v2.4.1.9
Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The operating segments are reviewed separately because each operating segment represents a strategic business unit that generally offers different products and serves different markets. The operating segments are aggregated into the two reportable segments as described below.
The Company’s chief operating decision maker evaluates the operating results of the Company’s operating and reportable segments based upon revenues and adjusted pre-tax income before NCI which adjusts income before income taxes for fair value changes of derivative instruments, the amortization of purchased intangibles, the expense associated with stock-based compensation, acquisition related expenses and adjustments, the net impact of tax rate changes on the Company’s deferred tax asset and related changes in the tax-receivable agreement, deferred loan costs associated with the extinguishment of debt, certain non-cash asset impairment charges, gains on the extinguishment of a portion of the tax receivable agreement, gain or losses on divestitures and adjustments attributable to non-controlling interests.
The Company operates in two reportable segments, Fleet Payment Solutions and Other Payment Solutions. The Fleet Payment Solutions segment provides customers with payment and transaction processing services specifically designed for the needs of vehicle fleet customers. This segment also provides information management services to these fleet customers. The Other Payment Solutions segment provides customers with a payment processing solution for their corporate purchasing and transaction monitoring needs. Revenue in this segment is derived from our corporate purchase cards and virtual and prepaid card products. The corporate purchase card products are used by businesses to facilitate purchases of products and to utilize the Company’s information management capabilities. The results of operations for Evolution1 are presented in the Company's Other Payment Solutions segment. Evolution1 contributed net revenues of approximately $35,976 and are not significant to the adjusted pre-tax income before NCI. No single customer makes up more than 7 percent of the total consolidated revenue at December 31, 2014. Total assets are not allocated to the segments.
The accounting policies of the reportable segments are generally the same as those described in the summary of significant accounting policies.
The following table presents the Company’s reportable segment results for the years ended December 31, 2014, 2013 and 2012:
 
 
Total
Revenues
 
Operating
Interest
Expense
 
Depreciation
and
Amortization
 
Adjusted Pre-Tax
Income before NCI
Year ended December 31, 2014
 
 
 
 
 
 
 
Fleet Payment Solutions
$
562,169

 
$
2,778

 
$
26,046

 
$
200,081

Other Payment Solutions
255,478

 
3,659

 
3,712

 
89,178

Total
$
817,647

 
$
6,437

 
$
29,758

 
$
289,259

Year ended December 31, 2013
 
 
 
 
 
 
 
Fleet Payment Solutions
$
527,424

 
$
1,802

 
$
23,351

 
$
218,187

Other Payment Solutions
190,039

 
2,485

 
1,710

 
68,796

Total
$
717,463

 
$
4,287

 
$
25,061

 
$
286,983

Year ended December 31, 2012
 
 
 
 
 
 
 
Fleet Payment Solutions
$
470,591

 
$
3,377

 
$
23,721

 
$
214,657

Other Payment Solutions
152,560

 
1,613

 
1,663

 
48,131

Total
$
623,151

 
$
4,990

 
$
25,384

 
$
262,788



The following table reconciles adjusted pre-tax income before NCI to net income before income taxes: 
  
Year ended December 31,
  
2014
 
2013
 
2012
Adjusted pre-tax income before NCI
$
289,259

 
$
286,983

 
$
262,788

Unrealized gains (losses) on derivative instruments
48,327

 
(5,628
)
 
(1,724
)
Amortization of acquired intangible assets
(40,622
)
 
(33,147
)
 
(23,468
)
Stock-based compensation
(13,790
)
 
(9,429
)
 
(11,016
)
Goodwill impairment
—

 
—

 
(17,508
)
Deferred loan costs associated with the extinguishment of debt
—

 
(1,004
)
 
—

Non-cash adjustments related to tax receivable agreement
(1,331
)
 
(33
)
 
(2,089
)
Change in tax refund due to former shareholders of RD Card Holdings Australia
—

 
—

 
9,750

Gain on divestiture
27,490

 
—

 
—

Expenses and adjustments related to acquisitions
(7,694
)
 
658

 
(10,550
)
Income before income taxes
$
301,639

 
$
238,400

 
$
206,183



Beginning in 2014, adjusted pre-tax income before NCI excludes the expense of stock-based compensation and certain acquisition related expenses. For comparative purposes, adjusted pre-tax income before NCI for the prior period has been adjusted to reflect the exclusion of stock-based compensation and differs from the figures previously reported due to this adjustment. The Company believes these adjustments make this non-GAAP measurement more comparable to its peers. In addition, in light of the sale of Pacific Pride Services LLC, the Company has decided that the gain or loss associated with a divestiture will not be included in Adjusted Net Income attributable to WEX Inc., which it believes is consistent with the Company's practice of excluding other non-recurring items associated with strategic transactions. The Company recognized a gain on the sale of Pacific Pride.


Geographic Data

  
Year ended December 31,
  
2014
 
2013
 
2012
Total revenues:
 
 
 
 
 
United States
$
708,827

 
$
627,282

 
$
541,404

Australia
57,897

 
61,645

 
68,932

Other international
50,923

 
28,536

 
12,815

Total revenues
$
817,647

 
$
717,463

 
$
623,151

Goodwill:
 
 
 
 
 
United States
$
866,313

 
$
589,319

 
$
589,319

Australia
165,688

 
180,274

 
210,746

Other international
84,364

 
50,299

 
47,921

Total goodwill
$
1,116,365

 
$
819,892

 
$
847,986

Other intangible assets, net
 
 
 
 
 
United States
$
388,717

 
$
118,808

 
$
135,386

Australia
32,123

 
43,385

 
62,757

Other international
77,205

 
44,551

 
43,807

Total other intangibles assets, net
$
498,045

 
$
206,744

 
$
241,950

Property, equipment and capitalized software
 
 
 
 
 
United States
$
72,334

 
$
59,817

 
$
47,915

Australia
6,280

 
5,988

 
7,383

International
26,982

 
6,470

 
4,799

Total property, equipment and capitalized software
$
105,596


$
72,275


$
60,097



No single county, other than the United States and Australia, made up more than 3 percent of total revenues for any of the years presented.