Segment Information

3 Months Ended

Mar. 31, 2020

Segment Information [Abstract]

SEGMENT INFORMATION

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 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.

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 months ended March 31, 2020 and 2019:

	For the Three Months Ended March 31, 2020
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	145,825	$	172,911	$	266,234	$	(1,063	)	$	583,907
Operating expenses:
Direct operating costs	87,536		130,074		142,909		(1,063		)	359,456
Salaries and benefits	22,091		15,697		53,864		9,588			101,240
Selling, general and administrative	10,941		8,838		38,582		2,432			60,793
Depreciation and amortization	20,322		1,844		8,571		79			30,816
Total operating expenses	140,890		156,453		243,926		11,036			552,305
Operating income (expense)	$	4,935	$	16,458	$	22,308	$	(12,099	)	$	31,602

	For the Three Months Ended March 31, 2019
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	145,703	$	176,114	$	256,581	$	(889	)	$	577,509
Operating expenses:
Direct operating costs	83,776		133,525		137,404		(872		)	353,833
Salaries and benefits	19,431		14,753		51,156		7,455			92,795
Selling, general and administrative	9,086		8,052		29,109		1,900			48,147
Depreciation and amortization	16,642		1,785		8,138		75			26,640
Total operating expenses	128,935		158,115		225,807		8,558			521,415
Operating income (expense)	$	16,768	$	17,999	$	30,774	$	(9,447	)	$	56,094

The following table presents the Company’s total assets by reportable segment:

	Total Assets as of
(in thousands)	March 31, 2020		December 31, 2019
EFT Processing	$	1,755,395	$	1,914,144
epay	763,636		962,671
Money Transfer	1,406,116		1,560,136
Corporate Services, Eliminations and Other	259,238		220,715
Total	$	4,184,385	$	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 March 31, 2020
(in thousands)	EFT Processing		epay		Money Transfer		Total
Europe	$	99,474	$	115,277	$	91,058	$	305,809
North America	15,019		33,852		137,895		186,766
Asia Pacific	31,328		19,274		30,848		81,450
Other	4		4,508		6,433		10,945
Eliminations	—		—		—		(1,063		)
Total	$	145,825	$	172,911	$	266,234	$	583,907

	For the Three Months Ended March 31, 2019
(in thousands)	EFT Processing		epay		Money Transfer		Total
Europe	$	107,611	$	114,906	$	85,559	$	308,076
North America	8,205		39,664		134,832		182,701
Asia Pacific	29,877		17,374		30,713		77,964
Other	10		4,170		5,477		9,657
Eliminations	—		—		—		(889		)
Total	$	145,703	$	176,114	$	256,581	$	577,509