Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 19, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 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, $0.01 par value | |
Trading Symbol | WEX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,737,339 | |
Entity Central Index Key | 0001309108 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Total revenues | $ 651.4 | $ 616.1 | $ 1,884.7 | $ 1,731.9 |
Cost of services | ||||
Processing costs | 156.4 | 146.3 | 451.7 | 416.3 |
Service fees | 18.5 | 16.6 | 54.7 | 47.2 |
Provision for credit losses | 9.4 | 54 | 77.5 | 121.9 |
Operating interest | 25.3 | 7.9 | 57.6 | 13.4 |
Depreciation and amortization | 25.5 | 27.3 | 75.9 | 79.9 |
Total cost of services | 235.1 | 252.1 | 717.4 | 678.6 |
General and administrative | 116.6 | 86.5 | 311.7 | 248.7 |
Sales and marketing | 82.8 | 80.9 | 241.6 | 235.3 |
Depreciation and amortization | 42 | 38.9 | 125.4 | 118.2 |
Impairment charges | 0 | 136.5 | 0 | 136.5 |
Operating income | 174.9 | 21.3 | 488.6 | 314.7 |
Financing interest expense | (41.6) | (34.4) | (122.4) | (95.9) |
Change in fair value of contingent consideration | (3.2) | (30.3) | (6.2) | (135.1) |
Loss on extinguishment of Convertible Notes | (70.1) | 0 | (70.1) | 0 |
Net foreign currency loss | (7.8) | (23.4) | (9.4) | (37.8) |
Net unrealized (loss) gain on financial instruments | (7.8) | 23.5 | (20.1) | 90.3 |
Income (loss) before income taxes | 44.4 | (43.3) | 260.4 | 136.1 |
Income tax expense | 26 | 0.8 | 78.7 | 57.3 |
Net income (loss) | 18.4 | (44.1) | 181.7 | 78.8 |
Less: Net income from non-controlling interests | 0 | 0 | 0 | 0.3 |
Net income (loss) attributable to WEX Inc. | 18.4 | (44.1) | 181.7 | 78.5 |
Change in value of redeemable non-controlling interest | 0 | 0 | 0 | 34.2 |
Net income (loss) attributable to shareholders | 18.4 | (44.1) | 181.7 | 112.7 |
Net income (loss) attributable to shareholders | $ 18.4 | $ (44.1) | $ 181.7 | $ 112.7 |
Net income (loss) attributable to shareholders per share: | ||||
Basic (in dollars per share) | $ 0.43 | $ (1) | $ 4.23 | $ 2.53 |
Diluted (in dollars per share) | $ 0.42 | $ (1) | $ 4.18 | $ 2.51 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 42.9 | 44.2 | 43 | 44.6 |
Diluted (in shares) | 43.4 | 44.2 | 43.5 | 45 |
Payment processing revenue | ||||
Revenues | ||||
Total revenues | $ 313.3 | $ 309 | $ 901.9 | $ 860.8 |
Account servicing revenue | ||||
Revenues | ||||
Total revenues | 161.5 | 138.3 | 475.1 | 415.9 |
Finance fee revenue | ||||
Revenues | ||||
Total revenues | 77.1 | 96.7 | 234.2 | 260.6 |
Other revenue | ||||
Revenues | ||||
Total revenues | $ 99.5 | $ 72.1 | $ 273.5 | $ 194.6 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 18.4 | $ (44.1) | $ 181.7 | $ 78.8 |
Other comprehensive loss, net of tax: | ||||
Unrealized losses on available-for-sale debt securities | (55.8) | (56.8) | (63.5) | (150.5) |
Foreign currency translation | (22) | (42.3) | (15.7) | (83.8) |
Other comprehensive loss, net of tax | (77.8) | (99.1) | (79.2) | (234.3) |
Comprehensive (loss) income | (59.4) | (143.2) | 102.5 | (155.5) |
Less: Comprehensive income attributable to non-controlling interests | 0 | 0 | 0 | 0.3 |
Comprehensive (loss) income attributable to WEX Inc. | $ (59.4) | $ (143.2) | $ 102.5 | $ (155.8) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 957.8 | $ 922 |
Restricted cash | 1,159.1 | 937.8 |
Accounts receivable, net | 4,053.5 | 3,275.7 |
Investment securities | 2,625.2 | 1,395.3 |
Securitized accounts receivable, restricted | 147.2 | 143.2 |
Prepaid expenses and other current assets | 189 | 143.3 |
Total current assets | 9,131.8 | 6,817.1 |
Property, equipment and capitalized software (net of accumulated depreciation of $592.6 in 2023 and $529.9 in 2022) | 228.9 | 202.2 |
Goodwill | 2,796.9 | 2,728.9 |
Other intangible assets (net of accumulated amortization of $1,302.5 in 2023 and $1,173.2 in 2022) | 1,443.4 | 1,473.6 |
Investment securities | 46.8 | 48 |
Deferred income taxes, net | 11.6 | 13.4 |
Other assets | 241 | 246 |
Total assets | 13,900.4 | 11,529.2 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 1,742.7 | 1,365.8 |
Accrued expenses and other current liabilities | 745.1 | 643.9 |
Restricted cash payable | 1,158.4 | 937.1 |
Short-term deposits | 4,252.8 | 3,144.6 |
Short-term debt, net | 957.3 | 202.6 |
Total current liabilities | 8,856.3 | 6,294.1 |
Long-term debt, net | 2,650.1 | 2,522.2 |
Long-term deposits | 115.5 | 334.2 |
Deferred income taxes, net | 140.5 | 142.2 |
Other liabilities | 441.7 | 587.1 |
Total liabilities | 12,204.1 | 9,879.7 |
Stockholders’ Equity | ||
Common stock $0.01 par value; 175.0 shares authorized; 49.9 shares issued in 2023 and 49.6 in 2022; 42.7 shares outstanding in 2023 and 43.2 in 2022 | 0.5 | 0.5 |
Additional paid-in capital | 1,018.3 | 928 |
Retained earnings | 1,672.2 | 1,490.5 |
Accumulated other comprehensive loss | (385.5) | (306.3) |
Treasury stock at cost; 7.1 and 6.3 shares in 2023 and 2022, respectively | (609.2) | (463.2) |
Total stockholders’ equity | 1,696.3 | 1,649.5 |
Total liabilities and stockholders’ equity | $ 13,900.4 | $ 11,529.2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Property, equipment and capitalized software, accumulated depreciation | $ 592.6 | $ 529.9 |
Accumulated amortization | $ 1,302.5 | $ 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) | 49.9 | 49.6 |
Common stock, shares, outstanding (in shares) | 42.7 | 43.2 |
Treasury stock, shares (in shares) | 7.1 | 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, net of $3.5 million of tax expense | 34.2 | 34.2 | ||||
Foreign currency translation | 4.3 | 4.3 | ||||
Net income (loss) | 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, 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] | ||||||
Purchase of shares of treasury stock | (149.6) | |||||
Foreign currency translation | (83.8) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 49.5 | |||||
Ending balance at Sep. 30, 2022 | 1,631.1 | $ 0.5 | 907.5 | 1,401.8 | (356.8) | (322) |
Beginning balance (in shares) at Mar. 31, 2022 | 49.4 | |||||
Beginning balance at Mar. 31, 2022 | 1,926.5 | $ 0.5 | 856.3 | 1,411.9 | (169.9) | (172.3) |
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 | 2.3 | 2.3 | ||||
Share repurchases for tax withholdings | (3.1) | (3.1) | ||||
Stock-based compensation expense | 24.9 | 24.9 | ||||
Unrealized gain (loss) on available-for-sale debt securities | (42.1) | (42.1) | ||||
Purchase of shares of treasury stock | (80.6) | (80.6) | ||||
Foreign currency translation | (45.7) | (45.7) | ||||
Net income (loss) | 34.1 | 34.1 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 49.5 | |||||
Ending balance at Jun. 30, 2022 | 1,816.4 | $ 0.5 | 880.5 | 1,446 | (257.7) | (252.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued under share-based compensation plans | 0.7 | 0.7 | ||||
Share repurchases for tax withholdings | (1.9) | (1.9) | ||||
Stock-based compensation expense | 28.2 | 28.2 | ||||
Unrealized gain (loss) on available-for-sale debt securities | (56.8) | (56.8) | ||||
Purchase of shares of treasury stock | (69) | (69) | ||||
Foreign currency translation | (42.3) | (42.3) | ||||
Net income (loss) | (44.1) | (44.1) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 49.5 | |||||
Ending balance at Sep. 30, 2022 | $ 1,631.1 | $ 0.5 | 907.5 | 1,401.8 | (356.8) | (322) |
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 | 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 (loss) | 68 | 68 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 49.7 | |||||
Ending balance at Mar. 31, 2023 | $ 1,670.5 | $ 0.5 | 950.8 | 1,558.5 | (283.3) | (556) |
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] | ||||||
Purchase of shares of treasury stock | (146) | |||||
Foreign currency translation | $ (15.7) | |||||
Ending balance (in shares) at Sep. 30, 2023 | 49.9 | 49.9 | ||||
Ending balance at Sep. 30, 2023 | $ 1,696.3 | $ 0.5 | 1,018.3 | 1,672.2 | (385.5) | (609.2) |
Beginning balance (in shares) at Mar. 31, 2023 | 49.7 | |||||
Beginning balance at Mar. 31, 2023 | 1,670.5 | $ 0.5 | 950.8 | 1,558.5 | (283.3) | (556) |
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 | 1.2 | 1.2 | ||||
Share repurchases for tax withholdings | (6.6) | (6.6) | ||||
Stock-based compensation expense | 35.9 | 35.9 | ||||
Unrealized gain (loss) on available-for-sale debt securities | (29.9) | (29.9) | ||||
Purchase of shares of treasury stock | (3.2) | (3.2) | ||||
Foreign currency translation | 5.5 | 5.5 | ||||
Net income (loss) | 95.3 | 95.3 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 49.8 | |||||
Ending balance at Jun. 30, 2023 | 1,768.7 | $ 0.5 | 981.3 | 1,653.8 | (307.7) | (559.2) |
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 | 8.1 | 8.1 | ||||
Share repurchases for tax withholdings | (1.6) | (1.6) | ||||
Stock-based compensation expense | 30.5 | 30.5 | ||||
Unrealized gain (loss) on available-for-sale debt securities | (55.8) | (55.8) | ||||
Purchase of shares of treasury stock | (50) | (50) | ||||
Foreign currency translation | (22) | (22) | ||||
Net income (loss) | $ 18.4 | 18.4 | ||||
Ending balance (in shares) at Sep. 30, 2023 | 49.9 | 49.9 | ||||
Ending balance at Sep. 30, 2023 | $ 1,696.3 | $ 0.5 | $ 1,018.3 | $ 1,672.2 | $ (385.5) | $ (609.2) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Redeemable non-controlling interest, net of tax expense | $ 3.5 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Cash flows from operating activities | |||
Net income | $ 181,700 | $ 78,800 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Change in fair value of contingent consideration | 6,200 | 135,100 | |
Stock-based compensation | 91,700 | 76,800 | |
Depreciation and amortization | 201,300 | 198,100 | |
Deferred tax benefit | (400) | (54,100) | |
Provision for credit losses | 77,500 | 121,900 | |
Impairment charges | 0 | 136,500 | |
Loss on extinguishment of Convertible Notes | 70,100 | 0 | |
Other non-cash adjustments | 43,700 | (41,600) | |
Changes in operating assets and liabilities, net of effects of business acquisitions: | |||
Accounts receivable and securitized accounts receivable | (842,000) | (1,147,800) | |
Prepaid expenses and other current and other long-term assets | (27,700) | (11,200) | |
Accounts payable | 387,400 | 568,400 | |
Accrued expenses and other current and long-term liabilities | (12,600) | 34,900 | |
Income taxes | (30,900) | 10,800 | |
Net cash provided by operating activities | 146,000 | 106,600 | |
Cash flows from investing activities | |||
Purchases of property, equipment and capitalized software | (101,700) | (75,500) | |
Purchase of other investments | (5,000) | 0 | |
Purchases of available-for-sale debt securities | (1,448,600) | (633,000) | |
Sales and maturities of available-for-sale debt securities | 144,100 | 48,000 | |
Acquisition of intangible assets | (4,500) | (3,300) | |
Acquisitions, net of cash and restricted cash acquired | (155,700) | 0 | |
Net cash used for investing activities | (1,571,400) | (663,900) | |
Cash flows from financing activities | |||
Purchase of treasury shares | (152,600) | (149,600) | |
Net change in deposits | 889,900 | 960,600 | |
Net change in restricted cash payable | 213,100 | 350,100 | |
Borrowings on revolving credit facility | 2,479,700 | 1,825,400 | |
Repayments on revolving credit facility | (2,008,100) | (1,857,000) | |
Repayments on term loans | (47,500) | (47,500) | |
Repurchase of Convertible Notes | (368,900) | 0 | |
Borrowings on BTFP | 750,000 | 0 | |
Repayments on BTFP | (250,000) | 0 | |
Net change in borrowed federal funds | 260,100 | 0 | |
Net borrowings on other debt | (4,800) | 34,900 | |
Payments of deferred and contingent consideration | (52,200) | 0 | |
Other financing activities | (3,400) | (13,300) | |
Net cash provided by financing activities | 1,705,300 | 1,103,500 | |
Effect of exchange rates on cash, cash equivalents and restricted cash | (22,800) | (101,500) | |
Net change in cash, cash equivalents and restricted cash | 257,100 | 444,700 | |
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] | 2,116,900 | 1,701,500 |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |||
Capital expenditures incurred but not paid | 9,000 | 7,400 | |
Maturities of available-for-sale debt securities, unsettled as of period-end | 15,000 | 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 | 957,800 | 759,400 | |
Restricted cash at end of period | 1,159,100 | 942,100 | |
Cash, cash equivalents and restricted cash at end of period | [1] | $ 2,116,900 | $ 1,701,500 |
[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. Nine Months Ended September 30, 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 $ 957.8 $ 759.4 Restricted cash at end of period 1,159.1 942.1 Cash, cash equivalents and restricted cash at end of period $ 2,116.9 $ 1,701.5 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 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 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 and nine months ended September 30, 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 (“2022 Annual Report”). 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 now 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 $350.1 million from operating cash flows to financing cash flows for the nine months ended September 30, 2022. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 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 nine months ended September 30, 2023, or not yet adopted as of September 30, 2023, that could have a material effect on our financial statements. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 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 September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 176.9 $ 115.8 $ 20.6 $ 313.3 Account servicing revenue 5.4 10.5 108.5 124.4 Other revenue 24.7 — 6.9 31.6 Total Topic 606 revenues $ 207.0 $ 126.3 $ 136.0 $ 469.3 Non-Topic 606 revenues 143.1 8.9 30.1 182.1 Total revenues $ 350.1 $ 135.2 $ 166.1 $ 651.4 Three Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 188.6 $ 101.5 $ 18.9 $ 309.0 Account servicing revenue 4.7 10.7 85.9 101.4 Other revenue 21.3 0.1 7.5 28.9 Total Topic 606 revenues $ 214.6 $ 112.3 $ 112.4 $ 439.4 Non-Topic 606 revenues 163.5 1.6 11.7 176.8 Total revenues $ 378.1 $ 114.0 $ 124.1 $ 616.1 Nine Months Ended September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 520.6 $ 310.6 $ 70.7 $ 901.9 Account servicing revenue 14.3 31.7 319.8 365.8 Other revenue 69.2 — 20.9 90.1 Total Topic 606 revenues $ 604.1 $ 342.3 $ 411.4 $ 1,357.8 Non-Topic 606 revenues 428.5 19.6 78.8 526.9 Total revenues $ 1,032.6 $ 361.9 $ 490.2 $ 1,884.7 Nine Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 542.9 $ 255.2 $ 62.7 $ 860.8 Account servicing revenue 13.6 31.9 256.1 $ 301.6 Other revenue 63.5 0.5 23.9 87.9 Total Topic 606 revenues $ 620.0 $ 287.6 $ 342.8 $ 1,250.3 Non-Topic 606 revenues 456.5 4.1 21.1 481.6 Total revenues $ 1,076.5 $ 291.6 $ 363.8 $ 1,731.9 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 September 30, 2023 December 31, 2022 Receivables 1 Accounts receivable, net $ 39.3 $ 53.6 Contract assets Prepaid expenses and other current assets 17.4 13.6 Contract assets Other assets 34.6 37.9 Contract liabilities Accrued expenses and other current liabilities 15.3 8.1 Contract liabilities Other liabilities 80.5 87.0 1 The significant decrease in receivables is due to the sale of certain accounts receivable invoices under our Benefits securitization facility, which is described more fully within Note 11, Off-Balance Sheet Arrangements. During the three and nine months ended September 30, 2023, the Company recognized revenue of $2.2 million and $4.8 million, respectively, related to contract liabilities existing as of December 31, 2022. Remaining Performance Obligations The Company’s unsatisfied or partially unsatisfied performance obligations as of September 30, 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 indicated reporting period. (In millions) Remaining 2023 2024 2025 2026 2027 2028 Thereafter Total Minimum monthly fees 1 $ 16.6 $ 39.7 $ 19.6 $ 7.2 $ 4.3 $ 2.8 $ 0.8 $ 91.0 Other 2 5.6 17.1 25.0 33.3 36.0 5.9 — 122.9 Total remaining performance obligations $ 22.3 $ 56.7 $ 44.5 $ 40.5 $ 40.3 $ 8.7 $ 0.8 $ 213.9 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 and Other Investme
Acquisitions and Other Investments | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Other Investments | 4. Acquisitions and Other Investments Business Acquisition On September 1, 2023, WEX Health completed the acquisition from Ascensus, LLC (the “Ascensus Acquisition”) of certain entities (the “Ascensus Acquired Entities”), which comprised the health and benefits business of Ascensus and are technology-enabled providers of employee health benefit accounts including HSAs, FSAs, and other benefit accounts. The Ascensus Acquisition expands WEX’s current footprint in the Benefits segment, while also enhancing and expanding Affordable Care Act compliance and verification capabilities. Pursuant to the terms of the agreement, WEX Health consummated the acquisition for total consideration of approximately $182.3 million, subject to certain working capital and other adjustments. The table below summarizes the preliminary allocation of fair value to the assets acquired and liabilities assumed on the date of acquisition under the acquisition method of accounting. These fair values may continue to be revised during the measurement period as third-party valuations on the intangible assets are finalized, further information becomes available and additional analyses are performed, and those adjustments could have a material impact on the purchase price allocation. (In millions) Cash consideration transferred, net of $26.7 million in cash and restricted cash acquired $ 155.7 Less: Accounts receivable 7.3 Customer relationships (1)(5) 52.7 Developed technology (2)(5) 6.6 Strategic partner relationships (3)(5) 14.0 Custodial rights (4)(5) 23.2 Other assets 3.8 Accrued expenses and other current liabilities (6.5) Restricted cash payable (25.7) Other liabilities (2.7) Recorded goodwill $ 83.0 (1) Weighted average life - 5.3 years (2) Weighted average life - 2.2 years (3) Weighted average life - 1.2 years (4) Weighted average life - 4.9 years (5) The weighted average useful life of all amortizable intangible assets acquired in this business combination is 4.4 years. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the anticipated synergies of acquiring the business. The goodwill recognized as a result of the acquisition is expected to be deductible for tax purposes. Since the acquisition date through September 30, 2023, the Ascensus Acquired Entities have not contributed significantly to the Company’s total revenues and net income before taxes. No pro forma information has been included in these financial statements, as the operations of the Ascensus Acquired Entities for the period that they were not part of the Company are not material to the Company’s revenues, net income or earnings per share. The Company incurred and expensed costs directly related to completed acquisitions of $4.3 million during the three and nine months ended September 30, 2023. Acquisition-related costs are included within general and administrative expenses in the condensed consolidated statement of operations. Asset Acquisition 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. Other Investments During the nine months ended September 30, 2023, the Company made minority equity investments in EV-focused companies totaling $5.0 million, over which we do not exert significant influence. Due to the lack of a readily determinable fair value, these investments will be measured at cost less any impairment until a specific remeasurement event occurs. The equity investments are recorded within other assets on our condensed consolidated balance sheets. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 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 $156.1 million and $157.8 million in gross receivables with revolving credit balances as of September 30, 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 September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 96.2 $ 14.5 $ 1.3 $ 112.0 Provision for credit losses 1 12.2 (3.9) 1.1 9.4 Charges to other accounts 2 6.8 — 0.5 7.3 Charge-offs (32.1) (0.5) (0.2) (32.8) Recoveries of amounts previously charged-off 5.6 — — 5.6 Currency translation (0.3) (0.2) — (0.5) Balance, end of period $ 88.4 $ 9.9 $ 2.7 101.0 Three Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 89.2 $ 10.4 $ 1.0 $ 100.6 Provision for credit losses 1 53.0 0.7 0.3 54.0 Charges to other accounts 2 11.3 — — 11.3 Charge-offs (65.1) (0.8) (0.2) (66.0) Recoveries of amounts previously charged-off 3.6 — — 3.6 Currency translation (0.6) (0.6) — (1.2) Balance, end of period $ 91.4 $ 9.7 $ 1.2 $ 102.3 Nine Months Ended September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 94.6 $ 14.4 $ 0.8 $ 109.9 Provision for credit losses 1 78.5 (2.5) 1.5 77.5 Charges to other accounts 2 22.1 — 0.6 22.6 Charge-offs (122.8) (2.0) (0.2) (125.0) Recoveries of amounts previously charged-off 16.3 — — 16.3 Currency translation (0.3) — — (0.3) Balance, end of period $ 88.4 $ 9.9 $ 2.7 $ 101.0 Nine Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 55.8 $ 9.9 $ 0.6 $ 66.3 Provision for credit losses 1 118.7 2.1 1.1 121.9 Charges to other accounts 2 29.9 0.2 (0.1) 30.0 Charge-offs (120.4) (1.2) (0.4) (122.1) Recoveries of amounts previously charged-off 8.8 — — 8.8 Currency translation (1.4) (1.3) — (2.6) Balance, end of period $ 91.4 $ 9.7 $ 1.2 $ 102.3 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 September 30, 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 September 30, 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 | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Repurchases of Common Stock | 6. Repurchases of Common Stock Under share buyback plans, which may be 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. During the three and nine months ended September 30, 2023, the Company repurchased approximately 0.3 million and 0.8 million shares, respectively, pursuant to a previously approved and announced repurchase program. The total repurchases were recorded as treasury stock of $146.0 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 of certain stock repurchases made after December 31, 2022. During the three and nine months ended September 30, 2022, the Company repurchased approximately 0.4 million and 1.0 million shares, respectively, pursuant to a previously approved and announced repurchase program, which was collectively recorded as treasury stock of $149.6 million in our condensed consolidated balance sheet. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 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 diluted earnings per share includes the impact of convertible securities under the “if-converted” method if the effect of such securities would be dilutive and 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 September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Net income (loss) attributable to shareholders $ 18.4 $ (44.1) $ 181.7 $ 112.7 Weighted average common shares outstanding – Basic 42.9 44.2 43.0 44.6 Dilutive impact of share-based compensation awards 1 0.5 — 0.5 0.3 Weighted average common shares outstanding – Diluted 2 43.4 44.2 43.5 45.0 1 For both the three and nine months ended September 30, 2023, 0.4 million of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share under the treasury stock method, as the effect of including those shares would be anti-dilutive. During both the three and nine months ended September 30, 2022, 0.6 million of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share under the treasury stock method, as the effect of including those shares would be anti-dilutive. Additionally, 0.3 million incremental shares, which would otherwise have been dilutive but for the Company’s net loss position, are excluded from the table above for the three months ended September 30, 2022 as the effect of including those shares would be anti-dilutive. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 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. 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. There were no changes to notional amounts or maturity dates as a result of these amendments. A summary of the Company’s amended interest rate swap contracts with a collective notional amount of $1.1 billion outstanding as of September 30, 2023 is as follows: Contract Inception Contract End Fixed Interest Rates Payable by WEX (prior to amendment) 1 Fixed Interest Rates Payable by WEX Notional Amount ( in millions ) March 2020 December 2023 1.862% 1.789% 2 $ 200.0 May 2021 May 2024 0.435% 0.459% 3 $ 150.0 May 2021 May 2024 0.440% 0.367% 2 $ 150.0 May 2021 May 2025 0.678% 0.648% 2 $ 300.0 May 2021 May 2026 0.909% 0.836% 2 $ 150.0 May 2021 May 2026 0.910% 0.883% 2 $ 150.0 1 Counterparties paid floating rate equal to the one-month USD LIBOR. 2 Counterparties pay floating rate equal to the one-month USD-SOFR CME Term. 3 Counterparty pays floating rate equal to the one-month USD-SOFR CME Term, plus a spread of 0.114 percent. The following table presents information on the location and amounts of interest rate swap gains and losses: (In millions) Three Months Ended September 30, Nine Months Ended September 30, Derivatives Not Designated as Hedging Instruments Location of (Loss) Gain Recognized in the Condensed Consolidated Statement of Operations 2023 2022 2023 2022 Interest rate swap contracts – unrealized portion Net unrealized gain (loss) on financial instruments $ (6.9) $ 24.6 $ (19.4) $ 93.5 Interest rate swap contracts – Financing interest expense $ 12.3 $ 3.7 $ 36.0 $ (5.2) 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 | 9 Months Ended |
Sep. 30, 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 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) September 30, 2023 December 31, 2022 Customer deposits $ 227.6 $ 146.7 Contractual deposits with maturities within 1 year 1,2 1,037.3 770.7 Interest-bearing money market deposits 1 217.9 157.2 HSA deposits 3 2,770.0 2,070.0 Short-term contractual deposits $ 4,252.8 $ 3,144.6 Contractual deposits with maturities greater than 1 year and less than 5 years 1,2 115.5 334.2 Total deposits $ 4,368.3 $ 3,478.8 Weighted average cost of HSA deposits outstanding 0.11 % 0.04 % Weighted average cost of funds on contractual deposits outstanding 4.34 % 1.48 % Weighted average cost of interest-bearing money market deposits outstanding 5.47 % 4.45 % 1 As of September 30, 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 substantially fixed interest rates. 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 | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Financing and Other Debt | 10. Financing and Other Debt The following tables summarize the Company’s total outstanding debt as of September 30, 2023 and December 31, 2022. As of September 30, 2023 As of December 31, 2022 (In millions) Balance Outstanding Interest Rate Balance Outstanding Interest Rate Short term debt: Securitized debt $ 99.9 5.80 % $ 110.6 3.83 % Participation debt 41.5 7.72 % 39.0 6.64 % Borrowed federal funds 760.0 5.43 % — — % Current portion of long-term debt (net of $7.5 million in unamortized debt issuance costs/discounts) 55.9 ** 53.1 ** Total short term debt, net $ 957.3 $ 202.6 ** Provided for the total Amended and Restated Credit Agreement borrowings below. Balance Outstanding at: (In millions) September 30, 2023 December 31, 2022 Long-term debt: Amended and Restated Credit Agreement: Tranche A Term Loans due April 2026 1 $ 856.1 $ 892.8 Tranche B Term Loans due April 2028 2 1,406.0 1,416.8 Borrowings on Revolving Credit Facility due April 2026 1 471.6 — Total borrowings under the Amended and Restated Credit Agreement 3 2,733.7 2,309.6 6.5% Convertible Notes due July 2027 — 310.0 Total long-term debt 4 2,733.7 2,619.6 Less total unamortized debt issuance costs/discounts (27.7) (44.3) Less current portion of long-term debt (net of $7.5 million in unamortized debt issuance costs/discounts) (55.9) (53.1) Long-term debt, net $ 2,650.1 $ 2,522.2 1 Bears interest at variable rates, at the Company’s option, plus an applicable margin determined based on the Company’s consolidated leverage ratio. Outstanding borrowings under the Revolving Credit Facility are classified as long-term given they can be rolled forward with interest rate resets through maturity. 2 Bears 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 Term SOFR borrowings. 3 As of September 30, 2023 and December 31, 2022, amounts outstanding under the Amended and Restated Credit Agreement bore a weighted average effective interest rate of 7.3 percent and 6.4 percent, respectively. The Company maintains interest rate swap contracts to manage the interest rate risk associated with its outstanding variable-interest rate borrowings. See Note 8, Derivative Instruments for further discussion. 4 See Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk for information regarding the fair value of the Company’s debt. (In millions) September 30, 2023 December 31, 2022 Supplemental information under Amended and Restated Credit Agreement: Letters of credit 1 $ 33.2 $ 31.1 Remaining borrowing capacity on Revolving Credit Facility 2 $ 925.2 $ 898.9 1 Primarily collateralizing Corporate Payments processing activity. 2 September 30, 2023 balance is reflective of the increased commitments resulting from the Third Amendment to Amended and Restated Credit Agreement entered into September 26, 2023. Borrowing capacity is contingent on maintaining compliance with the financial covenants as defined in the Company’s Amended and Restated Credit Agreement. The Company pays a quarterly commitment fee at a rate per annum ranging from 0.25 percent to 0.50 percent of the daily unused portion of the Revolving Credit Facility (which was 0.25 percent at September 30, 2023 and 0.30 percent at December 31, 2022) determined based on the Company’s consolidated leverage ratio. 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. On September 26, 2023, the Company entered into the Third Amendment to Amended and Restated Credit Agreement, which increased the revolving credit commitments from an aggregate amount of $930.0 million to $1,430.0 million under the Company’s secured revolving credit facility (the “Revolving Credit Facility”). No other substantive changes were made to the Amended and Restated Credit Agreement as part of this amendment. On April 24, 2023, the Company’s Amended and Restated Credit Agreement was amended solely for the purpose of replacing the current reference rate with the USD LIBOR successor rate, SOFR (including an applicable credit spread adjustment). On August 10, 2023, the Amended and Restated Credit Agreement was further amended solely to modify the definition of Operating Indebtedness (as defined in the Amended and Restated Credit Agreement) to include any indebtedness incurred by certain subsidiaries of the Company pursuant to the BTFP. Under the Amended and Restated Credit Agreement, Operating Indebtedness is excluded from our Consolidated Funded Indebtedness, which is used to calculate the Company’s Consolidated Leverage Ratio (all capitalized terms in this sentence are as defined in the Amended and Restated Credit Agreement). No other substantive changes were made to the Amended and Restated Credit Agreement as part of these amendments. Convertible Notes On August 11, 2023 (the “Repurchase Date”), the Company entered into a privately negotiated repurchase agreement with the holder of our Convertible Notes, WP Bronco Holdings, LLC (the “Seller”), an affiliate of funds managed by Warburg Pincus LLC (a related party), to repurchase all of the outstanding $310.0 million aggregate principal amount of the Company’s Convertible Notes at 119 percent of par for a total purchase price of $370.4 million, inclusive of accrued and unpaid interest from and including July 15, 2023, to, but excluding, the Repurchase Date. At the time of repurchase, the net carrying amount of the Convertible Notes was $298.8 million, resulting in a loss on extinguishment of $70.1 million, which has been recorded within nonoperating expense on the condensed consolidated statement of operations for the three and nine months ended September 30, 2023. Upon repurchase, the obligations of the Company to the Seller of the Notes were satisfied in full and the Convertible Notes were canceled by the trustee at the instruction of the Company. As of December 31, 2022, unamortized debt issuance costs and debt discount were $12.7 million. The Convertible Notes had an effective interest rate of 7.5 percent at December 31, 2022 and through the Repurchase Date. The following table sets forth total interest expense recognized for the Convertible Notes: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Interest on 6.5 percent coupon $ 2.3 $ 5.0 $ 12.4 $ 15.1 Amortization of debt discount and debt issuance costs 0.3 0.6 1.5 1.7 $ 2.6 $ 5.6 $ 13.9 $ 16.8 For additional information regarding the Company’s Convertible Notes, 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. Debt Securitization Facilities Through September 30, 2023, the Company was party to two securitized debt agreements with MUFG Bank, Ltd., which expire in April 2024, unless otherwise agreed to in writing by the parties. 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. 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. During the third quarter of 2023, the Company entered into a new securitized debt facility with Australia and New Zealand Banking Group Limited (“ANZ”). During October 2023, the Company terminated its existing Australian securitized debt agreement with MUFG Bank, Ltd. and the new facility with ANZ became effective. Under the new facility, the Company will continue to pay interest on the outstanding balance of the securitized debt based on a variable interest rate plus an applicable margin. Participation Debt From time to time, WEX Bank enters into participation agreements with third-party banks to fund customers’ balances that exceed WEX Bank’s lending limit to individual customers. Associated unsecured borrowings generally carry a variable interest rate set according to an applicable reference rate plus a margin, which ranged from 2.25 percent to 2.50 percent as of September 30, 2023 and December 31, 2022. As of September 30, 2023, the Company’s participation agreements allow for total borrowings of up to $60.0 million and expire at various points up to May 2024, unless otherwise agreed to in writing by the parties. Borrowed Federal Funds WEX Bank borrows from short-term uncommitted federal funds lines to supplement the financing of the Company’s accounts receivable. WEX Bank had $260.0 million in outstanding borrowings under these federal funds lines of credit as of September 30, 2023 and no borrowings as of December 31, 2022. On March 12, 2023, the Federal Reserve Board announced the BTFP, which provides liquidity to U.S. depository institutions. Under the BTFP, WEX Bank is able to refinance outstanding obligations without penalty. During the third quarter of 2023, the Company refinanced certain outstanding borrowings through the repayment and subsequent borrowing of $250.0 million. As of September 30, 2023, WEX Bank had $500.0 million in outstanding borrowings under the BTFP, $250.0 million due in June of 2024 with an interest rate of 5.39 percent and $250.0 million due in July of 2024 with an interest rate of 5.36 percent. At September 30, 2023, debt securities with a par value of $800.3 million and fair value of $688.3 million were pledged as collateral. |
Off-Balance Sheet Arrangements
Off-Balance Sheet Arrangements | 9 Months Ended |
Sep. 30, 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 were $3.0 million and $7.4 million for the three and nine months ended September 30, 2023. For the three and nine months ended September 30, 2022, losses on factoring were immaterial. Losses on factoring are recorded within cost of services in the condensed consolidated statements of operations. The WEX Europe Services agreement automatically renews each January 1 unless either party gives not less than 90 days written notice of their intention to withdraw. Under this agreement, accounts receivable are sold without recourse to the extent that the customer balances are maintained at or below the credit limit established by the buyer. 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 September 30, 2023. The Company sold $139.6 million and $422.9 million of accounts receivable during the three and nine months ended September 30, 2023, respectively, and sold $149.6 million and $454.2 million of accounts receivable during the three and nine months ended September 30, 2022, respectively, under this arrangement. The WEX Bank agreement extends through August 1, 2024, 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 $4.0 billion and $9.1 billion of trade accounts receivable during the three and nine months ended September 30, 2023 and $2.3 billion and $4.6 billion during the three and nine months ended September 30, 2022, respectively, under this arrangement. Benefits Securitization In April 2023, WEX Health, through a wholly-owned special purpose entity (“SPE”), entered into a receivable securitization facility with an unrelated financial institution. Under the facility, WEX Health sells eligible trade accounts receivables to the SPE, which is a bankruptcy-remote subsidiary. The receivables, once sold to the SPE, are no longer available to satisfy creditors of the Company or its subsidiaries in the event of bankruptcy. In turn, the SPE sells undivided ownership interests in certain of these receivables to the financial institution in exchange for cash equal to the gross receivables transferred. The receivables sold are fully guaranteed by the SPE, which also pledges any unsold receivables as collateral for such obligation. While WEX Health continues to service the receivables sold to the financial institution under the facility, WEX does not retain effective control of the transferred receivables, derecognizes the assets and accounts for these transfers as sales. The revolving limit of the facility is $35.0 million, with an initial term through April 2026, which can be extended for an additional period of up to three years. The SPE can voluntarily terminate the facility at any time, subject to 30 days’ notice. The SPE pays interest on the amount funded by the financial institution based on variable interest rates, which was immaterial for the three and nine months ended September 30, 2023 and reflected within operating interest on the condensed consolidated statements of operations. The third-party financial institution has a first priority security interest in all assets of the SPE, and the SPE has not granted a security interest to any other parties. In addition, WEX Inc. has provided a performance guarantee to the third-party financial institution with respect to WEX Health’s obligations as originator and servicer under the facility. The Company sold approximately $43.9 million and $126.1 million of receivables under the securitization facility for the three and nine months ended September 30, 2023, respectively. Non-Bank Custodial HSA 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 September 30, 2023 and December 31, 2022, we were custodian to approximately $3.8 billion and $3.45 billion in HSA cash assets, respectively. Of these custodial balances, $1.0 billion and $1.4 billion at September 30, 2023 and December 31, 2022, respectively, were deposited with or managed by certain third-party 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 $2.8 billion and $2.1 billion in HSA assets as of September 30, 2023 and December 31, 2022, respectively, are deposited with and managed by WEX Bank and are therefore 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2023 and December 31, 2022 are presented below. Accrued interest on investment securities of $26.7 million and $9.3 million, respectively, as of September 30, 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 September 30, 2023 Current: Debt securities: U.S. treasury notes $ 390.9 — 45.3 345.6 Corporate debt securities 969.6 — 71.0 898.6 Municipal bonds 70.8 — 8.8 62.0 Asset-backed securities 538.0 1.7 6.7 533.0 Mortgage-backed securities 859.6 — 73.6 786.0 Total $ 2,828.9 $ 1.7 $ 205.4 $ 2,625.2 Non-current: Debt securities 3 $ 15.1 $ — $ 1.4 $ 13.7 Mutual fund 28.8 — 4.7 24.1 Pooled investment fund 9.0 — — 9.0 Total $ 52.9 $ — $ 6.1 $ 46.8 Total investment securities 2 $ 2,881.8 $ 1.7 $ 211.5 $ 2,672.0 (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 $12.4 million and $11.1 million in equity securities as of September 30, 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 September 30, 2023 and December 31, 2022. As of September 30, 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 $ — $ — $ 345.6 $ 45.3 $ 345.6 $ 45.3 Corporate debt securities 420.0 23.6 471.2 47.4 891.2 71.0 Municipal bonds 35.5 1.6 40.0 8.6 75.5 10.2 Asset-backed securities 187.9 1.2 137.0 5.5 324.9 6.7 Mortgage-backed securities 527.5 34.9 258.7 38.7 786.2 73.6 Total debt securities $ 1,170.9 $ 61.3 $ 1,252.5 $ 145.5 $ 2,423.4 $ 206.8 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 526 investment positions at September 30, 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. September 30, 2023 (In millions) Amortized Cost Fair Value Due within one year $ 47.5 $ 46.6 Due after 1 year through year 5 640.1 588.4 Due after 5 years through year 10 791.2 723.7 Due after 10 years 1,365.2 1,280.2 Total $ 2,844.0 $ 2,638.9 |
Financial Instruments _ Fair Va
Financial Instruments − Fair Value and Concentrations of Credit Risk | 9 Months Ended |
Sep. 30, 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 September 30, 2023 December 31, 2022 Assets: Money market mutual funds 1 1 $ 9.6 $ 35.1 Investment securities, current: Debt securities: U.S. treasury notes 2 $ 345.6 $ 364.1 Corporate debt securities 2 898.6 497.8 Municipal bonds 2 62.0 45.0 Asset-backed securities 2 533.0 190.7 Mortgage-backed securities 2 786.0 297.7 Total $ 2,625.2 $ 1,395.3 Investment securities, non-current: Debt securities 2 $ 13.7 $ 14.5 Mutual fund 1 24.1 24.5 Pooled investment fund measured at NAV 2 9.0 9.0 Total $ 46.8 $ 48.0 Executive deferred compensation plan trust 3 1 $ 12.4 $ 11.1 Interest rate swaps 4 2 $ 62.0 $ 81.4 Liabilities Contingent consideration 5 3 $ 183.9 $ 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 September 30, 2023, $1.6 million and $10.8 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 September 30, 2023, $39.0 million and $23.0 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 September 30, 2023, $63.5 million and $120.4 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 The pooled investment fund maintains individual capital accounts for each investor, which reflect each individual investor’s share of the NAV of the fund. As of September 30, 2023, the Company had no unfunded commitments with respect to the fund. Investments in the fund may be redeemed monthly with 30 days’ notice. 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 SOFR 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 4.51 percent as of September 30, 2023 and 3.52 percent as of December 31, 2022. Due to significant increases in the Federal Funds rate, the fair value of the Company’s contingent consideration derivative liability at September 30, 2023 is effectively measured at the present value of the maximum remaining contingent consideration payable under the arrangement and accordingly, the fair value could not materially increase. A significant decrease in the Federal Funds rate could result in a material decrease in the 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 Nine Months Ended (In millions) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Contingent consideration - beginning of period $ 180.7 $ 172.1 $ 206.4 $ 67.3 Payments of contingent consideration (1) — — (28.7) — Change in fair value of contingent consideration 3.2 30.3 6.2 135.1 Contingent consideration - end of period $ 183.9 $ 202.4 $ 183.9 $ 202.4 (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) September 30, 2023 December 31, 2022 Carrying value Fair value Carrying value Fair value Tranche A Term Loans 1 $ 856.1 ** $ 892.8 ** Tranche B Term Loans 1 1,406.0 ** 1,416.8 ** Outstanding borrowings on Revolving Credit Facility 1 471.6 ** — — Convertible Notes 2 — — 310.0 330.0 Contractual deposits with maturities in excess of one year 3 115.5 ** 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 determined 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. On August 11, 2023, the Company repurchased all of the outstanding aggregate principal amount of the Company’s Convertible Notes and the repurchased Convertible Notes were canceled by the trustee at the instruction of the Company. 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. 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 | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The Company’s effective tax rate was 58.6 percent and 30.2 percent for the three and nine months ended September 30, 2023, respectively, and (1.9) percent and 42.1 percent for the three and nine months ended September 30, 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 and nine months ended September 30, 2023 was unfavorably impacted by the loss on extinguishment of Convertible Notes of $70.1 million, which was disallowed for tax purposes. This was partially offset for the nine months ended September 30, 2023 by a release in valuation allowance largely attributable to foreign tax credits and net operating losses in the U.K. recorded during the second quarter of 2023. Additionally, the Company recorded a discrete tax benefit of $2.5 million in the second quarter of 2023 thereby reversing a portion of an uncertain tax position of $7.5 million that originally adversely impacted the Company’s effective tax rate for the nine months ended September 30, 2022. The Company’s effective tax rates for the three and nine months ended September 30, 2022 were adversely impacted primarily by a discrete tax adjustment of $12.7 million relating to the establishment of a valuation allowance recorded against a portion of deferred tax assets resulting from goodwill impairment charges. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 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 September 30, 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 | 9 Months Ended |
Sep. 30, 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 employees and directors. Stock-based compensation expense was $30.5 million and $91.7 million for the three and nine months ended September 30, 2023, respectively, and $28.2 million and $76.8 million for the three and nine months ended September 30, 2022, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 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, WEX Inc. serves as the non-bank custodian to certain HSA assets. The following tables present the Company’s reportable segment revenues: Three Months Ended September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 176.9 $ 115.8 $ 20.6 $ 313.3 Account servicing revenue 42.5 10.5 108.5 161.5 Finance fee revenue 76.8 0.2 0.1 77.1 Other revenue 53.9 8.7 36.9 99.5 Total revenues $ 350.1 $ 135.2 $ 166.1 $ 651.4 Three Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 188.6 $ 101.5 $ 18.9 $ 309.0 Account servicing revenue 41.6 10.7 85.9 138.3 Finance fee revenue 96.5 0.2 — 96.7 Other revenue 51.4 1.5 19.2 72.1 Total revenues $ 378.1 $ 114.0 $ 124.1 $ 616.1 Nine Months Ended September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 520.6 $ 310.6 $ 70.7 $ 901.9 Account servicing revenue 123.6 31.7 319.8 475.1 Finance fee revenue 233.5 0.5 0.2 234.2 Other revenue 154.9 19.1 99.5 273.5 Total revenues $ 1,032.6 $ 361.9 $ 490.2 $ 1,884.7 Nine Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 542.9 $ 255.2 $ 62.7 $ 860.8 Account servicing revenue 127.9 31.9 256.1 415.9 Finance fee revenue 260.0 0.5 0.1 260.6 Other revenue 145.7 4.0 44.9 194.6 Total revenues $ 1,076.5 $ 291.6 $ 363.8 $ 1,731.9 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; (v) other costs and (vi) impairment charges. Additionally, we do not allocate non-operating income and expense to our operating segments. The following table reconciles total segment adjusted operating income to income before income taxes: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Segment adjusted operating income Mobility $ 159.6 $ 174.5 $ 448.7 $ 527.6 Corporate Payments 82.9 60.3 198.4 139.6 Benefits 58.8 30.3 182.6 94.1 Total segment adjusted operating income $ 301.3 $ 265.1 $ 829.7 $ 761.3 Reconciliation: Total segment adjusted operating income $ 301.3 $ 265.1 $ 829.7 $ 761.3 Less: Unallocated corporate expenses 29.1 23.9 76.8 63.9 Acquisition-related intangible amortization 45.2 42.5 133.6 127.7 Other acquisition and divestiture related items 5.1 4.1 7.6 15.1 Stock-based compensation 31.9 27.9 94.5 78.4 Other costs 15.1 8.9 28.6 25.0 Impairment charges — 136.5 — 136.5 Operating income 174.9 21.3 488.6 314.7 Financing interest expense (41.6) (34.4) (122.4) (95.9) Net foreign currency loss (7.8) (23.4) (9.4) (37.8) Loss on extinguishment of Convertible Notes (70.1) — (70.1) — Change in fair value of contingent consideration (3.2) (30.3) (6.2) (135.1) Net unrealized (loss) gain on financial instruments (7.8) 23.5 (20.1) 90.3 Income (loss) before income taxes $ 44.4 $ (43.3) $ 260.4 $ 136.1 |
Supplementary Regulatory Capita
Supplementary Regulatory Capital Disclosure | 9 Months Ended |
Sep. 30, 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 September 30, 2023 Total Capital to risk-weighted assets $ 740.2 14.83 % $ 399.2 8.00 % $ 499.1 10.00 % Tier 1 Capital to average assets $ 677.8 10.20 % $ 265.8 4.00 % $ 332.3 5.00 % Common equity to risk-weighted assets $ 677.8 13.58 % $ 224.6 4.50 % $ 324.4 6.50 % Tier 1 Capital to risk-weighted assets $ 677.8 13.58 % $ 299.4 6.00 % $ 399.2 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 | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events On October 23, 2023, the Company signed a definitive agreement to acquire Payzer Holdings, Inc., a high growth, cloud-based, field service management software provider. The acquisition is expected to advance WEX’s growth strategy of expanding its product suite and creating additional cross-sell opportunities by providing a new, scalable SaaS solution for its small business customers who operate field service companies. Pursuant to the terms of the agreement, total consideration for the acquisition is expected to be approximately $250 million, with additional contingent consideration of up to $11 million based on certain performance metrics, subject to certain working capital and other adjustments. We expect the transaction to close before year end, subject to customary closing conditions. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 18.4 | $ (44.1) | $ 181.7 | $ 78.5 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 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 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 and nine months ended September 30, 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 (“2022 Annual Report”). 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, WEX Inc. 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 now 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 $350.1 million from operating cash flows to financing cash flows for the nine months ended September 30, 2022. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There are no recent accounting pronouncements adopted during the nine months ended September 30, 2023, or not yet adopted as of September 30, 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 diluted earnings per share includes the impact of convertible securities under the “if-converted” method if the effect of such securities would be dilutive and 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. Pooled Investment Fund The pooled investment fund maintains individual capital accounts for each investor, which reflect each individual investor’s share of the NAV of the fund. As of September 30, 2023, the Company had no unfunded commitments with respect to the fund. Investments in the fund may be redeemed monthly with 30 days’ notice. 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 SOFR 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. 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) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 176.9 $ 115.8 $ 20.6 $ 313.3 Account servicing revenue 5.4 10.5 108.5 124.4 Other revenue 24.7 — 6.9 31.6 Total Topic 606 revenues $ 207.0 $ 126.3 $ 136.0 $ 469.3 Non-Topic 606 revenues 143.1 8.9 30.1 182.1 Total revenues $ 350.1 $ 135.2 $ 166.1 $ 651.4 Three Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 188.6 $ 101.5 $ 18.9 $ 309.0 Account servicing revenue 4.7 10.7 85.9 101.4 Other revenue 21.3 0.1 7.5 28.9 Total Topic 606 revenues $ 214.6 $ 112.3 $ 112.4 $ 439.4 Non-Topic 606 revenues 163.5 1.6 11.7 176.8 Total revenues $ 378.1 $ 114.0 $ 124.1 $ 616.1 Nine Months Ended September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 520.6 $ 310.6 $ 70.7 $ 901.9 Account servicing revenue 14.3 31.7 319.8 365.8 Other revenue 69.2 — 20.9 90.1 Total Topic 606 revenues $ 604.1 $ 342.3 $ 411.4 $ 1,357.8 Non-Topic 606 revenues 428.5 19.6 78.8 526.9 Total revenues $ 1,032.6 $ 361.9 $ 490.2 $ 1,884.7 Nine Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Topic 606 revenues Payment processing revenue $ 542.9 $ 255.2 $ 62.7 $ 860.8 Account servicing revenue 13.6 31.9 256.1 $ 301.6 Other revenue 63.5 0.5 23.9 87.9 Total Topic 606 revenues $ 620.0 $ 287.6 $ 342.8 $ 1,250.3 Non-Topic 606 revenues 456.5 4.1 21.1 481.6 Total revenues $ 1,076.5 $ 291.6 $ 363.8 $ 1,731.9 |
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 September 30, 2023 December 31, 2022 Receivables 1 Accounts receivable, net $ 39.3 $ 53.6 Contract assets Prepaid expenses and other current assets 17.4 13.6 Contract assets Other assets 34.6 37.9 Contract liabilities Accrued expenses and other current liabilities 15.3 8.1 Contract liabilities Other liabilities 80.5 87.0 1 The significant decrease in receivables is due to the sale of certain accounts receivable invoices under our Benefits securitization facility, which is described more fully within Note 11, Off-Balance Sheet Arrangements. |
Schedule of Remaining Performance Obligations | The following table includes revenue expected to be recognized related to remaining performance obligations at the end of the indicated reporting period. (In millions) Remaining 2023 2024 2025 2026 2027 2028 Thereafter Total Minimum monthly fees 1 $ 16.6 $ 39.7 $ 19.6 $ 7.2 $ 4.3 $ 2.8 $ 0.8 $ 91.0 Other 2 5.6 17.1 25.0 33.3 36.0 5.9 — 122.9 Total remaining performance obligations $ 22.3 $ 56.7 $ 44.5 $ 40.5 $ 40.3 $ 8.7 $ 0.8 $ 213.9 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 and Other Invest_2
Acquisitions and Other Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below summarizes the preliminary allocation of fair value to the assets acquired and liabilities assumed on the date of acquisition under the acquisition method of accounting. These fair values may continue to be revised during the measurement period as third-party valuations on the intangible assets are finalized, further information becomes available and additional analyses are performed, and those adjustments could have a material impact on the purchase price allocation. (In millions) Cash consideration transferred, net of $26.7 million in cash and restricted cash acquired $ 155.7 Less: Accounts receivable 7.3 Customer relationships (1)(5) 52.7 Developed technology (2)(5) 6.6 Strategic partner relationships (3)(5) 14.0 Custodial rights (4)(5) 23.2 Other assets 3.8 Accrued expenses and other current liabilities (6.5) Restricted cash payable (25.7) Other liabilities (2.7) Recorded goodwill $ 83.0 (1) Weighted average life - 5.3 years (2) Weighted average life - 2.2 years (3) Weighted average life - 1.2 years (4) Weighted average life - 4.9 years (5) The weighted average useful life of all amortizable intangible assets acquired in this business combination is 4.4 years. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 96.2 $ 14.5 $ 1.3 $ 112.0 Provision for credit losses 1 12.2 (3.9) 1.1 9.4 Charges to other accounts 2 6.8 — 0.5 7.3 Charge-offs (32.1) (0.5) (0.2) (32.8) Recoveries of amounts previously charged-off 5.6 — — 5.6 Currency translation (0.3) (0.2) — (0.5) Balance, end of period $ 88.4 $ 9.9 $ 2.7 101.0 Three Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 89.2 $ 10.4 $ 1.0 $ 100.6 Provision for credit losses 1 53.0 0.7 0.3 54.0 Charges to other accounts 2 11.3 — — 11.3 Charge-offs (65.1) (0.8) (0.2) (66.0) Recoveries of amounts previously charged-off 3.6 — — 3.6 Currency translation (0.6) (0.6) — (1.2) Balance, end of period $ 91.4 $ 9.7 $ 1.2 $ 102.3 Nine Months Ended September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 94.6 $ 14.4 $ 0.8 $ 109.9 Provision for credit losses 1 78.5 (2.5) 1.5 77.5 Charges to other accounts 2 22.1 — 0.6 22.6 Charge-offs (122.8) (2.0) (0.2) (125.0) Recoveries of amounts previously charged-off 16.3 — — 16.3 Currency translation (0.3) — — (0.3) Balance, end of period $ 88.4 $ 9.9 $ 2.7 $ 101.0 Nine Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Balance, beginning of period $ 55.8 $ 9.9 $ 0.6 $ 66.3 Provision for credit losses 1 118.7 2.1 1.1 121.9 Charges to other accounts 2 29.9 0.2 (0.1) 30.0 Charge-offs (120.4) (1.2) (0.4) (122.1) Recoveries of amounts previously charged-off 8.8 — — 8.8 Currency translation (1.4) (1.3) — (2.6) Balance, end of period $ 91.4 $ 9.7 $ 1.2 $ 102.3 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 September 30, 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) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Net income (loss) attributable to shareholders $ 18.4 $ (44.1) $ 181.7 $ 112.7 Weighted average common shares outstanding – Basic 42.9 44.2 43.0 44.6 Dilutive impact of share-based compensation awards 1 0.5 — 0.5 0.3 Weighted average common shares outstanding – Diluted 2 43.4 44.2 43.5 45.0 1 For both the three and nine months ended September 30, 2023, 0.4 million of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share under the treasury stock method, as the effect of including those shares would be anti-dilutive. During both the three and nine months ended September 30, 2022, 0.6 million of outstanding share-based compensation awards were excluded from the computation of diluted earnings per share under the treasury stock method, as the effect of including those shares would be anti-dilutive. Additionally, 0.3 million incremental shares, which would otherwise have been dilutive but for the Company’s net loss position, are excluded from the table above for the three months ended September 30, 2022 as the effect of including those shares would be anti-dilutive. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | A summary of the Company’s amended interest rate swap contracts with a collective notional amount of $1.1 billion outstanding as of September 30, 2023 is as follows: Contract Inception Contract End Fixed Interest Rates Payable by WEX (prior to amendment) 1 Fixed Interest Rates Payable by WEX Notional Amount ( in millions ) March 2020 December 2023 1.862% 1.789% 2 $ 200.0 May 2021 May 2024 0.435% 0.459% 3 $ 150.0 May 2021 May 2024 0.440% 0.367% 2 $ 150.0 May 2021 May 2025 0.678% 0.648% 2 $ 300.0 May 2021 May 2026 0.909% 0.836% 2 $ 150.0 May 2021 May 2026 0.910% 0.883% 2 $ 150.0 1 Counterparties paid floating rate equal to the one-month USD LIBOR. 2 Counterparties pay floating rate equal to the one-month USD-SOFR CME Term. 3 Counterparty pays floating rate equal to the one-month USD-SOFR CME Term, plus a spread of 0.114 percent. |
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 September 30, Nine Months Ended September 30, Derivatives Not Designated as Hedging Instruments Location of (Loss) Gain Recognized in the Condensed Consolidated Statement of Operations 2023 2022 2023 2022 Interest rate swap contracts – unrealized portion Net unrealized gain (loss) on financial instruments $ (6.9) $ 24.6 $ (19.4) $ 93.5 Interest rate swap contracts – Financing interest expense $ 12.3 $ 3.7 $ 36.0 $ (5.2) |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, 2023 December 31, 2022 Customer deposits $ 227.6 $ 146.7 Contractual deposits with maturities within 1 year 1,2 1,037.3 770.7 Interest-bearing money market deposits 1 217.9 157.2 HSA deposits 3 2,770.0 2,070.0 Short-term contractual deposits $ 4,252.8 $ 3,144.6 Contractual deposits with maturities greater than 1 year and less than 5 years 1,2 115.5 334.2 Total deposits $ 4,368.3 $ 3,478.8 Weighted average cost of HSA deposits outstanding 0.11 % 0.04 % Weighted average cost of funds on contractual deposits outstanding 4.34 % 1.48 % Weighted average cost of interest-bearing money market deposits outstanding 5.47 % 4.45 % 1 As of September 30, 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 substantially fixed interest rates. 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) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following tables summarize the Company’s total outstanding debt as of September 30, 2023 and December 31, 2022. As of September 30, 2023 As of December 31, 2022 (In millions) Balance Outstanding Interest Rate Balance Outstanding Interest Rate Short term debt: Securitized debt $ 99.9 5.80 % $ 110.6 3.83 % Participation debt 41.5 7.72 % 39.0 6.64 % Borrowed federal funds 760.0 5.43 % — — % Current portion of long-term debt (net of $7.5 million in unamortized debt issuance costs/discounts) 55.9 ** 53.1 ** Total short term debt, net $ 957.3 $ 202.6 ** Provided for the total Amended and Restated Credit Agreement borrowings below. Balance Outstanding at: (In millions) September 30, 2023 December 31, 2022 Long-term debt: Amended and Restated Credit Agreement: Tranche A Term Loans due April 2026 1 $ 856.1 $ 892.8 Tranche B Term Loans due April 2028 2 1,406.0 1,416.8 Borrowings on Revolving Credit Facility due April 2026 1 471.6 — Total borrowings under the Amended and Restated Credit Agreement 3 2,733.7 2,309.6 6.5% Convertible Notes due July 2027 — 310.0 Total long-term debt 4 2,733.7 2,619.6 Less total unamortized debt issuance costs/discounts (27.7) (44.3) Less current portion of long-term debt (net of $7.5 million in unamortized debt issuance costs/discounts) (55.9) (53.1) Long-term debt, net $ 2,650.1 $ 2,522.2 1 Bears interest at variable rates, at the Company’s option, plus an applicable margin determined based on the Company’s consolidated leverage ratio. Outstanding borrowings under the Revolving Credit Facility are classified as long-term given they can be rolled forward with interest rate resets through maturity. 2 Bears 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 Term SOFR borrowings. 3 As of September 30, 2023 and December 31, 2022, amounts outstanding under the Amended and Restated Credit Agreement bore a weighted average effective interest rate of 7.3 percent and 6.4 percent, respectively. The Company maintains interest rate swap contracts to manage the interest rate risk associated with its outstanding variable-interest rate borrowings. See Note 8, Derivative Instruments for further discussion. 4 See Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk for information regarding the fair value of the Company’s debt. (In millions) September 30, 2023 December 31, 2022 Supplemental information under Amended and Restated Credit Agreement: Letters of credit 1 $ 33.2 $ 31.1 Remaining borrowing capacity on Revolving Credit Facility 2 $ 925.2 $ 898.9 1 Primarily collateralizing Corporate Payments processing activity. 2 September 30, 2023 balance is reflective of the increased commitments resulting from the Third Amendment to Amended and Restated Credit Agreement entered into September 26, 2023. Borrowing capacity is contingent on maintaining compliance with the financial covenants as defined in the Company’s Amended and Restated Credit Agreement. The Company pays a quarterly commitment fee at a rate per annum ranging from 0.25 percent to 0.50 percent of the daily unused portion of the Revolving Credit Facility (which was 0.25 percent at September 30, 2023 and 0.30 percent at December 31, 2022) determined based on the Company’s consolidated leverage ratio. |
Schedule of Convertible Notes | The following table sets forth total interest expense recognized for the Convertible Notes: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Interest on 6.5 percent coupon $ 2.3 $ 5.0 $ 12.4 $ 15.1 Amortization of debt discount and debt issuance costs 0.3 0.6 1.5 1.7 $ 2.6 $ 5.6 $ 13.9 $ 16.8 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 and December 31, 2022 are presented below. Accrued interest on investment securities of $26.7 million and $9.3 million, respectively, as of September 30, 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 September 30, 2023 Current: Debt securities: U.S. treasury notes $ 390.9 — 45.3 345.6 Corporate debt securities 969.6 — 71.0 898.6 Municipal bonds 70.8 — 8.8 62.0 Asset-backed securities 538.0 1.7 6.7 533.0 Mortgage-backed securities 859.6 — 73.6 786.0 Total $ 2,828.9 $ 1.7 $ 205.4 $ 2,625.2 Non-current: Debt securities 3 $ 15.1 $ — $ 1.4 $ 13.7 Mutual fund 28.8 — 4.7 24.1 Pooled investment fund 9.0 — — 9.0 Total $ 52.9 $ — $ 6.1 $ 46.8 Total investment securities 2 $ 2,881.8 $ 1.7 $ 211.5 $ 2,672.0 (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 $12.4 million and $11.1 million in equity securities as of September 30, 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 September 30, 2023 and December 31, 2022. As of September 30, 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 $ — $ — $ 345.6 $ 45.3 $ 345.6 $ 45.3 Corporate debt securities 420.0 23.6 471.2 47.4 891.2 71.0 Municipal bonds 35.5 1.6 40.0 8.6 75.5 10.2 Asset-backed securities 187.9 1.2 137.0 5.5 324.9 6.7 Mortgage-backed securities 527.5 34.9 258.7 38.7 786.2 73.6 Total debt securities $ 1,170.9 $ 61.3 $ 1,252.5 $ 145.5 $ 2,423.4 $ 206.8 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 |
Schedule of Maturity Dates Of Available-For-Sale Securities | The following table summarizes the contractual maturity dates of the Company’s debt securities. September 30, 2023 (In millions) Amortized Cost Fair Value Due within one year $ 47.5 $ 46.6 Due after 1 year through year 5 640.1 588.4 Due after 5 years through year 10 791.2 723.7 Due after 10 years 1,365.2 1,280.2 Total $ 2,844.0 $ 2,638.9 |
Financial Instruments _ Fair _2
Financial Instruments − Fair Value and Concentrations of Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 December 31, 2022 Assets: Money market mutual funds 1 1 $ 9.6 $ 35.1 Investment securities, current: Debt securities: U.S. treasury notes 2 $ 345.6 $ 364.1 Corporate debt securities 2 898.6 497.8 Municipal bonds 2 62.0 45.0 Asset-backed securities 2 533.0 190.7 Mortgage-backed securities 2 786.0 297.7 Total $ 2,625.2 $ 1,395.3 Investment securities, non-current: Debt securities 2 $ 13.7 $ 14.5 Mutual fund 1 24.1 24.5 Pooled investment fund measured at NAV 2 9.0 9.0 Total $ 46.8 $ 48.0 Executive deferred compensation plan trust 3 1 $ 12.4 $ 11.1 Interest rate swaps 4 2 $ 62.0 $ 81.4 Liabilities Contingent consideration 5 3 $ 183.9 $ 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 September 30, 2023, $1.6 million and $10.8 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 September 30, 2023, $39.0 million and $23.0 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 September 30, 2023, $63.5 million and $120.4 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) September 30, 2023 December 31, 2022 Carrying value Fair value Carrying value Fair value Tranche A Term Loans 1 $ 856.1 ** $ 892.8 ** Tranche B Term Loans 1 1,406.0 ** 1,416.8 ** Outstanding borrowings on Revolving Credit Facility 1 471.6 ** — — Convertible Notes 2 — — 310.0 330.0 Contractual deposits with maturities in excess of one year 3 115.5 ** 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 determined 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. On August 11, 2023, the Company repurchased all of the outstanding aggregate principal amount of the Company’s Convertible Notes and the repurchased Convertible Notes were canceled by the trustee at the instruction of the Company. |
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 Nine Months Ended (In millions) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Contingent consideration - beginning of period $ 180.7 $ 172.1 $ 206.4 $ 67.3 Payments of contingent consideration (1) — — (28.7) — Change in fair value of contingent consideration 3.2 30.3 6.2 135.1 Contingent consideration - end of period $ 183.9 $ 202.4 $ 183.9 $ 202.4 (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) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Results | The following tables present the Company’s reportable segment revenues: Three Months Ended September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 176.9 $ 115.8 $ 20.6 $ 313.3 Account servicing revenue 42.5 10.5 108.5 161.5 Finance fee revenue 76.8 0.2 0.1 77.1 Other revenue 53.9 8.7 36.9 99.5 Total revenues $ 350.1 $ 135.2 $ 166.1 $ 651.4 Three Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 188.6 $ 101.5 $ 18.9 $ 309.0 Account servicing revenue 41.6 10.7 85.9 138.3 Finance fee revenue 96.5 0.2 — 96.7 Other revenue 51.4 1.5 19.2 72.1 Total revenues $ 378.1 $ 114.0 $ 124.1 $ 616.1 Nine Months Ended September 30, 2023 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 520.6 $ 310.6 $ 70.7 $ 901.9 Account servicing revenue 123.6 31.7 319.8 475.1 Finance fee revenue 233.5 0.5 0.2 234.2 Other revenue 154.9 19.1 99.5 273.5 Total revenues $ 1,032.6 $ 361.9 $ 490.2 $ 1,884.7 Nine Months Ended September 30, 2022 (In millions) Mobility Corporate Payments Benefits Total Payment processing revenue $ 542.9 $ 255.2 $ 62.7 $ 860.8 Account servicing revenue 127.9 31.9 256.1 415.9 Finance fee revenue 260.0 0.5 0.1 260.6 Other revenue 145.7 4.0 44.9 194.6 Total revenues $ 1,076.5 $ 291.6 $ 363.8 $ 1,731.9 |
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 September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Segment adjusted operating income Mobility $ 159.6 $ 174.5 $ 448.7 $ 527.6 Corporate Payments 82.9 60.3 198.4 139.6 Benefits 58.8 30.3 182.6 94.1 Total segment adjusted operating income $ 301.3 $ 265.1 $ 829.7 $ 761.3 Reconciliation: Total segment adjusted operating income $ 301.3 $ 265.1 $ 829.7 $ 761.3 Less: Unallocated corporate expenses 29.1 23.9 76.8 63.9 Acquisition-related intangible amortization 45.2 42.5 133.6 127.7 Other acquisition and divestiture related items 5.1 4.1 7.6 15.1 Stock-based compensation 31.9 27.9 94.5 78.4 Other costs 15.1 8.9 28.6 25.0 Impairment charges — 136.5 — 136.5 Operating income 174.9 21.3 488.6 314.7 Financing interest expense (41.6) (34.4) (122.4) (95.9) Net foreign currency loss (7.8) (23.4) (9.4) (37.8) Loss on extinguishment of Convertible Notes (70.1) — (70.1) — Change in fair value of contingent consideration (3.2) (30.3) (6.2) (135.1) Net unrealized (loss) gain on financial instruments (7.8) 23.5 (20.1) 90.3 Income (loss) before income taxes $ 44.4 $ (43.3) $ 260.4 $ 136.1 |
Supplementary Regulatory Capi_2
Supplementary Regulatory Capital Disclosure (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2023 Total Capital to risk-weighted assets $ 740.2 14.83 % $ 399.2 8.00 % $ 499.1 10.00 % Tier 1 Capital to average assets $ 677.8 10.20 % $ 265.8 4.00 % $ 332.3 5.00 % Common equity to risk-weighted assets $ 677.8 13.58 % $ 224.6 4.50 % $ 324.4 6.50 % Tier 1 Capital to risk-weighted assets $ 677.8 13.58 % $ 299.4 6.00 % $ 399.2 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 | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net change in restricted cash payable | $ 213.1 | $ 350.1 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | $ 469.3 | $ 439.4 | $ 1,357.8 | $ 1,250.3 |
Non-Topic 606 revenues | 182.1 | 176.8 | 526.9 | 481.6 |
Total revenues | 651.4 | 616.1 | 1,884.7 | 1,731.9 |
Mobility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 207 | 214.6 | 604.1 | 620 |
Non-Topic 606 revenues | 143.1 | 163.5 | 428.5 | 456.5 |
Total revenues | 350.1 | 378.1 | 1,032.6 | 1,076.5 |
Corporate Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 126.3 | 112.3 | 342.3 | 287.6 |
Non-Topic 606 revenues | 8.9 | 1.6 | 19.6 | 4.1 |
Total revenues | 135.2 | 114 | 361.9 | 291.6 |
Benefits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 136 | 112.4 | 411.4 | 342.8 |
Non-Topic 606 revenues | 30.1 | 11.7 | 78.8 | 21.1 |
Total revenues | 166.1 | 124.1 | 490.2 | 363.8 |
Payment processing revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 313.3 | 309 | 901.9 | 860.8 |
Total revenues | 313.3 | 309 | 901.9 | 860.8 |
Payment processing revenue | Mobility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 176.9 | 188.6 | 520.6 | 542.9 |
Total revenues | 176.9 | 188.6 | 520.6 | 542.9 |
Payment processing revenue | Corporate Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 115.8 | 101.5 | 310.6 | 255.2 |
Total revenues | 115.8 | 101.5 | 310.6 | 255.2 |
Payment processing revenue | Benefits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 20.6 | 18.9 | 70.7 | 62.7 |
Total revenues | 20.6 | 18.9 | 70.7 | 62.7 |
Account servicing revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 124.4 | 101.4 | 365.8 | 301.6 |
Total revenues | 161.5 | 138.3 | 475.1 | 415.9 |
Account servicing revenue | Mobility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 5.4 | 4.7 | 14.3 | 13.6 |
Total revenues | 42.5 | 41.6 | 123.6 | 127.9 |
Account servicing revenue | Corporate Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 10.5 | 10.7 | 31.7 | 31.9 |
Total revenues | 10.5 | 10.7 | 31.7 | 31.9 |
Account servicing revenue | Benefits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 108.5 | 85.9 | 319.8 | 256.1 |
Total revenues | 108.5 | 85.9 | 319.8 | 256.1 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 31.6 | 28.9 | 90.1 | 87.9 |
Total revenues | 99.5 | 72.1 | 273.5 | 194.6 |
Other revenue | Mobility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 24.7 | 21.3 | 69.2 | 63.5 |
Total revenues | 53.9 | 51.4 | 154.9 | 145.7 |
Other revenue | Corporate Payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 0 | 0.1 | 0 | 0.5 |
Total revenues | 8.7 | 1.5 | 19.1 | 4 |
Other revenue | Benefits | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Topic 606 revenues | 6.9 | 7.5 | 20.9 | 23.9 |
Total revenues | $ 36.9 | $ 19.2 | $ 99.5 | $ 44.9 |
Revenues - Contract Assets and
Revenues - Contract Assets and Liabilities From Contracts with Customers (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts receivable, net | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 39.3 | $ 53.6 |
Prepaid expenses and other current assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 17.4 | 13.6 |
Other assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 34.6 | 37.9 |
Accrued expenses and other current liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | 15.3 | 8.1 |
Other liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | $ 80.5 | $ 87 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized related to contract liabilities | $ 2.2 | $ 4.8 |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 213.9 |
Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 91 |
Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 122.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 22.3 |
Performance obligations expected to be satisfied, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Minimum monthly fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 16.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 5.6 |
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 | $ 56.7 |
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 | $ 39.7 |
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 | 17.1 |
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 | $ 44.5 |
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 | $ 19.6 |
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 | 25 |
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 | $ 40.5 |
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 | $ 7.2 |
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 | $ 40.3 |
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 | $ 4.3 |
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 | 36 |
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 and Other Invest_3
Acquisitions and Other Investments - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 01, 2023 USD ($) | Jan. 03, 2023 USD ($) employee | Sep. 30, 2023 | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |||||
Acquisition related costs | $ 4.3 | $ 4.3 | |||
Equity method investments | $ 5 | ||||
Designing And Developing Software Business | |||||
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 | ||||
Ascensus Acquired Entities | |||||
Business Acquisition [Line Items] | |||||
Total consideration | $ 182.3 | ||||
Weighted average life (in years) | 4 years 4 months 24 days |
Acquisitions and Other Invest_4
Acquisitions and Other Investments - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Cash consideration transferred, net of $26.7 million in cash and restricted cash acquired | $ 155,700 | $ 0 | ||
Less: | ||||
Goodwill | $ 2,796,900 | 2,796,900 | $ 2,728,900 | |
Ascensus Acquired Entities | ||||
Business Acquisition [Line Items] | ||||
Cash consideration transferred, net of $26.7 million in cash and restricted cash acquired | 155,700 | |||
Less: | ||||
Accounts receivable | 7,300 | 7,300 | ||
Other assets | 3,800 | 3,800 | ||
Accrued expenses and other current liabilities | (6,500) | (6,500) | ||
Restricted cash payable | (25,700) | (25,700) | ||
Other liabilities | (2,700) | (2,700) | ||
Goodwill | 83,000 | 83,000 | ||
Cash acquired from acquisition | $ 26,700 | |||
Weighted average life (in years) | 4 years 4 months 24 days | |||
Ascensus Acquired Entities | Customer relationships | ||||
Less: | ||||
Intangible assets | $ 52,700 | 52,700 | ||
Weighted average life (in years) | 5 years 3 months 18 days | |||
Ascensus Acquired Entities | Developed technology | ||||
Less: | ||||
Intangible assets | $ 6,600 | 6,600 | ||
Weighted average life (in years) | 2 years 2 months 12 days | |||
Ascensus Acquired Entities | Strategic partner relationships | ||||
Less: | ||||
Intangible assets | $ 14,000 | 14,000 | ||
Weighted average life (in years) | 1 year 2 months 12 days | |||
Ascensus Acquired Entities | Custodial Rights | ||||
Less: | ||||
Intangible assets | $ 23,200 | $ 23,200 | ||
Weighted average life (in years) | 4 years 10 months 24 days |
Accounts Receivable, Net - Narr
Accounts Receivable, Net - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Revolving Credit Facility | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables with revolving credit balances | $ 156.1 | $ 157.8 |
Accounts Receivable, Net - Chan
Accounts Receivable, Net - Changes in Reserves for Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 112 | $ 100.6 | $ 109.9 | $ 66.3 |
Provision for credit losses | 9.4 | 54 | 77.5 | 121.9 |
Charges to other accounts | 7.3 | 11.3 | 22.6 | 30 |
Charge-offs | (32.8) | (66) | (125) | (122.1) |
Recoveries of amounts previously charged-off | 5.6 | 3.6 | 16.3 | 8.8 |
Currency translation | (0.5) | (1.2) | (0.3) | (2.6) |
Balance, end of period | 101 | 102.3 | 101 | 102.3 |
Mobility | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 96.2 | 89.2 | 94.6 | 55.8 |
Provision for credit losses | 12.2 | 53 | 78.5 | 118.7 |
Charges to other accounts | 6.8 | 11.3 | 22.1 | 29.9 |
Charge-offs | (32.1) | (65.1) | (122.8) | (120.4) |
Recoveries of amounts previously charged-off | 5.6 | 3.6 | 16.3 | 8.8 |
Currency translation | (0.3) | (0.6) | (0.3) | (1.4) |
Balance, end of period | 88.4 | 91.4 | 88.4 | 91.4 |
Corporate Payments | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 14.5 | 10.4 | 14.4 | 9.9 |
Provision for credit losses | (3.9) | 0.7 | (2.5) | 2.1 |
Charges to other accounts | 0 | 0 | 0 | 0.2 |
Charge-offs | (0.5) | (0.8) | (2) | (1.2) |
Recoveries of amounts previously charged-off | 0 | 0 | 0 | 0 |
Currency translation | (0.2) | (0.6) | 0 | (1.3) |
Balance, end of period | 9.9 | 9.7 | 9.9 | 9.7 |
Benefits | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 1.3 | 1 | 0.8 | 0.6 |
Provision for credit losses | 1.1 | 0.3 | 1.5 | 1.1 |
Charges to other accounts | 0.5 | 0 | 0.6 | (0.1) |
Charge-offs | (0.2) | (0.2) | (0.2) | (0.4) |
Recoveries of amounts previously charged-off | 0 | 0 | 0 | 0 |
Currency translation | 0 | 0 | 0 | 0 |
Balance, end of period | $ 2.7 | $ 1.2 | $ 2.7 | $ 1.2 |
Accounts Receivable, Net - Conc
Accounts Receivable, Net - Concentration of Credit Risk (Details) - Credit Concentration Risk - Accounts receivable, net | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | |||||||
Treasury stock purchased (approximately) (in shares) | 0.3 | 0.4 | 0.8 | 1 | |||
Purchase of shares of treasury stock | $ 50 | $ 3.2 | $ 92.8 | $ 69 | $ 80.6 | $ 146 | $ 149.6 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income (loss) attributable to shareholders | $ 18.4 | $ (44.1) | $ 181.7 | $ 112.7 |
Net income (loss) attributable to shareholders | $ 18.4 | $ (44.1) | $ 181.7 | $ 112.7 |
Weighted average common shares outstanding – basic (in shares) | 42.9 | 44.2 | 43 | 44.6 |
Dilutive impact of share-based compensation awards (in shares) | 0.5 | 0 | 0.5 | 0.3 |
Weighted average common shares outstanding – diluted (in shares) | 43.4 | 44.2 | 43.5 | 45 |
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 | 0.4 | 0.6 |
Incremental Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (in shares) | 0.3 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Billions | Sep. 30, 2023 USD ($) |
Derivatives Not Designated as Hedging Instruments | |
Derivative [Line Items] | |
Notional amount at inception | $ 1.1 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Interest Rate Swaps (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Millions | Sep. 30, 2023 | Apr. 26, 2023 | Apr. 25, 2023 |
Derivative [Line Items] | |||
Notional amount at inception | $ 1,100 | ||
Maturity December 2023 | |||
Derivative [Line Items] | |||
Fixed interest rate | 1.789% | 1.862% | |
Notional amount at inception | 200 | ||
Maturity May 2024, Instrument One | |||
Derivative [Line Items] | |||
Fixed interest rate | 0.459% | 0.435% | |
Notional amount at inception | $ 150 | ||
Maturity May 2024, Instrument One | One-Month USD-SOFR CME Term Rate | |||
Derivative [Line Items] | |||
Derivative, variable interest rate | 0.114% | ||
Maturity May 2024, Instrument Two | |||
Derivative [Line Items] | |||
Fixed interest rate | 0.367% | 0.44% | |
Notional amount at inception | $ 150 | ||
Maturity May 2025 | |||
Derivative [Line Items] | |||
Fixed interest rate | 0.648% | 0.678% | |
Notional amount at inception | 300 | ||
Maturity May 2026, Instrument One | |||
Derivative [Line Items] | |||
Fixed interest rate | 0.836% | 0.909% | |
Notional amount at inception | 150 | ||
Maturity May 2026, Instrument Two | |||
Derivative [Line Items] | |||
Fixed interest rate | 0.883% | 0.91% | |
Notional amount at inception | $ 150 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net unrealized gain (loss) on financial instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate swap gains (losses) | $ (6.9) | $ 24.6 | $ (19.4) | $ 93.5 |
Financing interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest rate swap gains (losses) | $ 12.3 | $ 3.7 | $ 36 | $ (5.2) |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposit Liability [Line Items] | ||
Customer deposits | $ 227,600 | $ 146,700 |
Certificates of deposit with maturities within 1 year | 1,037,300 | 770,700 |
Interest-bearing money market deposits | 217,900 | 157,200 |
HSA deposits | 2,770,000 | 2,070,000 |
Short-term contractual deposits | 4,252,800 | 3,144,600 |
Contractual deposits with maturities greater than 1 year and less than 5 years | 115,500 | 334,200 |
Total deposits | $ 4,368,300 | $ 3,478,800 |
Weighted average cost of HSA deposits outstanding (as a percent) | 0.11% | 0.04% |
Weighted average cost of funds on contractual deposits outstanding (as a percent) | 4.34% | 1.48% |
Weighted average cost of interest-bearing money market deposits outstanding (as a percent) | 5.47% | 4.45% |
Maximum | ||
Deposit Liability [Line Items] | ||
Certificates of deposits denominations in dollar amount | $ 250 | $ 250 |
Financing and Other Debt - Sche
Financing and Other Debt - Schedule of Short Term Debt (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total short term debt, net | $ 957.3 | $ 202.6 |
Current portion of long-term debt (net of $7.5 million in unamortized debt issuance costs/discounts) | 55.9 | 53.1 |
Unamortized debt issuance costs/discounts | 7.5 | 7.5 |
Participation debt | ||
Debt Instrument [Line Items] | ||
Total short term debt, net | $ 41.5 | $ 39 |
Interest rate during period (as a percent) | 7.72% | 6.64% |
Borrowed federal funds | ||
Debt Instrument [Line Items] | ||
Total short term debt, net | $ 760 | $ 0 |
Interest rate during period (as a percent) | 5.43% | 0% |
Securitized debt | ||
Debt Instrument [Line Items] | ||
Total short term debt, net | $ 99.9 | $ 110.6 |
Interest rate during period (as a percent) | 5.80% | 3.83% |
Financing and Other Debt - Sc_2
Financing and Other Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 2,733.7 | $ 2,619.6 | |
Less total unamortized debt issuance costs/discounts | (27.7) | (44.3) | |
Less current portion of long-term debt (net of $7.5 million in unamortized debt issuance costs/discounts) | (55.9) | (53.1) | |
Long-term debt, net | 2,650.1 | 2,522.2 | |
Unamortized debt issuance costs/discounts | $ 7.5 | $ 7.5 | |
Minimum | |||
Supplemental information under Amended and Restated Credit Agreement: | |||
Commitment fee percentage | 0.25% | ||
Maximum | |||
Supplemental information under Amended and Restated Credit Agreement: | |||
Commitment fee percentage | 0.50% | ||
Amended and Restated Credit Agreement | |||
Debt Instrument [Line Items] | |||
Weighted average effective interest rate (as a percent) | 7.30% | 6.40% | |
Supplemental information under Amended and Restated Credit Agreement: | |||
Commitment fee percentage | 0.25% | 0.30% | |
Convertible Senior Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Convertible notes payable | $ 0 | $ 310 | |
Convertible Senior Notes Due 2027 | Convertible Debt | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 6.50% | 6.50% | 6.50% |
Line of Credit | Amended and Restated Credit Agreement Tranche A | Securitized debt | |||
Debt Instrument [Line Items] | |||
Carrying value | $ 856.1 | $ 892.8 | |
Line of Credit | Amended and Restated Credit Agreement Tranche B | Securitized debt | |||
Debt Instrument [Line Items] | |||
Carrying value | 1,406 | 1,416.8 | |
Line of Credit | Amended and Restated Credit Agreement | |||
Debt Instrument [Line Items] | |||
Carrying value | 2,733.7 | 2,309.6 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Carrying value | 471.6 | 0 | |
Revolving Credit Facility | Amended and Restated Credit Agreement | |||
Supplemental information under Amended and Restated Credit Agreement: | |||
Remaining borrowing capacity on revolving credit facility | 925.2 | 898.9 | |
Revolving Credit Facility | Amended and Restated Credit Agreement | Letter of Credit | |||
Supplemental information under Amended and Restated Credit Agreement: | |||
Letters of credit | $ 33.2 | $ 31.1 | |
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% |
Financing and Other Debt - Narr
Financing and Other Debt - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Aug. 11, 2023 USD ($) | Sep. 30, 2023 USD ($) securitized_debt_agreement | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) securitized_debt_agreement | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Sep. 26, 2023 USD ($) | Sep. 25, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of Convertible Notes | $ 70,100,000 | $ 0 | $ 70,100,000 | $ 0 | ||||
Number of securitized debt agreements | securitized_debt_agreement | 2 | 2 | ||||||
Total short term debt, net | $ 957,300,000 | $ 957,300,000 | $ 202,600,000 | |||||
Accounts receivable, net | 4,053,500,000 | 4,053,500,000 | 3,275,700,000 | |||||
Asset Pledged as Collateral | Mobility | ||||||||
Debt Instrument [Line Items] | ||||||||
Accounts receivable, net | 249,100,000 | 249,100,000 | ||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Total short term debt, net | 260,000,000 | 260,000,000 | 0 | |||||
Convertible Senior Notes Due 2027 | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt | $ 310,000,000 | |||||||
Repurchase of debt, percentage of par | 119% | |||||||
Repurchase of convertible notes | $ 370,400,000 | |||||||
Net carrying amount | 298,800,000 | |||||||
Loss on extinguishment of Convertible Notes | $ 70,100,000 | |||||||
Unamortized debt issuance expense | 12,700,000 | |||||||
Debt instrument, unamortized discount | $ 12,700,000 | |||||||
Effective interest rate on the liability component (as a percent) | 7.50% | 7.50% | ||||||
Participation debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Total short term debt, net | 41,500,000 | $ 41,500,000 | $ 39,000,000 | |||||
Interest rate during period (as a percent) | 7.72% | 6.64% | ||||||
Borrowed federal funds | ||||||||
Debt Instrument [Line Items] | ||||||||
Total short term debt, net | 760,000,000 | $ 760,000,000 | $ 0 | |||||
Interest rate during period (as a percent) | 5.43% | 0% | ||||||
Borrowed federal funds | Federal Reserve Bank Advances | ||||||||
Debt Instrument [Line Items] | ||||||||
Total short term debt, net | 500,000,000 | $ 500,000,000 | ||||||
Repayment of short term debt | 250,000,000 | |||||||
Proceeds from short term debt | 250,000,000 | |||||||
Borrowed federal funds | Federal Reserve Bank Advances | Asset Pledged as Collateral | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt securities, par value | 800,300,000 | 800,300,000 | ||||||
Fair value of debt securities pledged | 688,300,000 | 688,300,000 | ||||||
Borrowed Federal Funds, Due June 2024 | Federal Reserve Bank Advances | ||||||||
Debt Instrument [Line Items] | ||||||||
Total short term debt, net | 250,000,000 | $ 250,000,000 | ||||||
Interest rate during period (as a percent) | 5.39% | |||||||
Borrowed Federal Funds, Due July 2024 | Federal Reserve Bank Advances | ||||||||
Debt Instrument [Line Items] | ||||||||
Total short term debt, net | 250,000,000 | $ 250,000,000 | ||||||
Interest rate during period (as a percent) | 5.36% | |||||||
Revolving Credit Facility | Federal Reserve Bank | ||||||||
Debt Instrument [Line Items] | ||||||||
Current borrowing capacity | 202,300,000 | $ 202,300,000 | ||||||
Letters of credit | 0 | $ 0 | $ 0 | |||||
Revolving Credit Facility | Amended and Restated Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Amounts available | $ 1,430,000,000 | $ 930,000,000 | ||||||
Participation Debt | Minimum | Line of Credit | Margin | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin on variable rate, percent | 2.25% | 2.25% | ||||||
Participation Debt | Maximum | Line of Credit | Margin | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin on variable rate, percent | 2.50% | 2.50% | ||||||
Participation Debt | Participation debt | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings under guaranteed investment agreements | $ 60,000,000 | $ 60,000,000 |
Financing and Other Debt- Sched
Financing and Other Debt- Schedule of Total Interest Expense for Convertible Note (Details) - Convertible Senior Notes Due 2027 - Convertible Debt - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Interest on 6.5 percent coupon | $ 2,300 | $ 5,000 | $ 12,400 | $ 15,100 | |
Amortization of debt discount and debt issuance costs | 300 | 600 | 1,500 | 1,700 | |
Operating interest | $ 2,600 | $ 5,600 | $ 13,900 | $ 16,800 | |
Interest rate, stated percentage | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% |
Off-Balance Sheet Arrangements
Off-Balance Sheet Arrangements (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Renewal term | 1 year | |||||
HSA assets amount serving as custodian | $ 3,800 | $ 3,800 | $ 3,450 | |||
HSA assets deposited and managed by third party depository partners | 1,000 | 1,000 | 1,400 | |||
HSA deposits | 2,770 | 2,770 | $ 2,070 | |||
Revolving Credit Facility | Securitized debt | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Borrowing capacity | $ 35 | |||||
Additional extension period | 3 years | |||||
Termination notice period | 30 days | |||||
WEX Europe Services | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Losses on factoring | 3 | $ 0 | 7.4 | $ 0 | ||
Proceeds from sale of factoring receivables | 139.6 | 149.6 | 422.9 | 454.2 | ||
WEX Bank | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Proceeds from sale of factoring receivables | 4,000 | $ 2,300 | 9,100 | $ 4,600 | ||
WEX Health | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Proceeds from sale of factoring receivables | $ 43.9 | $ 126.1 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Millions | Sep. 30, 2023 USD ($) investmentPosition | Dec. 31, 2022 USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Accrued investment interest | $ | $ 26.7 | $ 9.3 |
Debt securities, unrealized loss position, number of positions | investmentPosition | 526 |
Investment Securities - Investm
Investment Securities - Investment Securities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | $ 2,828.9 | $ 1,536.1 |
Accumulated gross unrealized gain, current | 1.7 | 0.2 |
Accumulated gross unrealized loss, current | 205.4 | 141.1 |
Debt securities, current | 2,625.2 | 1,395.3 |
Amortized cost, non-current | 52.9 | 52.6 |
Accumulated gross unrealized gain, non-current | 0 | 0.1 |
Accumulated gross unrealized loss, non-current | 6.1 | 4.7 |
Fair value | 46.8 | 48 |
Amortized Cost | 2,881.8 | 1,588.7 |
Total Unrealized Gains | 1.7 | 0.3 |
Total Unrealized Losses | 211.5 | 145.8 |
Fair value | 2,672 | 1,443.3 |
Executive deferred compensation plan trust | 12.4 | 11.1 |
Debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, non-current | 15.1 | 15.2 |
Accumulated gross unrealized gain, non-current | 0 | 0.1 |
Accumulated gross unrealized loss, non-current | 1.4 | 0.7 |
Debt securities | 13.7 | 14.5 |
U.S. treasury notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 390.9 | 405.7 |
Accumulated gross unrealized gain, current | 0 | 0 |
Accumulated gross unrealized loss, current | 45.3 | 41.7 |
Debt securities, current | 345.6 | 364.1 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 969.6 | 547.2 |
Accumulated gross unrealized gain, current | 0 | 0.2 |
Accumulated gross unrealized loss, current | 71 | 49.5 |
Debt securities, current | 898.6 | 497.8 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 70.8 | 53 |
Accumulated gross unrealized gain, current | 0 | 0 |
Accumulated gross unrealized loss, current | 8.8 | 8 |
Debt securities, current | 62 | 45 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 538 | 199.8 |
Accumulated gross unrealized gain, current | 1.7 | 0 |
Accumulated gross unrealized loss, current | 6.7 | 9.1 |
Debt securities, current | 533 | 190.7 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost, current | 859.6 | 330.4 |
Accumulated gross unrealized gain, current | 0 | 0 |
Accumulated gross unrealized loss, current | 73.6 | 32.7 |
Debt securities, current | 786 | 297.7 |
Mutual fund | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities FV-NI cost, non-current | 28.8 | 28.4 |
Accumulated gross unrealized gain, non-current | 0 | 0 |
Accumulated gross unrealized loss, non-current | 4.7 | 3.9 |
Equity securities, FV-NI, noncurrent | 24.1 | 24.5 |
Pooled investment fund | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities FV-NI cost, non-current | 9 | 9 |
Accumulated gross unrealized gain, non-current | 0 | 0 |
Accumulated gross unrealized loss, non-current | 0 | 0 |
Equity securities, FV-NI, noncurrent | $ 9 | $ 9 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses On Debt Securities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | $ 1,170.9 | $ 664.4 |
Gross unrealized losses, less than one year | 61.3 | 52.2 |
Fair value, one year or longer | 1,252.5 | 716.1 |
Gross unrealized losses, one year or longer | 145.5 | 89.7 |
Fair Value | 2,423.4 | 1,380.5 |
Gross Unrealized Losses | 206.8 | 141.8 |
U.S. treasury notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | 0 | 123.7 |
Gross unrealized losses, less than one year | 0 | 12.5 |
Fair value, one year or longer | 345.6 | 240.4 |
Gross unrealized losses, one year or longer | 45.3 | 29.2 |
Fair Value | 345.6 | 364.1 |
Gross Unrealized Losses | 45.3 | 41.7 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | 420 | 196.9 |
Gross unrealized losses, less than one year | 23.6 | 15.1 |
Fair value, one year or longer | 471.2 | 289.9 |
Gross unrealized losses, one year or longer | 47.4 | 34.4 |
Fair Value | 891.2 | 486.8 |
Gross Unrealized Losses | 71 | 49.5 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | 35.5 | 28.1 |
Gross unrealized losses, less than one year | 1.6 | 3.8 |
Fair value, one year or longer | 40 | 19.1 |
Gross unrealized losses, one year or longer | 8.6 | 5 |
Fair Value | 75.5 | 47.2 |
Gross Unrealized Losses | 10.2 | 8.8 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | 187.9 | 117.7 |
Gross unrealized losses, less than one year | 1.2 | 4.3 |
Fair value, one year or longer | 137 | 70.2 |
Gross unrealized losses, one year or longer | 5.5 | 4.8 |
Fair Value | 324.9 | 187.9 |
Gross Unrealized Losses | 6.7 | 9.1 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, less than one year | 527.5 | 198.1 |
Gross unrealized losses, less than one year | 34.9 | 16.4 |
Fair value, one year or longer | 258.7 | 96.5 |
Gross unrealized losses, one year or longer | 38.7 | 16.3 |
Fair Value | 786.2 | 294.6 |
Gross Unrealized Losses | $ 73.6 | $ 32.7 |
Investment Securities - Maturit
Investment Securities - Maturity Dates Of Available-For-Sale Securities (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Amortized Cost | |
Due within one year | $ 47.5 |
Due after 1 year through year 5 | 640.1 |
Due after 5 years through year 10 | 791.2 |
Due after 10 years | 1,365.2 |
Amortized Cost | 2,844 |
Fair Value | |
Due within one year | 46.6 |
Due after 1 year through year 5 | 588.4 |
Due after 5 years through year 10 | 723.7 |
Due after 10 years | 1,280.2 |
Fair Value | $ 2,638.9 |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Investment securities, current: | ||
Debt securities, current | $ 2,625.2 | $ 1,395.3 |
Investment securities, non-current: | ||
Fair value | 46.8 | 48 |
Executive deferred compensation plan trust | 12.4 | 11.1 |
Prepaid expenses and other current assets | ||
Investment securities, non-current: | ||
Executive deferred compensation plan trust | 1.6 | 1.9 |
Other assets | ||
Investment securities, non-current: | ||
Executive deferred compensation plan trust | 10.8 | 9.2 |
Accrued expenses and other current liabilities | ||
Liabilities | ||
Contingent consideration | 63.5 | 28.7 |
Other liabilities | ||
Liabilities | ||
Contingent consideration | 120.4 | 177.7 |
Debt securities | ||
Investment securities, non-current: | ||
Debt securities | 13.7 | 14.5 |
Corporate debt securities | ||
Investment securities, current: | ||
Debt securities, current | 898.6 | 497.8 |
Municipal bonds | ||
Investment securities, current: | ||
Debt securities, current | 62 | 45 |
Asset-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 533 | 190.7 |
Mortgage-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 786 | 297.7 |
Mutual fund | ||
Investment securities, non-current: | ||
Equity securities, FV-NI, noncurrent | 24.1 | 24.5 |
Pooled investment fund measured at NAV | ||
Investment securities, non-current: | ||
Equity securities, FV-NI, noncurrent | 9 | 9 |
Interest rate swaps | Prepaid expenses and other current assets | ||
Investment securities, non-current: | ||
Derivative asset | 39 | 45.3 |
Interest rate swaps | Other assets | ||
Investment securities, non-current: | ||
Derivative asset | 23 | 36.1 |
Level 1 | ||
Investment securities, non-current: | ||
Executive deferred compensation plan trust | 12.4 | 11.1 |
Level 1 | Money market funds | ||
Assets: | ||
Money market funds | 9.6 | 35.1 |
Level 1 | Mutual fund | ||
Investment securities, non-current: | ||
Equity securities, FV-NI, noncurrent | 24.1 | 24.5 |
Level 2 | Debt securities | ||
Investment securities, non-current: | ||
Debt securities | 13.7 | 14.5 |
Level 2 | U.S. treasury notes | ||
Investment securities, current: | ||
Debt securities, current | 345.6 | 364.1 |
Level 2 | Corporate debt securities | ||
Investment securities, current: | ||
Debt securities, current | 898.6 | 497.8 |
Level 2 | Municipal bonds | ||
Investment securities, current: | ||
Debt securities, current | 62 | 45 |
Level 2 | Asset-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 533 | 190.7 |
Level 2 | Mortgage-backed securities | ||
Investment securities, current: | ||
Debt securities, current | 786 | 297.7 |
Level 2 | Interest rate swaps | ||
Investment securities, non-current: | ||
Derivative asset | 62 | 81.4 |
Net Asset Value | Pooled investment fund measured at NAV | ||
Investment securities, non-current: | ||
Equity securities, FV-NI, noncurrent | 9 | 9 |
Level 3 | Contingent consideration | ||
Liabilities | ||
Contingent consideration | $ 183.9 | $ 206.4 |
Financial Instruments _ Fair _4
Financial Instruments − Fair Value and Concentrations of Credit Risk - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2023 USD ($) | Dec. 31, 2022 | |
Net Asset Value | Pooled investment fund measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unfunded commitments | $ 0 | |
Redemption notice period | 30 days | |
Level 3 | Recurring | Discount Rate | Valuation, Market Approach | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, liability, measurement input | 0.0451 | 0.0352 |
Financial Instruments _ Fair _5
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) - Obligations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Contingent consideration, beginning balance | $ 180.7 | $ 172.1 | $ 206.4 | $ 67.3 |
Payments of contingent consideration | 0 | 0 | (28.7) | 0 |
Change in fair value of contingent consideration | 3.2 | 30.3 | 6.2 | 135.1 |
Contingent consideration, ending balance | $ 183.9 | $ 202.4 | 183.9 | $ 202.4 |
Payments of deferred and contingent consideration | $ 27.2 |
Financial Instruments _ Fair _6
Financial Instruments − Fair Value and Concentrations of Credit Risk - Schedule of Fair Value of The Company's Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 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 | $ 115.5 | $ 334.2 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contractual deposits with maturities in excess of one year | 115.5 | 334.2 |
Contractual deposits with maturities in excess of one year | 308.1 | |
Level 2 | Convertible Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 0 | 310 |
Convertible notes | 0 | 330 |
Line of Credit | Tranche A Term Loans | Securitized debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 856.1 | 892.8 |
Line of Credit | Tranche A Term Loans | Level 2 | Securitized debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 856.1 | 892.8 |
Line of Credit | Tranche B Term Loans | Securitized debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 1,406 | 1,416.8 |
Line of Credit | Tranche B Term Loans | Level 2 | Securitized debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 1,406 | 1,416.8 |
Revolving Credit Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | 471.6 | 0 |
Revolving Credit Facility | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | $ 471.6 | 0 |
Term loans, fair value | $ 0 |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Details) - USD ($) | Mar. 07, 2022 | Apr. 01, 2021 | Mar. 05, 2019 |
Noncontrolling Interest [Line Items] | |||
Temporary equity, carrying amount, period increase | $ 37,800,000 | ||
Noncontrolling interest, deferred tax expense | $ 3,500,000 | ||
PO Holding | |||
Noncontrolling Interest [Line Items] | |||
Percentage of voting interests acquired | 4.53% | ||
Total consideration | $ 234,000,000 | ||
Deferred liability | 216,600,000 | ||
Payments for repurchase of redeemable noncontrolling interest | 254,400,000 | ||
Redeemable non-controlling interest | $ 0 | ||
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 | 9 Months Ended | |||||
Aug. 11, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | |||||||
Effective tax rate | 58.60% | (1.90%) | 30.20% | 42.10% | |||
Loss on extinguishment of Convertible Notes | $ 70.1 | $ 0 | $ 70.1 | $ 0 | |||
Discrete tax benefit | $ 2.5 | ||||||
Uncertain tax position | 7.5 | ||||||
Discrete tax adjustments amount | $ 12.7 | $ 12.7 | |||||
Undistributed earnings of certain foreign subsidiaries | 228.6 | 228.6 | $ 159.9 | ||||
Undistributed earnings of certain foreign subsidiaries with indefinite reinvestment | $ 193.9 | $ 193.9 | |||||
Convertible Senior Notes Due 2027 | Convertible Debt | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Loss on extinguishment of Convertible Notes | $ 70.1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 28.2 | $ 91.7 | $ 76.8 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Segment Information - Revenue b
Segment Information - Revenue by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 651.4 | $ 616.1 | $ 1,884.7 | $ 1,731.9 |
Mobility | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 350.1 | 378.1 | 1,032.6 | 1,076.5 |
Corporate Payments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 135.2 | 114 | 361.9 | 291.6 |
Benefits | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 166.1 | 124.1 | 490.2 | 363.8 |
Payment processing revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 313.3 | 309 | 901.9 | 860.8 |
Payment processing revenue | Mobility | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 176.9 | 188.6 | 520.6 | 542.9 |
Payment processing revenue | Corporate Payments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 115.8 | 101.5 | 310.6 | 255.2 |
Payment processing revenue | Benefits | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 20.6 | 18.9 | 70.7 | 62.7 |
Account servicing revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 161.5 | 138.3 | 475.1 | 415.9 |
Account servicing revenue | Mobility | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 42.5 | 41.6 | 123.6 | 127.9 |
Account servicing revenue | Corporate Payments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 10.5 | 10.7 | 31.7 | 31.9 |
Account servicing revenue | Benefits | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 108.5 | 85.9 | 319.8 | 256.1 |
Finance fee revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 77.1 | 96.7 | 234.2 | 260.6 |
Finance fee revenue | Mobility | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 76.8 | 96.5 | 233.5 | 260 |
Finance fee revenue | Corporate Payments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0.2 | 0.2 | 0.5 | 0.5 |
Finance fee revenue | Benefits | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 0.1 | 0 | 0.2 | 0.1 |
Other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 99.5 | 72.1 | 273.5 | 194.6 |
Other revenue | Mobility | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 53.9 | 51.4 | 154.9 | 145.7 |
Other revenue | Corporate Payments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 8.7 | 1.5 | 19.1 | 4 |
Other revenue | Benefits | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 36.9 | $ 19.2 | $ 99.5 | $ 44.9 |
Segment Information - Reconcili
Segment Information - Reconciliation of Adjusted Operating Income to Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | $ 301.3 | $ 265.1 | $ 829.7 | $ 761.3 |
Stock-based compensation | 91.7 | 76.8 | ||
Impairment charges | 0 | 136.5 | 0 | 136.5 |
Operating income | 174.9 | 21.3 | 488.6 | 314.7 |
Financing interest expense | (41.6) | (34.4) | (122.4) | (95.9) |
Net foreign currency loss | (7.8) | (23.4) | (9.4) | (37.8) |
Loss on extinguishment of Convertible Notes | (70.1) | 0 | (70.1) | 0 |
Change in fair value of contingent consideration | (3.2) | (30.3) | (6.2) | (135.1) |
Net unrealized (loss) gain on financial instruments | (7.8) | 23.5 | (20.1) | 90.3 |
Income (loss) before income taxes | 44.4 | (43.3) | 260.4 | 136.1 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate expenses | 29.1 | 23.9 | 76.8 | 63.9 |
Acquisition-related intangible amortization | 45.2 | 42.5 | 133.6 | 127.7 |
Other acquisition and divestiture related items | 5.1 | 4.1 | 7.6 | 15.1 |
Stock-based compensation | 31.9 | 27.9 | 94.5 | 78.4 |
Other costs | 15.1 | 8.9 | 28.6 | 25 |
Impairment charges | 0 | 136.5 | 0 | 136.5 |
Mobility | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | 159.6 | 174.5 | 448.7 | 527.6 |
Corporate Payments | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | 82.9 | 60.3 | 198.4 | 139.6 |
Benefits | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted operating income | $ 58.8 | $ 30.3 | $ 182.6 | $ 94.1 |
Supplementary Regulatory Capi_3
Supplementary Regulatory Capital Disclosure (Details) $ in Millions | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | ||
Total capital to risk-weighted assets, actual amount | $ 740.2 | $ 595.6 |
Total capital to risk-weighted assets, actual, ratio | 0.1483 | 0.1516 |
Total capital to risk-weighted assets, minimum for capital adequacy purposes amount | $ 399.2 | $ 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 | $ 499.1 | $ 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 | $ 677.8 | $ 546.2 |
Tier 1 capital to average assets, actual, ratio | 0.1020 | 0.1022 |
Tier 1 capital to average assets, minimum for capital adequacy purposes amount | $ 265.8 | $ 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 | $ 332.3 | $ 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 | $ 677.8 | $ 546.2 |
Common equity to risk-weighted assets, actual, ratio | 13.58% | 13.90% |
Common equity to risk-weighted assets, minimum for capital adequacy purposes amount | $ 224.6 | $ 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 | $ 324.4 | $ 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 | $ 677.8 | $ 546.2 |
Tier 1 capital to risk-weighted assets, actual, ratio | 0.1358 | 0.1390 |
Tier 1 capital to risk-weighted assets, minimum for capital adequacy purposes amount | $ 299.4 | $ 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 | $ 399.2 | $ 314.4 |
Tier 1 capital to risk-weighted assets, ratio | 0.0800 | 0.0800 |
Subsequent Events (Details)
Subsequent Events (Details) - Payzer - Forecast $ in Millions | Oct. 23, 2023 USD ($) |
Subsequent Event [Line Items] | |
Total consideration | $ 250 |
Contingent consideration | $ 11 |