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Derivative Instruments
 6 Months Ended
Jun. 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 June 30, 2023 is as follows:
Contract InceptionContract End
Fixed Interest Rates Payable by WEX
(prior to amendment)1
Fixed Interest Rates Payable by WEX
(post amendment)
Notional Amount
(in millions)
March 2020December 20231.862%
1.789%2
$200.0 
May 2021May 20240.435%
0.459%3
$150.0 
May 2021May 20240.440%
0.367%2
$150.0 
May 2021May 20250.678%
0.648%2
$300.0 
May 2021May 20260.909%
0.836%2
$150.0 
May 2021May 20260.910%
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 June 30,Six Months Ended June 30,
Derivatives Not Designated as Hedging InstrumentsLocation of (Loss) Gain Recognized in the Condensed Consolidated Statement of Operations2023202220232022
Interest rate swap contracts – unrealized portionNet unrealized gain (loss) on financial instruments$2.4 $17.8 $(12.5)$68.9 
Interest rate swap contracts –
realized portion		Financing interest expense$11.5 $(3.0)$23.8 $(8.9)
Derivative instruments and their related gains and losses are reported within cash flows from operating activities within the condensed consolidated statements of cash flows. See Note 13, Financial Instruments − Fair Value and Concentrations of Credit Risk, for more information regarding the valuation of the Company’s derivatives.