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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 __________________________________________________________
FORM 10-Q
 _________________________________________________________________________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number: 001-35004
 __________________________________________________________
FLEETCOR Technologies, Inc.
(Exact name of registrant as specified in its charter)
 __________________________________________________________
Delaware 72-1074903
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
3280 Peachtree RoadAtlantaGeorgia30305
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (770449-0479
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockFLTNYSE
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class Outstanding at April 14, 2022
Common Stock, $0.001 par value 77,340,818


FLEETCOR TECHNOLOGIES, INC. AND SUBSIDIARIES
FORM 10-Q
For the Three Months Ended March 31, 2022
INDEX
 
  Page
PART I—FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II—OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

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PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
FLEETCOR Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(In Thousands, Except Share and Par Value Amounts)
March 31, 2022December 31, 2021
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$1,298,226 $1,520,027 
Restricted cash791,212 730,668 
Accounts and other receivables (less allowance for credit losses of $118,911 at March 31, 2022 and $98,719 at December 31, 2021)
2,304,643 1,793,274 
Securitized accounts receivable—restricted for securitization investors1,436,000 1,118,000 
Prepaid expenses and other current assets346,165 326,079 
Total current assets6,176,246 5,488,048 
Property and equipment, net254,432 236,294 
Goodwill5,180,832 5,078,978 
Other intangibles, net2,314,338 2,335,385 
Investments71,062 52,016 
Other assets224,503 213,932 
Total assets$14,221,413 $13,404,653 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$1,957,054 $1,406,350 
Accrued expenses376,370 369,054 
Customer deposits1,586,979 1,788,705 
Securitization facility1,436,000 1,118,000 
Current portion of notes payable and lines of credit490,983 399,628 
Other current liabilities244,542 208,614 
Total current liabilities6,091,928 5,290,351 
Notes payable and other obligations, less current portion4,416,356 4,460,039 
Deferred income taxes588,664 566,291 
Other noncurrent liabilities220,049 221,392 
Total noncurrent liabilities5,225,069 5,247,722 
Commitments and contingencies (Note 12)
Stockholders’ equity:
Common stock, $0.001 par value; 475,000,000 shares authorized; 127,349,188 shares issued and 77,339,047 shares outstanding at March 31, 2022; and 127,113,023 shares issued and 78,879,551 shares outstanding at December 31, 2021
127 127 
Additional paid-in capital2,920,192 2,878,751 
Retained earnings6,474,394 6,256,442 
Accumulated other comprehensive loss(1,263,437)(1,464,616)
Less treasury stock, 50,010,141 shares at March 31, 2022 and 48,233,471 shares at December 31, 2021
(5,226,860)(4,804,124)
Total stockholders’ equity2,904,416 2,866,580 
Total liabilities and stockholders’ equity$14,221,413 $13,404,653 
See accompanying notes to unaudited consolidated financial statements.

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FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
 
 Three Months Ended
March 31,
 20222021
Revenues, net$789,241 $608,623 
Expenses:
Processing174,194 116,428 
Selling76,889 52,082 
General and administrative143,522 108,362 
Depreciation and amortization76,802 65,729 
Other operating, net113 57 
Operating income317,721 265,965 
Investment loss (gain)152 (9)
Other expense, net869 1,743 
Interest expense, net22,030 28,551 
Total other expense 23,051 30,285 
Income before income taxes294,670 235,680 
Provision for income taxes76,718 51,441 
Net income$217,952 $184,239 
Basic earnings per share$2.80 $2.21 
Diluted earnings per share$2.75 $2.15 
Weighted average shares outstanding:
Basic shares77,737 83,475 
Diluted shares79,286 85,764 

See accompanying notes to unaudited consolidated financial statements.



2

FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Comprehensive Income
(In Thousands)
 
 Three Months Ended
March 31,
 20222021
Net income$217,952 $184,239 
Other comprehensive income (loss):
Foreign currency translation gains (losses), net of tax182,949 (129,157)
Net change in derivative contracts, net of tax18,230 11,296 
Total other comprehensive income (loss)201,179 (117,861)
Total comprehensive income $419,131 $66,378 
See accompanying notes to unaudited consolidated financial statements.

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FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Stockholders’ Equity
(In Thousands)
 

Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Balance at December 31, 2021$127 $2,878,751 $6,256,442 $(1,464,616)$(4,804,124)$2,866,580 
Net income— — 217,952 — — 217,952 
Other comprehensive income, net of tax— — — 201,179 — 201,179 
Acquisition of common stock— — — — (422,736)(422,736)
Share-based compensation — 32,631 — — — 32,631 
Issuance of common stock 8,810 — — — 8,810 
Balance at March 31, 2022$127 $2,920,192 $6,474,394 $(1,263,437)$(5,226,860)$2,904,416 
Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Balance at December 31, 2020$126 $2,749,900 $5,416,945 $(1,363,158)$(3,448,402)$3,355,411 
Net income— — 184,239 — — 184,239 
Other comprehensive loss, net of tax— — — (117,861)— (117,861)
Acquisition of common stock— — — — (170,382)(170,382)
Share-based compensation— 17,747 — — — 17,747 
Issuance of common stock1 27,344 — — — 27,345 
Balance at March 31, 2021$127 $2,794,991 $5,601,184 $(1,481,019)$(3,618,784)$3,296,499 

See accompanying notes to unaudited consolidated financial statements.

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FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
(In Thousands)
 Three Months Ended
March 31,
 20222021
Operating activities
Net income$217,952 $184,239 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation21,140 17,624 
Stock-based compensation32,631 17,747 
Provision for credit losses on accounts and other receivables25,478 2,477 
Amortization of deferred financing costs and discounts1,968 1,471 
Amortization of intangible assets and premium on receivables55,662 48,105 
Deferred income taxes1,900 4,497 
Investment loss (gain)152 (9)
Other non-cash operating loss113 57 
Changes in operating assets and liabilities (net of acquisitions/dispositions):
Accounts and other receivables(818,969)(468,593)
Prepaid expenses and other current assets(23,261)59,269 
Other assets(8,940)4,609 
Accounts payable, accrued expenses and customer deposits381,921 206,357 
Net cash (used in) provided by operating activities(112,253)77,850 
Investing activities
Acquisitions, net of cash acquired(35,864)(43,727)
Purchases of property and equipment(31,387)(19,526)
Proceeds from disposal of investment 9 
Net cash used in investing activities(67,251)(63,244)
Financing activities
Proceeds from issuance of common stock8,810 27,345 
Repurchase of common stock(422,736)(162,041)
Borrowings on securitization facility, net318,000 215,000 
Deferred financing costs(337) 
Principal payments on notes payable(45,063)(41,188)
Borrowings from revolver490,000 330,000 
Payments on revolver(400,000)(353,851)
Borrowings (payments) on swing line of credit, net1,505 (33,311)
Other 1,467 
Net cash used in financing activities(49,821)(16,579)
Effect of foreign currency exchange rates on cash68,068 (43,124)
Net decrease in cash and cash equivalents and restricted cash(161,257)(45,097)
Cash and cash equivalents and restricted cash, beginning of period2,250,695 1,476,619 
Cash and cash equivalents and restricted cash, end of period$2,089,438 $1,431,522 
Supplemental cash flow information
Cash paid for interest$33,967 $27,732 
Cash paid for income taxes$72,296 $32,041 
See accompanying notes to unaudited consolidated financial statements.
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FLEETCOR Technologies, Inc. and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
March 31, 2022
1. Summary of Significant Accounting Policies
Basis of Presentation
Throughout this Quarterly Report on Form 10-Q, the terms “our,” “we,” “us,” and the “Company” refers to FLEETCOR Technologies, Inc. and its subsidiaries. The Company prepared the accompanying unaudited interim consolidated financial statements in accordance with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“GAAP”). The unaudited interim consolidated financial statements reflect all adjustments considered necessary for fair presentation. These adjustments consist of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Actual results may differ from these estimates.
The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
Use of estimates
The preparation of financial statements in conformity with 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. These financial statements were prepared using information reasonably available as of March 31, 2022 and through the date of this Report. 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 these estimates due to the uncertainty around the ongoing conflict between Russia and Ukraine, the magnitude and duration of the COVID-19 pandemic, as well as other factors.
Foreign Currency Translation        
Assets and liabilities of foreign subsidiaries 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 income. 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. The Company recognized foreign exchange (losses), which are recorded within other expense, net in the Unaudited Consolidated Statements of Income for the three months ended March 31 as follows (in millions):
Three Months Ended March 31,
20222021
Foreign exchange (losses)$(0.4)$(1.2)
The Company recorded foreign currency gains (losses) on long-term intra-entity transactions included as a component of foreign currency translation gains (losses), net of tax, in the Unaudited Consolidated Statements of Comprehensive Income for the three months ended March 31 as follows (in millions):
Three Months Ended March 31,
20222021
Foreign currency gains (losses) on long-term intra-entity transactions$146.0 $(66.3)

Cash, Cash Equivalents, and Restricted Cash

Cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less. Restricted cash represents customer deposits repayable on demand, as well as 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, as well as secure and settle cross-currency transactions. Based on our assessment of the current capital market conditions and related impact on our access to cash, we have reclassified all cash held at our Russian businesses of $124 million to restricted cash as of March 31, 2022.

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Financial Instruments - Credit Losses
The Company accounts for financial assets' expected credit losses in accordance with Accounting Standards Codification (ASC) 326. 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.
Revenue
The Company provides payment solutions to our business, merchant, consumer and payment network customers. Our payment solutions are primarily focused on specific commercial spend categories, including Corporate Payments, Fuel, Lodging, Tolls, as well as Gift solutions (stored value cards and e-cards). 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. Revenues from contracts with customers, within the scope of ASC 606, represent approximately 75% of total consolidated revenues, net, for the three months ended March 31, 2022. The Company accounts for revenue from late fees and finance charges, in jurisdictions where permitted under local regulations, primarily in the U.S. and Canada 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. In addition, in its cross-border payments business, the Company writes foreign currency forward and option contracts for its customers to facilitate future payments in foreign currencies.
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Disaggregation of Revenues
The Company provides its services to customers across different payment solutions and geographies. Revenue by solution (in millions) for the three months ended March 31 was as follows:
Revenues, net by Solution*Three Months Ended March 31,
2022%2021%
Fuel$318.5 40 %$261.9 43 %
Corporate Payments183.8 23 %116.4 19 %
Tolls 84.9 11 %69.0 11 %
Lodging94.6 12 %59.0 10 %
Gift43.5 6 %43.4 7 %
Other63.9 8 %58.9 10 %
Consolidated revenues, net$789.2 100 %$608.6 100 %
*Columns may not calculate due to rounding.
Revenue by geography (in millions) for the three months ended March 31 was as follows:
Revenues, net by Geography*Three Months Ended March 31,
2022%2021%
United States$471.8 60 %$370.4 61 %
Brazil102.5 13 %81.9 13 %
United Kingdom94.6 12 %75.6 12 %
Other120.3 15 %80.6 13 %
Consolidated revenues, net$789.2 100 %$608.6 100 %
*Columns may not calculate due to rounding.
Contract Liabilities
Deferred revenue contract liabilities for customers subject to ASC 606 were $67.0 million and $73.7 million as of March 31, 2022 and December 31, 2021, respectively. We expect to recognize approximately $39.3 million of these amounts in revenues within 12 months and the remaining $27.7 million over the next five years as of March 31, 2022. Revenue recognized in the three months ended March 31, 2022 that was included in the deferred revenue contract liability as of December 31, 2021 was approximately $19.3 million.
Spot Trade Offsetting
The Company uses spot trades to facilitate cross-currency corporate payments in its cross-border payments business. The Company applies offsetting to spot trade assets and liabilities associated with contracts that include master netting agreements, as a right of setoff 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 customer level, in its Consolidated Balance Sheets at their fair value. The following table presents the Company’s spot trade assets and liabilities at their fair value at March 31, 2022 and December 31, 2021 (in millions):
March 31, 2022December 31, 2021
Gross Offset on the Balance SheetNet GrossOffset on the Balance SheetNet
Assets
Accounts Receivable$3,506.7 $(3,347.8)$158.9 $1,185.9 $(1,057.7)$128.2 
Liabilities
Accounts Payable$3,407.7 $(3,347.8)$59.9 $1,199.5 $(1,057.7)$141.8 

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Reclassifications and Adjustments
During 2021, the Company identified and corrected an immaterial error in the presentation of Deferred income taxes and changes in Accounts payable, accrued expenses and customer deposits, both presented within Net cash provided by operating activities, in our prior year Consolidated Statement of Cash Flows. The impact of this correction for three months ended March 31, 2021 was an increase to the adjustment to reconcile net income to net cash provided by operating activities related to deferred income taxes of $3.5 million, with a corresponding decrease to changes in accounts payable, accrued expenses and customer deposits in operating activities of $3.5 million. There was no impact to net cash provided by operating activities in the Unaudited Consolidated Statement of Cash Flows.
Additionally, certain disclosures for prior periods have been reclassified to conform with current year presentation.
Adoption of New Accounting Standards
Reference Rate Reform
In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (“ASU 2020-04”). The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The adoption of ASU 2020-04 did not have a material impact on the Company's consolidated financial statements. The Company transitioned from LIBOR to the Sterling Overnight Index Average Reference Rate (“SONIA”) plus a SONIA adjustment of 0.0326% for sterling borrowings, the Euro Interbank Offered Rate for euro borrowings, and the Tokyo Interbank Offered Rate for yen borrowings. The Company has availed itself to the practical expedients related to any changes in the reference rate related to our debt and interest rate swaps. Cross currency derivatives are not impacted by this ASU.
Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
In October 2021, the FASB issued ASU 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805) ("ASU 2021-08"), which requires an acquirer to account for revenue contracts acquired in a business combination in accordance with ASC 606 as if it had originated the contracts. The acquirer may assess how the acquiree applied ASC 606 to determine what to record for the acquired contracts. This update also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a
business combination. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption is permitted, including adoption in an interim period. Adoption during an interim period requires retrospective application to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application. The Company's adoption of this ASU on January 1, 2022, did not have a material impact on the Company's results of operations, financial condition, or cash flows.
2. Accounts and Other Receivables
The Company's accounts and securitized accounts receivable include the following at March 31, 2022 and December 31, 2021 (in thousands):
March 31, 2022December 31, 2021
Gross domestic accounts receivable$1,096,335 $994,063 
Gross domestic securitized accounts receivable1,436,000 1,118,000 
Gross foreign receivables1,327,219 897,930 
Total gross receivables3,859,554 3,009,993 
Less allowance for credit losses(118,911)(98,719)
Net accounts and securitized accounts receivable$3,740,643 $2,911,274 
The Company maintains a $1.6 billion revolving trade accounts receivable securitization facility (the "Securitization Facility"). Accounts receivable collateralized within our Securitization Facility primarily relate to trade receivables resulting from charge card activity in the U.S. Pursuant to the terms of the Securitization Facility, the Company transfers certain of its domestic receivables, on a revolving basis, to FLEETCOR Funding LLC (Funding), a wholly-owned bankruptcy remote subsidiary. In turn, Funding transfers, without recourse, on a revolving basis, an undivided ownership interest in this pool of accounts receivable to multi-seller banks and asset-backed commercial paper conduits (Conduit). Funding maintains a subordinated
9


interest, in the form of over-collateralization, in a portion of the receivables sold. Purchases by the Conduit are financed with the sale of highly-rated commercial paper.
The Company utilizes proceeds from the transferred 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. The Company retains a residual interest in the transferred asset as a form of credit enhancement. The residual interest’s fair value approximates carrying value due to its short-term nature. Funding determines the level of funding achieved by the sale of trade accounts receivable, subject to a maximum amount.
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. On March 23, 2022, the Company entered into the tenth amendment to the Securitization Facility. The amendment increased the Securitization Facility commitment from $1.3 billion to $1.6 billion.
A rollforward of the Company’s allowance for credit losses related to accounts receivable for the three months ended March 31 is as follows (in thousands):
20222021
Allowance for credit losses beginning of period$98,719 $86,886 
Provision for credit losses25,478 2,477 
Write-offs(15,417)(5,963)
Recoveries2,847 8,264 
Impact of foreign currency7,284 (3,762)
Allowance for credit losses end of period$118,911 $87,902 
3. Fair Value Measurements
A three-tier value hierarchy prioritizes the inputs used in measuring fair value as follows:
 
Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets.
Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.
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The following table presents the Company’s financial assets and liabilities which are measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 (in thousands):
Fair ValueLevel 1Level 2Level 3
March 31, 2022
Assets:
Repurchase agreements$404,448 $ $404,448 $ 
Money market42,473  42,473  
Certificates of deposit189  189  
Interest Rate Swaps 1,429  1,429  
       Foreign exchange contracts 172,835  172,835  
Total assets$621,374 $ $621,374 $ 
Cash collateral for foreign exchange contracts$29,249 $ $ $ 
Liabilities:
Interest rate swaps $7,921 $ $7,921  
       Foreign exchange contracts 148,579  148,579  
Total liabilities$156,500 $ $156,500 $ 
Cash collateral obligation for foreign exchange contracts$16,937 $ $ $ 
 
December 31, 2021
Assets:
Repurchase agreements$477,069 $ $477,069 $ 
Money market43,023  43,023  
Certificates of deposit958  958  
Foreign exchange contracts 120,859  120,859  
Total assets$641,909 $ $641,908 $ 
Cash collateral for foreign exchange contracts$25,881 $ $ $ 
Liabilities:
Interest rate swaps1
$30,733 $ $30,733 $ 
 Foreign exchange contracts 89,925  89,925  
Total liabilities$120,658 $ $120,658 $ 
Cash collateral obligation for foreign exchange contracts$24,803 $ $ $ 

1During 2022, the Company identified and corrected an immaterial error in the presentation of the December 31, 2021 interest rate swap liabilities in the table above. Such amount was incorrectly bracketed, which has since been corrected. The liability was correctly presented and classified in the Company's Consolidated Balance Sheet at December 31, 2021.
The Company has highly-liquid investments classified as cash equivalents, with original maturities of 90 days or less, included in our Consolidated Balance Sheets. The Company utilizes Level 2 fair value determinations derived from directly or indirectly observable (market based) information to determine the fair value of these highly liquid investments. The Company has certain cash and cash equivalents that are invested on an overnight basis in repurchase agreements, money markets and certificates of deposit. The value of overnight repurchase agreements is determined based upon the quoted market prices for the treasury securities associated with the repurchase agreements. The value of money market instruments is determined based upon the financial institutions' month-end statement, as these instruments are not tradable and must be settled directly by us with the respective financial institution. Certificates of deposit are valued at cost, plus interest accrued. Given the short-term nature of these instruments, the carrying value approximates fair value. Foreign exchange derivative contracts are carried at fair value, with changes in fair value recognized in the Consolidated Statements of Income. The fair value of the Company's derivatives is derived with reference to a valuation from a derivatives dealer operating in an active market, which approximates the fair value of these instruments. The fair value represents the net settlement if the contracts were terminated as of the reporting date. Cash collateral received for foreign exchange derivatives is recorded within customer deposits in our Consolidated Balance Sheet at March 31, 2022 and December 31, 2021. Cash collateral deposited for foreign exchange derivatives is recorded within restricted cash in our Consolidated Balance Sheet at March 31, 2022 and December 31, 2021.
The level within the fair value hierarchy and the measurement technique are reviewed quarterly. Transfers between levels are deemed to have occurred at the end of the quarter. There were no transfers between fair value levels during the periods presented for March 31, 2022 and December 31, 2021.
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The Company’s assets that are measured at fair value on a nonrecurring basis or are evaluated with periodic testing for impairment include property, plant and equipment, investments, goodwill and other intangible assets. Estimates of the fair value of assets acquired and liabilities assumed in business combinations are generally developed using key inputs such as management’s projections of cash flows on a held-and-used basis (if applicable), discounted as appropriate, management’s projections of cash flows upon disposition and discount rates. Accordingly, these fair value measurements are in Level 3 of the fair value hierarchy.
The Company determines the fair values of its derivatives based on quoted market prices or pricing models using current market rates. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange rates, commodity rates or other financial indices. The Company's derivatives are over-the-counter instruments with liquid markets.
The Company regularly evaluates the carrying value of its investments. The carrying amount of investments without readily determinable fair values was $71.1 million at March 31, 2022.
The Company typically reviews Long-lived assets and Goodwill for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or if an indicator of impairment exists. The recent military conflict between Russia and Ukraine has created significant uncertainty and risk in the economic environment in which the Russia reporting unit operates. As such, the Company conducted an analysis during the first quarter of 2022. The Company continues to monitor the economic uncertainty, while assessing the financial impact and outlook for the Russia reporting unit. As a result of the Company's analysis, and in consideration of the totality of events and circumstances, there was no impairment recorded during the first quarter of 2022.
The fair value of the Company’s cash, accounts receivable, securitized accounts receivable and related facility, prepaid expenses and other current assets, accounts payable, accrued expenses, customer deposits and short-term borrowings approximate their respective carrying values due to the short-term maturities of the instruments. The carrying value of the Company’s debt obligations approximates fair value as the interest rates on the debt are variable market based interest rates that reset on a quarterly basis. These are each Level 2 fair value measurements, except for cash, which is a Level 1 fair value measurement.
4. Stockholders' Equity

The Company's Board of Directors (the "Board") has approved a stock repurchase program (as updated from time to time, the "Program") authorizing the Company to repurchase its common stock from time to time until February 1, 2023. On January 25, 2022, the Board increased the aggregate size of the Program by $1.0 billion, to $6.1 billion. Since the beginning of the Program through March 31, 2022, 21,845,168 shares have been repurchased for an aggregate purchase price of $4.9 billion, leaving the Company up to $1.2 billion of remaining authorization available under the Program for future repurchases in shares of its common stock.
5. Stock-Based Compensation
The following table summarizes the expense recognized within general and administrative expenses in the Unaudited Consolidated Statements of Income related to share-based payments recognized in the three months ended March 31 (in thousands):
 
 Three Months Ended
March 31,
 20222021
Stock options$17,837 $4,590 
Restricted stock14,794 13,157 
Stock-based compensation$32,631 $17,747 
The tax benefits recorded on stock-based compensation and upon the exercises of options were $17.8 million and $14.1 million for the three months ended March 31, 2022 and 2021, respectively.
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The following table summarizes the Company’s total unrecognized compensation cost related to stock based compensation as of March 31, 2022 (cost in thousands):
Unrecognized
Compensation
Cost
Weighted Average
Period of Expense
Recognition
(in Years)
Stock options$100,898 2.00
Restricted stock83,266 1.35
Total$184,164 

Stock Options
The following summarizes the changes in the number of shares of common stock under option for the three months ended March 31, 2022 (shares/options and aggregate intrinsic value in thousands):
SharesWeighted
Average
Exercise
Price
Options
Exercisable
at End of
Period
Weighted
Average
Exercise
Price of
Exercisable
Options
Weighted
Average Fair
Value of
Options
Granted 
During the Period
Aggregate
Intrinsic
Value
Outstanding at December 31, 20215,447 $176.52 3,798 $145.18 $257,707 
Granted588 226.36 $65.66 
Exercised(119)68.38 20,523 
Forfeited(4)252.50 
Outstanding at March 31, 20225,912 $183.61 3,805 $150.28 $403,008 
Expected to vest as of March 31, 20222,107 $243.79 
The aggregate intrinsic value of stock options exercisable at March 31, 2022 was $377.4 million. The weighted average remaining contractual term of options exercisable at March 31, 2022 was 4.3 years.
Restricted Stock
The following table summarizes the changes in the number of shares of restricted stock and restricted stock units for the three months ended March 31, 2022 (shares in thousands):
 
SharesWeighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2021278 $278.57 
Granted324 223.00 
Vested(117)270.93 
Canceled or forfeited(33)348.85 
Outstanding at March 31, 2022452 $235.48 
6. Acquisitions
2022 Acquisitions
Levarti
On March 1, 2022, the Company completed the acquisition of Levarti, an airline software platform company for a net purchase price of $23.7 million. The Company financed the acquisition using a combination of available cash and borrowings under its existing credit facility. The results from the acquisition are reported in the North America segment.
In connection with this acquisition, the Company signed noncompete agreements with certain parties affiliated with the business for which the Company is still completing the valuation. These noncompete agreements were accounted for separately from the business acquisition. Acquisition accounting for Levarti is preliminary as the Company is still completing the valuation for goodwill, intangible assets, income taxes, working capital, and contingencies.
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The following table summarizes the preliminary acquisition accounting (in thousands):
Current assets$754 
Long term assets286 
Goodwill14,491 
Intangibles11,800 
Current liabilities(660)
Noncurrent liabilities(2,926)
Aggregate purchase price$23,744 
The estimated preliminary fair value of intangible assets acquired and the related estimated useful lives consisted of the following (in thousands):
Useful Lives (in Years)Value
Trade Name and Trademarks2$100 
Proprietary Technology103,500 
Customer Relationships168,200 
$11,800 
Other
In February 2022, the Company also made investments of $7.8 million in an electric vehicle charging payments business and $5.0 million in an electric vehicle data analytics business.
2021 Acquisitions
ALE
On September 1, 2021, the Company completed the acquisition of ALE Solutions, Inc. (ALE), a leader in lodging solutions to the insurance industry, for a net purchase price of $421.8 million. The purpose of this acquisition is to expand the Company's lodging business into the insurance vertical. The Company financed the acquisition using a combination of available cash and borrowings under its existing credit facility. The results from the acquisition are reported in the North America segment.
In connection with this acquisition, the Company signed noncompete agreements with certain parties affiliated with the business with an estimated fair value of $18.3 million. These noncompete agreements were accounted for separately from the business acquisition. Acquisition accounting for ALE is preliminary as the Company is still completing the valuation of certain goodwill, intangible assets, income taxes and working capital adjustments.
The following table summarizes the preliminary acquisition accounting for ALE (in thousands):
Trade and other receivables$178,396 
Prepaid expenses and other current assets2,555 
Property, plant and equipment254 
Other long term assets9,866 
Goodwill136,471 
Intangibles175,800 
Accounts payable and accrued expenses(31,048)
Other current liabilities(38,866)
Deferred tax liabilities(983)
Other noncurrent liabilities(7,495)
Customer deposits(3,118)
Aggregate purchase price$421,832 
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The estimated preliminary fair value of intangible assets acquired and the related estimated useful lives consisted of the following (in thousands):
Useful Lives (in Years)Value
Trade Names and TrademarksIndefinite$14,500 
Proprietary Technology414,400 
Lodging Network20800 
Customer Relationships15146,100 
$175,800 
AFEX
On June 1, 2021, the Company completed the acquisition of Associated Foreign Exchange (AFEX), a U.S. based, cross-border payment solutions provider, for $459.1 million. This includes $210.3 million of cash and cash equivalents and $178.7 million of restricted cash, resulting in a net purchase price of $70.1 million. The purpose of this acquisition is to further expand the Company's cross border payment solutions. The Company financed the acquisition using a combination of available cash and borrowings under its existing credit facility. The results from the acquisition are reported in the North America segment.
In connection with this acquisition, the Company signed noncompete agreements with certain parties affiliated with the business with an estimated fair value of $4.1 million. These noncompete agreements were accounted for separately from the business acquisition. Acquisition accounting for AFEX is preliminary as the Company is still completing the valuation of certain goodwill, intangible assets, income taxes and working capital adjustments.
The following table summarizes the preliminary acquisition accounting for AFEX (in thousands):
Trade and other receivables$8,159 
Prepaid expenses and other current assets108,402 
Property, plant and equipment1,723 
Other long term assets51,074 
Goodwill256,402 
Intangibles237,900 
Accounts payable and accrued expenses(39,234)
Other current liabilities(81,430)
Customer deposits(375,049)
Other noncurrent liabilities(97,855)
Aggregate purchase price$70,092 
The estimated fair value of intangible assets acquired and the related estimated useful lives consisted of the following (in thousands):
Useful Lives (in Years)Value
Trade Names and Trademarks2$5,400 
Proprietary Technology411,800 
Banking Relationships201,800 
Licenses202,600 
Customer Relationships10216,300 
$237,900 
Roger
On January 13, 2021, the Company completed the acquisition of Roger, rebranded Corpay One, a global accounts payable (AP) cloud software platform for small businesses, for $39.0 million, net of cash acquired. The Company financed the acquisition
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using a combination of available cash and borrowings under its existing credit facility. The results from the acquisition are reported in the North America segment.
The following table summarizes the final acquisition accounting for Roger (in thousands):
Accounts and other receivables$110 
Prepaid expenses and other current assets37 
Other assets 28 
Goodwill34,359 
Other intangibles5,400 
Current liabilities (925)
Deferred income taxes (6)
Aggregate purchase price$39,003 
The estimated fair value of intangible assets acquired and the related estimated useful lives consisted of the following (in thousands):
Useful Lives (in Years)Value
Proprietary Technology10$4,800 
Customer Relationships13600 
$5,400 
Other
On December 15, 2021, the Company acquired a mobile fuel payments solution in Russia for a net purchase price of $5.0 million. Acquisition accounting for this acquisition is preliminary as the Company is still completing the valuation of certain goodwill, intangible assets, income taxes and working capital adjustments. The results from the acquisition are reported in the International segment. During 2021, the Company made an investment of $37.8 million in a joint venture in Brazil with CAIXA. The Company also made investments in other businesses of $6.8 million. The Company financed all of these investments and acquisitions using a combination of available cash and borrowings under its existing credit facility.
7. Goodwill and Other Intangibles
A summary of changes in the Company’s goodwill by reportable business segment is as follows (in thousands):
 
December 31, 2021AcquisitionsAcquisition Accounting
Adjustments
Foreign
Currency
March 31, 2022
Segment
North America$