Segment Information

6 Months Ended

Jun. 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 June 30, 2023
(In millions)	Mobility		Corporate Payments		Benefits		Total
Payment processing revenue	$	172.2	$	104.7	$	23.6	$	300.5
Account servicing revenue	40.8		10.6		101.5		152.9
Finance fee revenue	76.3		0.1		—		76.4
Other revenue	50.9		6.5		34.1		91.5
Total revenues	$	340.2	$	121.9	$	159.2	$	621.3

	Three Months Ended June 30, 2022
(In millions)	Mobility		Corporate Payments		Benefits		Total
Payment processing revenue	$	202.4	$	88.6	$	21.3	$	312.3
Account servicing revenue	43.9		10.4		83.4		137.6
Finance fee revenue	85.1		0.2		—		85.3
Other revenue	47.9		1.2		13.9		63.0
Total revenues	$	379.2	$	100.4	$	118.6	$	598.2

	Six Months Ended June 30, 2023
(In millions)	Mobility		Corporate Payments		Benefits		Total
Payment processing revenue	$	343.7	$	194.8	$	50.1	$	588.6
Account servicing revenue	81.1		21.2		211.3		313.6
Finance fee revenue	156.7		0.3		0.1		157.1
Other revenue	101.0		10.4		62.6		174.0
Total revenues	$	682.5	$	226.7	$	324.1	$	1,233.3

	Six Months Ended June 30, 2022
(In millions)	Mobility		Corporate Payments		Benefits		Total
Payment processing revenue	$	354.3	$	153.7	$	43.8	$	551.8
Account servicing revenue	86.3		21.2		170.1		277.6
Finance fee revenue	163.5		0.4		0.1		163.9
Other revenue	94.3		2.5		25.7		122.5
Total revenues	$	698.4	$	177.7	$	239.7	$	1,115.8

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 and (v) other costs. Additionally, we do not allocate financing interest expense, foreign currency gains and losses, other income, change in fair value of contingent consideration and net unrealized gains and losses on financial instruments to our operating segments.

The following table reconciles total segment adjusted operating income to income before income taxes:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2022		2023		2022
Segment adjusted operating income
Mobility	$	150.3	$	193.0	$	289.1	$	353.1
Corporate Payments	66.3		51.0		115.5		79.3
Benefits	59.3		28.3		123.8		63.8
Total segment adjusted operating income	$	275.9	$	272.3	$	528.4	$	496.2
Reconciliation:
Total segment adjusted operating income	$	275.9	$	272.3	$	528.4	$	496.2
Less:
Unallocated corporate expenses	25.3		19.0		47.7		40.0
Acquisition-related intangible amortization	44.3		42.5		88.4		85.3
Other acquisition and divestiture related items	1.4		6.5		2.5		11.0
Stock-based compensation	36.5		25.3		62.6		50.5
Other costs	9.0		7.9		13.5		16.1
Operating income	159.4		171.1		313.7		293.4
Financing interest expense	(42.4)		(31.8)		(80.8)		(61.5)
Net foreign currency loss	(0.2)		(19.4)		(1.6)		(14.4)
Change in fair value of contingent consideration	(1.2)		(88.2)		(3.0)		(104.8)
Net unrealized (loss) gain on financial instruments	2.2		16.9		(12.3)		66.7
Income before income taxes	$	117.8	$	48.6	$	216.0	$	179.4