Business 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:

Through the EFT Processing Segment, the Company processes transactions for a network of ATMs and POS terminals across Europe, the Middle East and Asia Pacific. 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 surcharge 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.

Through the Money Transfer Segment, the Company provides global money transfer services under the brand names, Ria, IME, HiFX, and xe. Ria 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. HiFX and xe offer 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. The Company provides cash management solutions and foreign currency risk management services to small-to-medium sized businesses under the brand name HiFM.

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 years ended December 31, 2018, 2017 and 2016:



	For the Year Ended December 31, 2018
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	753,651	$	743,784	$	1,042,962	$	(3,768	)	$	2,536,629
Operating expenses:
Direct operating costs	366,977		564,252		560,930		(3,753		)	1,488,406
Salaries and benefits	75,791		57,748		194,808		32,085			360,432
Selling, general and administrative	46,925		35,749		125,647		8,486			216,807
Acquired intangible assets impairment	—		—		7,049		—			7,049
Depreciation and amortization	66,713		7,038		32,002		268			106,021
Total operating expenses	556,406		664,787		920,436		37,086			2,178,715
Operating income (expense)	$	197,245	$	78,997	$	122,526	$	(40,854	)	$	357,914
Other income (expense)
Interest income										1,320
Interest expense										(37,573		)
Loss from unconsolidated affiliates										(117		)
Foreign currency exchange loss, net										(26,655		)
Other gains, net										27
Total other expense, net										(62,998		)
Income before income taxes										$	294,916
Segment assets as of December 31, 2018	$	1,220,141	$	780,220	$	1,310,775	$	10,019		$	3,321,155
Property and equipment, net as of December 31, 2018	$	215,106	$	31,172	$	45,517	$	74		$	291,869



	For the Year Ended December 31, 2017
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	634,559	$	733,998	$	886,858	$	(2,993	)	$	2,252,422
Operating expenses:
Direct operating costs	318,875		564,032		476,322		(2,979		)	1,356,250
Salaries and benefits	61,683		54,459		168,371		26,274			310,787
Selling, general and administrative	33,158		36,014		108,022		13,108			190,302
Goodwill and acquired intangible assets impairment	2,286		31,770		—		—			34,056
Depreciation and amortization	55,660		9,622		29,598		150			95,030
Total operating expenses	471,662		695,897		782,313		36,553			1,986,425
Operating income (expense)	$	162,897	$	38,101	$	104,545	$	(39,546	)	$	265,997
Other income (expense)
Interest income										2,443
Interest expense										(32,571		)
Income from unconsolidated affiliates										48
Foreign currency exchange gain, net										20,300
Other gains, net										118
Total other expense, net										(9,662		)
Income before income taxes										$	256,335
Segment assets as of December 31, 2017	$	1,040,135	$	695,990	$	1,255,765	$	148,139		$	3,140,029
Property and equipment, net as of December 31, 2017	$	196,451	$	28,135	$	43,564	$	153		$	268,303



	For the Year Ended December 31, 2016
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	464,254	$	693,986	$	801,919	$	(1,544	)	$	1,958,615
Operating expenses:
Direct operating costs	224,793		528,774		422,508		(1,530		)	1,174,545
Salaries and benefits	51,822		51,378		155,471		29,749			288,420
Selling, general and administrative	30,399		34,517		93,219		7,213			165,348
Depreciation and amortization	40,084		11,075		29,195		175			80,529
Total operating expenses	347,098		625,744		700,393		35,607			1,708,842
Operating income (expense)	$	117,156	$	68,242	$	101,526	$	(37,151	)	$	249,773
Other income (expense)
Interest income										1,696
Interest expense										(28,332		)
Foreign currency exchange loss, net										(10,200		)
Other gains, net										19,956
Total other expense, net										(16,880		)
Income before income taxes										$	232,893
Segment assets as of December 31, 2016	$	786,166	$	733,514	$	1,136,722	$	56,470		$	2,712,872
Property and equipment, net as of December 31, 2016	$	139,161	$	23,939	$	38,954	$	91		$	202,145

Total revenues for the years ended December 31, 2018, 2017 and 2016, and property and equipment and total assets as of December 31, 2018 and 2017, summarized by geographic location, were as follows:



	Revenues						Property and Equipment, net				Total Assets
	For the year ended December 31,						as of December 31,				as of December 31,
(in thousands)	2018		2017		2016		2018		2017		2018		2017
United States	$	721,977	$	572,383	$	548,877	$	29,499	$	28,465	$	493,428	$	592,187
Germany	476,122		495,778		409,590		25,302		20,668		508,062		435,687
Spain	155,619		115,473		82,921		39,238		29,881		198,082		152,841
United Kingdom	133,132		136,977		131,826		20,525		20,104		519,918		532,421
Poland	126,513		128,672		115,269		50,359		61,636		155,821		176,766
Italy	103,691		89,276		72,591		15,238		12,078		157,314		123,218
India	92,468		82,389		75,243		19,554		13,090		89,923		82,513
Malaysia	76,380		56,287		53,787		2,802		3,161		103,043		124,522
France	75,466		56,027		43,247		1,037		1,104		76,687		65,366
Greece	71,007		71,197		44,361		11,267		10,012		58,419		62,552
Australia	58,039		77,777		77,198		2,051		2,704		61,215		76,370
New Zealand	48,881		47,091		40,890		2,718		2,574		196,869		185,459
Other	397,334		323,095		262,815		72,279		62,826		702,374		530,127
Total foreign	1,814,652		1,680,039		1,409,738		262,370		239,838		2,827,727		2,547,842
Total	$	2,536,629	$	2,252,422	$	1,958,615	$	291,869	$	268,303	$	3,321,155	$	3,140,029

Revenues are attributed to countries based on location of the customer, with the exception of software sales made by the Company's software subsidiary, which are attributed to the U.S.