NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business
Worldpay, Inc., a Delaware corporation, is a holding company that conducts its operations through its majority-owned subsidiary, Worldpay
Holding, LLC (Worldpay Holding). Worldpay, Inc. and Worldpay Holding are referred to collectively as the Company, Worldpay, we, us or our, unless the context requires
On January 16, 2018, Worldpay completed the acquisition of all of the outstanding shares of Worldpay Group Limited,
formerly Worldpay Group plc, a public limited company (Legacy Worldpay). Following the acquisition, the Vantiv, Inc. (Legacy Vantiv) name was changed to Worldpay, Inc. by amending our Second Amended and Restated Certificate
of Incorporation. The effective date of the name change was January 16, 2018.
On January 16, 2018, the Companys
Class A common stock began trading on the New York Stock Exchange under the new symbol WP and on the London Stock Exchange via a secondary standard listing under the symbol WPY. Legacy Worldpay shares were delisted from
the London Stock Exchange on the same day.
Worldpay is a leader in global payments providing a broad range of technology-led solutions to its clients to allow them to accept payments of almost any type, across multiple payment channels nearly anywhere in the world. The Company serves a diverse set of merchants including
mobile, online and in-store, offering over 300 payment methods in 126 transaction currencies across 146 countries, while supporting various clients including large enterprises, corporates, small and medium
sized businesses and eCommerce businesses. The Company operates in three reportable segments: Technology Solutions, Merchant Solutions and Issuer Solutions. For more information about the Companys segments, refer to Note 19Segment
Information. The Company markets its services through diverse distribution channels, including multiple referral partners.
Basis of Presentation
The accompanying Consolidated Financial Statements include those of Worldpay, Inc. and all subsidiaries thereof
including its majority-owned subsidiary, Worldpay Holding, LLC. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America
(U.S. GAAP). All intercompany balances and transactions have been eliminated.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from
Set forth below is a brief description of the components of the Companys expenses:
Network fees and other costs primarily consist of pass through expenses incurred by the Company in
connection with providing processing services to the Companys clients, including Visa and Mastercard network association fees and payment network fees and only relates to the years ended December 31, 2017 and 2016. Following the
Companys adoption of ASC 606 on January 1, 2018, network fees and other costs are presented net within revenue.
Sales and marketing expense primarily consists of salaries, commissions and benefits paid to sales
personnel, sales management and other sales and marketing personnel, amortization of capitalized commission fees, payments made to multiple referral partners, and advertising and promotional costs.
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