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SEGMENT INFORMATION | 6 Months Ended
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Jun. 30, 2023
SEGMENT INFORMATION |
SEGMENT INFORMATION | (12) SEGMENT INFORMATION Our 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, Africa, Asia Pacific and the United States. Euronet provides comprehensive electronic payment solutions consisting of ATM cash withdrawal and deposit 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, 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, Euronet provides distribution, processing and collection services for electronic payment products, and prepaid mobile airtime through a network of POS terminals in Europe, the Middle East, Asia Pacific, South America and North America. The epay Segment also provides vouchers and physical gift fulfillment services in Europe. 3) Through the Money Transfer Segment, Euronet provides global consumer-to-consumer money transfer services, primarily under the brand names Ria, IME, AFEX, and xe, and global account-to-account money transfer services under the brand name xe. The Company offers services under the brand names Ria and IME through a network of sending agents, Company-owned stores, Company-owned websites, and mobile applications, disbursing money transfers through a worldwide correspondent network. xe is a provider of foreign currency exchange information and offers money transfer services on its currency data websites. The Company also offers customers bill payment services (primarily in the U.S.), payment alternatives such as money orders and prepaid debit cards, comprehensive check cashing services for a wide variety of issued checks, along with competitive foreign currency exchange services and prepaid 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 the 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 months and six months ended June 30, 2023 and 2022:
|  | For the Three Months Ended June 30, 2023
(in millions) |  | EFT Processing |  | epay |  | Money Transfer |  | Corporate Services, Eliminations and Other |  | Consolidated
Total revenues |  | $ | 282.4 |  |  | $ | 263.8 |  |  | $ | 394.8 |  |  | $ | (1.9 | ) |  | $ | 939.1 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Direct operating costs, exclusive of depreciation |  | 142.1 |  |  | 204.2 |  |  | 213.7 |  |  | (1.9 | ) |  | 558.1 |
Salaries and benefits |  | 30.8 |  |  | 22.0 |  |  | 78.5 |  |  | 18.1 |  |  | 149.4 |
Selling, general and administrative |  | 16.6 |  |  | 9.1 |  |  | 47.3 |  |  | 2.3 |  |  | 75.3 |
Depreciation and amortization |  | 23.8 |  |  | 1.7 |  |  | 8.1 |  |  | 0.1 |  |  | 33.7 |
Total operating expenses |  | 213.3 |  |  | 237.0 |  |  | 347.6 |  |  | 18.6 |  |  | 816.5 |
Operating income (loss) |  | $ | 69.1 |  |  | $ | 26.8 |  |  | $ | 47.2 |  |  | $ | (20.5 | ) |  | $ | 122.6 |
|  | For the Three Months Ended June 30, 2022
(in millions) |  | EFT Processing |  | epay |  | Money Transfer |  | Corporate Services, Eliminations and Other |  | Consolidated
Total revenues |  | $ | 249.0 |  |  | $ | 227.7 |  |  | $ | 368.5 |  |  | $ | (1.9 | ) |  | $ | 843.3 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Direct operating costs, exclusive of depreciation |  | 123.8 |  |  | 173.7 |  |  | 205.0 |  |  | (1.8 | ) |  | 500.7 |
Salaries and benefits |  | 27.7 |  |  | 19.8 |  |  | 68.0 |  |  | 15.8 |  |  | 131.3 |
Selling, general and administrative |  | 17.0 |  |  | 8.3 |  |  | 46.3 |  |  | 2.6 |  |  | 74.2 |
Depreciation and amortization |  | 25.7 |  |  | 1.6 |  |  | 8.6 |  |  | 0.1 |  |  | 36.0 |
Total operating expenses |  | 194.2 |  |  | 203.4 |  |  | 327.9 |  |  | 16.7 |  |  | 742.2 |
Operating income (loss) |  | $ | 54.8 |  |  | $ | 24.3 |  |  | $ | 40.6 |  |  | $ | (18.6 | ) |  | $ | 101.1 |
|  | For the Six Months Ended June 30, 2023
(in millions) |  | EFT Processing |  | epay |  | Money Transfer |  | Corporate Services, Eliminations and Other |  | Consolidated
Total revenues |  | $ | 474.6 |  |  | $ | 501.2 |  |  | $ | 754.2 |  |  | $ | (3.7 | ) |  | $ | 1,726.3 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Direct operating costs, exclusive of depreciation |  | 261.1 |  |  | 382.3 |  |  | 410.0 |  |  | (3.7 | ) |  | 1,049.7 |
Salaries and benefits |  | 58.3 |  |  | 43.4 |  |  | 152.8 |  |  | 36.8 |  |  | 291.3 |
Selling, general and administrative |  | 32.7 |  |  | 17.9 |  |  | 95.0 |  |  | 4.9 |  |  | 150.5 |
Depreciation and amortization |  | 46.5 |  |  | 3.3 |  |  | 16.6 |  |  | 0.2 |  |  | 66.6 |
Total operating expenses |  | 398.6 |  |  | 446.9 |  |  | 674.4 |  |  | 38.2 |  |  | 1,558.1 |
Operating income (loss) |  | $ | 76.0 |  |  | $ | 54.3 |  |  | $ | 79.8 |  |  | $ | (41.9 | ) |  | $ | 168.2 |
|  | For the Six Months Ended June 30, 2022
(in millions) |  | EFT Processing |  | epay |  | Money Transfer |  | Corporate Services, Eliminations and Other |  | Consolidated
Total revenues |  | $ | 394.6 |  |  | $ | 463.5 |  |  | $ | 707.5 |  |  | $ | (3.8 | ) |  | $ | 1,561.8 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Direct operating costs, exclusive of depreciation |  | 217.1 |  |  | 352.0 |  |  | 393.5 |  |  | (3.7 | ) |  | 958.9 |
Salaries and benefits |  | 52.9 |  |  | 40.0 |  |  | 135.3 |  |  | 29.9 |  |  | 258.1 |
Selling, general and administrative |  | 28.1 |  |  | 17.7 |  |  | 87.3 |  |  | 4.9 |  |  | 138.0 |
Depreciation and amortization |  | 48.0 |  |  | 3.3 |  |  | 17.5 |  |  | 0.2 |  |  | 69.0 |
Total operating expenses |  | 346.1 |  |  | 413.0 |  |  | 633.6 |  |  | 31.3 |  |  | 1,424.0 |
Operating income (loss) |  | $ | 48.5 |  |  | $ | 50.5 |  |  | $ | 73.9 |  |  | $ | (35.1 | ) |  | $ | 137.8 |
The following table presents the Company's total assets by reportable segment:
| Total Assets as of
(in millions) | June 30, 2023 |  | December 31, 2022
EFT Processing | $ | 2,393.8 |  |  | $ | 2,150.7 |
epay | 848.3 |  |  | 1,173.3 |
Money Transfer | 1,728.0 |  |  | 1,795.8 |
Corporate Services, Eliminations and Other | 250.9 |  |  | 283.8 |
Total | $ | 5,221.0 |  |  | $ | 5,403.6 |
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.
|  | Revenues for the Three Months Ended June 30, 2023 |  | Revenues for the Six Months Ended June 30, 2023
(in millions) |  | EFT Processing |  | epay |  | Money Transfer |  | Total |  |  | EFT Processing |  |  |  | epay |  |  |  | Money Transfer |  |  |  | Total |
Europe |  | $ | 223.7 |  |  | $ | 172.4 |  |  | $ | 166.1 |  |  | $ | 562.2 |  |  | $ | 358.6 |  |  | $ | 327.3 |  |  | $ | 315.3 |  |  | $ | 1,001.2 |
North America |  | 17.3 |  |  | 44.6 |  |  | 186.9 |  |  | 248.8 |  |  |  | 35.3 |  |  |  | 80.4 |  |  |  | 349.6 |  |  |  | 465.3 |
Asia Pacific |  | 40.3 |  |  | 38.1 |  |  | 28.8 |  |  | 107.2 |  |  |  | 76.0 |  |  |  | 57.8 |  |  |  | 50.9 |  |  |  | 184.7 |
Other |  | 1.1 |  |  | 8.7 |  |  | 13.0 |  |  | 22.8 |  |  |  | 4.7 |  |  |  | 35.7 |  |  |  | 38.4 |  |  |  | 78.8 |
Eliminations |  | — |  |  | — |  |  | — |  |  | (1.9 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (3.7 | )
Total |  | $ | 282.4 |  |  | $ | 263.8 |  |  | $ | 394.8 |  |  | $ | 939.1 |  |  | $ | 474.6 |  |  | $ | 501.2 |  |  | $ | 754.2 |  |  | $ | 1,726.3 |
|  | Revenues for the Three Months Ended June 30, 2022 |  | Revenues for the Six Months Ended June 30, 2022
(in millions) |  | EFT Processing |  | epay |  | Money Transfer |  | Total |  |  | EFT Processing |  |  |  | epay |  |  |  | Money Transfer |  |  |  | Total |
Europe |  | $ | 199.3 |  |  | $ | 140.3 |  |  | $ | 148.6 |  |  | $ | 488.2 |  |  | $ | 296.5 |  |  | $ | 290.6 |  |  | $ | 288.7 |  |  | $ | 875.8 |
North America |  | 16.6 |  |  | 33.0 |  |  | 179.7 |  |  | 229.3 |  |  |  | 33.8 |  |  |  | 65.6 |  |  |  | 338.4 |  |  |  | 437.8 |
Asia Pacific |  | 32.3 |  |  | 41.0 |  |  | 27.1 |  |  | 100.4 |  |  |  | 62.7 |  |  |  | 81.8 |  |  |  | 53.7 |  |  |  | 198.2 |
Other |  | 0.8 |  |  | 13.4 |  |  | 13.1 |  |  | 27.3 |  |  |  | 1.6 |  |  |  | 25.5 |  |  |  | 26.7 |  |  |  | 53.8 |
Eliminations |  | — |  |  | — |  |  | — |  |  | (1.9) |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (3.8 | )
Total |  | $ | 249.0 |  |  | $ | 227.7 |  |  | $ | 368.5 |  |  | $ | 843.3 |  |  | $ | 394.6 |  |  | $ | 463.5 |  |  | $ | 707.5 |  |  | $ | 1,561.8 |

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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