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SEC Filings

10-Q
WORLDPAY, INC. filed this Form 10-Q on 05/03/2019
Entire Document
 
Worldpay, Inc.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The activity of the components of accumulated other comprehensive income (loss) (“AOCI”) related to hedging and other activities for the three months ended March 31, 2019 and 2018 is presented below (in millions):
 
 
 
 
Total Other Comprehensive Income (Loss)
 
 
 
 
AOCI Beginning Balance
 
Pretax Activity
 
Tax Effect
 
Net Activity
 
Attributable to non-controlling interests
 
Attributable to Worldpay, Inc.
 
AOCI Ending Balance
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of cash flow hedges recorded in accumulated OCI
 
$
(18.0
)
 
$
(9.4
)
 
$
2.2

 
$
(7.2
)
 
$
0.2

 
$
(7.0
)
 
$
(25.0
)
Net realized loss on cash flow hedges reclassified into earnings(1)
 
15.9

 
(2.2
)
 
0.5

 
(1.7
)
 

 
(1.7
)
 
14.2

Translation adjustments on net investment hedge recorded in AOCI(2)
 
52.2

 
(3.5
)
 
0.7

 
(2.8
)
 
0.4

 
(2.4
)
 
49.8

Foreign currency translation adjustments(3)
 
(781.3
)
 
182.0

 

 
182.0

 
(8.6
)
 
173.4

 
(607.9
)
Net change
 
$
(731.2
)
 
$
166.9

 
$
3.4

 
$
170.3

 
$
(8.0
)
 
$
162.3

 
$
(568.9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in fair value of cash flow hedges recorded in accumulated OCI
 
$
(13.8
)
 
$
6.3

 
$
(1.5
)
 
$
4.8

 
$
(0.4
)
 
$
4.4

 
$
(9.4
)
Net realized loss on cash flow hedges reclassified into earnings(1)
 
16.7

 
0.6

 
(0.1
)
 
0.5

 

 
0.5

 
17.2

Translation adjustments on net investment hedge recorded in AOCI(2)
 

 
(7.5
)
 
2.0

 
(5.5
)
 
0.4

 
(5.1
)
 
(5.1
)
Foreign currency translation adjustments(3)
 

 
22.2

 

 
22.2

 
(1.1
)
 
21.1

 
21.1

Net change
 
$
2.9

 
$
21.6

 
$
0.4

 
$
22.0

 
$
(1.1
)
 
$
20.9

 
$
23.8

 
(1)    The reclassification adjustment on cash flow hedge derivatives affected the following lines in the accompanying consolidated statements of income:
OCI Component
 
Affected line in the accompanying consolidated statements of income
Pretax activity(a)
 
Interest expense-net
Tax effect
 
Income tax expense
OCI attributable to non-controlling interests
 
Net income attributable to non-controlling interests
(a) 
The three months ended March 31, 2019 and 2018, reflect amounts of losses reclassified from AOCI into earnings, representing the effective portion of the hedging relationships, and are recorded in interest expense-net.
(2) 
See Note 7 - Derivatives and Hedging Activities for more information on net investment hedge activity.
(3) 
There is no tax impact on the foreign translation adjustments due to the Tax Reform impact on distributions, enacted in 2017.

13. SEGMENT INFORMATION

The Company’s segments are Technology Solutions, Merchant Solutions and Issuer Solutions, which are organized based on the Company’s solution offerings. The Company’s Chairman of the Board and Chief Executive Officer is the chief operating decision maker (“CODM”), who evaluates the performance and allocates resources based on the operating results of each segment. The Company’s reportable segments are the same as the Company’s operating segments and there is no aggregation of the Company’s operating segments. Below is a summary of each segment:

Technology Solutions - Technology Solutions provides merchant acquiring, payment processing and related services to a diverse set of merchants that primarily accept payments through eCommerce and integrated payment solutions.
Merchant Solutions - Merchant Solutions provides merchant acquiring, payment processing and related services to a diverse set of merchants that primarily accept payments through an omni-channel solution including terminal based.

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