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Segment Information | 9 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
SEGMENT INFORMATION | (11) SEGMENT INFORMATION Euronet’s reportable operating segments have been determined in accordance with ASC Topic 280, Segment Reporting (“ASC 280”). The Company currently operates in the following three reportable operating segments:
1) | Through the EFT Processing Segment, the Company processes transactions for a network of ATMs and POS terminals across Europe, the Middle East, Asia Pacific and the United States. The Company provides comprehensive electronic payment solutions consisting of ATM cash withdrawal services, ATM network participation, outsourced ATM and POS management solutions, credit and debit card outsourcing, dynamic currency conversion, domestic and international surcharges and other value added services. Through this segment, the Company also offers a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems.
2) | Through the epay Segment, the Company provides distribution, processing and collection services for prepaid mobile airtime and other electronic payment products in Europe, the Middle East, Asia Pacific, the U.S. and South America.
3) | Through the Money Transfer Segment, the Company provides global money transfer services under the brand names Ria, AFEX Money Express, IME, and xe. Ria, AFEX Money Express and IME provide global consumer-to-consumer money transfer services through a network of sending agents, Company-owned stores and Company-owned websites, disbursing money transfers through a worldwide correspondent network. xe offers account-to-account international payment services to high-income individuals and small-to-medium sized businesses. xe is also a provider of foreign currency exchange information. The Company also offers customers bill payment services, payment alternatives such as money orders and prepaid debit cards, comprehensive check cashing services, foreign currency exchange services and mobile top-up. Furthermore, xe provides cash management solutions and foreign currency risk management services to small-to-medium sized businesses.
In addition, the Company accounts for non-operating activity, share-based compensation expense, certain intersegment eliminations and the costs of providing corporate and other administrative services in its administrative division, “Corporate Services, Eliminations and Other.” These services are not directly identifiable with the Company’s reportable operating segments. The following tables present the Company’s reportable segment results for the three and nine months ended September 30, 2020 and 2019:
|  | For the Three Months Ended September 30, 2020
(in thousands) |  | EFT Processing |  | epay |  | Money Transfer |  | Corporate Services, Eliminations and Other |  | Consolidated
Total revenues |  | $ | 144,062 |  |  | $ | 198,939 |  |  | $ | 323,092 |  |  | $ | (1,742) |  |  | $ | 664,351 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Direct operating costs |  | 82,626 |  |  | 149,993 |  |  | 176,718 |  |  | (1,739) |  |  | 407,598 |
Salaries and benefits |  | 25,182 |  |  | 16,108 |  |  | 52,035 |  |  | 8,252 |  |  | 101,577 |
Selling, general and administrative |  | 8,577 |  |  | 8,455 |  |  | 36,601 |  |  | 1,592 |  |  | 55,225 |
Goodwill and acquired intangible assets impairment |  | — |  |  | — |  |  | 1,467 |  |  | — |  |  | 1,467 |
Depreciation and amortization |  | 21,516 |  |  | 2,134 |  |  | 8,645 |  |  | 117 |  |  | 32,412 |
Total operating expenses |  | 137,901 |  |  | 176,690 |  |  | 275,466 |  |  | 8,222 |  |  | 598,279 |
Operating income (expense) |  | $ | 6,161 |  |  | $ | 22,249 |  |  | $ | 47,626 |  |  | $ | (9,964) |  |  | $ | 66,072 |
|  | For the Three Months Ended September 30, 2019
(in thousands) |  | EFT Processing |  | epay |  | Money Transfer |  | Corporate Services, Eliminations and Other |  | Consolidated
Total revenues |  | $ | 316,188 |  |  | $ | 191,071 |  |  | $ | 280,837 |  |  | $ | (1,110 | ) |  | $ | 786,986 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Direct operating costs |  | 111,116 |  |  | 145,410 |  |  | 149,663 |  |  | (1,108 | ) |  | 405,081 |
Salaries and benefits |  | 23,936 |  |  | 15,188 |  |  | 51,555 |  |  | 10,675 |  |  | 101,354 |
Selling, general and administrative |  | 12,191 |  |  | 8,838 |  |  | 35,820 |  |  | 1,866 |  |  | 58,715 |
Depreciation and amortization |  | 18,044 |  |  | 1,572 |  |  | 8,151 |  |  | 79 |  |  | 27,846 |
Total operating expenses |  | 165,287 |  |  | 171,008 |  |  | 245,189 |  |  | 11,512 |  |  | 592,996 |
Operating income (expense) |  | $ | 150,901 |  |  | $ | 20,063 |  |  | $ | 35,648 |  |  | $ | (12,622 | ) |  | $ | 193,990 |
|  | For the Nine Months Ended September 30, 2020
(in thousands) |  | EFT Processing |  | epay |  | Money Transfer |  | Corporate Services, Eliminations and Other |  | Consolidated
Total revenues |  | $ | 368,375 |  |  | $ | 559,413 |  |  | $ | 852,189 |  |  | $ | (3,916) |  |  | $ | 1,776,061 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Direct operating costs |  | 232,627 |  |  | 424,123 |  |  | 464,216 |  |  | (3,901) |  |  | 1,117,065 |
Salaries and benefits |  | 68,562 |  |  | 46,996 |  |  | 154,958 |  |  | 23,253 |  |  | 293,769 |
Selling, general and administrative |  | 29,033 |  |  | 25,928 |  |  | 108,355 |  |  | 6,017 |  |  | 169,333 |
Goodwill and acquired intangible assets impairment |  | 21,861 |  |  | — |  |  | 84,160 |  |  | — |  |  | 106,021 |
Depreciation and amortization |  | 61,772 |  |  | 5,629 |  |  | 25,793 |  |  | 276 |  |  | 93,470 |
Total operating expenses |  | 413,855 |  |  | 502,676 |  |  | 837,482 |  |  | 25,645 |  |  | 1,779,658 |
Operating income (expense) |  | $ | (45,480) |  |  | $ | 56,737 |  |  | $ | 14,707 |  |  | $ | (29,561) |  |  | $ | (3,597) |
|  | For the Nine Months Ended September 30, 2019
(in thousands) |  | EFT Processing |  | epay |  | Money Transfer |  | Corporate Services, Eliminations and Other |  | Consolidated
Total revenues |  | $ | 693,837 |  |  | $ | 551,345 |  |  | $ | 814,201 |  |  | $ | (3,021 | ) |  | $ | 2,056,362 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Direct operating costs |  | 300,460 |  |  | 419,362 |  |  | 435,901 |  |  | (2,998 | ) |  | 1,152,725 |
Salaries and benefits |  | 64,706 |  |  | 44,939 |  |  | 155,424 |  |  | 27,630 |  |  | 292,699 |
Selling, general and administrative |  | 32,022 |  |  | 26,314 |  |  | 96,660 |  |  | 5,708 |  |  | 160,704 |
Depreciation and amortization |  | 52,464 |  |  | 5,113 |  |  | 24,448 |  |  | 228 |  |  | 82,253 |
Total operating expenses |  | 449,652 |  |  | 495,728 |  |  | 712,433 |  |  | 30,568 |  |  | 1,688,381 |
Operating income (expense) |  | $ | 244,185 |  |  | $ | 55,617 |  |  | $ | 101,768 |  |  | $ | (33,589 | ) |  | $ | 367,981 |
The following table presents the Company’s total assets by reportable segment:
| Total Assets as of
(in thousands) | September 30, 2020 |  | December 31, 2019
EFT Processing | $ | 1,503,385 |  |  | $ | 1,914,144 |
epay | 812,444 |  |  | 962,671 |
Money Transfer | 1,480,624 |  |  | 1,560,136 |
Corporate Services, Eliminations and Other | 298,903 |  |  | 220,715 |
Total | $ | 4,095,356 |  |  | $ | 4,657,666 |
The following table presents the Company's revenues disaggregated by segment and region. Sales and usage-based taxes are excluded from revenues. The Company believes disaggregation by segment and region best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The disaggregation of revenues by segment and region is based on management's assessment of segment performance together with allocation of financial resources, both capital and operating support costs, on a segment and regional level. Both segments and regions benefit from synergies achieved through concentration of operations and are influenced by macro-economic, regulatory and political factors in the respective segment and region.
|  | For the Three Months Ended September 30, 2020 |  | For the Nine Months Ended September 30, 2020
(in thousands) |  | EFT Processing |  | epay |  | Money Transfer |  | Total |  |  | EFT Processing |  |  |  | epay |  |  |  | Money Transfer |  |  |  | Total |
Europe |  | $ | 107,182 |  |  | $ | 131,330 |  |  | $ | 127,399 |  |  | $ | 365,911 |  |  | $ | 251,583 |  |  | $ | 368,101 |  |  | $ | 317,187 |  |  | $ | 936,871 |
North America |  | 14,318 |  |  | 32,645 |  |  | 152,195 |  |  | 199,158 |  |  |  | 42,461 |  |  |  | 102,603 |  |  |  | 422,980 |  |  |  | 568,044 |
Asia Pacific |  | 22,562 |  |  | 26,679 |  |  | 34,036 |  |  | 83,277 |  |  |  | 74,327 |  |  |  | 69,916 |  |  |  | 91,116 |  |  |  | 235,359 |
Other |  | — |  |  | 8,285 |  |  | 9,462 |  |  | 17,747 |  |  |  | 4 |  |  |  | 18,793 |  |  |  | 20,906 |  |  |  | 39,703 |
Eliminations |  | — |  |  | — |  |  | — |  |  | (1,742) |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (3,916) |
Total |  | $ | 144,062 |  |  | $ | 198,939 |  |  | $ | 323,092 |  |  | $ | 664,351 |  |  | $ | 368,375 |  |  | $ | 559,413 |  |  | $ | 852,189 |  |  | $ | 1,776,061 |
|  | For the Three Months Ended September 30, 2019 |  | For the Nine Months Ended September 30, 2019 |
(in thousands) |  | EFT Processing |  | epay |  | Money Transfer |  | Total |  |  | EFT Processing |  |  |  | epay |  |  |  | Money Transfer |  |  |  | Total |
Europe |  | $ | 274,313 |  |  | $ | 130,602 |  |  | $ | 94,625 |  |  | $ | 499,540 |  |  | $ | 574,620 |  |  | $ | 368,830 |  |  | $ | 273,760 |  |  | $ | 1,217,210 |
North America |  | 8,717 |  |  | 37,218 |  |  | 147,989 |  |  | 193,924 |  |  |  | 24,880 |  |  |  | 114,614 |  |  |  | 428,349 |  |  |  | 567,843 |
Asia Pacific |  | 33,153 |  |  | 19,039 |  |  | 31,575 |  |  | 83,767 |  |  |  | 94,317 |  |  |  | 55,333 |  |  |  | 93,865 |  |  |  | 243,515 |
Other |  | 5 |  |  | 4,212 |  |  | 6,648 |  |  | 10,865 |  |  |  | 20 |  |  |  | 12,568 |  |  |  | 18,227 |  |  |  | 30,815 |
Eliminations |  | — |  |  | — |  |  | — |  |  | (1,110 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (3,021 | )
Total |  | $ | 316,188 |  |  | $ | 191,071 |  |  | $ | 280,837 |  |  | $ | 786,986 |  |  | $ | 693,837 |  |  | $ | 551,345 |  |  | $ | 814,201 |  |  | $ | 2,056,362 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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