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Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Use of Estimates Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
(GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and
expenses during the reporting periods. Future events and their effects cannot be predicted with certainty; accordingly,
accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Company’s
consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is
obtained and as the Company’s operating environment changes. Actual results may differ from those estimates.
Principles of Consolidation Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Corpay, Inc. and all of its wholly owned
subsidiaries. All significant intercompany balances and transactions have been eliminated.
The Company’s fiscal year ends on December 31. In certain of the Company’s U.K. businesses, the Company records the
operating results using a 4-4-5 week accounting cycle with the fiscal year ending on the Friday on or immediately preceding
December 31. Fiscal years 2024, 2023 and 2022 include 52 weeks for the businesses reporting using a 4-4-5 accounting cycle.
Financial Instruments - Credit Losses Financial Instruments-Credit Losses
The Company accounts for financial assets' expected credit losses in accordance with Accounting Standards Codification
(ASC) 326, "Financial Instruments - Credit Losses". The Company’s financial assets subject to credit losses are primarily trade
receivables. The Company utilizes a combination of aging and loss-rate methods to develop an estimate of current expected
credit losses, depending on the nature and risk profile of the underlying asset pool, based on product, size of customer and
historical losses. Expected credit losses are estimated based upon an assessment of risk characteristics, historical payment
experience and the age of outstanding receivables, adjusted for forward-looking economic conditions. The allowances for
remaining financial assets measured at amortized cost basis are evaluated based on underlying financial condition, credit history
and current and forward-looking economic conditions. The estimation process for expected credit losses includes consideration
of qualitative and quantitative risk factors associated with the age of asset balances, expected timing of payment, contract terms
and conditions, changes in specific customer risk profiles or mix of customers, geographic risk, economic trends and relevant
environmental factors. The Company's provision for credit losses is recorded within processing expenses in the Consolidated
Statements of Income. At December 31, 2024 and 2023, approximately 87% and 82%, respectively, of outstanding accounts
receivable were less than 30 days past due. Accounts receivable deemed uncollectible are removed from accounts receivable
and the allowance for credit losses when internal collection efforts have been exhausted and accounts have been turned over to
a third-party collection agency. Recoveries from the third-party collection agency are not significant.
Business Combinations Business Combinations
Business combinations completed by us have been accounted for under the acquisition method of accounting, which requires
that the acquired assets and liabilities, including contingencies, be recorded at fair value determined as of the acquisition date.
The excess of the purchase price over the fair values of the tangible and intangible assets acquired and liabilities assumed
represents goodwill. Amounts assigned to goodwill are primarily attributable to buyer-specific synergies expected to arise after
the acquisition (e.g., enhanced reach of the combined organization and other synergies) and the assembled work force of the
acquiree. The results of the acquired businesses are included in our results of operations beginning from the completion date of
the transaction.
The estimates the Company uses to determine the fair value of long-lived assets, such as intangible assets, can be complex and
require significant judgments. The Company uses information available to us to make fair value determinations and engages
independent valuation specialists, when necessary, to assist in the fair value determination of significant acquired long-lived
assets. The estimated fair values of customer-related and contract-based intangible assets are generally determined using the
income approach, which is based on projected cash flows discounted to their present value using discount rates that consider the
timing and risk of the forecasted cash flows (excess earnings method). The discount rates used represent a risk-adjusted market
participant weighted-average cost of capital, derived using customary market metrics. These measures of fair value also require
considerable judgments about future events, including forecasted revenue growth rates, forecasted customer attrition rates and
technology changes. Acquired technologies are generally valued using the replacement cost method, which requires us to
estimate the costs to construct an asset of equivalent utility at prices available at the time of the valuation analysis, with
adjustments in value for physical deterioration and functional and economic obsolescence. Trademarks and trade names are
generally valued using the "relief-from-royalty" approach. This method assumes that trademarks and trade names have value to
the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. This method
requires the Company to estimate the future revenues for the related brands, the appropriate royalty rate and the weighted-
average cost of capital.  This measure of fair value requires considerable judgment about the value a market participant would
be willing to pay in order to achieve the benefits associated with the trade name.  Non-compete arrangements are measured at
fair value separately from the business combination using a cash flow method based on the Company's best estimate of the
probability of competition and its business effect absent the non-compete arrangement.
While the Company uses its best estimates and assumptions to determine the fair values of the assets acquired and the liabilities
assumed, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which
may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities
assumed. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the Company's
Consolidated Statements of Income. The Company also estimates the useful lives of intangible assets to determine the period
over which to recognize the amount of acquisition-related intangible assets as an expense. Certain assets may be considered to
have indefinite useful lives. The Company periodically reviews the indefinite nature of these assets. The Company also
periodically reviews the estimated useful lives assigned to its intangible assets to determine whether such estimated useful lives
continue to be appropriate.
Impairment of Long-Lived Assets, Goodwill, Intangibles and Investments Impairment of Long-Lived Assets, Goodwill, Intangibles and Investments
The Company regularly evaluates whether events and circumstances have occurred that indicate the carrying amount of
property and equipment and intangible assets with finite lives may not be recoverable. When factors indicate that these long-
lived assets should be evaluated for possible impairment, the Company assesses the potential impairment by determining
whether the carrying amount of such long-lived assets will be recovered through the future undiscounted cash flows expected
from use of the asset and its eventual disposition. If the carrying amount of the asset is determined not to be recoverable, a
write-down to fair value is recorded. Fair values are determined based on quoted market prices or discounted cash flow analyses
as applicable. The Company regularly evaluates whether events and circumstances have occurred that indicate the useful lives
of property and equipment and intangible assets with finite lives may warrant revision.
The Company completes an impairment test of goodwill at least annually or more frequently if facts or circumstances indicate
that goodwill might be impaired. Goodwill is tested for impairment at the reporting unit level. When the Company believes it is
appropriate, the Company may elect to first perform the optional qualitative assessment for certain of its reporting units. Factors
considered in the qualitative assessment include general macroeconomic conditions, industry and market conditions, cost
factors, overall financial performance of our reporting units, events or changes affecting the composition or carrying amount of
the net assets of our reporting units, sustained decrease in our share price and other relevant entity-specific events. If the
Company elects to bypass the optional qualitative assessment or if it determines, on the basis of qualitative factors, that the fair
value of the reporting unit is more likely than not less than the carrying amount, a quantitative test would be required. The
Company then performs the quantitative goodwill impairment test for the applicable reporting units by comparing the reporting
unit’s carrying amount, including goodwill, to its fair value, which is measured based upon, among other factors, a discounted
cash flow analysis and, to a lesser extent, market multiples for comparable companies. If the carrying amount of the reporting
unit is greater than its fair value, goodwill is considered impaired.
As of October 1, 2024, as a result of the annual evaluation, the Company determined the goodwill within the Payroll card
reporting unit, a component of its “Other” category, was partially impaired. Accordingly, the Company recognized a goodwill
impairment loss of $90 million within goodwill impairment in the Consolidated Statements of Income during the year ended
December 31, 2024. Factors that led to this conclusion included i) decreased use of the card and its core component for the
Company's target customers, ii) the impact of historic and sustained increases in inflation and interest rates on the reporting
unit’s weighted average costs of capital, which was beyond the Company's control and iii) inability to achieve forecasted
operating results at historical underwritten values, all of which resulted in revised mid to long-term projections during the
fourth quarter of 2024, including reevaluation of the Company's anticipated capital investment in the reporting unit and which
negatively impacted the reporting unit's fair value. The Company engaged the assistance of a third-party valuation firm to assist
with the performance of its goodwill quantitative impairment test. The estimation of the net present value of future cash flows is
based upon varying economic assumptions, including assumptions such as revenue, net growth rates, operating costs, EBITDA
margins, capital expenditures, tax rates, long-term growth rates and discount rates. Of these assumptions, EBITDA margins and
discount rates are the most sensitive, subjective and/or complex. These assumptions are based on risk-adjusted discount factors
accommodating viewpoints that consider the full range of variability contemplated in the current and potential future economic
situations. There is approximately $57 million of goodwill remaining related to the Payroll card reporting unit following this
impairment.
The results of the 2024 impairment test for the Company's reporting units other than Payroll card indicated that the estimated
fair value of each of the Company's reporting units was in excess of the corresponding carrying amount as of October 1, 2024
and no impairment of goodwill existed. No events or changes in circumstances have occurred since the date of this most recent
annual impairment test that would more likely than not reduce the fair value of a reporting unit below its carrying amount.
The Company also evaluates indefinite-lived intangible assets (primarily trademarks and trade names) for impairment annually.
The Company also tests for impairment at an interim date if events and circumstances indicate that it is more likely than not that
the fair value of an indefinite-lived intangible asset is below its carrying amount. An impairment loss is recognized if the
carrying amount of an indefinite-lived intangible asset exceeds the estimated fair value on the measurement date.
Estimates critical to the Company’s evaluation of indefinite-lived intangible assets for impairment include the discount rate,
royalty rates used in its evaluation of trade names and projected revenue growth. Based on the indefinite-lived intangible asset
impairment analyses performed as of October 1, 2024, the Company determined the fair value of each of its indefinite-lived
intangible assets was in excess of its carrying amount. No events or changes in circumstances have occurred since the date of
this most recent annual impairment analysis that would more likely than not reduce the fair value of an indefinite-lived
intangible asset below its carrying amount.
The Company has elected the alternative to measure certain investments in equity instruments that do not have readily
determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes for
similar investments of the issuer. The Company reassesses these investments each reporting period to evaluate whether these
investments continue to qualify for the alternative measurement at cost minus impairment, rather than requiring measurement at
fair value on a recurring basis. The Company evaluates for impairment these equity investments without readily determinable
fair values based on qualitative indicators (e.g., significant deterioration in investee's financial performance, adverse regulation,
etc.).  Investments classified as trading securities are carried at fair value with any unrealized gain or loss recorded within
investment (gain) loss in the Consolidated Statements of Income. During 2021, the Company made an investment of
$37.4 million in a 20-year joint venture with a third-party Brazilian bank. The Company determined that it exercises significant
influence, but does not control, the joint venture and/or intermediary and records its allocable share of the joint ventures
earnings/losses as an equity method investment under ASC 323. The Company monitors its equity method investments
qualitatively for other than temporary impairment.  The Company recorded no impairment charges on its investments for the
years ended December 31, 2024, 2023 and 2022.
Property and Equipment and Definite-Lived Intangible Assets Property and Equipment and Definite-Lived Intangible Assets
Property and equipment are stated at cost and depreciated on the straight-line basis. Intangible assets with finite lives, consisting
primarily of customer relationships, are stated at fair value upon acquisition and are amortized over their estimated useful lives.
Customer and merchant relationship useful lives are estimated using historical attrition rates.
The Company develops internal-use software that is used in providing processing and information management services to
customers. A significant portion of the Company’s capital expenditures are devoted to the development of such internal-use
computer software. Software development costs are capitalized once application development stage of the software has been
established. Costs incurred during preliminary project stage prior to the application development stage are expensed as incurred.
Application development stage is established when the Company has completed all planning, designing, coding and testing
activities that are necessary to determine that the software can be produced to meet its design specifications, including
functions, features and technical performance requirements. Capitalization of costs ceases when the software is ready for its
intended use. Software development costs are amortized using the straight-line method over the estimated useful life of the
software. The Company capitalized software costs of $136.3 million, $128.0 million and $120.5 million in 2024, 2023 and
2022, respectively. Amortization expense for software totaled $78.8 million, $77.5 million and $61.3 million in 2024, 2023 and
2022, respectively.
Income Taxes Income Taxes
The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized
for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to
apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on
deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The
Company has elected to treat the Global Intangible Low Taxed Income (GILTI) inclusion as a current period expense.
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in
which the associated temporary differences become deductible. The Company evaluates on a quarterly basis whether it is more
likely than not that its deferred tax assets will be realized in the future and concludes whether a valuation allowance must be
established.
The Company recognizes the impact of an uncertain income tax position on the income tax return at the largest amount that is
more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be
recognized if it has less than a 50% likelihood of being sustained. The Company includes any estimated interest and penalties
on tax related matters in income tax expense.
Cash and Cash Equivalents and Restricted Cash Cash and Cash Equivalents and Restricted Cash
Cash and cash equivalents primarily consist of a) cash on hand, b) highly liquid investments with original maturities of three
months or less, such as certificates of deposit, treasury bills and money market funds, and c) customer deposits repayable on
demand without legal restrictions. Restricted cash represents a) customer deposits repayable on demand held in certain
geographies with legal restrictions contractually set aside to fulfill payment obligations on a customer's behalf, b) collateral
received from customers for cross-currency transactions in our cross-border payments business, which are restricted from use
other than to repay customer deposits and secure and settle cross-currency transactions, and c) collateral posted with banks for
hedging positions in our cross-border payments business.
Foreign Currency Translation Foreign Currency Translation
Assets and liabilities of foreign subsidiaries as well as intra-entity balances denominated in foreign-currency and designated for
long-term investment are translated into U.S. dollars at the rates of exchange in effect at period-end. The related translation
adjustments are recorded to accumulated other comprehensive loss. Income and expenses are translated at the average monthly
rates of exchange in effect during the year. Gains and losses from foreign currency transactions of these subsidiaries are
included in net income.
Derivatives Derivatives
The Company uses derivatives to minimize its exposures related to changes in interest rates and economic changes in the value
of certain foreign-denominated net assets. The Company also uses derivatives to facilitate cross-currency corporate payments
by writing derivatives to customers and enters into cross currency derivative contracts with banking partners to mitigate foreign
exchange risk associated with customer derivative contracts. 
The Company is exposed to the risk of changing interest rates because its borrowings are subject to variable interest rates. In
order to mitigate this risk, the Company utilizes derivative instruments. Interest rate swap contracts designated as cash flow
hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments
over the life of the agreements without exchange of the underlying notional amount. The Company hedges interest payments on
an unspecified portion of its variable rate debt utilizing derivatives designated as cash flow hedges.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recorded to the derivative assets/
liabilities and offset against accumulated other comprehensive loss. Derivative fair value changes that are recorded in
accumulated other comprehensive loss are reclassified to earnings in the same period or periods that the hedged item affects
earnings, to the extent the derivative is highly effective in offsetting the change in cash flows attributable to the hedged risk.
In the Company's cross-border payments business, the Company uses derivatives to facilitate cross-currency corporate
payments by writing derivatives, primarily foreign currency forward contracts, option contracts and swaps, for its customers.
The Company derives a currency spread from this activity. The Company recognizes current cross-border payments derivatives
in prepaid expenses and other current assets and recognizes other current liabilities and derivatives greater than one year in
other assets and other noncurrent liabilities in the accompanying Consolidated Balance Sheets at their fair value. Any gains/
losses associated with these derivatives are recorded through earnings.
The Company also utilizes cross-currency interest rate swaps designated as net investment hedges of its investments in foreign-
denominated operations, which effectively converts a specified U.S. dollar notional equivalent to an obligation denominated in
foreign currency and partially offsets the impact of changes in currency rates on the Company's foreign-denominated net
investments. Such contracts also create a positive interest differential on the U.S. dollar-denominated portion of the swap,
resulting in interest rate savings on the USD notional.
All cash flows associated with the Company's foreign currency and interest rate swap derivatives are included in cash flows
from operating activities in the Consolidated Statements of Cash Flows.
Spot Trade Offsetting Spot Trade Offsetting
The Company uses spot trades to facilitate cross-currency corporate payments. The Company applies offsetting to spot trade
assets and liabilities associated with contracts that include master netting agreements with the same counterparty, as a right of
offset exists, which the Company believes to be enforceable. As such, the Company has netted spot trade liabilities against spot
trade receivables at the counter-party level. The Company recognizes all spot trade assets, net in accounts receivable and all
spot trade liabilities, net in accounts payable, each net at the counterparty level, in its Consolidated Balance Sheets at their fair
value.
Stock Based Compensation Stock-Based Compensation
The Company routinely grants employee stock options and restricted stock awards/units as part of employee compensation
plans. Stock options are granted with an exercise price equal to the fair market value of the underlying Company share on the
date of grant. Options granted have vesting provisions ranging from one to four years, and vesting of the options is generally
based on the passage of time, performance or market conditions, or a combination of these. Stock option grants are subject to
forfeiture if employment terminates prior to vesting. The Company has selected the Black-Scholes option pricing model for
estimating the grant date fair value of stock option awards. The Company has considered the retirement and forfeiture
provisions of the options and utilized its historical experience to estimate the expected term of the options. Option forfeitures
are accounted for upon occurrence. The Company bases the risk-free interest rate on the yield of a zero coupon U.S. Treasury
security with a maturity equal to the expected term of the option from the date of the grant. Expected volatility is based on the
Company's historical volatility.
Awards of restricted stock and restricted stock units are independent of stock option grants and are subject to forfeiture if
employment terminates prior to vesting. The vesting of shares granted is generally based on the passage of time, performance or
market conditions, or a combination of these. Shares generally have graded vesting provisions of one to four years. The fair
value of restricted stock where the shares vest based on the passage of time or performance is based on the grant date fair value
of the Company’s stock.
The fair value of stock options and restricted stock units granted with market-based vesting conditions is estimated using the
Monte Carlo simulation valuation model. The risk-free interest rate and volatility assumptions used within the Monte Carlo
simulation valuation model are calculated consistently with those applied in the Black-Scholes options pricing model utilized in
determining the fair value of the market-based stock option awards.
For performance-based restricted stock awards/units and performance-based stock option awards, the Company must also make
assumptions regarding the likelihood of achieving performance goals. If actual results differ significantly from these estimates,
stock-based compensation expense and the Company’s results of operations could be materially affected.
Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over
the requisite service period based on the number of years over which the requisite service is expected to be rendered.
Deferred Financing Costs/Debt Discounts Deferred Financing Costs/Debt Discounts
Costs incurred to obtain financing are amortized over the term of the related debt using the effective interest method and are
included within interest expense, net. The Company capitalized additional debt issuance costs of $8.5 million associated with
refinancing its Credit Facility and Securitization Facility in 2024 and $0.4 million in 2023. At December 31, 2024 and 2023, the
Company had deferred financing costs of $4.2 million and $5.7 million, respectively, related to the revolver under the Credit
Facility and the Securitization Facility, each recorded within prepaid expenses and other current assets, on the Consolidated
Balance Sheets. The Company had deferred financing costs and debt discounts of $16.6 million and $19.0 million at
December 31, 2024 and 2023, respectively, related to the term notes under the Credit Facility, which were recorded as a
discount to the term debt outstanding within the current portion of notes payable and lines of credit and within notes payable
and other obligations, less current portion on the Consolidated Balance Sheets.
Comprehensive Income (Loss) Comprehensive Income (Loss)
Comprehensive income (loss) is defined as the total of net income and all other changes in equity that result from transactions
and other economic events of a reporting period other than transactions with owners.
Accounts Receivable Accounts Receivable
The Company maintains a $1.7 billion revolving trade accounts receivable securitization facility (as amended from time to time,
the "Securitization Facility"). Accounts receivable collateralized within our Securitization Facility primarily relate to trade
receivables resulting primarily from charge card activity and other customer receivables in the U.S. Pursuant to the terms of the
Securitization Facility, the Company transfers in the form of a legal sale certain of its domestic receivables, on a revolving
basis, to FLEETCOR Funding LLC ("Funding"), a wholly-owned bankruptcy remote consolidated subsidiary. In turn, Funding
transfers in the form of a legal sale, without recourse, on a revolving basis, an undivided ownership interest in this pool of
accounts receivable to unrelated transferees (i.e., multi-seller banks and asset-backed commercial paper conduits). Funding
retains a residual, subordinated interest in cash flow distribution from the transferred receivables and provides to the transferees
an incremental pledge of unsold receivables as a form of over-collateralization to enhance the credit of the transferred
receivables. Purchases by the banks and conduits are generally financed with the sale of highly-rated commercial paper.
The Company utilizes proceeds from the securitized assets as an alternative to other forms of financing to reduce its overall
borrowing costs. The Company has agreed to continue servicing the sold receivables for the financial institution at market rates,
which approximates the Company’s cost of servicing. Funding determines the level of funding achieved by the sale of trade
accounts receivable, subject to a maximum amount. As the Company maintains certain continuing involvement in the
transferred/sold receivables, it does not derecognize the receivables from its Consolidated Balance Sheets. Instead, the
Company records cash proceeds and any residual interest received as a Securitization Facility liability.
The Company’s Consolidated Balance Sheets and Statements of Income reflect the activity related to securitized accounts
receivable and the corresponding securitized debt, including interest income, fees generated from late payments, provision for
losses on accounts receivable and interest expense. The cash flows from borrowings and repayments associated with the
securitized debt are presented as cash flows from financing activities.
Advertising AdvertisingThe Company expenses advertising costs as incurred.
Earnings Per Share Earnings Per Share
The Company reports basic and diluted earnings per share. Basic earnings per share is calculated using the weighted average of
common stock and non-vested, non-forfeitable restricted shares outstanding, unadjusted for dilution and net income attributable
to common shareholders.
Diluted earnings per share is calculated using the weighted average shares outstanding and contingently issuable shares less
weighted average shares recognized during the period. The net outstanding shares have been adjusted for the dilutive effect of
common stock equivalents, which consist of outstanding stock options and unvested forfeitable restricted stock units.
Adoption of New Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted Adoption of New Accounting Standards
Segment Reporting
In November 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-07, "Segment Reporting (Topic
280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). The amendments are intended to increase
reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The
ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2023 and interim periods within fiscal
years beginning after December 15, 2024, with early adoption permitted. Upon transition, the segment expense categories and
amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in
the period of adoption. The Company adopted this ASU during the year ended December 31, 2024 and applied the amendments
retrospectively to all periods presented in our consolidated financial statements. See Note 18 for further information.
Recent Accounting Pronouncements Not Yet Adopted
Income Taxes
In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax
Disclosures" ("ASU 2023-09"). The amendments require disclosure of specific categories in the rate reconciliation and provide
additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid
for individually significant jurisdictions. The ASU is effective for fiscal years beginning after December 15, 2024, with early
adoption permitted. ASU 2023-09 should be applied on a prospective basis, while retrospective application is permitted. We are
currently evaluating the impact that this guidance will have on the disclosures within our consolidated financial statements.
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU No. 2024-03, "Disaggregation of Income Statement Expenses". The ASU, among
other items, requires additional financial statement disclosures in tabular format disaggregating information about prescribed
categories (including employee compensation, depreciation and amortization) underlying any relevant income statement
expense captions. The ASU is effective on a prospective basis for fiscal years beginning after December 15, 2026 and interim
periods within fiscal years beginning after December 15, 2027, with early adoption and retrospective application permitted. We
are currently evaluating the impact this guidance will have on the disclosures within our consolidated financial statements.
Revenue The Company provides payment solutions to our business, merchant, consumer and payment network customers. Our payment
solutions are primarily focused on specific spend categories, including Vehicle Payments, Corporate Payments, Lodging
Payments and Other. The Company provides solutions that help businesses of all sizes control, simplify and secure payment of
various domestic and cross-border payables using specialized payment products. The Company also provides other payment
solutions for fleet maintenance, employee benefits and long-haul transportation-related services. 
Payment Services
The Company’s primary performance obligation for the majority of its payment solutions (Vehicle Payments, Corporate
Payments, Lodging Payments and Other) is to stand-ready to provide authorization and processing services (payment services)
for an unknown or unspecified quantity of transactions and the consideration received is contingent upon the customer’s use
(e.g., number of transactions submitted and processed) of the related payment services. Accordingly, the total transaction price
is variable. Payment services involve a series of distinct daily services that are substantially the same, with the same pattern of
transfer to the customer. As a result, the Company directly allocates and recognizes variable consideration in the period it has
the contractual right to invoice the customer. Similarly, for the toll product within Vehicle Payments, the Company's primary
performance obligation is to stand-ready each month to provide access to the toll network and process toll transactions. Each
period of access is determined to be distinct and substantially the same as the customer benefits over the period of access.
The Company records revenue for its payment services net of (i) the cost of the underlying products and services; (ii)
assessments and other fees charged by the credit and debit payment networks (along with any rebates provided by them); (iii)
customer rebates and other discounts; and (iv) taxes assessed (e.g., VAT and VAT-like taxes) by a government, imposed
concurrent with a revenue-producing transaction. Variability arising from rebates is generally resolved and/or reset within the
reporting period to which the variable consideration is allocated. As such, the Company is able to directly allocate net
adjustments against revenue in the reporting period in which they are invoiced and does not materially constrain revenue
recognition as a significant reversal of revenue is not probable at invoicing.
The majority of the transaction price the Company receives for fulfilling the payment services performance obligation are
comprised of one or a combination of the following: 1) interchange fees earned from the payment networks; 2) discount fees
earned from merchants; 3) fees calculated based on a number of transactions processed; 4) fees calculated based upon a
percentage of the transaction value for the underlying goods or services (i.e. fuel, food, toll, lodging and transportation cards
and vouchers); and 5) monthly access fees.
The Company recognizes revenue when the underlying transactions are complete and as its performance obligations are
satisfied. Transactions are considered complete depending upon the related payment solution but generally when the Company
has authorized the transaction, validated that the transaction has no errors and accepted and posted the data to the Company’s
records.
In the Company's cross-border payments business, a portion of revenue is from exchanges of currency at spot rates, which
enables customers to make cross-currency payments. The Company's performance obligation for its foreign exchange payment
services is providing a foreign currency payment to a customer’s designated recipient and therefore, the Company recognizes
revenue on foreign exchange payment services when the underlying payment is made. Revenues from foreign exchange
payment services are primarily comprised of the difference between the exchange rate set by the Company to the customer and
the rate available in the wholesale foreign exchange market.
Gift Card Products and Services
The Company’s Gift solutions deliver both stored value cards and e-cards (cards) and card-based services primarily in the form
of gift cards to retailers. These activities each represent performance obligations that are separate and distinct. Revenue for
stored value cards is recognized (gross of the underlying cost of the related card, recorded in processing expenses within the
Consolidated Statements of Income) at the point in time when control passes to the Company's customer, which is generally
upon shipment.
Card-based services consist of transaction processing and reporting of gift card transactions where the Company recognizes
revenue based on the passage of time as it stands ready to process an unknown or unspecified quantity of transactions. As a
result, the Company directly allocates and recognizes variable consideration over the estimated period of time over which the
performance obligation is satisfied. 
Other
The Company accounts for revenue from late fees and finance charges, in jurisdictions where permitted under local regulations,
primarily in the U.S., Canada and Brazil, in accordance with ASC 310, "Receivables." Such fees are recognized net of a
provision for estimated uncollectible amounts, at the time the fees and finance charges are assessed and services are provided
and represent approximately 4% and 5% of total consolidated revenues, net for the years ended December 31, 2024 and 2023,
respectively. The Company ceases billing and accruing for late fees and finance charges approximately 30 - 40 days after the
customer’s balance becomes delinquent. 
In addition, in its cross-border payments business, the Company writes foreign currency forwards, option contracts and swaps
for its customers primarily to facilitate future payments in foreign currencies. The duration of these derivative contracts at
inception is generally less than one year. The Company aggregates its foreign exchange exposures arising from customer
contracts, including forwards, options and spot exchanges of currency, as necessary, and economically hedges the net currency
risks by entering into offsetting derivatives with established financial institution counterparties. The Company accounts for the
derivatives in its cross-border payments business in accordance with ASC 815, "Derivatives and Hedging." Revenues earned on
the currency spread inherent in the instruments on date of execution, as well as changes in fair value related to these instruments
prior to settlement, represented approximately 8% of consolidated revenues, net, for the years ended December 31, 2024 and
2023.
Revenue is also derived from the sale of equipment and cards in certain of the Company’s businesses, which is recognized at
the time the device or card is sold and control has passed to the customer. This revenue is recognized gross of the cost of sales
related to the equipment and cards in revenues, net within the Consolidated Statements of Income. The Company has recorded
$74.8 million, $76.3 million and $83.1 million of expenses related to sales of equipment and cards in processing expenses
within the Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022, respectively.
Contract Liabilities
Deferred revenue contract liabilities for customers subject to ASC 606 were $39.0 million and $45.7 million as of
December 31, 2024 and 2023, respectively. We expect to recognize approximately $29.1 million of these amounts in revenues
within 12 months and the remaining $9.9 million over the next five years as of December 31, 2024. The amount and timing of
revenue recognition is affected by several factors, including contract modifications and terminations, which could impact the
estimate of amounts allocated to remaining performance obligations and when such revenues could be recognized. Revenue
recognized for the year ended December 31, 2024, that was included in the deferred revenue contract liability as of January 1,
2024, was approximately $29.4 million.
Costs to Obtain or Fulfill a Contract and/or Customer Incentives
In accordance with ASC 606, the Company capitalizes the incremental costs of obtaining a contract with a customer if the
Company expects to recover those costs. The incremental costs of obtaining a contract are those that the Company incurs to
obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, a sales
commission). 
Costs incurred to fulfill a contract are capitalized if those costs meet all of the following criteria:
a.The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify.
b.The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy)
performance obligations in the future.
c.The costs are expected to be recovered.
In order to determine the appropriate amortization period for contract costs, the Company considers a combination of factors,
including customer attrition rates, estimated terms of customer relationships, the useful lives of technology used by the
Company to provide products and services to its customers, whether further contract renewals are expected and if there is any
incremental commission to be paid on a contract renewal. Contract acquisition and fulfillment costs are amortized using the
straight-line method over the expected period of benefit (ranging from five to ten years). Costs to obtain a contract with an
expected period of benefit of one year or less are recognized as an expense when incurred. The amortization of contract
acquisition costs associated with sales commissions that qualify for capitalization is recorded as selling expense in the
Company’s Consolidated Statements of Income.
Amortization of capitalized contract costs recorded in selling expense was $18.9 million, $16.7 million and $15.4 million for
the years ended December 31, 2024, 2023 and 2022, respectively.
Costs to obtain or fulfill a contract are classified as contract cost assets within prepaid expenses and other current assets and
other assets in the Company’s Consolidated Balance Sheets. The Company had capitalized contract costs of $19.7 million and
$19.2 million within prepaid expenses and other current assets and $43.8 million and $44.9 million within other assets in the
Company’s Consolidated Balance Sheets, as of December 31, 2024 and 2023, respectively.
Further, the Company on occasion may make a cash payment to a customer as a contract incentive. We defer these costs as
payments to a customer if recoverable and amortize them over the benefit period, including anticipated customer renewals. The
amortization of costs associated with cash payments for client incentives is included as a reduction of revenues in the
Company’s Consolidated Statements of Income. The Company had deferred customer incentives of $5.5 million and
$10.0 million as of December 31, 2024 and 2023, respectively. Amortization of deferred customer incentives was immaterial
for the years ended December 31, 2024, 2023 and 2022.
Practical Expedients
ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations;
however, as allowed by ASC 606, the Company elected to exclude this disclosure for contracts with performance obligations of
one year or less and contracts with variable consideration that is directly allocated to a single performance obligation such as a
stand-ready series. As described above, the Company's most significant single performance obligations consist of variable
consideration directly allocated under a stand-ready series of distinct days of service. Such direct allocation of variable
consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of
transaction price that is allocated to unsatisfied performance obligations is variable consideration that is not required for this
disclosure. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one
year is not material.
The Company elected to exclude all sales taxes and other similar taxes from the transaction price. Accordingly, the Company
presents all collections from customers for these taxes on a net basis, rather than having to assess whether the Company is
acting as an agent or a principal in each taxing jurisdiction.
In certain arrangements with customers, the Company has determined that certain promised services and products are
immaterial in the context of the contract, both quantitatively and qualitatively. 
As a practical expedient, the Company is not required to adjust the promised amount of consideration for the effects of a
significant financing component if the Company expects, at contract inception, that the period between when the Company
transfers a promised service or product to a customer and when the customer pays for the service or product will be one year or
less. As of December 31, 2024, the Company’s contracts with customers contain standard pricing where the timing on control
transfer is dependent upon the customer in a stand-ready environment and therefore did not contain a significant financing
component.