusted operating income Mobility $ 138.8 $ 160.1 Corporate Payments 49.2 28.3 Benefits 64.5 35.5 Total segment adjusted operating income $ 252.5 $ 223.9 Reconciliation: Total segment adjusted operating income $ 252.5 $ 223.9 Less: Unallocated corporate expenses 22.4 21.0 Acquisition-related intangible amortization 44.1 42.7 Other acquisition and divestiture related items 1.1 4.5 Stock-based compensation 26.1 25.2 Other costs 4.5 8.2 Operating income 154.3 122.3 Financing interest expense (38.4) (29.7) Net foreign currency (loss) gain (1.4) 5.0 Change in fair value of contingent consideration (1.8) (16.6) Net unrealized (loss) gain on financial instruments (14.5) 49.8 Income before income taxes $ 98.2 $ 130.8 |
Supplementary Regulatory Capi_2
Supplementary Regulatory Capital Disclosure (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 millions) Actual Amount Ratio Minimum for Capital Adequacy Purposes Amount Ratio Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio March 31, 2023 Total Capital to risk-weighted assets $ 673.2 16.20 % $ 332.5 8.00 % $ 415.7 10.00 % Tier 1 Capital to average assets $ 620.9 11.01 % $ 225.5 4.00 % $ 281.9 5.00 % Common equity to risk-weighted assets $ 620.9 14.94 % $ 187.0 4.50 % $ 270.2 6.50 % Tier 1 Capital to risk-weighted assets $ 620.9 14.94 % $ 249.4 6.00 % $ 332.5 8.00 % December 31, 2022 Total Capital to risk-weighted assets $ 595.6 15.16 % $ 314.4 8.00 % $ 393.0 10.00 % Tier 1 Capital to average assets $ 546.2 10.22 % $ 213.7 4.00 % $ 267.1 5.00 % Common equity to risk-weighted assets $ 546.2 13.90 % $ 176.8 4.50 % $ 255.4 6.50 % Tier 1 Capital to risk-weighted assets $ 546.2 13.90 % $ 235.8 6.00 % $ 314.4 8.00 % |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net change in restricted cash payable | $ 12.5 | $ 7.6 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | $ 444 | $ 369.6 |
Non-Topic 606 revenues | 168 | 147.9 |
Total revenues | 612 | 517.5 |
Mobility | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 199.2 | 176.1 |
Non-Topic 606 revenues | 143.1 | 143 |
Total revenues | 342.3 | 319.1 |
Corporate Payments | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 100.7 | 76.2 |
Non-Topic 606 revenues | 4.1 | 1.1 |
Total revenues | 104.8 | 77.3 |
Benefits | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 144.1 | 117.3 |
Non-Topic 606 revenues | 20.8 | 3.8 |
Total revenues | 164.9 | 121.1 |
Payment processing revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 288.1 | 239.5 |
Total revenues | 288.1 | 239.5 |
Payment processing revenue | Mobility | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 171.5 | 151.9 |
Total revenues | 171.5 | 151.9 |
Payment processing revenue | Corporate Payments | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 90.1 | 65.1 |
Total revenues | 90.1 | 65.1 |
Payment processing revenue | Benefits | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 26.5 | 22.5 |
Total revenues | 26.5 | 22.5 |
Account servicing revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 124.8 | 101.8 |
Total revenues | 160.7 | 139.9 |
Account servicing revenue | Mobility | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 4.4 | 4.3 |
Total revenues | 40.3 | 42.4 |
Account servicing revenue | Corporate Payments | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 10.6 | 10.8 |
Total revenues | 10.6 | 10.8 |
Account servicing revenue | Benefits | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 109.8 | 86.7 |
Total revenues | 109.8 | 86.7 |
Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 31.1 | 28.3 |
Total revenues | 82.5 | 59.5 |
Other revenue | Mobility | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 23.3 | 19.9 |
Total revenues | 50.1 | 46.4 |
Other revenue | Corporate Payments | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 0 | 0.3 |
Total revenues | 3.9 | 1.3 |
Other revenue | Benefits | ||
Disaggregation of Revenue [Line Items] | ||
Total Topic 606 revenues | 7.8 | 8.1 |
Total revenues | $ 28.5 | $ 11.9 |
Revenues - Contract Assets and
Revenues - Contract Assets and Liabilities From Contracts with Customers (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, net | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 55 | $ 53.6 |
Prepaid expenses and other current assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 15.6 | 13.6 |
Other assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 38.1 | 37.9 |
Accrued expenses and other current liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | 8.7 | 8.1 |
Other liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | $ 86.2 | $ 87 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized related to contract liabilities | $ 1.7 |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligation (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 229.4 |
Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 109 |
Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 120.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 49 |
Performance obligations expected to be satisfied, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 44.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 4.5 |
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 | $ 46.7 |
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 | $ 33.9 |
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 | 12.8 |
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 | $ 40.7 |
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 | $ 16.9 |
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 | 23.8 |
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 | $ 39.2 |
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 | $ 5.9 |
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 | 33.3 |
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 | $ 44.3 |
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 | $ 4.2 |
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 | 40.1 |
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 | $ 8.7 |
Performance obligations expected to be satisfied, expected timing | 1 year |
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 | $ 2.8 |
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 | 5.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 0.8 |
Performance obligations expected to be satisfied, expected timing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 0.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 0 |
Acquisitions (Details)
Acquisitions (Details) - Designing And Developing Software Business $ in Millions | Jan. 03, 2023 USD ($) employee |
Business Acquisition [Line Items] | |
Percentage of voting interests acquired | 100% |
Total consideration | $ 6 |
Number of assembled workforce employees acquired | employee | 180 |
Cash to be paid | $ 4.5 |
Contingent consideration payable | $ 1.5 |
Contingent consideration payable payment term | 18 months |
Capitalization of intangible assets | $ 8.1 |
Deferred tax liability | $ 2.1 |
Weighted average life (in years) | 4 years |
Accounts Receivable, Net - Narr
Accounts Receivable, Net - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revolving Credit Facility | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables with revolving credit balances | $ 151.2 | $ 157.8 |
Accounts Receivable, Net - Chan
Accounts Receivable, Net - Changes in Reserves for Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||
Balance, beginning of period | $ 109.8 | $ 66.3 |
Net provision for credit losses | 45.4 | 25.6 |
Charges to other accounts | 7.9 | 8.3 |
Charge-offs | (50) | (26.2) |
Recoveries of amounts previously charged-off | 4.5 | 2.4 |
Currency translation | 0.2 | (0.3) |
Balance, end of period | 117.8 | 76.3 |
Mobility | ||
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||
Balance, beginning of period | 94.6 | 55.8 |
Net provision for credit losses | 44.8 | 23.2 |
Charges to other accounts | 7.8 | 8.4 |
Charge-offs | (49.4) | (25.8) |
Recoveries of amounts previously charged-off | 4.5 | 2.4 |
Currency translation | 0 | (0.1) |
Balance, end of period | 102.3 | 63.9 |
Corporate Payments | ||
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||
Balance, beginning of period | 14.4 | 9.9 |
Net provision for credit losses | 0.4 | 2.1 |
Charges to other accounts | 0 | 0 |
Charge-offs | (0.6) | (0.3) |
Recoveries of amounts previously charged-off | 0 | 0 |
Currency translation | 0.2 | (0.2) |
Balance, end of period | 14.4 | 11.6 |
Benefits | ||
Accounts Receivable And Other Assets, Allowance for Credit Loss | ||
Balance, beginning of period | 0.8 | 0.6 |
Net provision for credit losses | 0.2 | 0.3 |
Charges to other accounts | 0.1 | (0.1) |
Charge-offs | 0 | (0.1) |
Recoveries of amounts previously charged-off | 0 | 0 |
Currency translation | 0 | 0 |
Balance, end of period | $ 1.1 | $ 0.7 |
Accounts Receivable, Net - Conc
Accounts Receivable, Net - Concentration of Credit Risk (Details) - Credit Concentration Risk - Accounts receivable, net | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
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 ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Treasury stock purchased (in shares) | 500,000 | 0 |
Purchase of shares of treasury stock | $ 92.8 |
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 Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income attributable to shareholders | $ 68 | $ 122.8 |
Net income attributable to shareholders | $ 68 | $ 122.8 |
Weighted average common shares outstanding – Basic (in shares) | 43.1 | 44.9 |
Dilutive impact of share-based compensation awards (in shares) | 0.5 | 0.4 |
Weighted average common shares outstanding – Diluted (in shares) | 43.6 | 45.3 |
Share-Based Payment Arrangement | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings (in shares) | 0.4 | 0.6 |
Convertible Debt Securities | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings (in shares) | 1.6 | 1.6 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Interest Rate Swaps (Details) - Derivatives Not Designated as Hedging Instruments $ in Millions | Mar. 31, 2023 USD ($) |
Derivative [Line Items] | |
Notional amount at inception | $ 1,100 |
Maturity December 2023 | |
Derivative [Line Items] | |
Fixed interest rate | 1.862% |
Notional amount at inception | $ 200 |
Maturity May 2024, Instrument One | Minimum | |
Derivative [Line Items] | |
Fixed interest rate | 0.435% |
Notional amount at inception | $ 150 |
Maturity May 2024, Instrument Two | Maximum | |
Derivative [Line Items] | |
Fixed interest rate | 0.44% |
Notional amount at inception | $ 150 |
Maturity May 2025 | |
Derivative [Line Items] | |
Fixed interest rate | 0.678% |
Notional amount at inception | $ 300 |
Maturity May 2026, Instrument One | Minimum | |
Derivative [Line Items] | |
Fixed interest rate | 0.909% |
Notional amount at inception | $ 150 |
Maturity May 2026, Instrument Two | Maximum | |
Derivative [Line Items] | |
Fixed interest rate | 0.91% |
Notional amount at inception | $ 150 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Billions | Apr. 26, 2023 | Mar. 31, 2023 |
Minimum | Subsequent Event | ||
Derivative [Line Items] | ||
Fixed interest rate | 0.367% | |
Maximum | Subsequent Event | ||
Derivative [Line Items] | ||
Fixed interest rate | 1.7888% | |
Derivatives Not Designated as Hedging Instruments | ||
Derivative [Line Items] | ||
Notional amount at inception | $ 1.1 |
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 Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net unrealized (loss) gain on financial instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate swap gains (losses) | $ (14.9) | $ 51.1 |
Financing interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate swap gains (losses) | $ 12.2 | $ (5.9) |
Deposits - Schedule of Composit
Deposits - Schedule of Composition of Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Banking and Thrift, Interest [Abstract] | ||
Customer deposits | $ 144,700 | $ 146,700 |
Certificates of deposit with maturities within 1 year | 1,216,900 | 770,700 |
Interest-bearing brokered money market deposits | 176,200 | 157,200 |
HSA deposits | 2,570,000 | 2,070,000 |
Short-term contractual deposits | 4,107,800 | 3,144,600 |
Certificates of deposit with maturities greater than 1 year and less than 5 years | 338,700 | 334,200 |
Total deposits | $ 4,446,500 | $ 3,478,800 |
Weighted average cost of demand deposits outstanding (as a percent) | 0.11% | 0.04% |
Weighted average cost of funds on certificates of deposit outstanding (as a percent) | 2.66% | 1.48% |
Weighted average cost of interest-bearing money market deposits outstanding (as a percent) | 4.92% | 4.45% |
Certificates of deposits denominations in dollar amount | $ 250 | $ 250 |
Financing and Other Debt - Sche
Financing and Other Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total gross debt | $ 2,963.5 | $ 2,769.2 |
Current portion of gross debt | 300.7 | 212.9 |
Less: Unamortized debt issuance costs/debt discount | (10.3) | (10.3) |
Short-term debt, net | 290.4 | 202.6 |
Long-term portion of gross debt | 2,662.8 | 2,556.2 |
Less: Unamortized debt issuance costs/debt discount | (31.5) | (34) |
Long-term debt, net | 2,631.3 | 2,522.2 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Securitized debt | 93.9 | 110.6 |
Participation debt | ||
Debt Instrument [Line Items] | ||
Carrying value | 43.4 | 39 |
Borrowed federal funds | ||
Debt Instrument [Line Items] | ||
Carrying value | 100 | 0 |
Revolving Line-of-credit Facility under 2016 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Carrying value | 122.4 | 0 |
Revolving Line-of-credit Facility under 2016 Credit Agreement | 2016 Credit Agreement | Letter of Credit | ||
Supplemental information: | ||
Letters of credit | 31.3 | 31.1 |
Remaining borrowing capacity on revolving credit facility | 776.3 | 898.9 |
Secured Debt | Line of Credit | Amended and Restated Credit Agreement | ||
Debt Instrument [Line Items] | ||
Carrying value | 2,293.8 | 2,309.6 |
Secured Debt | Line of Credit | Amended and Restated Credit Agreement Tranche A | ||
Debt Instrument [Line Items] | ||
Carrying value | 880.6 | 892.8 |
Secured Debt | Line of Credit | Amended and Restated Credit Agreement Tranche B | ||
Debt Instrument [Line Items] | ||
Carrying value | 1,413.2 | 1,416.8 |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 310 | $ 310 |
Financing and Other Debt - Narr
Financing and Other Debt - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) securitized_debt_agreement agreement | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Number of securitized debt agreements | securitized_debt_agreement | 2 | |
Accounts receivable pledged as collateral | $ 3,400,100,000 | $ 3,275,700,000 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Short term debt | 100,000,000 | 0 |
Asset Pledged as Collateral | Mobility | ||
Debt Instrument [Line Items] | ||
Accounts receivable pledged as collateral | 245,500,000 | |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 310,000,000 | $ 310,000,000 |
Amended and Restated Credit Agreement | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 6.90% | 6.40% |
Commitment fee percentage | 0.25% | 0.30% |
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% | |
Debt instrument, term (in years) | 7 years | |
Effective interest rate on the liability component (as a percent) | 7.50% | 7.50% |
Interest expense | $ 5,700,000 | $ 5,600,000 |
Contractual interest expense | 5,000,000 | 5,000,000 |
Carrying value | $ 310,000,000 | $ 310,000,000 |
European Securitization Facility | ||
Debt Instrument [Line Items] | ||
Interest rate during period (as a percent) | 4.66% | 3.83% |
Participation debt | ||
Debt Instrument [Line Items] | ||
Carrying value | $ 43,400,000 | $ 39,000,000 |
Borrowed federal funds | ||
Debt Instrument [Line Items] | ||
Carrying value | 100,000,000 | 0 |
Revolving Line-of-credit Facility under 2016 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Carrying value | 122,400,000 | 0 |
Revolving Line-of-credit Facility under 2016 Credit Agreement | Federal Reserve Bank | ||
Debt Instrument [Line Items] | ||
Current borrowing capacity | 172,200,000 | |
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) | 7.22% | 6.64% |
Short term debt | $ 43,400,000 | $ 39,000,000 |
Participation Debt | Margin | Minimum | Line of Credit | ||
Debt Instrument [Line Items] | ||
Margin on variable rate, percent | 2.25% | 2.25% |
Participation Debt | Margin | Maximum | Line of Credit | ||
Debt Instrument [Line Items] | ||
Margin on variable rate, percent | 2.50% | 2.50% |
Participation Debt | Participation debt | Line of Credit | ||
Debt Instrument [Line Items] | ||
Number of outstanding participation agreements | agreement | 3 | |
Borrowings under guaranteed investment agreements | $ 70,000,000 |
Financing and Other Debt - Sc_2
Financing and Other Debt - Schedule of Convertible Notes (Details) - Convertible Debt - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal | $ 310 | $ 310 |
Convertible Senior Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Principal | 310 | 310 |
Less: Unamortized discounts and issuance costs | (12) | (12.7) |
Net carrying amount of Convertible Notes | $ 298 | $ 297.3 |
Off-Balance Sheet Arrangements
Off-Balance Sheet Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Renewal term | 1 year | ||
HSA assets amount serving as custodian | $ 3,700 | $ 3,450 | |
HSA assets deposited and managed by third party depository partners | 1,100 | 1,400 | |
HSA deposits | 2,570 | $ 2,070 | |
WEX Europe Services | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loss on sale of factoring receivables | 0 | $ 0 | |
Proceeds from sale of factoring receivables | 140.4 | 145 | |
Wex Bank | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sale of factoring receivables | $ 1,900 | $ 800 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Accrued investment interest | $ | $ 17.2 | $ 9.3 |
Debt securities, unrealized loss position, number of positions | security | 429 |
Investment Securities - Investm
Investment Securities - Investment Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | $ 2,597.4 | $ 1,536.1 |
Accumulated gross unrealized gain, current | 5.3 | 0.2 |
Accumulated gross unrealized loss, current | 124.2 | 141.1 |
Debt securities, current | 2,478.5 | 1,395.3 |
Amortized cost, noncurrent | 52.6 | 52.6 |
Accumulated gross unrealized gain, noncurrent | 0.3 | 0.1 |
Accumulated gross unrealized loss, noncurrent | 4.1 | 4.7 |
Fair Value | 48.8 | 48 |
Amortized Cost | 2,650 | 1,588.7 |
Total Unrealized Gains | 5.6 | 0.3 |
Total Unrealized Losses | 128.3 | 145.8 |
Fair Value | 2,527.3 | 1,443.3 |
Executive deferred compensation plan trust | 13.3 | 11.1 |
Debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, noncurrent | 15.1 | 15.2 |
Accumulated gross unrealized gain, noncurrent | 0.3 | 0.1 |
Accumulated gross unrealized loss, noncurrent | 0.6 | 0.7 |
Fair Value | 14.8 | 14.5 |
U.S. treasury notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 405.8 | 405.7 |
Accumulated gross unrealized gain, current | 0 | 0 |
Accumulated gross unrealized loss, current | 34 | 41.7 |
Debt securities, current | 371.8 | 364.1 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 837.4 | 547.2 |
Accumulated gross unrealized gain, current | 2.7 | 0.2 |
Accumulated gross unrealized loss, current | 44.7 | 49.5 |
Debt securities, current | 795.4 | 497.8 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 74.3 | 53 |
Accumulated gross unrealized gain, current | 0.3 | 0 |
Accumulated gross unrealized loss, current | 6 | 8 |
Debt securities, current | 68.6 | 45 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 482.7 | 199.8 |
Accumulated gross unrealized gain, current | 0.8 | 0 |
Accumulated gross unrealized loss, current | 10 | 9.1 |
Debt securities, current | 473.5 | 190.7 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 797.2 | 330.4 |
Accumulated gross unrealized gain, current | 1.5 | 0 |
Accumulated gross unrealized loss, current | 29.5 | 32.7 |
Debt securities, current | 769.2 | 297.7 |
Mutual fund | ||
Debt Securities, Available-for-sale [Line Items] | ||
Accumulated gross unrealized gain, noncurrent | 0 | 0 |
Accumulated gross unrealized loss, noncurrent | 3.5 | 3.9 |
Fair Value | 25 | 24.5 |
Equity Securities FV-NI Cost Noncurrent | 28.5 | 28.4 |
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 | 9 |
Equity Securities FV-NI Cost Noncurrent | $ 9 | $ 9 |
Investment Securities - Unreali
Investment Securities - Unrealized losses On Debt Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | $ 1,074.8 | $ 664.4 |
Gross inrealized losses, less than one year | 27.7 | 52.2 |
Fair value, one year or longer | 902.8 | 716.1 |
Gross unrealized losses, one year or longer | 97.1 | 89.7 |
Fair Value | 1,977.6 | 1,380.5 |
Gross Unrealized Losses | 124.8 | 141.8 |
U.S. treasury notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | 70.3 | 123.7 |
Gross inrealized losses, less than one year | 2.3 | 12.5 |
Fair value, one year or longer | 301.4 | 240.4 |
Gross unrealized losses, one year or longer | 31.7 | 29.2 |
Fair Value | 371.7 | 364.1 |
Gross Unrealized Losses | 34 | 41.7 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | 304.6 | 196.9 |
Gross inrealized losses, less than one year | 10.4 | 15.1 |
Fair value, one year or longer | 335.8 | 289.9 |
Gross unrealized losses, one year or longer | 34.3 | 34.4 |
Fair Value | 640.4 | 486.8 |
Gross Unrealized Losses | 44.7 | 49.5 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | 20.8 | 28.1 |
Gross inrealized losses, less than one year | 0.7 | 3.8 |
Fair value, one year or longer | 28.2 | 19.1 |
Gross unrealized losses, one year or longer | 5.9 | 5 |
Fair Value | 49 | 47.2 |
Gross Unrealized Losses | 6.6 | 8.8 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | 266.9 | 117.7 |
Gross inrealized losses, less than one year | 3.3 | 4.3 |
Fair value, one year or longer | 109.6 | 70.2 |
Gross unrealized losses, one year or longer | 6.7 | 4.8 |
Fair Value | 376.5 | 187.9 |
Gross Unrealized Losses | 10 | 9.1 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | 412.2 | 198.1 |
Gross inrealized losses, less than one year | 11 | 16.4 |
Fair value, one year or longer | 127.8 | 96.5 |
Gross unrealized losses, one year or longer | 18.5 | 16.3 |
Fair Value | 540 | 294.6 |
Gross Unrealized Losses | $ 29.5 | $ 32.7 |
Investment Securities - Maturit
Investment Securities - Maturity Dates Of Available-For-Sale Securities (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Amortized Cost | |
Due within one year | $ 44 |
Due after 1 year through year 5 | 529.5 |
Due after 5 years through year 10 | 770.2 |
Due after 10 years | 1,268.8 |
Net Carrying Amount | 2,612.5 |
Fair Value | |
Due within one year | 42.7 |
Due after 1 year through year 5 | 496.5 |
Due after 5 years through year 10 | 719.9 |
Due after 10 years | 1,234.2 |
Fair Value | $ 2,493.3 |
Financial Instruments _ Fair _3
Financial Instruments − Fair Value and Concentrations of Credit Risk - Financial Instruments Measured at Fair Value and Related Hierarchy Levels (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Investment securities, current: | ||
Debt securities, current | $ 2,478.5 | $ 1,395.3 |
Investment securities, non-current: | ||
Fair Value | 48.8 | 48 |
Executive deferred compensation plan trust | 13.3 | 11.1 |
Prepaid expenses and other current assets | ||
Investment securities, non-current: | ||
Executive deferred compensation plan trust | 1.4 | 1.9 |
Other assets | ||
Investment securities, non-current: | ||
Executive deferred compensation plan trust | 11.9 | 9.2 |
Accrued expenses and other current liabilities | ||
Liabilities | ||
Contingent consideration | 57.7 | 28.7 |
Other liabilities | ||
Liabilities | ||
Contingent consideration | 121.8 | 177.7 |
Debt securities | ||
Investment securities, non-current: | ||
Fair Value | 14.8 | 14.5 |
Corporate debt securities | ||
Investment securities, current: | ||
Debt securities, current | 795.4 | 497.8 |
Municipal bonds | ||
Investment securities, current: | ||
Debt securities, current | 68.6 | 45 |
Asset-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 473.5 | 190.7 |
Mortgage-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 769.2 | 297.7 |
Mutual fund | ||
Investment securities, non-current: | ||
Fair Value | 25 | 24.5 |
Pooled investment fund measured at NAV | ||
Investment securities, non-current: | ||
Fair Value | 9 | 9 |
Interest Rate Swaps | Prepaid expenses and other current assets | ||
Investment securities, non-current: | ||
Derivative asset | 40.4 | 45.3 |
Interest Rate Swaps | Other assets | ||
Investment securities, non-current: | ||
Derivative asset | 26.1 | 36.1 |
Level 1 | ||
Investment securities, non-current: | ||
Executive deferred compensation plan trust | 13.3 | 11.1 |
Level 1 | Money market funds | ||
Assets: | ||
Money market funds | 45.7 | 35.1 |
Level 1 | Mutual fund | ||
Investment securities, non-current: | ||
Fair Value | 25 | 24.5 |
Level 2 | Debt securities | ||
Investment securities, non-current: | ||
Fair Value | 14.8 | 14.5 |
Level 2 | US Treasury Securities | ||
Investment securities, current: | ||
Debt securities, current | 371.8 | 364.1 |
Level 2 | Corporate debt securities | ||
Investment securities, current: | ||
Debt securities, current | 795.4 | 497.8 |
Level 2 | Municipal bonds | ||
Investment securities, current: | ||
Debt securities, current | 68.6 | 45 |
Level 2 | Asset-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 473.5 | 190.7 |
Level 2 | Mortgage-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 769.2 | 297.7 |
Level 2 | Interest Rate Swaps | ||
Investment securities, non-current: | ||
Derivative asset | 66.5 | 81.4 |
Net Asset Value | Pooled investment fund measured at NAV | ||
Investment securities, non-current: | ||
Fair Value | 9 | 9 |
Level 3 | Contingent Consideration | ||
Liabilities | ||
Contingent consideration | $ 179.5 | $ 206.4 |
Financial Instruments _ Fair _4
Financial Instruments − Fair Value and Concentrations of Credit Risk - Pooled Investment Fund (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Pooled investment fund measured at NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 9,000 | $ 9,000 |
Net Asset Value | Pooled investment fund measured at NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 9,000 | $ 9,000 |
Net Asset Value | Pooled investment fund measured at NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 0 | |
Redemption Notice Period | 30 days |
Financial Instruments _ Fair _5
Financial Instruments − Fair Value and Concentrations of Credit Risk - Narrative (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 0.035 | 0.0352 |
Financial Instruments _ Fair _6
Financial Instruments − Fair Value and Concentrations of Credit Risk - Contingent Consideration Liability are Measured at Fair Value on a Recurring Basis Using Unobservable Inputs (Level 3) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Payment of contingent consideration | $ 27.2 | $ 0 |
Obligations | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration, beginning balance | 206.4 | 67.3 |
Payments of contingent consideration | (28.7) | 0 |
Change in fair value of contingent consideration | 1.8 | 16.6 |
Contingent consideration, ending balance | 179.5 | $ 83.9 |
Payment of contingent consideration | $ 27.2 |
Financial Instruments _ Fair _7
Financial Instruments − Fair Value and Concentrations of Credit Risk - Schedule of Fair Value of The Company's Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contractual deposits with maturities in excess of one year | $ 338.7 | $ 334.2 |
Convertible Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 310 | 310 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contractual deposits with maturities in excess of one year | 338.7 | 334.2 |
Contractual deposits with maturities in excess of one year | 316 | 308.1 |
Level 2 | Convertible Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 310 | 310 |
Convertible notes | 355 | 330 |
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 | 880.6 | 892.8 |
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 | 1,413.2 | 1,416.8 |
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 | 880.6 | 892.8 |
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 | 1,413.2 | 1,416.8 |
Revolving Line-of-credit Facility under 2016 Credit Agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 122.4 | 0 |
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 | $ 122.4 | 0 |
Term Loans, fair value | $ 0 |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest - Narrative (Details) - USD ($) $ in Millions | Mar. 07, 2022 | Apr. 01, 2021 | Mar. 05, 2019 |
Noncontrolling Interest [Line Items] | |||
Change in value of redeemable non-controlling interest | $ 37.8 | ||
Noncontrolling interest, deferred tax expense | $ 3.5 | ||
PO Holding | |||
Noncontrolling Interest [Line Items] | |||
Percentage of voting interests acquired | 4.53% | ||
Total consideration | $ 234 | ||
Deferred liability | 216.6 | ||
Repurchase of non-controlling interest | $ 254.4 | ||
Discovery Benefits | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage by noncontrolling interest | 4.90% | ||
Wex Bank | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage by noncontrolling interest | 4.53% | ||
Ownership percentage | 100% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 30.80% | 32.10% | |
Undistributed earnings of certain foreign subsidiaries | $ 171 | $ 159.9 | |
Undistributed earnings of certain foreign subsidiaries with indefinite reinvestment | $ 138 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 25.3 | $ 23.7 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Number of Operating Segments | 3 |
Segment Information - Revenue b
Segment Information - Revenue by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 612 | $ 517.5 |
Mobility | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 342.3 | 319.1 |
Corporate Payments | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 104.8 | 77.3 |
Benefits | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 164.9 | 121.1 |
Payment processing revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 288.1 | 239.5 |
Payment processing revenue | Mobility | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 171.5 | 151.9 |
Payment processing revenue | Corporate Payments | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 90.1 | 65.1 |
Payment processing revenue | Benefits | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 26.5 | 22.5 |
Account servicing revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 160.7 | 139.9 |
Account servicing revenue | Mobility | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 40.3 | 42.4 |
Account servicing revenue | Corporate Payments | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 10.6 | 10.8 |
Account servicing revenue | Benefits | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 109.8 | 86.7 |
Finance fee revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 80.7 | 78.6 |
Finance fee revenue | Mobility | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 80.4 | 78.4 |
Finance fee revenue | Corporate Payments | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0.2 | 0.1 |
Finance fee revenue | Benefits | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0.1 | 0 |
Other revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 82.5 | 59.5 |
Other revenue | Mobility | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 50.1 | 46.4 |
Other revenue | Corporate Payments | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 3.9 | 1.3 |
Other revenue | Benefits | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 28.5 | $ 11.9 |
Segment Information - Reconcili
Segment Information - Reconciliation of Adjusted Operating Income to Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Adjusted operating income | $ 252.5 | $ 223.9 |
Stock-based compensation | 25.3 | 23.7 |
Operating income | 154.3 | 122.3 |
Financing interest expense | (38.4) | (29.7) |
Net foreign currency (loss) gain | (1.4) | 5 |
Change in fair value of contingent consideration | (1.8) | (16.6) |
Net unrealized (loss) gain on financial instruments | (14.5) | 49.8 |
Income before income taxes | 98.2 | 130.8 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Unallocated corporate expenses | 22.4 | 21 |
Acquisition-related intangible amortization | 44.1 | 42.7 |
Other acquisition and divestiture related items | 1.1 | 4.5 |
Stock-based compensation | 26.1 | 25.2 |
Other costs | 4.5 | 8.2 |
Mobility | ||
Segment Reporting Information [Line Items] | ||
Adjusted operating income | 138.8 | 160.1 |
Corporate Payments | ||
Segment Reporting Information [Line Items] | ||
Adjusted operating income | 49.2 | 28.3 |
Benefits | ||
Segment Reporting Information [Line Items] | ||
Adjusted operating income | $ 64.5 | $ 35.5 |
Supplementary Regulatory Capi_3
Supplementary Regulatory Capital Disclosure (Details) $ in Millions | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | ||
Total Capital to risk-weighted assets, Actual Amount | $ 673.2 | $ 595.6 |
Total Capital to risk-weighted assets, Actual, Ratio | 0.1620 | 0.1516 |
Total Capital to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 332.5 | $ 314.4 |
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 | $ 415.7 | $ 393 |
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 | $ 620.9 | $ 546.2 |
Tier 1 Capital to average assets, Actual, Ratio | 0.1101 | 0.1022 |
Tier 1 Capital to average assets, Minimum for Capital Adequacy Purposes Amount | $ 225.5 | $ 213.7 |
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 | $ 281.9 | $ 267.1 |
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 | $ 620.9 | $ 546.2 |
Common equity to risk-weighted assets, Actual, Ratio | 14.94% | 13.90% |
Common equity to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 187 | $ 176.8 |
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 | $ 270.2 | $ 255.4 |
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 | $ 620.9 | $ 546.2 |
Tier 1 Capital to risk-weighted assets, Actual, Ratio | 0.1494 | 0.1390 |
Tier 1 Capital to risk-weighted assets, Minimum for Capital Adequacy Purposes Amount | $ 249.4 | $ 235.8 |
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 | $ 332.5 | $ 314.4 |
Tier 1 Capital to risk-weighted assets, Ratio | 0.0800 | 0.0800 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Apr. 27, 2023 USD ($) |
Subsequent Event | Revolving Credit Facility | Secured Debt | Forecast | |
Subsequent Event [Line Items] | |
Borrowing capacity | $ 35 |