Company Quick10K Filing
FleetCor
Price295.14 EPS11
Shares91 P/E28
MCap26,717 P/FCF34
Net Debt3,007 EBIT1,081
TEV29,723 TEV/EBIT27
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-02
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-10
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-08
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-05-09
10-K 2015-12-31 Filed 2016-02-29
10-Q 2015-09-30 Filed 2015-11-09
10-Q 2015-06-30 Filed 2015-08-10
10-Q 2015-03-31 Filed 2015-05-11
10-K 2014-12-31 Filed 2015-03-02
10-Q 2014-09-30 Filed 2014-11-10
10-Q 2014-06-30 Filed 2014-08-06
10-Q 2014-03-31 Filed 2014-05-12
10-K 2013-12-31 Filed 2014-03-03
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-03-01
10-Q 2012-09-30 Filed 2012-11-09
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-10
10-K 2011-12-31 Filed 2012-02-29
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-15
10-Q 2011-03-31 Filed 2011-05-16
10-K 2010-12-31 Filed 2011-03-25
8-K 2020-05-07 Earnings, Regulation FD, Exhibits
8-K 2020-03-16 Other Events, Exhibits
8-K 2020-03-02 Other Events, Exhibits
8-K 2020-02-06 Earnings, Regulation FD, Exhibits
8-K 2019-12-19 Regulation FD
8-K 2019-11-06 Earnings, Regulation FD, Exhibits
8-K 2019-09-04 Officers, Exhibits
8-K 2019-08-06 Officers, Exhibits
8-K 2019-08-06 Earnings, Regulation FD, Exhibits
8-K 2019-06-12 Amend Bylaw, Shareholder Vote, Exhibits
8-K 2019-05-07 Earnings, Regulation FD, Exhibits
8-K 2019-02-06 Earnings, Regulation FD, Exhibits
8-K 2018-12-14 Other Events, Exhibits
8-K 2018-10-30 Earnings, Regulation FD, Exhibits
8-K 2018-08-02 Earnings, Regulation FD, Exhibits
8-K 2018-06-06 Amend Bylaw, Shareholder Vote, Exhibits
8-K 2018-05-03 Earnings, Regulation FD, Exhibits
8-K 2018-02-08 Earnings, Regulation FD, Exhibits
8-K 2018-02-07 Officers, Shareholder Vote, Exhibits
8-K 2018-01-25 Amend Bylaw, Exhibits

FLT 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II - Other Information
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6. Exhibits
EX-10.1 exh101eighthamendment2.htm
EX-31.1 ex311q12020.htm
EX-31.2 ex312q12020.htm
EX-32.1 ex321q12020.htm
EX-32.2 ex322q12020.htm

FleetCor Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
151296302012201420172020
Assets, Equity
0.70.60.40.30.10.02012201420172020
Rev, G Profit, Net Income
2.31.40.4-0.5-1.5-2.42012201420172020
Ops, Inv, Fin

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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, 2020
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
 __________________________________________________________
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. (Check one:)
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.


Table of Contents
Class Outstanding at May 1, 2020
Common Stock, $0.001 par value 83,802,236


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



Table of Contents
FLEETCOR TECHNOLOGIES, INC. AND SUBSIDIARIES
FORM 10-Q
For the Three Months Ended March 31, 2020
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.

i

Table of Contents
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, 2020December 31, 2019
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$1,070,681  $1,271,494  
Restricted cash481,555  403,743  
Accounts and other receivables (less allowance for credit losses of $74,828 at March 31, 2020 and $70,890 at December 31, 2019)
1,338,056  1,568,961  
Securitized accounts receivable—restricted for securitization investors819,000  970,973  
Prepaid expenses and other current assets419,720  403,400  
Total current assets4,129,012  4,618,571  
Property and equipment, net183,229  199,825  
Goodwill4,583,881  4,833,047  
Other intangibles, net2,169,742  2,341,882  
Investments28,068  30,440  
Other assets216,218  224,776  
Total assets$11,310,150  $12,248,541  
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$1,058,713  $1,249,586  
Accrued expenses250,232  275,511  
Customer deposits906,065  1,007,631  
Securitization facility819,000  970,973  
Current portion of notes payable and lines of credit1,094,470  775,865  
Other current liabilities331,596  183,502  
Total current liabilities4,460,076  4,463,068  
Notes payable and other obligations, less current portion3,246,241  3,289,947  
Deferred income taxes486,551  519,980  
Other noncurrent liabilities321,053  263,930  
Total noncurrent liabilities4,053,845  4,073,857  
Commitments and contingencies (Note 13)
Stockholders’ equity:
Common stock, $0.001 par value; 475,000,000 shares authorized; 125,244,634 shares issued and 83,770,697 shares outstanding at March 31, 2020; and 124,626,786 shares issued and 85,342,156 shares outstanding at December 31, 2019
125  124  
Additional paid-in capital2,657,169  2,494,721  
Retained earnings4,859,789  4,712,729  
Accumulated other comprehensive loss(1,592,124) (972,465) 
Less treasury stock, 41,473,937 shares at March 31, 2020 and 39,284,630 shares at December 31, 2019
(3,128,730) (2,523,493) 
Total stockholders’ equity2,796,229  3,711,616  
Total liabilities and stockholders’ equity$11,310,150  $12,248,541  

See accompanying notes to unaudited consolidated financial statements.

1

Table of Contents
FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
 
 Three Months Ended
March 31,
 20202019
Revenues, net$661,093  $621,825  
Expenses:
Processing233,703  129,114  
Selling55,859  49,261  
General and administrative106,110  92,784  
Depreciation and amortization64,476  67,445  
Other operating, net(38) (955) 
Operating income200,983  284,176  
Investment loss 2,371  15,660  
Other (income) expense, net(9,366) 220  
Interest expense, net35,679  39,055  
Total other expense 28,684  54,935  
Income before income taxes172,299  229,241  
Provision for income taxes25,239  57,134  
Net income$147,060  $172,107  
Basic earnings per share$1.73  $2.00  
Diluted earnings per share$1.67  $1.93  
Weighted average shares outstanding:
Basic shares84,902  85,941  
Diluted shares88,205  89,244  

See accompanying notes to unaudited consolidated financial statements.


2

Table of Contents
FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Comprehensive (Loss) Income
(In Thousands)
 
 Three Months Ended
March 31,
 20202019
Net income$147,060  $172,107  
Other comprehensive loss:
Foreign currency translation (losses) gains, net of tax(575,118) 373  
Net change in derivative contracts, net of tax(44,541) (20,707) 
Total other comprehensive loss(619,659) (20,334) 
Total comprehensive (loss) income$(472,599) $151,773  
See accompanying notes to unaudited consolidated financial statements.

3

Table of Contents
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, 2019$124  $2,494,721  $4,712,729  $(972,465) $(2,523,493) $3,711,616  
Net income—  —  147,060  —  —  147,060  
Other comprehensive loss, net of tax of $0
—  —  —  (619,659) —  (619,659) 
Acquisition of common stock—  75,000  —  —  (605,237) (530,237) 
Share-based compensation expense—  14,175  —  —  —  14,175  
Issuance of common stock1  73,273  —  —  —  73,274  
Balance at March 31, 2020$125  $2,657,169  $4,859,789  $(1,592,124) $(3,128,730) $2,796,229  

Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Balance at December 31, 2018$123  $2,306,843  $3,817,656  $(913,858) $(1,870,584) $3,340,180  
Net income—  —  172,107  —  —  172,107  
Other comprehensive loss, net of tax—  —  —  (20,334) —  (20,334) 
Acquisition of common stock—  33,000  —  —  (36,322) (3,322) 
Share-based compensation expense—  12,541  —  —  —  12,541  
Issuance of common stock—  29,795  —  —  —  29,795  
Balance at March 31, 2019$123  $2,382,179  $3,989,763  $(934,192) $(1,906,906) $3,530,967  

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,
 20202019
Operating activities
Net income$147,060  $172,107  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation15,788  15,132  
Stock-based compensation14,175  12,541  
Provision for losses on accounts receivable117,746  22,164  
Amortization of deferred financing costs and discounts1,354  1,205  
Amortization of intangible assets and premium on receivables48,688  52,313  
Deferred income taxes(7,322) (2,696) 
Investment loss2,371  15,660  
Other non-cash operating income(38) (1,574) 
Changes in operating assets and liabilities (net of acquisitions/dispositions):
Accounts and other receivables156,052  (302,395) 
Prepaid expenses and other current assets(45,149) 644  
Other assets(3,046) (14,517) 
Accounts payable, accrued expenses and customer deposits(27,646) 326,910  
Net cash provided by operating activities420,033  297,494  
Investing activities
Acquisitions, net of cash acquired(467)   
Purchases of property and equipment(18,257) (14,506) 
Net cash used in investing activities(18,724) (14,506) 
Financing activities
Proceeds from issuance of common stock73,274  29,795  
Repurchase of common stock(530,237) (3,322) 
(Payments) borrowings on securitization facility, net(151,973) 56,000  
Deferred financing costs paid and debt discount  (284) 
Principal payments on notes payable(51,722) (32,438) 
Borrowings from revolver 573,500    
Payments on revolver (204,460) (353,638) 
(Payments) borrowings on swing line of credit, net(22,741) 31,032  
Other(92) (63) 
Net cash used in financing activities(314,451) (272,918) 
Effect of foreign currency exchange rates on cash(209,859) (2,392) 
Net (decrease) increase in cash and cash equivalents and restricted cash(123,001) 7,678  
Cash and cash equivalents and restricted cash, beginning of period1,675,237  1,364,893  
Cash and cash equivalents and restricted cash, end of period$1,552,236  $1,372,571  
Supplemental cash flow information
Cash paid for interest$40,394  $46,904  
Cash paid for income taxes$32,939  $17,894  

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, 2020
1. Summary of Significant Accounting Policies
Basis of Presentation
Throughout this Current 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 footnotes 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, 2019.
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, 2020 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 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 (loss). Income and expenses are translated at the average monthly rates of exchange in effect during the period. Gains and losses from foreign currency transactions of these subsidiaries are included in net income.
The Company recognized the following foreign exchange gains/losses on long-term intra-entity transactions, net of tax, and foreign exchange gains/losses within the Unaudited Consolidated Statements of Comprehensive (Loss) Income as follows (in millions):
Three Months Ended
March 31,
20202019
Long-term intra-entity (loss)$(164.1) $(77.0) 
Foreign exchange gain2.0  0.03  
Derivatives
The Company uses derivatives to minimize its exposures related to changes in interest rates and facilitate cross-currency corporate payments by writing derivatives to customers.
The Company is exposed to the risk of changing interest rates because its borrowings are subject to variable interest rates. In order to mitigate this risk, the Company utilizes derivative instruments. Interest rate swap contracts designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company hedges a portion of its variable rate debt utilizing derivatives designated as cash flow hedges.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recorded in other assets or other noncurrent liabilities and offset against accumulated other comprehensive income/loss, net of tax. Derivative fair value changes that are recorded in accumulated other comprehensive income/loss are reclassified to earnings in the same period or periods that the hedged item affects earnings, to the extent the derivative is effective in offsetting the change in cash flows attributable to the
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hedged risk. The portions of the change in fair value that are either considered ineffective or are excluded from the measure of effectiveness are recognized immediately within earnings.
In the Company's cross-border payments business, the majority of revenue is from exchanges of currency at spot rates, which enables customers to make cross-currency payments. In addition, the Company writes foreign currency forward and option contracts for its customers to facilitate future payments. The duration of these derivative contracts at inception is generally less than one year. The Company aggregates its foreign exchange exposures arising from customer contracts, including forwards, options and spot exchanges of currency, as necessary, and economically hedges the net currency risks by entering into offsetting derivatives with established financial institution counterparties. The changes in fair value related to these derivatives are recorded in revenues, net in the Unaudited Consolidated Statements of Income.
The Company recognizes all cross currency payments derivatives in "prepaid expenses and other current assets" and "other current liabilities" in the accompanying Consolidated Balance Sheets at their fair value. All cash flows associated with derivatives are included in cash flows from operating activities in the Consolidated Statements of Cash Flows. Refer to footnote 14.
Cash, Cash Equivalents, and Restricted Cash
Cash and 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.
Financial Instruments-Credit Losses
The Company adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", on January 1, 2020, under which the Current Expected Credit Loss methodology for measurement of credit losses on financial assets measured at amortized cost basis, replaces the previous incurred loss impairment methodology. The Company’s financial assets subject to credit losses are primarily trade receivables. The Company utilizes a combination of aging or loss-rate methods to develop an estimate of current expected credit losses, depending on the nature and risk profile of the underlying asset pool. 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 forecast 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 fuel, lodging, tolls, and general corporate payments, as well as gift card solutions (stored value cards and e-cards). The Company provides products 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 80% of total consolidated revenues, net, for the three months ended March 31, 2020. The Company accounts for remaining revenues comprised of 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. The Company also writes foreign currency forward and options contracts for its customers to facilitate future payments in foreign currencies, and recognizes revenue in accordance with authoritative fair value and derivatives accounting (ASC 815, "Derivatives").
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Disaggregation of Revenues
The Company provides its services to customers across different payment solutions and geographies. Revenue by product (in millions) for the three months ended March 31 was as follows:
Revenues, net by Product*1
Three Months Ended March 31,
2020%2019%
Fuel  $292  43 %$283  47 %
Corporate Payments1
120  18 %96  15 %
Tolls 83  13 %89  14 %
Lodging57  9 %42  7 %
Gift42  6 %48  8 %
Other1
67  10 %63  10 %
Consolidated revenues, net$661  100 %$622  100 %

1 Reflects certain reclassifications of revenue between product categories as the Company realigned its corporate payments business, resulting in reclassification of payroll paycard revenue from corporate payments to other.
*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,
2020%2019%
United States$398  60 %$371  60 %
Brazil99  15 %106  17 %
United Kingdom74  11 %68  11 %
Other91  14 %77  12 %
Consolidated revenues, net661  100 %622  100 %

*Columns may not calculate due to rounding.
Contract Liabilities
Deferred revenue contract liabilities for customers subject to ASC 606 were $64.9 million and $71.8 million as of March 31, 2020 and December 31, 2019, respectively. We expect to recognize substantially all of these amounts in revenues within approximately 12 months.  Revenue recognized in the three months ended March 31, 2020 that was included in the deferred revenue contract liability as of December 31, 2019 was approximately $18.0 million.
Spot Trade Offsetting
The Company uses spot trades to facilitate cross-currency corporate payments in its Cambridge business. Timing in the receipt of cash from the customer results in intermediary balances in the receivable from the customer and the payment to the customer's counterparty. In accordance with ASC Subtopic 210-20, "Offsetting," 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 the Company's exposure with these customer's counterparties, with the receivables from the customer. 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, 2020 and December 31, 2019, (in millions). 
March 31, 2020December 31, 2019
Gross Offset on the Balance SheetNet GrossOffset on the Balance SheetNet
Assets
Accounts Receivable$911.6  $(867.0) $44.6  $1,139.1  $(1,084.6) $54.5  
Liabilities
Accounts Payable$912.2  $(867.0) $45.2  $1,140.4  $(1,084.6) $55.8  
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Adoption of New Accounting Standards
Cloud Computing Arrangements
On August 29, 2018, the FASB issued ASU 2018-15, "Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", that provides guidance on implementation costs incurred in a cloud computing arrangement (CCA) that is a service contract. The ASU, which was released in response to a consensus reached by the EITF at its June 2018 meeting, aligns the accounting for such costs with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, the ASU amends ASC 350 to include in its scope implementation costs of a CCA that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in such a CCA. The Company adopted this guidance on January 1, 2020, which did not have a material impact on the Company's results of operations, financial condition, or cash flows.
Fair Value Measurement
On August 28, 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement", which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC 820. The guidance is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The guidance on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other guidance should be applied retrospectively to all periods presented upon their effective date. The Company adopted this guidance on January 1, 2020, which did not have a material impact on the Company's results of operations, financial condition, or cash flows.
Credit Losses on Financial Instruments
In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which changes how companies measure and recognize credit impairment for many financial assets. The new expected credit loss model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets (including trade receivables) that are in the scope of the update. The update also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees. The Company adopted this guidance on January 1, 2020, which did not have a material impact on the Company's results of operations, financial condition, or cash flows. The Company has made updates to it policies and internal controls over financial reporting as a result of the adoption. See revisions to Company's policy above.
In April 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments", which clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments. For clarifications around credit losses, the effective date will be the same as the effective date in ASU 2016-13. For entities that have adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", ASU 2019-04 is effective the first annual reporting period beginning after the date of issuance of ASU 2019-04 and may be early adopted. The Company adopted this guidance on January 1, 2020, which did not have a material impact on the Company's results of operations, financial condition, or cash flows. The Company has made updates to it policies and internal controls over financial reporting as a result of the adoption.

Pending Adoption of Recently Issued Accounting Standard
Income Taxes
On December 18, 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which removes certain exceptions to the general principles of ASC 740 and simplifies other areas in order to simplify its application. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, with early adoption permitted. The Company's adoption of this ASU is not expected to have a material impact on the results of operations, financial condition, or cash flows.
2. Leases
The Company primarily leases office space, data centers, vehicles, and equipment. Some of our leases contain variable lease payments, typically payments based on an index. The Company’s leases have remaining lease terms of one year to thirty years, some of which include options to extend from one to five years or more. The exercise of lease renewal options is typically at the Company's sole discretion; therefore, the majority of renewals to extend the lease terms are not reasonably certain to exercise and are not included in Right-of-Use (ROU) assets and lease liabilities. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement. Additional payments based on the change in an
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index or rate are recorded as a period expense when incurred. Lease modifications result in remeasurement of the lease liability as of the modification date.
Other assets include ROU assets, other current liabilities include short-term operating lease liabilities, and other non-current liabilities include long term lease liabilities at March 31, 2020 and 2019 as follows (in million):
March 31, 2020December 31, 2019
ROU Assets$82.1  $84.3  
Short term lease liabilities16.316.9
Long term lease liabilities80.381.7

Under ASC 842, a Company discounts future lease obligations by the rate implicit in the contract, unless the rate cannot be readily determined. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. In determining the borrowing rate, the Company considered the applicable lease terms, the Company's cost of borrowing, and for leases denominated in a foreign currency, the collateralized borrowing rate that the Company would obtain to borrow in the same currency in which the lease is denominated.

Total lease costs for the three months ended March 31 2020 and 2019 were $5.5 million and $4.4 million, respectively.
The supplementary cash and non-cash disclosures for the three months ended March 31 are as follows (in thousands):
March 31,
20202019
Cash paid for operating lease liabilities$5,130$4,607
Right-of-use assets obtained in exchange for new operating lease obligations 1
$1,494$69,744
Weighted-average remaining lease term (years)7.67.5
Weighted-average discount rate4.33%3.73%
 1 Includes $55.9 million for operating leases existing on January 1, 2019
Maturities of lease liabilities as of March 31, 2020 were as follows (in thousands):
2020$19,754  
202117,048  
202214,899  
202313,927  
202413,588  
Thereafter37,246  
Total lease payments 116,462  
Less imputed interest (19,862) 
Present value of lease liabilities$96,600  

3. Accounts Receivable
The Company's accounts receivable and securitized accounts receivable include the following at March 31, 2020 and December 31, 2019 (in thousands):
March 31, 2020December 31, 2019
Gross domestic accounts receivable$694,485  $734,410  
Gross domestic securitized accounts receivable819,000  970,973