International Revenues and Currency Impact - International revenues accounted for 47.7% of total revenues in 2024, up from 45.6% in 2023[403]. - A hypothetical 10% change in foreign currency exchange rates could have impacted consolidated operating income by approximately $97.8 million in 2024, compared to $86.0 million in 2023[403]. Debt and Interest Rates - The company had $6.7 billion of variable rate debt outstanding as of December 31, 2024, an increase from $5.4 billion in 2023[405]. - A 100 basis point change in market interest rates would have changed interest expense by approximately $22 million in 2024 and $14 million in 2023[406]. - Total debt increased to $7.996 billion in 2024 from $6.723 billion in 2023, representing an 18.9% increase[579]. - Term Loan A interest rate decreased to 5.83% in 2024 from 6.83% in 2023, while Term Loan B interest rate decreased to 6.11% from 7.21%[582]. - The Company entered into a fifteenth amendment to the Credit Agreement, increasing Term Loan B commitments by $500 million[580]. Goodwill and Acquisitions - The company recognized a goodwill impairment loss of $90 million related to the Payroll Card reporting unit in 2024, with total goodwill at $6.0 billion[421]. - The acquisitions of Paymerang and GPS Capital Markets, LLC were completed for total estimated purchase consideration of $179.2 million and $576.2 million, respectively[424]. - Intangible assets from these acquisitions, including customer and vendor relationships, were recorded at $542.3 million[424]. - The Company acquired 70% of Zapay for approximately $59.5 million in March 2024, with goodwill of approximately $73.2 million recorded[553]. - The acquisition of Paymerang in July 2024 was for approximately $179.2 million, with goodwill of approximately $308.1 million recorded[554]. - The Company acquired GPS Capital Markets for approximately $576.2 million in December 2024, with goodwill of approximately $329.2 million recorded[555]. - The total consideration paid for the 2024 acquisitions was approximately $814.9 million, net of cash and cash equivalents of $509.0 million[556]. - Goodwill increased to $5.98 billion by December 31, 2024, reflecting acquisitions and adjustments, with $383.9 million attributed to the 2023 acquisitions[565][567]. Financial Performance - Net revenues for 2024 reached $3,974,589, representing a 5.79% increase from $3,757,719 in 2023[432]. - Operating income rose to $1,787,157, a 7.87% increase compared to $1,656,873 in 2023[432]. - Net income attributable to Corpay was $1,003,746, up 2.00% from $981,890 in 2023[432]. - Basic earnings per share increased to $14.27, reflecting a 6.34% rise from $13.42 in 2023[432]. - Comprehensive income attributable to Corpay was $578,849, down 52.06% from $1,202,441 in 2023[436]. - Net income for the year ended December 31, 2024, was $1,003,732, an increase of 2.9% from $981,890 in 2023[442]. Cash Flow and Investments - Net cash provided by operating activities decreased to $1,940,565 in 2024 from $2,101,132 in 2023, a decline of 7.7%[442]. - The company made acquisitions net of cash acquired totaling $821,924 in 2024, compared to $428,327 in 2023, indicating a significant increase of 92.0%[442]. - The Company reported a net cash used in investing activities of $807,477 in 2024, compared to $380,723 in 2023, an increase of 112.0%[442]. - Cash and cash equivalents at the end of 2024 were $4,456,345, up from $3,141,535 at the end of 2023, representing a growth of 42.0%[442]. Assets and Liabilities - Total assets increased to $17,957,031, up 16.06% from $15,476,252 in 2023[429]. - Total current liabilities increased to $8,707,881, a 27.56% rise from $6,825,753 in 2023[430]. - Goodwill increased to $5,984,667, up 6.02% from $5,644,958 in 2023[429]. - Total stockholders' equity decreased to $3,145,989, down 4.16% from $3,282,359 in 2023[430]. - The Company had deferred customer incentives of $5.5 million as of December 31, 2024, down from $10.0 million in 2023[525]. Taxation - The total provision for income taxes for 2024 was $381,381 thousand, representing an increase from $343,115 thousand in 2023 and $321,333 thousand in 2022[592]. - The computed "expected" tax expense for 2024 was $290,877 thousand, which is 21.0% of income before income taxes, consistent with the previous two years[592]. - The valuation allowance decreased by $52.8 million in 2024, primarily due to the release of a deferred tax asset related to foreign tax credits[595]. - The foreign income tax differential contributed $31,743 thousand (2.3%) to the provision for income taxes in 2024[592]. Stock and Compensation - Stock-based compensation expense for 2024 was $116.7 million, with tax benefits related to stock-based compensation of $60.7 million[545]. - The Company has a stock repurchase program authorized to repurchase up to $9.1 billion in common stock until February 4, 2026[540]. - The Company repurchased 33,090,680 shares for an aggregate purchase price of $7.8 billion since the beginning of the stock repurchase program, with $1.3 billion remaining for future repurchases[540].
Corpay, Inc.(CPAY) - 2024 Q4 - Annual Report