XML 37 R25.htm IDEA: XBRL DOCUMENT v3.21.2
Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information
17.Segment Information
The Company determines its operating segments and reports segment information in accordance with how the Company’s CODM allocates resources and assesses performance. The Company’s CODM is its Chief Executive Officer. The operating segments are aggregated into the three reportable segments described below.
•Fleet Solutions provides customers with payment and transaction processing services specifically designed for the needs of commercial and government fleets. This segment also provides information management services to these fleet customers.
•Travel and Corporate Solutions focuses on the complex payment environment of B2B payments, providing customers with payment processing solutions for their corporate payment and transaction monitoring needs.
•Health and Employee Benefit Solutions provides healthcare payment products and SaaS consumer-directed platforms. Prior to the sale of WEX Latin America in September 2020, this operating segment additionally provided payroll related benefits to customers.
The following tables present the Company’s reportable segment revenues:
Three Months Ended September 30, 2021
(In thousands)Fleet SolutionsTravel and Corporate SolutionsHealth and Employee
Benefit Solutions		Total
Payment processing revenue$130,006 $79,815 $16,305 $226,126 
Account servicing revenue43,671 10,908 83,145 137,724 
Finance fee revenue67,529 200 40 67,769 
Other revenue45,155 79 5,911 51,145 
Total revenues$286,361 $91,002 $105,401 $482,764 
Interest income$178 $2 $3 $183 
Three Months Ended September 30, 2020
(In thousands)Fleet SolutionsTravel and Corporate SolutionsHealth and Employee Benefit SolutionsTotal
Payment processing revenue$102,418 $53,239 $15,420 $171,077 
Account servicing revenue39,350 9,964 63,103 112,417 
Finance fee revenue46,129 145 33 46,307 
Other revenue40,807 948 10,560 52,315 
Total revenues$228,704 $64,296 $89,116 $382,116 
Interest income$1,304 $12 $304 $1,620 
Nine Months Ended September 30, 2021
(In thousands)Fleet SolutionsTravel and Corporate SolutionsHealth and Employee
Benefit Solutions		Total
Payment processing revenue$367,032 $205,345 $55,564 $627,941 
Account servicing revenue125,955 32,817 230,572 389,344 
Finance fee revenue178,627 693 101 179,421 
Other revenue132,972 4,551 18,775 156,298 
Total revenues$804,586 $243,406 $305,012 $1,353,004 
Interest income$1,194 $12 $13 $1,219 
Nine Months Ended September 30, 2020
(In thousands)Fleet SolutionsTravel and Corporate SolutionsHealth and Employee Benefit SolutionsTotal
Payment processing revenue$305,888 $166,768 $49,919 $522,575 
Account servicing revenue115,252 31,210 189,274 335,736 
Finance fee revenue143,934 900 111 144,945 
Other revenue117,857 4,272 35,494 157,623 
Total revenues$682,931 $203,150 $274,798 $1,160,879 
Interest income$3,205 $265 $998 $4,468 
The CODM evaluates the financial performance of each segment using segment adjusted operating income, which excludes: (i) unallocated corporate expenses; (ii) acquisition and divestiture related items (including acquisition-related intangible amortization); (iii) loss on sale of subsidiary; (iv) debt restructuring costs; (v) stock-based compensation; and (vi) other costs. Additionally, we do not allocate financing interest expense, foreign currency gains and losses, other non-operating gains and losses, change in fair value of contingent consideration, unrealized and realized gains and losses on financial instruments, income taxes and adjustments attributable to non-controlling interests to our operating segments.
The following table reconciles total segment adjusted operating income to income (loss) before income taxes:
 Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2021202020212020
Segment adjusted operating income
Fleet Solutions$144,853 $102,276 $400,976 $284,064 
Travel and Corporate Solutions31,057 14,184 55,229 47,060 
Health and Employee Benefit Solutions23,863 23,800 83,487 78,525 
Total segment adjusted operating income$199,773 $140,260 $539,692 $409,649 
Reconciliation:
Total segment adjusted operating income$199,773 $140,260 $539,692 $409,649 
Less:
Unallocated corporate expenses20,977 14,817 54,360 45,313 
Acquisition-related intangible amortization46,965 42,831 134,713 127,847 
Other acquisition and divestiture related items7,012 15,430 32,498 31,107 
Loss on sale of subsidiary— 46,362 — 46,362 
Debt restructuring costs120 (240)6,056 525 
Stock-based compensation22,166 18,170 62,771 45,059 
Other costs1,711 1,045 15,653 7,980 
Operating income100,822 1,845 233,641 105,456 
Financing interest expense(32,493)(40,950)(98,250)(101,813)
Net foreign currency loss(9,962)(784)(11,375)(31,973)
Other income3,617 — 3,617 — 
Change in fair value of contingent consideration2,800 — (44,900)— 
Net unrealized gain (loss) on financial instruments6,424 3,774 19,470 (32,115)
Income (loss) before income taxes$71,208 $(36,115)$102,203 $(60,445)