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Segment Information
 9 Months Ended
Sep. 30, 2022
SEGMENT INFORMATION  
SEGMENT INFORMATION
(12) SEGMENT INFORMATION

Our reportable operating segments have been determined in accordance with ASC Topic 280, Segment Reporting ("ASC 280"). We currently operate in the following three reportable operating segments: 


1) Through the EFT Processing Segment, we process transactions for a network of ATMs and POS terminals across Europe, the Middle East, Africa, Asia Pacific and the United States. We provide comprehensive electronic payment solutions consisting of ATM cash withdrawal services, ATM network participation, outsourced ATM and POS management solutions, credit, debit and prepaid card outsourcing, dynamic currency conversion, domestic and international surcharges and other value added services. Through this segment, we also offer a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. 

 

2) Through the epay Segment, we provide distribution, processing and collection services for electronic payment products, and prepaid mobile airtime in Europe, the Middle East, Asia Pacific, the U.S., South America and North America.


3) Through the Money Transfer Segment, we provide global money transfer services under the brand names Ria, AFEX, IME, and xe. Ria, AFEX, 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. We also offer 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, we account for non-operating activity, share-based compensation expense, certain intersegment eliminations and the costs of providing corporate and other administrative services in our administrative division, "Corporate Services, Eliminations and Other." These services are not directly identifiable with our reportable operating segments. 


The following tables present our reportable segment results for the three and nine months ended September 30, 2022 and 2021:
 
 
For the Three Months Ended September 30, 2022
(in thousands)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Corporate Services,
Eliminations
and Other
 
Consolidated
Total revenues
 
$
319,466
 
$
248,923
 
$
364,841
 
$
(1,964
 )
 
$
931,266
Operating expenses:
 
 
 
 
 
 
 
 
 
 
Direct operating costs, exclusive of depreciation
 
137,812
 
190,091
 
200,171
 
(2,026
 )
 
526,048
Salaries and benefits
 
30,020
 
19,756
 
69,703
 
14,992
 
134,471
Selling, general and administrative
 
12,167
 
8,506
 
46,256
 
2,579
 
69,508
Depreciation and amortization
 
23,071
 
1,436
 
8,169
 
105
 
32,781
Total operating expenses
 
203,070
 
219,789
 
324,299
 
15,650
 
762,808
Operating income (loss)
 
$
116,396
 
$
29,134
 
$
40,542
 
$
(17,614
 )
 
$
168,458

 
For the Three Months Ended September 30, 2021
(in thousands)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Corporate Services,
Eliminations
and Other
 
Consolidated
Total revenues
 
$
227,129
 
$
238,319
 
$
353,451
 
$
(2,339
)
 
$
816,560
Operating expenses:
 
 
 
 
 
 
 
 
 
 
Direct operating costs, exclusive of depreciation
 
106,321
 
180,206
 
200,231
 
(2,320
)
 
484,438
Salaries and benefits
 
23,665
 
20,104
 
65,285
 
10,367
 
119,421
Selling, general and administrative
 
11,301
 
9,802
 
41,533
 
1,662
 
64,298
Depreciation and amortization
 
22,640
 
2,253
 
8,897
 
119
 
33,909
Total operating expenses
 
163,927
 
212,365
 
315,946
 
9,828
 
702,066
Operating income (loss)
 
$
63,202
 
$
25,954
 
$
37,505
 
$
(12,167
)
 
$
114,494

 

 
For the Nine Months Ended September 30, 2022
(in thousands)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Corporate Services,
Eliminations
and Other
 
Consolidated
Total revenues
 
$
714,067
 
$
712,467
 
$
1,072,266
 
$
(5,758
 )
 
$
2,493,042
Operating expenses:
 
 
 
 
 
 
 
 
 
 
Direct operating costs, exclusive of depreciation
 
354,907
 
542,066
 
593,631
 
(5,741
 )
 
1,484,863
Salaries and benefits
 
82,957
 
59,705
 
204,905
 
44,977
 
392,544
Selling, general and administrative
 
40,285
 
26,223
 
133,654
 
7,451
 
207,613
Depreciation and amortization
 
71,159
 
4,748
 
25,557
 
320
 
101,784
Total operating expenses
 
549,308
 
632,742
 
957,747
 
47,007
 
2,186,804
Operating income (loss)
 
$
164,759
 
$
79,725
 
$
114,519
 
$
(52,765
 )
 
$
306,238


 
 
For the Nine Months Ended September 30, 2021
(in thousands)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Corporate Services,
Eliminations
and Other
 
Consolidated
Total revenues
 
$
427,687
 
$
724,540
 
$
1,037,659
 
$
(5,970
)
 
$
2,183,916
Operating expenses:
 
 
 
 
 
 
 
 
 
 
Direct operating costs
 
258,614
 
547,828
 
589,273
 
(5,945
)
 
1,389,770
Salaries and benefits
 
71,334
 
59,248
 
188,535
 
37,043
 
356,160
Selling, general and administrative
 
33,062
 
28,594
 
115,975
 
4,562
 
182,193
Depreciation and amortization
 
66,907
 
6,524
 
26,886
 
412
 
100,729
Total operating expenses
 
429,917
 
642,194
 
920,669
 
36,072
 
2,028,852
Operating income (loss)
 
$
(2,230)
 
$
82,346
 
$
116,990
 
$
(42,042
)
 
$
155,064


The following table presents our total assets by reportable segment:
 
Total Assets as of
(in thousands)
September 30,  2022
 
December 31, 2021
EFT Processing
$
2,101,595
 
$
1,682,680
epay
760,088
 
1,234,074
Money Transfer
1,660,050
 
1,621,726
Corporate Services, Eliminations and Other
306,094
 
205,796
   Total  
$
4,827,827
 
$
4,744,276

 

The following table presents our revenues disaggregated by segment and region. Sales and usage-based taxes are excluded from revenues. We believe 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, 2022
For the Nine Months Ended September 30, 2022
(in thousands)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Total
EFT
Processing
epay
Money
Transfer
Total
Europe
 
$
267,017
 
$
166,965
 
$
144,008
 
$
577,990
$
563,491
$
457,651
$
432,678
$
1,453,820
North America
 
17,241
 
32,934
 
180,796
 
230,971
51,044
98,538
519,185
668,767
Asia Pacific
 
34,070
 
36,853
 
26,960
 
97,883
96,821
118,636
80,669
296,126
Other
 
1,138
 
12,171
 
13,077
 
26,386
2,711
37,642
39,734
80,087
Eliminations
 
—
 
—
 
—
 
(1,964
 )
—
—
—
(5,758
 )
Total
 
$
319,466
 
$
248,923
 
$
364,841
 
$
931,266
$
714,067
$
712,467
$
1,072,266
$
2,493,042


 
 
For the Three Months Ended September 30, 2021
For the Nine Months Ended September 30, 2021
(in thousands)
 
EFT
Processing
 
epay
 
Money
Transfer
 
Total
EFT
Processing
epay
Money
Transfer
Total
Europe
 
$
183,163
 
$
150,465
 
$
145,813
 
$
479,441
$
303,134
$
475,933
$
428,258
$
1,207,325
North America
 
16,341
 
35,876
 
169,473
 
221,690
46,010
104,318
492,099
642,427
Asia Pacific
 
27,381
 
39,303
 
24,588
 
91,272
78,110
111,998
79,581
269,689
Other
 
244
 
12,675
 
13,577
 
26,496
433
32,291
37,721
70,445
Eliminations
 
—
 
—
 
—
 
(2,339
 )
—
—
—
(5,970
 )
Total
 
$
227,129
 
$
238,319
 
$
353,451
 
$
816,560
$
427,687
$
724,540
$
1,037,659
$
2,183,916