(Mark One) | |
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended: December 31, 2018 | |
OR | |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
DELAWARE | 74-2806888 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
3500 COLLEGE BOULEVARD LEAWOOD, KANSAS | 66211 |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered |
Common Stock, $0.02 par value | The Nasdaq Stock Market, LLC |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | |
Smaller reporting company o | Emerging growth company o | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
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(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 |
EFT Processing transactions per year | 1,262 | 1,523 | 1,885 | 2,352 | 2,721 |
• | Cash withdrawals; |
• | Cash deposits; |
• | Balance inquiries; |
• | Transactions not completed because the relevant card issuer does not give authorization; |
• | Dynamic currency conversion; and |
• | Prepaid telecommunication recharges and other electronic content. |
• | Directly online from the content provider using an online payment method; or |
• | Through physical retail stores, online retailers or other electronic channels, including payment wallets, online banking, mobile applications and other sources. |
• | Through “postpaid” accounts, where usage is billed at the end of each billing period; or |
• | Through “prepaid” accounts, where customers pay in advance by crediting their accounts prior to usage. |
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 |
epay processing transactions per year | 1,244 | 1,335 | 1,294 | 1,186 | 1,149 |
(in millions) | 2014 | 2015 | 2016 | 2017 | 2018 |
Money transfer transactions per year | 48.5 | 68.7 | 82.3 | 92.2 | 107.6 |
Name | Age | Served Since | Position Held |
Michael J. Brown | 62 | July 1994 | Chairman, Chief Executive Officer and President |
Rick L. Weller | 61 | November 2002 | Executive Vice President - Chief Financial Officer |
Jeffrey B. Newman | 64 | December 1996 | Executive Vice President - General Counsel |
Kevin J. Caponecchi | 52 | July 2007 | Executive Vice President - Chief Executive Officer, epay, Software and EFT Asia Pacific Division |
Juan C. Bianchi | 48 | April 2007 | Executive Vice President - Chief Executive Officer, Money Transfer Segment |
Nikos Fountas | 55 | September 2009 | Executive Vice President - Chief Executive Officer, EFT Europe, Middle East and Africa Division |
Martin L. Bruckner | 43 | January 2014 | Senior Vice President - Chief Technology Officer |
• | The integration plans for our acquisitions are based on benefits that involve assumptions as to future events, including our ability to successfully achieve anticipated synergies, leveraging our existing relationships, as well as general business and industry conditions, many of which are beyond our control and may not materialize. Unforeseen factors may offset components of our integration plans in whole or in part. As a result, our actual results may vary considerably, or be considerably delayed, compared to our estimates; |
• | The integration process could disrupt the activities of the businesses that are being combined. The combination of companies requires, among other things, coordination of administrative and other functions. In addition, the loss of key employees, customers or vendors of acquired businesses could materially and adversely impact the integration of the acquired businesses; |
• | The execution of our integration plans may divert the attention of our management from other key responsibilities; |
• | We may assume unanticipated liabilities and contingencies; or |
• | Our acquisition targets could fail to perform in accordance with our expectations at the time of purchase. |
• | our ability to obtain any necessary financing in the future for working capital, capital expenditures, debt service requirements or other purposes may be limited or financing may be unavailable; |
• | a portion of our cash flows must be dedicated to the payment of principal and interest on our indebtedness and other obligations and will not be available for use in our business; |
• | our level of indebtedness could limit our flexibility in planning for, or reacting to, changes in our business and the markets in which we operate; |
• | our level of indebtedness will make us more vulnerable to changes in general economic conditions and/or a downturn in our business, thereby making it more difficult for us to satisfy our obligations; and |
• | because a portion of our debt bears interest at a variable rate of interest, our actual debt service obligations could increase as a result of adverse changes in interest rates. |
• | preferred stock that could be issued by our board of directors to make it more difficult for a third party to acquire, or to discourage a third party from acquiring, a majority of our outstanding voting stock; |
• | classification of our directors into three classes with respect to the time for which they hold office; |
• | supermajority voting requirements to amend the provision in our certificate of incorporation providing for the classification of our directors into three such classes; |
• | non-cumulative voting for directors; |
• | control by our board of directors of the size of our board of directors; |
• | limitations on the ability of stockholders to call special meetings of stockholders; and |
• | advance notice requirements for nominations of candidates for election to our board of directors or for proposing matters that can be acted upon by our stockholders at stockholder meetings. |
• | the acceptance of our ATM processing and management services in our target markets; |
• | the maintenance of the level of transaction fees we receive; |
• | the continued use of our ATMs by credit and debit cardholders; and |
• | our ability to generate revenues from interchange fees and from other value added services, including dynamic currency conversion. |
(a) | (b) | (c) | ||||||||
Plan category | Number of Securities to be Issued Upon Exercise of Outstanding Options and Rights | Weighted Average Exercise Price of Outstanding Options and Rights (1) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))(2) | |||||||
Equity compensation plans approved by security holders: | 3,391,373 | |||||||||
Stock option awards | 2,562,570 | $ | 57.10 | |||||||
Restricted stock unit awards | 371,841 | — | ||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||
Total | 2,934,411 | $ | 57.10 | 3,391,373 |
(1) | The weighted average exercise price in this column does not take into account the restricted stock unit awards. |
(2) | Included in this column is 0.3 million shares remaining under our employee stock purchase plan. During 2018, Euronet issued 21,872 shares to employees under the employee stock purchase plan. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Programs (in thousands) (1) | ||||||||||
October 1 - October 31, 2018 | — | $ | — | — | $ | 200,000 | ||||||||
November 1 - November 30, 2018 | — | — | — | 200,000 | ||||||||||
December 1 - December 31, 2018 | — | — | — | 200,000 | ||||||||||
Total | — | $ | — | — |
Year Ended December 31, | ||||||||||||||||||||
(dollar amounts in thousands, except per share amounts) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Income statement data: | ||||||||||||||||||||
Revenues | $ | 2,536,629 | $ | 2,252,422 | $ | 1,958,615 | $ | 1,772,262 | $ | 1,664,150 | ||||||||||
Operating expenses (1) | 2,072,694 | 1,891,395 | 1,628,313 | 1,497,396 | 1,433,964 | |||||||||||||||
Depreciation and amortization | 106,021 | 95,030 | 80,529 | 70,025 | 71,455 | |||||||||||||||
Operating income (1) | 357,914 | 265,997 | 249,773 | 204,841 | 158,731 | |||||||||||||||
Other expenses, net | (62,998 | ) | (9,662 | ) | (16,880 | ) | (63,747 | ) | (17,228 | ) | ||||||||||
Income from continuing operations before income taxes | 294,916 | 256,335 | 232,893 | 141,094 | 141,503 | |||||||||||||||
Income tax expense | (62,785 | ) | (99,395 | ) | (58,795 | ) | (42,602 | ) | (40,015 | ) | ||||||||||
Income from continuing operations | $ | 232,131 | $ | 156,940 | $ | 174,098 | $ | 98,492 | $ | 101,488 | ||||||||||
Earnings per share from continuing operations: | ||||||||||||||||||||
Basic | $ | 4.52 | $ | 2.99 | $ | 3.34 | $ | 1.89 | $ | 1.96 | ||||||||||
Diluted | $ | 4.26 | $ | 2.85 | $ | 3.23 | $ | 1.83 | $ | 1.89 | ||||||||||
Balance sheet data (at period end): | ||||||||||||||||||||
Assets | $ | 3,321,155 | $ | 3,140,029 | $ | 2,712,872 | $ | 2,192,714 | $ | 2,038,447 | ||||||||||
Debt obligations, long-term portion | 589,782 | 404,012 | 561,663 | 405,472 | 397,256 | |||||||||||||||
Capital lease obligations, long-term portion | 8,199 | 9,753 | 6,969 | 4,147 | 2,148 | |||||||||||||||
Summary network data | ||||||||||||||||||||
Number of operational ATMs at end of period | 40,354 | 37,133 | 33,973 | 21,360 | 20,364 | |||||||||||||||
EFT processing transactions during the period (millions) | 2,721 | 2,352 | 1,885 | 1,523 | 1,262 | |||||||||||||||
Number of operational prepaid processing POS terminals at end of period (rounded) | 719,000 | 683,000 | 661,000 | 674,000 | 681,000 | |||||||||||||||
Prepaid processing transactions during the period (millions) | 1,149 | 1,186 | 1,294 | 1,335 | 1,244 | |||||||||||||||
Money transfer transactions during the period (millions) | 107.6 | 92.2 | 82.3 | 68.7 | 48.5 |
(1) | The results of 2018 and 2017 include non-cash charges related to impairment of goodwill and acquired intangible assets of $7.0 million and $34.1 million, respectively. |
• | The EFT Processing Segment, which processes transactions for a network of 40,354 ATMs and approximately 293,000 POS terminals across Europe, the Middle East, Asia Pacific, and the United States. We provide comprehensive electronic payment solutions consisting of ATM cash withdrawal and deposit services, ATM network participation, outsourced ATM and POS management solutions, credit and debit card outsourcing, DCC, 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. |
• | The epay Segment, which provides distribution, processing and collection services for prepaid mobile airtime and other electronic content. We operate a network of approximately 719,000 POS terminals providing electronic processing of prepaid mobile airtime top-up services and other electronic content in Europe, the Middle East, Asia Pacific, the United States and South America. We also provide vouchers and physical gift fulfillment services in Europe. |
• | The Money Transfer Segment, which provides global consumer-to-consumer money transfer services, primarily under the brand names Ria, IME and xe and global account-to-account money transfer services under the brand names xe and HiFX. We offer services under the brand names Ria and IME through a network of sending agents, Company-owned stores (primarily in North America, Europe and Malaysia) and our websites (riamoneytransfer.com and online.imeremit.com), disbursing money transfers through a worldwide correspondent network that includes approximately 369,000 locations. xe is a provider of foreign currency exchange information and offers money transfer services on its currency data websites (xe.com and x-rates.com). We offer services under the brand name xe through our websites (www.xe.com and https://transfer.xe.com) and through our xe and HiFX customer service representatives. In addition to money transfers, we also offer 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. Through our HiFM brand, we offer cash management solutions and foreign currency risk management services to small-to-medium sized businesses. |
• | increasing the number of ATMs and cash deposit terminals in our independent ATM networks; |
• | increasing transactions processed on our network of owned and operated ATMs and POS devices; |
• | signing new outsourced ATM and POS terminal management contracts; |
• | expanding value added services and other products offered by our EFT Processing Segment, including the sale of DCC, acquiring and other prepaid card services to banks and retailers; |
• | expanding our epay processing network and portfolio of digital content; |
• | expanding our money transfer services, cross-currency payments products and bill payment network; |
• | expanding our cash management solutions and foreign currency risk management services; and |
• | developing our credit and debit card outsourcing business. |
• | the impact of competition by banks and other ATM operators and service providers in our current target markets; |
• | the demand for our ATM outsourcing services in our current target markets; |
• | our ability to develop products or services, including value added services, to drive increases in transactions and revenues; |
• | the expansion of our various business lines in markets where we operate and in new markets; |
• | our entry into additional card acceptance and ATM management agreements with banks; |
• | our ability to obtain required licenses in markets we intend to enter or expand services; |
• | our ability to enter into and renew ATM network cash supply agreements with financial institutions; |
• | the availability of financing for expansion; |
• | our ability to efficiently install ATMs contracted under newly awarded outsourcing agreements; |
• | our ability to renew existing contracts at profitable rates; |
• | our ability to maintain pricing at current levels or mitigate price reductions in certain markets; |
• | the impact of changes in rules imposed by international card organizations such as Visa and Mastercard on card transactions on ATMs, including reductions in ATM interchange fees, restrictions on the ability to apply direct access fees, the ability to offer DCC transactions on ATMs, and increases in fees charged on DCC transactions; |
• | the impact of changes in laws and regulations affecting the profitability of our services, including regulation of DCC transactions by the E.U.; |
• | our ability to expand and sign additional customers for the cross-border merchant processing and acquiring business; and |
• | the continued development and implementation of our software products and their ability to interact with other leading products. |
• | our ability to maintain and renew existing agreements, and to negotiate new agreements in additional markets with mobile operators, digital content providers, agent financial institutions and retailers; |
• | our ability to use existing expertise and relationships with mobile operators, digital content providers and retailers to our advantage; |
• | the continued use of third-party providers such as ourselves to supply electronic processing solutions for existing and additional digital content; |
• | the development of mobile phone networks in the markets in which we do business and the increase in the number of mobile phone users; |
• | the overall pace of growth in the prepaid mobile phone and digital content market, including consumer shifts between prepaid and postpaid services; |
• | our market share of the retail distribution capacity; |
• | the development of new technologies that may compete with POS distribution of prepaid mobile airtime and other products; |
• | the level of commission that is paid to the various intermediaries in the electronic payment distribution chain; |
• | our ability to fully recover monies collected by retailers; |
• | our ability to add new and differentiated products in addition to those offered by mobile operators; |
• | our ability to develop and effectively market additional value added services; |
• | our ability to take advantage of cross-selling opportunities with our EFT Processing and Money Transfer Segments, including providing money transfer services through our distribution network; and |
• | the availability of financing for further expansion. |
• | the continued growth in worker migration and employment opportunities; |
• | the mitigation of economic and political factors that have had an adverse impact on money transfer volumes, such as changes in the economic sectors in which immigrants work and the developments in immigration policies in the countries in which we operate; |
• | the continuation of the trend of increased use of electronic money transfer and bill payment services among high-income individuals, immigrant workers and the unbanked population in our markets; |
• | our ability to maintain our agent and correspondent networks; |
• | our ability to offer our products and services or develop new products and services at competitive prices to drive increases in transactions; |
• | the development of new technologies that may compete with our money transfer network, and our ability to acquire, develop and implement new technologies; |
• | the expansion of our services in markets where we operate and in new markets; |
• | our ability to strengthen our brands; |
• | our ability to fund working capital requirements; |
• | our ability to recover from agents funds collected from customers and our ability to recover advances made to correspondents; |
• | our ability to maintain compliance with the regulatory requirements of the jurisdictions in which we operate or plan to operate; |
• | our ability to take advantage of cross-selling opportunities with our epay Segment, including providing prepaid services through our stores and agents worldwide; |
• | our ability to leverage our banking and merchant/retailer relationships to expand money transfer corridors to Europe, Asia and Africa, including high growth corridors to Central and Eastern European countries; |
• | the availability of financing for further expansion; |
• | the ability to maintain banking relationships necessary for us to service our customers; |
• | our ability to successfully expand our agent network in Europe using our payment institution licenses under the Second Payment Services Directive ("PSD2") and using our various licenses in the United States; |
• | our ability to provide additional value-added products under the xe brand; and, |
• | the considerations regarding the use of our various trade names within the money transfer business. |
Revenues | Operating Income (Expense) | |||||||||||||||||||||||
(in thousands) | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
EFT Processing | $ | 753,651 | $ | 634,559 | $ | 464,254 | $ | 197,245 | $ | 162,897 | $ | 117,156 | ||||||||||||
epay | 743,784 | 733,998 | 693,986 | 78,997 | 38,101 | 68,242 | ||||||||||||||||||
Money Transfer | 1,042,962 | 886,858 | 801,919 | 122,526 | 104,545 | 101,526 | ||||||||||||||||||
Total | 2,540,397 | 2,255,415 | 1,960,159 | 398,768 | 305,543 | 286,924 | ||||||||||||||||||
Corporate services, eliminations and other | (3,768 | ) | (2,993 | ) | (1,544 | ) | (40,854 | ) | (39,546 | ) | (37,151 | ) | ||||||||||||
Total | $ | 2,536,629 | $ | 2,252,422 | $ | 1,958,615 | $ | 357,914 | $ | 265,997 | $ | 249,773 |
Average Translation Rate Year Ended December 31, | 2018 Increase (Decrease) Percent | 2017 Increase (Decrease) Percent | ||||||||||||||||
Currency | 2018 | 2017 | 2016 | |||||||||||||||
Australian dollar | $ | 0.7476 | $ | 0.7668 | $ | 0.7435 | (3 | )% | 3 | % | ||||||||
British pound | $ | 1.3352 | $ | 1.2886 | $ | 1.3555 | 4 | % | (5 | )% | ||||||||
euro | $ | 1.1809 | $ | 1.1297 | $ | 1.1067 | 5 | % | 2 | % | ||||||||
Hungarian forint | $ | 0.0037 | $ | 0.0037 | $ | 0.0036 | — | % | 3 | % | ||||||||
Indian rupee | $ | 0.0147 | $ | 0.0154 | $ | 0.0149 | (5 | )% | 3 | % | ||||||||
Malaysian ringgit | $ | 0.2482 | $ | 0.2328 | $ | 0.2418 | 7 | % | (4 | )% | ||||||||
New Zealand dollar | $ | 0.6924 | $ | 0.7108 | $ | 0.6968 | (3 | )% | 2 | % | ||||||||
Polish zloty | $ | 0.2774 | $ | 0.2656 | $ | 0.2538 | 4 | % | 5 | % |
Year Ended December 31, | Year-over-Year Change | ||||||||||||||
(dollar amounts in thousands) | 2018 | 2017 | Increase (Decrease) Amount | Increase Percent | |||||||||||
Total revenues | $ | 753,651 | $ | 634,559 | $ | 119,092 | 19 | % | |||||||
Operating expenses: | |||||||||||||||
Direct operating costs | 366,977 | 318,875 | 48,102 | 15 | % | ||||||||||
Salaries and benefits | 75,791 | 61,683 | 14,108 | 23 | % | ||||||||||
Selling, general and administrative | 46,925 | 33,158 | 13,767 | 42 | % | ||||||||||
Acquired intangible assets impairment | — | 2,286 | (2,286 | ) | n/m | ||||||||||
Depreciation and amortization | 66,713 | 55,660 | 11,053 | 20 | % | ||||||||||
Total operating expenses | 556,406 | 471,662 | 84,744 | 18 | % | ||||||||||
Operating income | $ | 197,245 | $ | 162,897 | $ | 34,348 | 21 | % | |||||||
Transactions processed (millions) | 2,721 | 2,352 | 369 | 16 | % | ||||||||||
ATMs as of December 31 | 40,354 | 37,133 | 3,221 | 9 | % | ||||||||||
Average ATMs | 40,094 | 36,658 | 3,436 | 9 | % |
Year Ended December 31, | Year-over-Year Change | |||||||||||||||
(dollar amounts in thousands) | 2017 | 2016 | Increase Amount | Increase Percent | ||||||||||||
Total revenues | $ | 634,559 | $ | 464,254 | $ | 170,305 | 37 | % | ||||||||
Operating expenses: | ||||||||||||||||
Direct operating costs | 318,875 | 224,793 | 94,082 | 42 | % | |||||||||||
Salaries and benefits | 61,683 | 51,822 | 9,861 | 19 | % | |||||||||||
Selling, general and administrative | 33,158 | 30,399 | 2,759 | 9 | % | |||||||||||
Acquired intangible assets impairment | 2,286 | — | 2,286 | n/m | ||||||||||||
Depreciation and amortization | 55,660 | 40,084 | 15,576 | 39 | % | |||||||||||
Total operating expenses | 471,662 | 347,098 | 124,564 | 36 | % | |||||||||||
Operating income | $ | 162,897 | $ | 117,156 | $ | 45,741 | 39 | % | ||||||||
Transactions processed (millions) | 2,352 | 1,885 | 467 | 25 | % | |||||||||||
ATMs as of December 31 | 37,133 | 33,973 | 3,160 | 9 | % | |||||||||||
Average ATMs | 36,658 | 27,795 | 8,863 | 32 | % |
Year Ended December 31, | Year-over-Year Change | ||||||||||||||
Increase (Decrease) Amount | Increase (Decrease) Percent | ||||||||||||||
(dollar amounts in thousands) | 2018 | 2017 | |||||||||||||
Total revenues | $ | 743,784 | $ | 733,998 | $ | 9,786 | 1 | % | |||||||
Operating expenses: | |||||||||||||||
Direct operating costs | 564,252 | 564,032 | 220 | — | % | ||||||||||
Salaries and benefits | 57,748 | 54,459 | 3,289 | 6 | % | ||||||||||
Selling, general and administrative | 35,749 | 36,014 | (265 | ) | (1 | )% | |||||||||
Goodwill impairment | — | 31,770 | (31,770 | ) | n/m | ||||||||||
Depreciation and amortization | 7,038 | 9,622 | (2,584 | ) | (27 | )% | |||||||||
Total operating expenses | 664,787 | 695,897 | (31,110 | ) | (4 | )% | |||||||||
Operating income | $ | 78,997 | $ | 38,101 | $ | 40,896 | 107 | % | |||||||
Transactions processed (millions) | 1,149 | 1,186 | (37 | ) | (3 | )% |
Year Ended December 31, | Year-over-Year Change | ||||||||||||||
(dollar amounts in thousands) | 2017 | 2016 | Increase (Decrease) Amount | Increase (Decrease) Percent | |||||||||||
Total revenues | $ | 733,998 | $ | 693,986 | $ | 40,012 | 6 | % | |||||||
Operating expenses: | |||||||||||||||
Direct operating costs | 564,032 | 528,774 | 35,258 | 7 | % | ||||||||||
Salaries and benefits | 54,459 | 51,378 | 3,081 | 6 | % | ||||||||||
Selling, general and administrative | 36,014 | 34,517 | 1,497 | 4 | % | ||||||||||
Goodwill impairment | 31,770 | — | 31,770 | n/m | |||||||||||
Depreciation and amortization | 9,622 | 11,075 | (1,453 | ) | (13 | )% | |||||||||
Total operating expenses | 695,897 | 625,744 | 70,153 | 11 | % | ||||||||||
Operating income | $ | 38,101 | $ | 68,242 | $ | (30,141 | ) | (44 | )% | ||||||
Transactions processed (millions) | 1,186 | 1,294 | (108 | ) | (8 | )% |
Year Ended December 31, | Year-over-Year Change | ||||||||||||||
(dollar amounts in thousands) | 2018 | 2017 | Increase Amount | Increase Percent | |||||||||||
Total revenues | $ | 1,042,962 | $ | 886,858 | $ | 156,104 | 18 | % | |||||||
Operating expenses: | |||||||||||||||
Direct operating costs | 560,930 | 476,322 | 84,608 | 18 | % | ||||||||||
Salaries and benefits | 194,808 | 168,371 | 26,437 | 16 | % | ||||||||||
Selling, general and administrative | 125,647 | 108,022 | 17,625 | 16 | % | ||||||||||
Acquired intangible assets impairment | 7,049 | — | 7,049 | n/m | |||||||||||
Depreciation and amortization | 32,002 | 29,598 | 2,404 | 8 | % | ||||||||||
Total operating expenses | 920,436 | 782,313 | 138,123 | 18 | % | ||||||||||
Operating income | $ | 122,526 | $ | 104,545 | $ | 17,981 | 17 | % | |||||||
Transactions processed (millions) | 107.6 | 92.2 | 15.4 | 17 | % |
Year Ended December 31, | Year-over-Year Change | ||||||||||||||
(dollar amounts in thousands) | 2017 | 2016 | Increase Amount | Increase Percent | |||||||||||
Total revenues | $ | 886,858 | $ | 801,919 | $ | 84,939 | 11 | % | |||||||
Operating expenses: | |||||||||||||||
Direct operating costs | 476,322 | 422,508 | 53,814 | 13 | % | ||||||||||
Salaries and benefits | 168,371 | 155,471 | 12,900 | 8 | % | ||||||||||
Selling, general and administrative | 108,022 | 93,219 | 14,803 | 16 | % | ||||||||||
Depreciation and amortization | 29,598 | 29,195 | 403 | 1 | % | ||||||||||
Total operating expenses | 782,313 | 700,393 | 81,920 | 12 | % | ||||||||||
Operating income | $ | 104,545 | $ | 101,526 | $ | 3,019 | 3 | % | |||||||
Transactions processed (millions) | 92.2 | 82.3 | 9.9 | 12 | % |
Year Ended December 31, | Year-over-Year Change | |||||||||||||||||
(dollar amounts in thousands) | 2018 | 2017 | 2016 | 2018 Increase (Decrease) Percent | 2017 (Decrease) Increase Percent | |||||||||||||
Salaries and benefits | $ | 32,085 | $ | 26,274 | $ | 29,749 | 22 | % | (12 | )% | ||||||||
Selling, general and administrative | 8,501 | 13,122 | 7,227 | (35 | )% | 82 | % | |||||||||||
Depreciation and amortization | 268 | 150 | 175 | 79 | % | (14 | )% | |||||||||||
Total operating expenses | $ | 40,854 | $ | 39,546 | $ | 37,151 | 3 | % | 6 | % |
Year Ended December 31, | Year-over-Year Change | |||||||||||||||||
(dollar amounts in thousands) | 2018 | 2017 | 2016 | 2018 (Decrease) Increase Percent | 2017 Increase (Decrease) Percent | |||||||||||||
Interest income | $ | 1,320 | $ | 2,443 | $ | 1,696 | (46 | )% | 44 | % | ||||||||
Interest expense | (37,573 | ) | (32,571 | ) | (28,332 | ) | 15 | % | 15 | % | ||||||||
(Loss) Income from unconsolidated affiliates | (117 | ) | 48 | — | n/m | n/m | ||||||||||||
Other gains, net | 27 | 118 | 19,956 | n/m | n/m | |||||||||||||
Foreign currency exchange (loss) gain, net | (26,655 | ) | 20,300 | (10,200 | ) | n/m | n/m | |||||||||||
Other expense, net | $ | (62,998 | ) | $ | (9,662 | ) | $ | (16,880 | ) | n/m | (43 | )% |
Year Ended December 31, | ||||||||||||
(dollar amounts in thousands) | 2018 | 2017 | 2016 | |||||||||
Income before income taxes | $ | 294,916 | $ | 256,335 | $ | 232,893 | ||||||
Income tax expense | (62,785 | ) | (99,395 | ) | (58,795 | ) | ||||||
Net income | $ | 232,131 | $ | 156,940 | $ | 174,098 | ||||||
Effective income tax rate | 21.3 | % | 38.8 | % | 25.2 | % | ||||||
Income before income taxes | $ | 294,916 | $ | 256,335 | $ | 232,893 | ||||||
Adjust: Goodwill and acquired intangible assets impairment | (7,049 | ) | (34,056 | ) | — | |||||||
Adjust: Other gains, net | 27 | 118 | 19,956 | |||||||||
Adjust: Foreign currency exchange (loss) gain, net | (26,655 | ) | 20,300 | (10,200 | ) | |||||||
Income before income taxes, as adjusted | $ | 328,593 | $ | 269,973 | $ | 223,137 | ||||||
Income tax expense | $ | (62,785 | ) | $ | (99,395 | ) | $ | (58,795 | ) | |||
Adjust: Income tax benefit (expense) attributable to 2017 U.S. tax reform | 12,262 | (41,597 | ) | — | ||||||||
Adjust: Income tax benefit attributable to acquired intangible assets impairment | 1,506 | 3,411 | — | |||||||||
Adjust: Income tax (expense) attributable to other gains, net | — | — | (3,903 | ) | ||||||||
Adjust: Income tax benefit (expense) attributable to foreign currency exchange (loss) gain, net | 8,743 | (2,750 | ) | 789 | ||||||||
Income tax expense, as adjusted | $ | (85,296 | ) | $ | (58,459 | ) | $ | (55,681 | ) | |||
Effective income tax rate, as adjusted | 26.0 | % | 21.7 | % | 25.0 | % |
Subsidiary | Percent Owned | Segment - Country | ||
Movilcarga | 95% | epay - Spain | ||
Euronet China | 85% | EFT - China | ||
Euronet Pakistan | 70% | EFT - Pakistan | ||
Euronet Infinitium Solutions | 65% | EFT - India |
Year Ended December 31, | ||||||||||||
Liquidity | 2018 | 2017 | 2016 | |||||||||
Cash and cash equivalents and restricted cash provided by (used in): | ||||||||||||
Operating activities | $ | 397,233 | $ | 286,276 | $ | 391,524 | ||||||
Investing activities | (132,283 | ) | (101,858 | ) | (136,313 | ) | ||||||
Financing activities | 2,024 | (161,149 | ) | 79,510 | ||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents and restricted cash | (36,540 | ) | 65,161 | (25,463 | ) | |||||||
Increase in cash and cash equivalents and restricted cash | $ | 230,434 | $ | 88,430 | $ | 309,258 |
Payments due by period | ||||||||||||||||||||
(in thousands) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Long-term debt obligations, including interest | $ | 636,573 | $ | 6,023 | $ | 630,550 | $ | — | $ | — | ||||||||||
Obligations under operating leases | 311,651 | 80,803 | 114,642 | 68,015 | 48,191 | |||||||||||||||
Obligations under capital leases | 14,977 | 6,150 | 7,823 | 1,004 | — | |||||||||||||||
Purchase obligations | 25,033 | 16,520 | 4,475 | 2,110 | 1,928 | |||||||||||||||
Total | $ | 988,234 | $ | 109,496 | $ | 757,490 | $ | 71,129 | $ | 50,119 |
• | our business plans and financing plans and requirements; |
• | trends affecting our business plans and financing plans and requirements; |
• | trends affecting our business; |
• | the adequacy of capital to meet our capital requirements and expansion plans; |
• | the assumptions underlying our business plans; |
• | our ability to repay indebtedness; |
• | our estimated capital expenditures; |
• | the potential outcome of loss contingencies; |
• | our expectations regarding the closing of any pending acquisitions; |
• | business strategy; |
• | government regulatory action; |
• | the expected effects of changes in laws or accounting standards; |
• | technological advances; and |
• | projected costs and revenues. |
Index to Consolidated Financial Statements | Page |
As of December 31, | |||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,054,357 | $ | 819,144 | |||
Restricted cash | 76,595 | 81,374 | |||||
Trade accounts receivable, net of allowances for doubtful accounts of $24,287 at December 31, 2018 and $20,958 at December 31, 2017 | 693,616 | 744,879 | |||||
Prepaid expenses and other current assets | 263,019 | 244,789 | |||||
Total current assets | 2,087,587 | 1,890,186 | |||||
Property and equipment, net of accumulated depreciation of $373,180 at December 31, 2018 and $340,128 at December 31, 2017 | 291,869 | 268,303 | |||||
Goodwill | 704,197 | 717,386 | |||||
Acquired intangible assets, net of accumulated amortization of $190,920 at December 31, 2018 and $179,142 at December 31, 2017 | 114,485 | 150,543 | |||||
Other assets, net of accumulated amortization of $50,821 at December 31, 2018 and $44,469 at December 31, 2017 | 123,017 | 113,611 | |||||
Total assets | $ | 3,321,155 | $ | 3,140,029 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 528,913 | $ | 494,841 | |||
Accrued expenses and other current liabilities | 706,554 | 759,789 | |||||
Current portion of capital lease obligations | 5,458 | 5,369 | |||||
Short-term debt obligations and current maturities of long-term debt obligations | 38,017 | 41,288 | |||||
Income taxes payable | 40,159 | 54,437 | |||||
Deferred revenue | 59,293 | 51,996 | |||||
Total current liabilities | 1,378,394 | 1,407,720 | |||||
Debt obligations, net of current portion | 589,782 | 404,012 | |||||
Capital lease obligations, net of current portion | 8,199 | 9,753 | |||||
Deferred income taxes | 57,145 | 54,969 | |||||
Other long-term liabilities | 54,793 | 64,097 | |||||
Total liabilities | 2,088,313 | 1,940,551 | |||||
Equity: | |||||||
Euronet Worldwide, Inc. stockholders’ equity: | |||||||
Preferred Stock, $0.02 par value. 10,000,000 shares authorized; none issued | — | — | |||||
Common Stock, $0.02 par value. 90,000,000 shares authorized; 59,897,309 issued at December 31, 2018 and 58,892,744 issued at December 31, 2017 | 1,198 | 1,178 | |||||
Additional paid-in capital | 1,104,264 | 1,072,005 | |||||
Treasury stock, at cost, 8,077,311 shares at December 31, 2018 and 6,084,586 shares at December 31, 2017 | (391,551 | ) | (217,161 | ) | |||
Retained earnings | 669,805 | 436,954 | |||||
Accumulated other comprehensive loss | (151,043 | ) | (94,458 | ) | |||
Total Euronet Worldwide, Inc. stockholders’ equity | 1,232,673 | 1,198,518 | |||||
Noncontrolling interests | 169 | 960 | |||||
Total equity | 1,232,842 | 1,199,478 | |||||
Total liabilities and equity | $ | 3,321,155 | $ | 3,140,029 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Revenues | $ | 2,536,629 | $ | 2,252,422 | $ | 1,958,615 | ||||||
Operating expenses: | ||||||||||||
Direct operating costs | 1,488,406 | 1,356,250 | 1,174,545 | |||||||||
Salaries and benefits | 360,432 | 310,787 | 288,420 | |||||||||
Selling, general and administrative | 216,807 | 190,302 | 165,348 | |||||||||
Goodwill and acquired intangible assets impairment | 7,049 | 34,056 | — | |||||||||
Depreciation and amortization | 106,021 | 95,030 | 80,529 | |||||||||
Total operating expenses | 2,178,715 | 1,986,425 | 1,708,842 | |||||||||
Operating income | 357,914 | 265,997 | 249,773 | |||||||||
Other income (expense): | ||||||||||||
Interest income | 1,320 | 2,443 | 1,696 | |||||||||
Interest expense | (37,573 | ) | (32,571 | ) | (28,332 | ) | ||||||
(Loss) Income from unconsolidated affiliates | (117 | ) | 48 | — | ||||||||
Foreign currency exchange (loss) gain, net | (26,655 | ) | 20,300 | (10,200 | ) | |||||||
Other gains, net | 27 | 118 | 19,956 | |||||||||
Other expense, net | (62,998 | ) | (9,662 | ) | (16,880 | ) | ||||||
Income before income taxes | 294,916 | 256,335 | 232,893 | |||||||||
Income tax expense | (62,785 | ) | (99,395 | ) | (58,795 | ) | ||||||
Net income | 232,131 | 156,940 | 174,098 | |||||||||
Less: Net loss (income) attributable to noncontrolling interests | 720 | (95 | ) | 317 | ||||||||
Net income attributable to Euronet Worldwide, Inc. | $ | 232,851 | $ | 156,845 | $ | 174,415 | ||||||
Earnings per share attributable to Euronet Worldwide, Inc. stockholders: | ||||||||||||
Basic | $ | 4.52 | $ | 2.99 | $ | 3.34 | ||||||
Diluted | $ | 4.26 | $ | 2.85 | $ | 3.23 | ||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 51,487,557 | 52,523,272 | 52,276,951 | |||||||||
Diluted | 54,627,747 | 55,116,327 | 54,001,079 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net income | $ | 232,131 | $ | 156,940 | $ | 174,098 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Translation adjustment | (56,656 | ) | 116,401 | (45,175 | ) | |||||||
Comprehensive income | 175,475 | 273,341 | 128,923 | |||||||||
Comprehensive (income) loss attributable to noncontrolling interests | 791 | (292 | ) | 358 | ||||||||
Comprehensive income attributable to Euronet Worldwide, Inc. | $ | 176,266 | $ | 273,049 | $ | 129,281 |
Number of Shares Outstanding | Common Stock | Additional Paid-in Capital | Treasury Stock | ||||||||||||
Balance as of December 31, 2015 | 53,031,802 | $ | 1,159 | $ | 1,023,254 | $ | (138,750 | ) | |||||||
Net income (loss) | |||||||||||||||
Other comprehensive loss | |||||||||||||||
Stock issued under employee stock plans | 421,170 | 9 | 7,426 | (1,143 | ) | ||||||||||
Share-based compensation | 14,983 | ||||||||||||||
Repurchase of shares | (1,149,571 | ) | (75,569 | ) | |||||||||||
Balance as of December 31, 2016 | 52,303,401 | 1,168 | 1,045,663 | (215,462 | ) | ||||||||||
Net income | |||||||||||||||
Other comprehensive income | |||||||||||||||
Stock issued under employee stock plans | 504,757 | 10 | 10,104 | (1,699 | ) | ||||||||||
Share-based compensation | 15,618 | ||||||||||||||
Other | 620 | ||||||||||||||
Balance as of December 31, 2017 | 52,808,158 | 1,178 | 1,072,005 | (217,161 | ) | ||||||||||
Net income (loss) | |||||||||||||||
Other comprehensive loss | |||||||||||||||
Stock issued under employee stock plans | 1,039,480 | 20 | 15,634 | 610 | |||||||||||
Share-based compensation | 16,764 | ||||||||||||||
Repurchase of shares | (2,032,599 | ) | (175,000 | ) | |||||||||||
Other | 4,959 | (139 | ) | ||||||||||||
Balance as of December 31, 2018 | 51,819,998 | $ | 1,198 | $ | 1,104,264 | $ | (391,551 | ) |
Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total | |||||||||||||
Balance as of December 31, 2015 | $ | 104,427 | $ | (165,528 | ) | $ | 1,366 | $ | 825,928 | |||||||
Net income (loss) | 174,415 | (317 | ) | 174,098 | ||||||||||||
Other comprehensive loss | (45,134 | ) | (41 | ) | (45,175 | ) | ||||||||||
Stock issued under employee stock plans | 6,292 | |||||||||||||||
Share-based compensation | 14,983 | |||||||||||||||
Repurchase of shares | (75,569 | ) | ||||||||||||||
Balance as of December 31, 2016 | 278,842 | (210,662 | ) | 1,008 | 900,557 | |||||||||||
Net income | 156,845 | 95 | 156,940 | |||||||||||||
Other comprehensive income | 116,204 | 197 | 116,401 | |||||||||||||
Stock issued under employee stock plans | 8,415 | |||||||||||||||
Share-based compensation | 15,618 | |||||||||||||||
Other | 1,267 | (340 | ) | 1,547 | ||||||||||||
Balance as of December 31, 2017 | 436,954 | (94,458 | ) | 960 | 1,199,478 | |||||||||||
Net income (loss) | 232,851 | (720 | ) | 232,131 | ||||||||||||
Other comprehensive loss | (56,585 | ) | (71 | ) | (56,656 | ) | ||||||||||
Stock issued under employee stock plans | 16,264 | |||||||||||||||
Share-based compensation | 16,764 | |||||||||||||||
Repurchase of shares | (175,000 | ) | ||||||||||||||
Other | (139 | ) | ||||||||||||||
Balance as of December 31, 2018 | $ | 669,805 | $ | (151,043 | ) | $ | 169 | $ | 1,232,842 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net income | $ | 232,131 | $ | 156,940 | $ | 174,098 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 106,021 | 95,030 | 80,529 | ||||||||
Share-based compensation | 16,764 | 15,618 | 14,983 | ||||||||
Unrealized foreign exchange loss (gain), net | 26,655 | (20,300 | ) | 10,200 | |||||||
Non-cash impairment of goodwill and acquired intangible assets | 7,049 | 34,056 | — | ||||||||
Other gains | — | — | (19,449 | ) | |||||||
Deferred income taxes | 2,425 | (10,861 | ) | 850 | |||||||
Loss (income) from unconsolidated affiliates | 117 | (48 | ) | — | |||||||
Accretion of convertible debt discount and amortization of debt issuance costs | 14,121 | 13,504 | 12,885 | ||||||||
Changes in working capital, net of amounts acquired: | |||||||||||
Income taxes payable, net | (13,317 | ) | 23,183 | 13,935 | |||||||
Trade accounts receivable | 26,497 | (198,089 | ) | (87,732 | ) | ||||||
Prepaid expenses and other current assets | (29,066 | ) | 35,451 | (75,261 | ) | ||||||
Trade accounts payable | 45,562 | 3,840 | 9,705 | ||||||||
Deferred revenue | 9,349 | 3,724 | 9,426 | ||||||||
Accrued expenses and other current liabilities | (37,595 | ) | 106,350 | 257,287 | |||||||
Changes in noncurrent assets and liabilities | (9,480 | ) | 27,878 | (9,932 | ) | ||||||
Net cash provided by operating activities | 397,233 | 286,276 | 391,524 | ||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions, net of cash acquired | (12,854 | ) | — | (55,915 | ) | ||||||
Purchases of property and equipment | (112,484 | ) | (97,235 | ) | (87,411 | ) | |||||
Purchases of other long-term assets | (8,528 | ) | (6,039 | ) | (6,175 | ) | |||||
Proceeds from sale of investment | — | — | 11,900 | ||||||||
Other, net | 1,583 | 1,416 | 1,288 | ||||||||
Net cash used in investing activities | (132,283 | ) | (101,858 | ) | (136,313 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of shares | 18,608 | 10,990 | 6,292 | ||||||||
Repurchase of shares | (177,855 | ) | (3,065 | ) | (77,360 | ) | |||||
Borrowings from revolving credit agreements | 5,773,294 | 2,409,203 | 2,648,093 | ||||||||
Repayments of revolving credit agreements | (5,560,089 | ) | (2,566,621 | ) | (2,495,632 | ) | |||||
Repayments of long-term debt obligations | (52,199 | ) | (8,907 | ) | (7,031 | ) | |||||
Repayments of capital lease obligations | (6,137 | ) | (4,883 | ) | (2,943 | ) | |||||
Net borrowing from short-term debt obligations | 9,472 | 1,853 | 6,750 | ||||||||
Debt issuance costs | (3,071 | ) | — | — | |||||||
Other, net | 1 | 281 | 1,341 | ||||||||
Net cash provided by (used in ) financing activities | 2,024 | (161,149 | ) | 79,510 | |||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (36,540 | ) | 65,161 | (25,463 | ) | ||||||
Increase in cash and cash equivalents and restricted cash | 230,434 | 88,430 | 309,258 | ||||||||
Cash and cash equivalents and restricted cash at beginning of period | 900,518 | 812,088 | 502,830 | ||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 1,130,952 | $ | 900,518 | $ | 812,088 | |||||
Interest paid during the period | $ | 23,554 | $ | 20,457 | $ | 14,442 | |||||
Income taxes paid during the period | $ | 84,382 | $ | 48,644 | $ | 43,178 | |||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Non-cash consideration received from sale of investment | $ | — | $ | — | $ | 7,549 |
ATMs or ATM upgrades | 5 - 7 years |
Computers and software | 3 - 5 years |
POS terminals | 3 - 5 years |
Vehicles and office equipment | 3 - 10 years |
Leasehold improvements | Over the lesser of the lease term or estimated useful life |
Non-compete agreements | 2 - 5 years |
Trademarks and trade names | 2 - 20 years |
Software | 3 - 10 years |
Customer relationships | 6 - 20 years |
For the Year Ended December 31, 2018 | |||||||||||||||
(in thousands) | EFT Processing | epay | Money Transfer | Total | |||||||||||
Europe | $ | 608,993 | $ | 491,282 | $ | 328,592 | $ | 1,428,867 | |||||||
North America | 32,306 | 165,930 | 569,005 | 767,241 | |||||||||||
Asia Pacific | 112,294 | 71,242 | 127,057 | 310,593 | |||||||||||
Other | 58 | 15,330 | 18,308 | 33,696 | |||||||||||
Eliminations | — | — | (3,768 | ) | |||||||||||
Total | $ | 753,651 | $ | 743,784 | $ | 1,042,962 | $ | 2,536,629 |
For the Year Ended December 31, 2017 (1) | |||||||||||||||
(in thousands) | EFT Processing | epay | Money Transfer | Total | |||||||||||
Europe | $ | 501,161 | $ | 561,232 | $ | 262,280 | $ | 1,324,673 | |||||||
North America | 31,469 | 63,148 | 513,868 | 608,485 | |||||||||||
Asia Pacific | 101,787 | 91,516 | 101,005 | 294,308 | |||||||||||
Other | 142 | 18,102 | 9,705 | 27,949 | |||||||||||
Eliminations | — | — | — | (2,993 | ) | ||||||||||
Total | $ | 634,559 | $ | 733,998 | $ | 886,858 | $ | 2,252,422 | |||||||
(1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
For the Year Ended December 31, 2016 (1) | |||||||||||||||
(in thousands) | EFT Processing | epay | Money Transfer | Total | |||||||||||
Europe | $ | 343,932 | $ | 498,668 | $ | 236,000 | $ | 1,078,600 | |||||||
North America | 28,070 | 81,983 | 470,220 | 580,273 | |||||||||||
Asia Pacific | 92,252 | 95,524 | 89,787 | 277,563 | |||||||||||
Other | — | 17,811 | 5,912 | 23,723 | |||||||||||
Eliminations | — | — | — | (1,544 | ) | ||||||||||
Total | $ | 464,254 | $ | 693,986 | $ | 801,919 | $ | 1,958,615 | |||||||
(1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
Year Ended December 31, | |||||||||
2018 | 2017 | 2016 | |||||||
Computation of diluted weighted average shares outstanding: | |||||||||
Basic weighted average shares outstanding | 51,487,557 | 52,523,272 | 52,276,951 | ||||||
Incremental shares from assumed exercise of stock options and vesting of restricted stock | 1,499,713 | 1,793,375 | 1,705,224 | ||||||
Incremental shares from assumed conversion of convertible debentures | 1,640,477 | 799,680 | 18,904 | ||||||
Diluted weighted average shares outstanding | 54,627,747 | 55,116,327 | 54,001,079 |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Cash held in trust and/or cash held on behalf of others | $ | 67,163 | $ | 67,541 | ||||
Collateral on bank credit arrangements and other | 9,432 | 13,833 | ||||||
Total | $ | 76,595 | $ | 81,374 |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
ATMs | $ | 378,009 | $ | 329,159 | ||||
POS terminals | 36,521 | 41,218 | ||||||
Vehicles and office equipment | 66,117 | 68,231 | ||||||
Computers and software | 183,150 | 168,567 | ||||||
Land and buildings | 1,252 | 1,256 | ||||||
665,049 | 608,431 | |||||||
Less accumulated depreciation and amortization | (373,180 | ) | (340,128 | ) | ||||
Total | $ | 291,869 | $ | 268,303 |
As of December 31, 2018 | As of December 31, 2017 | |||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Customer relationships | $ | 199,581 | $ | (133,863 | ) | $ | 207,133 | $ | (124,967 | ) | ||||||
Trademarks and trade names | 45,233 | (25,837 | ) | 56,273 | (25,768 | ) | ||||||||||
Software | 58,515 | (29,420 | ) | 62,384 | (25,142 | ) | ||||||||||
Non-compete agreements | 2,076 | (1,800 | ) | 3,895 | (3,265 | ) | ||||||||||
Total | $ | 305,405 | $ | (190,920 | ) | $ | 329,685 | $ | (179,142 | ) |
(in thousands) | Acquired Intangible Assets | Goodwill | Total Intangible Assets | |||||||||
Balance as of January 1, 2017 | $ | 165,331 | $ | 689,713 | $ | 855,044 | ||||||
Increases (decreases): | ||||||||||||
Impairment | (2,286 | ) | (31,770 | ) | (34,056 | ) | ||||||
Amortization | (24,527 | ) | — | (24,527 | ) | |||||||
Other (primarily changes in foreign currency exchange rates) | 12,025 | 59,443 | 71,468 | |||||||||
Balance as of December 31, 2017 | 150,543 | 717,386 | 867,929 | |||||||||
Increases (decreases): | ||||||||||||
Acquisitions | — | 20,742 | 20,742 | |||||||||
Impairment | (7,049 | ) | — | (7,049 | ) | |||||||
Amortization | (22,562 | ) | — | (22,562 | ) | |||||||
Other (primarily changes in foreign currency exchange rates) | (6,447 | ) | (33,931 | ) | (40,378 | ) | ||||||
Balance as of December 31, 2018 | $ | 114,485 | $ | 704,197 | $ | 818,682 |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Money transfer settlement obligations | $ | 310,710 | $ | 343,613 | ||||
Accrued expenses | 293,864 | 301,390 | ||||||
Accrued amounts due to mobile operators and other content providers | 65,878 | 92,291 | ||||||
Derivative liabilities | 36,102 | 22,495 | ||||||
Total | $ | 706,554 | $ | 759,789 |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Credit Facility: | ||||||||
Revolving credit agreements | $ | 215,725 | $ | 3,000 | ||||
Term loan, due 2019 | — | 51,094 | ||||||
215,725 | 54,094 | |||||||
Convertible Debt: | ||||||||
1.50% convertible notes, unsecured, due 2044 | 379,859 | 369,259 | ||||||
Other obligations | 38,513 | 27,763 | ||||||
Total debt obligations | $ | 634,097 | $ | 451,116 | ||||
Unamortized debt issuance costs | (6,298 | ) | (5,816 | ) | ||||
Carrying value of debt | $ | 627,799 | $ | 445,300 | ||||
Short-term debt obligations and current maturities of long-term debt obligations | (38,017 | ) | (41,288 | ) | ||||
Long-term debt obligations | $ | 589,782 | $ | 404,012 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
(in thousands) | Balance Sheet Location | December 31, 2018 | December 31, 2017 | Balance Sheet Location | December 31, 2018 | December 31, 2017 | ||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Foreign currency exchange contracts | Other current assets | $ | 44,637 | $ | 36,574 | Other current liabilities | $ | (36,102 | ) | $ | (22,495 | ) |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||||||
As of December 31, 2018 | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Cash Collateral Received | Net Amounts | ||||||||||||||||||
Derivatives subject to a master netting arrangement or similar agreement | $ | 44,637 | $ | — | $ | 44,637 | $ | (25,187 | ) | $ | (9,918 | ) | $ | 9,532 | ||||||||||
As of December 31, 2017 | ||||||||||||||||||||||||
Derivatives subject to a master netting arrangement or similar agreement | $ | 36,574 | $ | — | $ | 36,574 | $ | (15,050 | ) | $ | (7,603 | ) | $ | 13,921 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||||||
As of December 31, 2018 | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Cash Collateral Paid | Net Amounts | ||||||||||||||||||
Derivatives subject to a master netting arrangement or similar agreement | $ | (36,102 | ) | $ | — | $ | (36,102 | ) | $ | 25,187 | $ | 2,048 | $ | (8,867 | ) | |||||||||
As of December 31, 2017 | ||||||||||||||||||||||||
Derivatives subject to a master netting arrangement or similar agreement | $ | (22,495 | ) | $ | — | $ | (22,495 | ) | $ | 15,050 | $ | 2,716 | $ | (4,729 | ) |
Amount of Gain Recognized in Income on Derivative Contracts (a) | ||||||||||||||
Location of Gain (Loss) Recognized in Income on Derivative Contracts | Year Ended December 31, | |||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||||
Foreign currency exchange contracts - Ria Operations | Foreign currency exchange gain, net | $ | 173 | $ | 175 | $ | 143 |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
ATMs | $ | 28,370 | $ | 23,969 | ||||
Other | 2,248 | 2,268 | ||||||
Subtotal | 30,618 | 26,237 | ||||||
Less accumulated amortization | (11,731 | ) | (9,395 | ) | ||||
Total | $ | 18,887 | $ | 16,842 |
(in thousands) | Capital Leases | Operating Leases | ||||||
Year ending December 31, | ||||||||
2019 | $ | 6,150 | $ | 80,803 | ||||
2020 | 4,583 | 65,590 | ||||||
2021 | 3,240 | 49,052 | ||||||
2022 | 944 | 37,823 | ||||||
2023 | 60 | 30,192 | ||||||
Thereafter | — | 48,191 | ||||||
Total minimum lease payments | 14,977 | $ | 311,651 | |||||
Less amounts representing interest | (1,320 | ) | ||||||
Present value of net minimum capital lease payments | 13,657 | |||||||
Less current portion of obligations under capital leases | (5,458 | ) | ||||||
Obligations under capital leases, less current portion | $ | 8,199 |
Year Ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Income before taxes: | ||||||||||||
United States | $ | 35,467 | $ | 55,117 | $ | 41,804 | ||||||
Foreign | 259,449 | 201,218 | 191,089 | |||||||||
Total income before income taxes | $ | 294,916 | $ | 256,335 | $ | 232,893 |
Year Ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Current tax expense (benefit): | ||||||||||||
U.S. | $ | (8,711 | ) | $ | 29,620 | $ | (2,886 | ) | ||||
Foreign | 70,244 | 79,475 | 59,515 | |||||||||
Total current | 61,533 | 109,095 | 56,629 | |||||||||
Deferred tax expense (benefit): | ||||||||||||
U.S. | 6,871 | 14,056 | 9,908 | |||||||||
Foreign | (5,619 | ) | (23,756 | ) | (7,742 | ) | ||||||
Total deferred | 1,252 | (9,700 | ) | 2,166 | ||||||||
Total tax expense | $ | 62,785 | $ | 99,395 | $ | 58,795 |
Year Ended December 31, | ||||||||||||
(dollar amounts in thousands) | 2018 | 2017 | 2016 | |||||||||
U.S. federal income tax expense at applicable statutory rate | $ | 61,932 | $ | 89,684 | $ | 81,513 | ||||||
Tax effect of: | ||||||||||||
State income tax expense (benefit) at statutory rates | 1,680 | 968 | 1,341 | |||||||||
Non-deductible expenses | 3,457 | 5,648 | 3,482 | |||||||||
Share-based compensation | (13,750 | ) | (4,845 | ) | (1 | ) | ||||||
Other permanent differences | (6,141 | ) | 8,458 | (4,929 | ) | |||||||
Difference between U.S. federal and foreign tax rates | 9,843 | (24,270 | ) | (18,432 | ) | |||||||
Provision in excess of statutory rates | 3,737 | 8,426 | 2,490 | |||||||||
Change in federal and foreign valuation allowance | 3,075 | (30,224 | ) | (8,163 | ) | |||||||
Impairment of goodwill and acquired intangibles assets | 83 | 8,248 | — | |||||||||
GILTI, net of tax credits | 14,111 | — | — | |||||||||
U.S. Tax Reform - transition tax and rate change | (12,262 | ) | 41,597 | — | ||||||||
Other | (2,980 | ) | (4,295 | ) | 1,494 | |||||||
Total income tax expense | $ | 62,785 | $ | 99,395 | $ | 58,795 | ||||||
Effective tax rate | 21.3 | % | 38.8 | % | 25.2 | % |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Deferred tax assets: | ||||||||
Tax loss carryforwards | $ | 32,564 | $ | 25,494 | ||||
Share-based compensation | 7,395 | 7,244 | ||||||
Accrued expenses | 17,242 | 14,621 | ||||||
Property and equipment | 16,377 | 14,984 | ||||||
Goodwill and intangible amortization | 10,619 | 13,866 | ||||||
Intercompany notes | 6,913 | 9,596 | ||||||
Accrued revenue | 36,273 | 32,947 | ||||||
Other | 11,876 | 9,631 | ||||||
Gross deferred tax assets | 139,259 | 128,383 | ||||||
Valuation allowance | (21,857 | ) | (20,257 | ) | ||||
Net deferred tax assets | 117,402 | 108,126 | ||||||
Deferred tax liabilities: | ||||||||
Intangible assets related to purchase accounting | (22,877 | ) | (29,361 | ) | ||||
Goodwill and intangible amortization | (16,115 | ) | (11,537 | ) | ||||
Accrued expenses | (28,274 | ) | (33,728 | ) | ||||
Intercompany notes | (14,034 | ) | (7,348 | ) | ||||
Accrued interest | (32,372 | ) | (27,449 | ) | ||||
Capitalized research and development | (8,299 | ) | (7,020 | ) | ||||
Property and equipment | (8,408 | ) | (4,717 | ) | ||||
Accrued revenue | (4,388 | ) | (5,027 | ) | ||||
Other | (5,841 | ) | (3,227 | ) | ||||
Total deferred tax liabilities | (140,608 | ) | (129,414 | ) | ||||
Net deferred tax liabilities | $ | (23,206 | ) | $ | (21,288 | ) |
(in thousands) | Gross | Tax Effected | ||||||
Year ending December 31, | ||||||||
2019 | $ | 1,227 | $ | 296 | ||||
2020 | 1,926 | 419 | ||||||
2021 | 5,931 | 1,361 | ||||||
2022 | 1,847 | 418 | ||||||
2023 | 3,049 | 699 | ||||||
Thereafter | 58,772 | 14,555 | ||||||
Unlimited | 37,069 | 8,486 | ||||||
Total | $ | 109,821 | $ | 26,234 |
Year Ended December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Beginning balance | $ | 28,537 | $ | 17,988 | ||||
Additions based on tax positions related to the current year | 4,787 | 8,364 | ||||||
Additions for tax positions of prior years | 966 | 3,157 | ||||||
Reductions for tax positions of prior years | (1,705 | ) | — | |||||
Settlements | (807 | ) | (321 | ) | ||||
Statute of limitations expiration | (863 | ) | (651 | ) | ||||
Ending balance | $ | 30,915 | $ | 28,537 |
Jurisdictions | Periods |
U.S. (Federal) | 2014 through 2018 |
Spain | 2009 through 2018 |
Australia | 2011 through 2018 |
U.K. | 2009 through 2018 |
Germany | 2013 through 2018 |
Year Ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Beginning balance-allowance for doubtful accounts | $ | 20,958 | $ | 18,369 | $ | 19,140 | ||||||
Additions-charged to expense | 8,653 | 6,631 | 6,556 | |||||||||
Amounts written off | (4,079 | ) | (5,944 | ) | (6,839 | ) | ||||||
Other (primarily changes in foreign currency exchange rates) | (1,245 | ) | 1,902 | (488 | ) | |||||||
Ending balance-allowance for doubtful accounts | $ | 24,287 | $ | 20,958 | $ | 18,369 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (years) | Aggregate Intrinsic Value (thousands) | ||||||||||
Balance at December 31, 2017 (2,206,415 shares exercisable) | 3,231,493 | $ | 42.42 | ||||||||||
Granted | 264,982 | $ | 111.45 | ||||||||||
Exercised | (892,344 | ) | $ | 19.35 | |||||||||
Forfeited/Canceled | (41,561 | ) | $ | 72.88 | |||||||||
Balance at December 31, 2018 | 2,562,570 | $ | 57.10 | 5.9 | $ | 118,448 | |||||||
Exercisable at December 31, 2018 | 1,637,801 | $ | 39.64 | 4.5 | $ | 102,752 | |||||||
Vested and expected to vest at December 31, 2018 | 2,203,542 | $ | 49.53 | 5.4 | $ | 116,461 |
Year ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Volatility | 29.8 | % | 28.8 | % | 33.3 | % | ||||||
Risk-free interest rate - weighted average | 2.8 | % | 2.2 | % | 2.0 | % | ||||||
Risk-free interest rate - range | (a) | (a) | 1.29% to 2.01% | |||||||||
Dividend yield | — | % | — | % | — | % | ||||||
Assumed forfeitures | 8.0 | % | 8.0 | % | 8.0 | % | ||||||
Expected lives | 5.6 years | 5.5 years | 5.5 years | |||||||||
Weighted-average fair value (per share) | $ | 37.16 | $ | 28.59 | $ | 25.29 |
Number of Shares | Weighted Average Grant Date Fair Value Per Share | ||||||
Nonvested at December 31, 2017 | 432,336 | $ | 72.09 | ||||
Granted | 103,304 | $ | 107.88 | ||||
Vested | (150,339 | ) | $ | 62.83 | |||
Forfeited | (13,460 | ) | $ | 72.00 | |||
Nonvested at December 31, 2018 | 371,841 | $ | 85.78 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Volatility - weighted average | 30.1 | % | 18.4 | % | 36.3 | % | ||||||
Volatility - range | 23.5% to 36.7% | 14.6% to 27.2% | 20.0% to 50.1% | |||||||||
Risk-free interest rate - weighted average | 2.01 | % | 0.89 | % | 0.24 | % | ||||||
Risk-free interest rate - range | 1.73% to 2.45% | 0.51% to 1.39% | 0.22% to 0.29% | |||||||||
Dividend yield | — | % | — | % | — | % | ||||||
Expected lives | 3 months | 3 months | 3 months | |||||||||
Weighted-average fair value (per share) | $ | 17.22 | $ | 15.81 | $ | 14.42 |
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, 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. |
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 |
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 |
• | Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2 – Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. |
• | Level 3 – Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the inputs that market participants would use in pricing. |
As of December 31, 2018 | |||||||||||||||||
(in thousands) | Balance Sheet Classification | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | |||||||||||||||||
Foreign currency exchange contracts | Other current assets | $ | — | $ | 44,637 | $ | — | $ | 44,637 | ||||||||
Liabilities | |||||||||||||||||
Foreign currency exchange contracts | Other current liabilities | $ | — | (36,102 | ) | $ | — | $ | (36,102 | ) |
As of December 31, 2017 | |||||||||||||||||
(in thousands) | Balance Sheet Classification | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | |||||||||||||||||
Foreign currency exchange contracts | Other current assets | $ | — | $ | 36,574 | $ | — | $ | 36,574 | ||||||||
Liabilities | |||||||||||||||||
Foreign currency exchange contracts | Other current liabilities | $ | — | $ | (22,495 | ) | $ | — | $ | (22,495 | ) |
• | In connection with contracts with financial institutions in the EFT Processing Segment, the Company is responsible for damage to ATMs and theft of ATM network cash that, generally, is not recorded on the Company’s Consolidated Balance Sheets. As of December 31, 2018, the balance of cash used in the Company's ATM networks for which the Company was responsible was approximately $523 million. The Company maintains insurance policies to mitigate this exposure; |
• | In connection with contracts with financial institutions in the EFT Processing Segment, the Company is responsible for losses suffered by its customers and other parties as a result of the breach of its computer systems, including in particular, losses arising from fraudulent transactions made using information stolen through its processing systems. The Company maintains insurance policies to mitigate this exposure; |
• | In connection with the license of proprietary systems to customers, the Company provides certain warranties and infringement indemnities to the licensee, which generally warrant that such systems do not infringe on intellectual property owned by third parties and that the systems will perform in accordance with their specifications; |
• | Euronet has entered into purchase and service agreements with vendors and consulting agreements with providers of consulting services, pursuant to which the Company has agreed to indemnify certain of such vendors and consultants, respectively, against third-party claims arising from the Company’s use of the vendor’s product or the services of the vendor or consultant; |
• | In connection with acquisitions and dispositions of subsidiaries, operating units and business assets, the Company has entered into agreements containing indemnification provisions, which can be generally described as follows: (i) in connection with acquisitions of operating units or assets made by Euronet, the Company has agreed to indemnify the seller against third party claims made against the seller relating to the operating unit or asset and arising after the closing of the transaction, and (ii) in connection with dispositions made by Euronet, Euronet has agreed to indemnify the buyer against damages incurred by the buyer due to the buyer’s reliance on representations and warranties relating to the subject subsidiary, operating unit or business assets in the disposition agreement if such representations or warranties were untrue when made; and |
• | Euronet has entered into agreements with certain third parties, including banks that provide fiduciary and other services to Euronet or to the Company’s benefit plans. Under such agreements, the Company has agreed to indemnify such service providers for third-party claims relating to carrying out their respective duties under such agreements. |
(in thousands, except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
For the Year Ended December 31, 2018 | ||||||||||||||||
Revenues | $ | 550,515 | $ | 622,224 | $ | 714,505 | $ | 649,385 | ||||||||
Operating income | $ | 45,472 | $ | 90,369 | $ | 150,913 | $ | 71,160 | ||||||||
Net income | $ | 26,344 | $ | 43,636 | $ | 102,257 | $ | 59,894 | ||||||||
Net income attributable to Euronet Worldwide, Inc. | $ | 26,413 | $ | 43,724 | $ | 102,723 | $ | 59,991 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.51 | $ | 0.85 | $ | 2.01 | $ | 1.16 | ||||||||
Diluted | $ | 0.49 | $ | 0.82 | $ | 1.89 | $ | 1.10 | ||||||||
For the Year Ended December 31, 2017 | ||||||||||||||||
Revenues | $ | 473,380 | $ | 536,563 | $ | 637,834 | $ | 604,645 | ||||||||
Operating income | $ | 41,286 | $ | 66,691 | $ | 116,901 | $ | 41,119 | ||||||||
Net income (loss) | $ | 28,069 | $ | 51,347 | $ | 100,353 | $ | (22,829 | ) | |||||||
Net income (loss) attributable to Euronet Worldwide, Inc. | $ | 28,123 | $ | 51,365 | $ | 100,290 | $ | (22,933 | ) | |||||||
Earnings (loss) per common share: | ||||||||||||||||
Basic | $ | 0.54 | $ | 0.98 | $ | 1.91 | $ | (0.44 | ) | |||||||
Diluted | $ | 0.51 | $ | 0.93 | $ | 1.80 | $ | (0.44 | ) |
/s/ Michael J. Brown | |
Michael J. Brown | |
Chief Executive Officer | |
/s/ Rick L. Weller | |
Rick L. Weller | |
Chief Financial Officer and Chief Accounting Officer |
(a) | List of Documents Filed as Part of this Report. |
Exhibit | Description | |
3.1 | ||
3.2 | ||
3.3 | ||
3.4 | ||
4.1 | ||
4.2 | ||
10.1 | ||
10.2 | ||
10.3 | ||
10.4 | ||
10.5 | ||
10.6 | ||
10.7 | ||
10.8 | ||
10.9 | ||
10.10 | ||
10.11.1 | ||
10.11.2 | ||
10.12 | ||
10.13 | ||
10.14 | ||
10.15 | ||
10.16 | ||
10.17 | ||
10.18 | ||
21.1 | ||
23.1 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101 | The following materials from Euronet Worldwide, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at December 31, 2018 and 2017, (ii) Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016, (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017 and 2016, (iv) Consolidated Statements of Changes in Equity for the years ended December 31, 2018, 2017 and 2016, (v) Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016, and (vi) Notes to the Consolidated Financial Statements. |
(1) | Filed herewith. |
(2) | Management contracts and compensatory plans and arrangements required to be filed as Exhibits pursuant to Item 15(a) of this report. |
(3) | Pursuant to Item 601(b)(32) of Regulation S-K, this Exhibit is furnished rather than filed with this Form 10-K. |
/s/ Michael J. Brown | ||||
Michael J. Brown | ||||
Chairman of the Board of Directors, Chief Executive | ||||
Officer, President and Director (principal executive officer) |
Signature | Title |
/s/ Michael J. Brown Michael J. Brown February 28, 2019 | Chairman of the Board of Directors, Chief Executive Officer, President and Director (principal executive officer) |
/s/ Rick L. Weller Rick L. Weller February 28, 2019 | Chief Financial Officer and Chief Accounting Officer (principal financial officer and principal accounting officer) |
/s/ Paul S. Althasen Paul S. Althasen February 28, 2019 | Director |
/s/ Andrzej Olechowski Andrzej Olechowski February 28, 2019 | Director |
/s/ Eriberto R. Scocimara Eriberto R. Scocimara February 28, 2019 | Director |
/s/ Thomas A. McDonnell Thomas A. McDonnell February 28, 2019 | Director |
/s/ Andrew B. Schmitt Andrew B. Schmitt February 28, 2019 | Director |
/s/ M. Jeannine Strandjord M. Jeannine Strandjord February 28, 2019 | Director |
/s/ Mark R. Callegari Mark R. Callegari February 28, 2019 | Director |
• | epay Australia Holdings Pty Ltd, incorporated in Australia |
• | epay Australia Pty Ltd, incorporated in Australia |
• | HiFX Australia Pty Ltd, incorporated in Australia |
• | Pure Commerce Japan Pty Ltd, incorporated in Australia |
• | Pure Commerce Pty Limited, incorporated in Australia |
• | RIA Financial Services Australia Pty. Ltd., incorporated in Australia |
• | RIA Financial Services Austria GmbH, incorporated in Austria |
• | Euronet Middle East W.L.L., incorporated in Bahrain |
• | Innova Taxfree Belgium SPRL, incorporated in Belgium |
• | RIA Envia Financial Services Belgium SPRL, incorporated in Belgium |
• | YourCash Belgium N.V., incorporated in Belgium |
• | Telecom Net S.A. Logistica Digital, incorporated in Brazil |
• | Euronet Services EOOD, incorporated in Bulgaria |
• | Gescoro Inc., incorporated in Canada |
• | HiFX Canada Inc., incorporated in Canada |
• | RIA Telecommunications of Canada Inc., incorporated in Canada |
• | XE Corporation, incorporated in Canada |
• | Ria Chile Servicios Financieros SpA, incorporated in Chile |
• | epay (Shanghai) Technology Development Co., Ltd. d.b.a. epay China, incorporated in China |
• | EFT-Usluge d.o.o., incorporated in Croatia |
• | Euronet Services, Spol. s r.o., incorporated in the Czech Republic |
• | RIA Financial Services, Denmark ApS, incorporated in Denmark |
• | RIA de la Hispaniola, C.porA, incorporated in Dominican Republic |
• | Euronet Middle East, Africa & Pakistan LLC, incorporated in Egypt |
• | RIA de Centroamerica, S.A. de C.V., incorporated in El Salvador |
• | epay Digital SAS, incorporated in France |
• | Innova Tax Free France S.A.S.U., incorporated in France |
• | RIA France SAS, incorporated in France |
• | cadooz GmbH, incorporated in Germany |
• | cadooz rewards GmbH, incorporated in Germany |
• | Delta Euronet GmbH, incorporated in Germany |
• | Innova Taxfree Germany GmbH, incorporated in Germany |
• | RIA Deutschland GmbH, incorporated in Germany |
• | RIA Envia Financial Services GmbH, incorporated in Germany |
• | transact Elektronische Zahlungssysteme GmbH, incorporated in Germany |
• | Euronet Card Services S.A., incorporated in Greece |
• | Euronet Asia Holdings Limited, incorporated in Hong Kong |
• | Euronet Banktechnikai Szolgaltato Kft., incorporated in Hungary |
• | Euronet Services Kft., incorporated in Hungary |
• | Euronet Services India Pvt. Ltd., incorporated in India |
• | Euronet Infinitium Solutions Pvt. Ltd., incorporated in India |
• | RIA Money Transfer Services Pvt. Ltd., incorporated in India |
• | Easycash (Ireland) Limited, incorporated in Ireland |
• | Euronet 360 Payments Limited, incorporated in Ireland |
• | Innova Taxfree Ireland Limited, incorporated in Ireland |
• | RIA Financial Services Ireland Limited, incorporated in Ireland |
• | YourCash Ireland Limited, incorporated in Ireland |
• | Pure-Commerce Ltd, incorporated in Isle of Man |
• | Euronet Pay & Transaction Services S.R.L., incorporated in Italy |
• | Innova Taxfree Italy S.R.L., incorporated in Italy |
• | RIA Italia S.R.L., incorporated in Italy |
• | Pure Commerce Korea YH, incorporated in Korea |
• | Euronet Services Malaysia Sdn. Bhd., incorporated in Malaysia |
• | IME (M) Sdn Bhd, incorporated in Malaysia |
• | Euronet epay Mexico, S. de R. L. de C.V., incorporated in Mexico |
• | Ria Money Transfer, S.A. de C.V., incorporated in Mexico |
• | Ria Transfers de Mexico, S.de R.L. de C.V., incorporated in Mexico |
• | EFT Services Holding B.V., incorporated in the Netherlands |
• | Hanco Automated Teller Machines Holdings B.V., incorporated in the Netherlands |
• | Hanco Automated Teller Machines Netherlands B.V., incorporated in the Netherlands |
• | Innova Taxfree Netherlands B.V., incorporated in the Netherlands |
• | XE Europe B.V., incorporated in Netherlands |
• | RIA Financial Services Netherlands B.V., incorporated in the Netherlands |
• | RIA Netherlands Holding B.V., incorporated in the Netherlands |
• | epay New Zealand Limited, incorporated in New Zealand |
• | HiFX Limited, incorporated in New Zealand |
• | RIA Financial Services New Zealand Limited, incorporated in New Zealand |
• | RIA Financial Services Norway AS, incorporated in Norway |
• | Euronet Technology Services, Inc., incorporated in the Philippines |
• | Euronet Polska Spolka z o.o., incorporated in Poland |
• | IME (Portugal), LDA, incorporated in Portugal |
• | Innova Tax Free Portugal Unipessoal Lda, incorporated in Portugal |
• | RIA Financial Services Puerto Rico, Inc., incorporated in Puerto Rico |
• | Euronet Services S.R.L., incorporated in Romania |
• | Euronet Services O.O.O., incorporated in Russia |
• | Euronet Services d.o.o., incorporated in Serbia |
• | Pure Commerce (S) Pte. Ltd., incorporated in Singapore |
• | Pure Commerce Shared Service Pte. Ltd., incorporated in Singapore |
• | Pure Processing Pte. Ltd., incorporated in Singapore |
• | Euronet Services Slovakia, spol. s r.o., incorporated in Slovakia |
• | Euronet Business Holdings, S.L.U., incorporated in Spain |
• | Euronet Telerecarga, S.L.U., incorporated in Spain |
• | Innova Taxfree Group, S.L., incorporated in Spain |
• | Innova Taxfree Spain, S.L., incorporated in Spain |
• | RIA Payment Institution EP, S.A.U., incorporated in Spain |
• | RIA Spain Holdings S.L.U., incorporated in Spain |
• | RIA Financial Services Sweden AB, incorporated in Sweden |
• | Euronet Services Schweiz GmbH, incorporated in Switzerland |
• | RIA Financial Services GmbH, incorporated in Switzerland |
• | Euronet Elektronik Islem Hizmetleri Limited Sirketi, incorporated in Turkey |
• | Ria Turkey Ödeme Kuruluşu Anonim Sirketi, incorporated in Turkey |
• | "Euronet Ukraine" Limited Liability Company, incorporated in Ukraine |
• | epay Digital Middle East FZ-LLC, incorporated in United Arab Emirates |
• | Universal Solution Providers FZ-LLC, incorporated in United Arab Emirates |
• | ATX Software Ltd, incorporated in United Kingdom |
• | e-pay Holdings Ltd, incorporated in United Kingdom |
• | epay Ltd, incorporated in United Kingdom |
• | Euronet (London) UK Holdings Limited, incorporated in United Kingdom |
• | Euronet 360 Finance Limited, incorporated in United Kingdom |
• | Euronet Payment Services Ltd, incorporated in United Kingdom |
• | HiFM Holdings Limited, incorporated in United Kingdom |
• | HiFM Limited, incorporated in United Kingdom |
• | HiFX Europe Limited, incorporated in United Kingdom |
• | IME UK Limited, incorporated in United Kingdom |
• | Innova Tax Free (UK) Limited, incorporated in United Kingdom |
• | RIA Financial Services Limited, incorporated in United Kingdom |
• | YourCash Europe Limited, incorporated in United Kingdom |
• | YourCash Solutions Limited, incorporated in United Kingdom |
• | YourCash Holdings Limited, incorporated in United Kingdom |
• | YourCash ATM Systems Limited, incorporated in United Kingdom |
• | YourCash Limited, incorporated in United Kingdom |
• | Continental Exchange Solutions, Inc., incorporated in Kansas, U.S.A. |
• | Continental Payment Solutions, Inc., incorporated in California, U.S.A. |
• | EFT Americas, Inc., incorporated in Delaware, U.S.A. |
• | Euronet Pakistan Holdings Inc., incorporated in Delaware, U.S.A. |
• | Euronet USA, LLC, incorporated in Arkansas, U.S.A. |
• | PaySpot, LLC, incorporated in Kansas, U.S.A. |
• | RIA Envia, LLC, incorporated in Kansas, U.S.A. |
• | RIA Telecommunications of New York, Inc., incorporated in New York, U.S.A. |
• | Telecomnet LLC, incorporated in Delaware, U.S.A. |
• | Cashlink Bangladesh Ltd., incorporated in Bangladesh, of which 10% is owned by EFT Services Holding B.V. |
• | Electronic Transactions Network Ltd., incorporated in Bangladesh, of which 100% is owned by Cashlink Bangladesh Ltd. |
• | Euronet ETT (China) Co. Ltd., incorporated in China, of which 49% is owned by Euronet Asia Holdings Limited |
• | Jiayintong (Beijing) Technology Development Co. Ltd. d.b.a. Euronet China, incorporated in China, of which 75% is owned by Euronet Asia Holdings Limited |
• | PT G4S Euronet Nusantara, incorporated in Indonesia, of which 47.02% is owned by EFT Services Holding B.V. |
• | Euronet Pakistan (Pvt.) Limited, incorporated in Pakistan, incorporated in Pakistan, of which 70% is owned by Euronet Pakistan Holdings, Inc. |
• | Euronet Movilcarga S.L., incorporated in Spain, of which 95.05% is owned by Euronet Telerecarga S.L.U. |
1) | I have reviewed this report on Form 10-K of Euronet Worldwide, Inc.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5) | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's Board of Directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Michael J. Brown | |
Michael J. Brown | |
Chief Executive Officer |
1) | I have reviewed this report on Form 10-K of Euronet Worldwide, Inc.; |
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4) | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5) | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's Board of Directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Rick L. Weller | |
Rick L. Weller | |
Chief Financial Officer |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Michael J. Brown | |
Michael J. Brown | |
Chief Executive Officer |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Rick L. Weller | |
Rick L. Weller | |
Chief Financial Officer |
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
Document and Entity Information Document - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Feb. 27, 2019 |
Jun. 29, 2018 |
|
Entity Information [Line Items] | |||
Entity Registrant Name | EURONET WORLDWIDE INC | ||
Entity Central Index Key | 0001029199 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 4,084.0 | ||
Entity Common Stock, Shares Outstanding | 51,871,238 |
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Allowance for doubtful accounts receivable | $ 24,287 | $ 20,958 |
Property and equipment, accumulated depreciation | 373,180 | 340,128 |
Acquired intangible assets, accumulated amortization | 190,920 | 179,142 |
Other assets, accumulated amortization | $ 50,821 | $ 44,469 |
Preferred stock, par value per share | $ 0.02 | $ 0.02 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $ 0.02 | $ 0.02 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares, issued | 59,897,309 | 58,892,744 |
Treasury stock, shares | 8,077,311 | 6,084,586 |
Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Statement [Abstract] | |||||||||||
Revenues | $ 649,385 | $ 714,505 | $ 622,224 | $ 550,515 | $ 604,645 | $ 637,834 | $ 536,563 | $ 473,380 | $ 2,536,629 | $ 2,252,422 | $ 1,958,615 |
Operating expenses: | |||||||||||
Direct operating costs | 1,488,406 | 1,356,250 | 1,174,545 | ||||||||
Salaries and benefits | 360,432 | 310,787 | 288,420 | ||||||||
Selling, general and administrative | 216,807 | 190,302 | 165,348 | ||||||||
Goodwill and Intangible Asset Impairment | 7,049 | 34,056 | 0 | ||||||||
Depreciation and amortization | 106,021 | 95,030 | 80,529 | ||||||||
Total operating expenses | 2,178,715 | 1,986,425 | 1,708,842 | ||||||||
Operating income | 71,160 | 150,913 | 90,369 | 45,472 | 41,119 | 116,901 | 66,691 | 41,286 | 357,914 | 265,997 | 249,773 |
Other income (expense): | |||||||||||
Interest income | 1,320 | 2,443 | 1,696 | ||||||||
Interest expense | (37,573) | (32,571) | (28,332) | ||||||||
(Loss) income from unconsolidated affiliates | (117) | 48 | 0 | ||||||||
Other gains, net | 27 | 118 | 19,956 | ||||||||
Foreign currency exchange (loss) gain, net | (26,655) | 20,300 | (10,200) | ||||||||
Other expense, net | (62,998) | (9,662) | (16,880) | ||||||||
Income before income taxes | 294,916 | 256,335 | 232,893 | ||||||||
Income tax expense | (62,785) | (99,395) | (58,795) | ||||||||
Net income | 59,894 | 102,257 | 43,636 | 26,344 | (22,829) | 100,353 | 51,347 | 28,069 | 232,131 | 156,940 | 174,098 |
Less: Net (income) loss attributable to noncontrolling interests | 720 | (95) | 317 | ||||||||
Net income attributable to Euronet Worldwide, Inc. | $ 59,991 | $ 102,723 | $ 43,724 | $ 26,413 | $ (22,933) | $ 100,290 | $ 51,365 | $ 28,123 | $ 232,851 | $ 156,845 | $ 174,415 |
Earnings per share attributable to Euronet Worldwide, Inc. stockholders - basic | $ 1.16 | $ 2.01 | $ 0.85 | $ 0.51 | $ (0.44) | $ 1.91 | $ 0.98 | $ 0.54 | $ 4.52 | $ 2.99 | $ 3.34 |
Earnings per share attributable to Euronet Worldwide, Inc. stockholders - diluted | $ 1.10 | $ 1.89 | $ 0.82 | $ 0.49 | $ (0.44) | $ 1.80 | $ 0.93 | $ 0.51 | $ 4.26 | $ 2.85 | $ 3.23 |
Weighted average shares outstanding - basic | 51,487,557 | 52,523,272 | 52,276,951 | ||||||||
Weighted average shares outstanding - diluted | 54,627,747 | 55,116,327 | 54,001,079 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Net income | $ 232,131 | $ 156,940 | $ 174,098 |
Other comprehensive income (loss), net of tax: | |||
Translation adjustment | (56,656) | 116,401 | (45,175) |
Comprehensive income | 175,475 | 273,341 | 128,923 |
Comprehensive (income) loss attributable to noncontrolling interests | 791 | (292) | 358 |
Comprehensive income attributable to Euronet Worldwide, Inc. | $ 176,266 | $ 273,049 | $ 129,281 |
Organzation (Note) |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization Disclosure [Text Block] | Organization Euronet Worldwide, Inc. (the “Company” or “Euronet”) was established as a Delaware corporation on December 13, 1997 and succeeded Euronet Holding N.V. as the group holding company, which was founded and established in 1994. Euronet is a leading electronic payments provider. Euronet offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers. Euronet's primary product offerings include comprehensive automated teller machine (“ATM”), point-of-sale (“POS”), card outsourcing, card issuing and merchant acquiring services, electronic distribution of prepaid mobile airtime and other electronic payment products, and global money transfer services. |
Basis of Preparation (Note) |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
BASIS OF PREPARATION [Abstract] | |
Basis of Preparation and Seasonality [Text Block] | Basis of Preparation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements include the accounts of Euronet and its wholly owned and majority owned subsidiaries and all significant intercompany balances and transactions have been eliminated. Euronet's investments in companies that it does not control, but has the ability to significantly influence, are accounted for under the equity method. Euronet is not involved with any variable interest entities. Results from operations related to entities acquired during the periods covered by the consolidated financial statements are reflected from the effective date of acquisition. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires that management make a number of estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Significant items subject to such estimates and assumptions include computing income taxes, contingent purchase price consideration, estimating the useful lives and potential impairment of long-lived assets and goodwill, as well as allocating the purchase price to assets acquired and liabilities assumed in acquisitions and revenue recognition. Actual results could differ from those estimates. Seasonality Euronet’s EFT Processing Segment experiences its heaviest demand for dynamic currency conversion services during the third quarter of the fiscal year, coinciding with the tourism season. Additionally, the EFT Processing and epay Segments are impacted by seasonality during the fourth quarter and first quarter of each year due to higher transaction levels during the holiday season and lower levels following the holiday season. Seasonality in the money transfer segment varies by region of the world. In most markets, Euronet usually experiences increased demand for money transfer services from the month of May through the fourth quarter of each year, coinciding with the increase in worker migration patterns and various holidays, and its lowest transaction levels during the first quarter of the year. |
Summary of Significant Accounting Policies and Practices (Note) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES | Summary of Significant Accounting Policies and Practices Foreign currencies Assets and liabilities denominated in currencies other than the functional currency of a subsidiary are remeasured at rates of exchange on the balance sheet date. Resulting gains and losses on foreign currency transactions are included in the Consolidated Statements of Income. The financial statements of foreign subsidiaries where the functional currency is not the U.S. dollar are translated to U.S. dollars using (i) exchange rates in effect at period end for assets and liabilities, and (ii) weighted average exchange rates during the period for revenues and expenses. Adjustments resulting from translation of such financial statements are reflected in accumulated other comprehensive income (loss) as a separate component of consolidated equity. Cash equivalents The Company considers all highly liquid investments, with an original maturity of three months or less, and certificates of deposit, which may be withdrawn at any time at the discretion of the Company without penalty, to be cash equivalents. Property and equipment Property and equipment are stated at cost, less accumulated depreciation. Property and equipment acquired in acquisitions have been recorded at estimated fair values as of the acquisition date. Depreciation is generally calculated using the straight-line method over the estimated useful lives of the respective assets. Depreciation and amortization rates are generally as follows:
Goodwill and other intangible assets The Company accounts for goodwill and other intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 350, Intangibles - Goodwill and Other (“ASC 350”). ASC 350 requires that the Company test for impairment on an annual basis and whenever events or circumstances dictate. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. ASC 350 provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the existing quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The Company has a policy for its annual review of goodwill to perform the qualitative assessment for all reporting units not subjected directly to the quantitative impairment test. Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators). These factors are then classified by the type of impact they would have on the estimated fair value using positive, neutral, and adverse categories based on current business conditions. Furthermore, the Company considers the results of the most recent quantitative impairment test completed for a reporting unit and compares, among other factors, the weighted average cost of capital ("WACC") between the current and prior years for each reporting unit. Under the quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. The Company uses weighted results from the discounted cash flow model ("DCF model") and guideline public company method ("Market Approach model") to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows and EBITDA are the best indicator of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including sales volumes and gross margins, tax rates, capital spending, discount rates and working capital changes. Most of these assumptions vary significantly among the reporting units. Significant assumptions in the Market Approach model are projected EBITDA, selected market multiple, and the estimated control premium. If the carrying value of goodwill exceeds its fair value, an impairment loss equal to such excess would be recognized. The Company completed its annual goodwill impairment test in the fourth quarter of 2018. It determined, after performing a qualitative review of each reporting unit, that it is more likely than not that the fair value of each of our reporting units exceeds the respective carrying amounts. Accordingly, there was no indication of impairment, and the quantitative goodwill impairment test was not performed. Other Intangible Assets - In accordance with ASC 350, intangible assets with finite lives are amortized over their estimated useful lives. Unless otherwise noted, amortization is calculated using the straight-line method over the estimated useful lives of the assets as follows:
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such events or changes in circumstances are present, a loss is recognized if the carrying value of the asset is in excess of the sum of the undiscounted cash flows expected to result from the use of the asset and its eventual disposition. An impairment loss is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. During 2018, the Company recorded a non-cash impairment charge of $7.0 million related to certain trade names as a result of combining HiFX into xe in order to operate the businesses under one brand name, xe. During 2017, the Company recorded a non-cash impairment charge of $2.3 million related to certain customer relationships as a result of the closure of the Pure Commerce office in South Korea. No impairment of long-lived assets was recorded during 2016. See Note 8, Goodwill and Acquired Intangible Assets, Net, to the Consolidated Financial Statements for additional information regarding the impairment of goodwill and other intangible assets. Other assets Other assets include investments in unconsolidated affiliates, capitalized software development costs and capitalized payments for new or renewed contracts, contract renewals and customer conversion costs. Euronet capitalizes initial payments for new or renewed contracts to the extent recoverable through future operations, contractual minimums and/or penalties in the case of early termination. The Company's accounting policy is to limit the amount of capitalized costs for a given contract to the lesser of the estimated ongoing net future cash flows related to the contract or the termination fees the Company would receive in the event of early termination of the contract by the customer. ASC Topic 340, Other Assets and Deferred Costs (“ASC 340”) requires the deferral of incremental costs to obtain customer contracts, known as contract assets, which are then amortized to expense as part of selling, general and administrative expense over the respective periods of expected benefit. The Company completed its review of such costs and concluded that a transition adjustment was not necessary related to contract assets. However, the Company has implemented processes and controls to record such costs on an ongoing basis and will disclose them if they become material. The Company accounts for investments in affiliates using the equity method of accounting when it has the ability to exercise significant influence over the affiliate, but does not have a controlling interest. Equity losses in affiliates are generally recognized until the Company's investment is zero. As of December 31, 2018 and 2017, the Company had no material investments in unconsolidated affiliates. Convertible notes The Company accounts for its convertible debt instruments that may be settled in cash upon conversion in accordance with ASC Topic 470, Debt (“ASC 470”), which requires the proceeds from the issuance of such convertible debt instruments to be allocated between debt and equity components so that debt is discounted to reflect the Company's nonconvertible debt borrowing rate. Further, the Company applies ASC 470-20-35-13, which requires the debt discount to be amortized over the period the convertible debt is expected to be outstanding as additional non-cash interest expense. Noncontrolling interests The Company accounts for noncontrolling interests in its consolidated financial statements according to ASC Topic 810, Consolidations (“ASC 810”), which requires noncontrolling interests to be reported as a component of equity. Business combinations The Company accounts for business combinations in accordance with ASC Topic 805, Business Combinations (“ASC 805”), which requires most identifiable assets, liabilities, noncontrolling interests and goodwill acquired in a business combination to be recorded at “full fair value” at the acquisition date. Transaction-related costs are expensed in the period incurred. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In accordance with ASC Topic 740, Income Taxes (“ASC 740”), the Company's policy is to record estimated interest and penalties related to the underpayment of income taxes as income tax expense in the Consolidated Statements of Income. See Note 13, Taxes, to the Consolidated Financial Statements for further discussion regarding these provisions. Presentation of taxes collected and remitted to governmental authorities The Company presents taxes collected and remitted to governmental authorities on a net basis in the accompanying Consolidated Statements of Income. Fair value measurements The Company applies the provisions of ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), regarding fair value measurements for assets and liabilities. ASC 820 defines fair value, establishes a framework for measuring fair value and requires certain disclosures about fair value measurements. The provisions apply whenever other accounting pronouncements require or permit fair value measurements. See Note 17, Financial Instruments and Fair Value Measurements, to the Consolidated Financial Statements for the required fair value disclosures. Accounting for derivative instruments and hedging activities The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”), which requires that all derivative instruments be recognized as either assets or liabilities on the balance sheet at fair value. Primarily in the Money Transfer Segment, the Company enters into foreign currency derivative contracts, mainly forward contracts, to offset foreign currency exposure related to money transfer settlement assets and liabilities in currencies other than the U.S. dollar, derivative contracts written to its customers arising from its cross-currency money transfer services and certain assets and liability positions denominated in currencies other than the U.S. dollar. These contracts are considered derivative instruments under the provisions of ASC 815; however, the Company does not designate such instruments as hedges for accounting purposes. Accordingly, changes in the value of these contracts are recognized immediately as a component of foreign currency exchange gain (loss), net in the Consolidated Statements of Income. Cash flows resulting from derivative instruments are included in operating activities in the Company's Consolidated Statements of Cash Flows. The Company enters into derivative instruments with highly credit-worthy financial institutions and does not use derivative instruments for trading or speculative purposes. See Note 11, Derivative Instruments and Hedging Activities, to the Consolidated Financial Statements for further discussion of derivative instruments. Revenue recognition The Company recognizes revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales and usage-based taxes are excluded from revenues. A description of the major components of revenue by business segment is as follows: EFT Processing - Revenues in the EFT Processing Segment are primarily derived from transaction and management fees and foreign currency exchange margin from owned and outsourced ATM, POS and card processing networks and from the sale of EFT software solutions for electronic payment and transaction delivery systems, and fees or margin earned from value added services, including dynamic currency conversion and domestic and international surcharge. Transaction-based fees include charges for cash withdrawals, debit or credit card transactions, balance inquiries, transactions not completed because the relevant card issuer does not give authorization and prepaid mobile airtime recharges. Outsourcing services are generally billed on the basis of a fixed monthly fee per ATM, plus a transaction-based fee. Transaction-based fees are recognized at the time the transactions are processed and outsourcing management fees are recognized ratably over the contract period. These fees can be variable based on transaction volume tiered discounts; however, as all tiered discounts are calculated monthly, the actual discount is recorded on a monthly basis. Certain of the Company's non-cancelable customer contracts provide for the receipt of up-front fees from the customer and/or decreasing or increasing fee schedules over the agreement term for substantially the same level of services to be provided by the Company. The Company recognizes revenue under these contracts based on proportional performance of services over the term of the contract. This generally results in “straight-line” (i.e., consistent value per period) revenue recognition of the contracts' total cash flows, including any up-front payment received from the customer. epay - Revenue generated in the epay Segment is primarily derived from commissions or processing fees associated with distribution and/or processing of prepaid mobile airtime and non-mobile products. These fees and commissions are received from mobile operators, content vendors or distributors or from retailers. In accordance with ASC 606, commissions are recognized as revenue during the period in which the Company provides the service. The portion of the commission that is paid to retailers is generally recorded as a direct operating cost. However, in circumstances where the Company is not the primary obligor in the distribution of the electronic payment products, those commissions are recorded as a reduction of revenue. In selling certain products, the Company is the primary obligor in the arrangements; accordingly, the gross sales value of the products are recorded as revenue and the purchase cost as direct operating cost. Transactions are processed through a network of POS terminals and direct connections to the electronic payment systems of retailers. Transaction processing fees are recognized at the time the transactions are processed. Money Transfer - In accordance with ASC 606, revenues for money transfer and other services represent a transaction fee in addition to a margin earned from purchasing currency at wholesale exchange rates and selling the currency to customers at retail exchange rates. Revenues and the associated direct operating cost are recognized at the time the transaction is processed. The Company has origination and distribution agents in place, which each earn a fee for the respective service. These fees are reflected as direct operating costs. Share-based compensation The Company follows the provisions of ASC Topic 718, Compensation - Stock Compensation (“ASC 718”), for equity classified awards, which requires the determination of the fair value of the share-based compensation at the grant date and subsequent recognition of the related expense over the period in which the share-based compensation is earned (“requisite service period”). The amount of future compensation expense related to awards of nonvested shares or nonvested share units (“restricted stock”) is based on the market price for Euronet Common Stock at the grant date. The grant date is the date at which all key terms and conditions of the grant have been determined and the Company becomes contingently obligated to transfer equity to the employee who renders the requisite service, generally the date at which grants are approved by the Company's Board of Directors or Compensation Committee thereof. Share-based compensation expense for awards with only service conditions is generally recognized as expense on a “straight-line” basis over the requisite service period. For awards that vest based on achieving periodic performance conditions, expense is recognized on a “graded attribution method.” The graded attribution method results in expense recognition on a straight-line basis over the requisite service period for each separately vesting portion of an award. The Company has elected to use the “with and without method” when calculating the income tax benefit associated with its share-based payment arrangements. See Note 15, Stock Plans, for further disclosure. Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“Topic 606”), and subsequently modified the standard with several ASUs. The Company adopted the standard on January 1, 2018 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting under Topic 605. The Company completed its review of customer contracts relative to the requirements of Topic 606 and concluded that revenues from certain customer contracts in the epay Segment should be recorded differently under the principal versus agent guidance of Topic 606. With respect to those contracts, the Company concluded that it earns a commission from content providers for distributing and processing their prepaid mobile airtime and other electronic payment products, but it is not the principal for the products themselves. As a result, the impact of the change in accounting principle was a reduction of $88.5 million in both revenues and direct operating expenses for the year ended December 31, 2018, with no impact on reported net income. Contract Balances The Company records deferred revenues when cash payments are received or due in advance of its performance. The increase in the deferred revenue balance for 2018 is primarily driven by $52.9 million of cash payments received in the current year for which we have not yet satisfied the performance obligations, that were offset by $45.6 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2017. Disaggregation of Revenues The following table presents the Company's revenues disaggregated by segment and region. 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. The Company recognizes foreign exchange revenues from derivative instruments in its HiFX operations in accordance with ASC Topic 815 and not ASC Topic 606. These revenues are not significant to the Company's consolidated revenues and are included in the following tables.
In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products. The new standard specifies that liabilities within its scope are considered to be financial liabilities, and amends the guidance in ASC 405-20, Extinguishments of Liabilities, by directing entities to derecognize prepaid stored-value product liabilities based on expected breakage in proportion to the pattern of rights expected to be exercised by the consumer. Derecognition for breakage is permitted only to the extent that it is probable that a significant reversal of recognized breakage will not subsequently occur. The new standard is consistent with the breakage guidance in Topic 606. The Company adopted this ASU as of January 1, 2018 along with Topic 606. The adoption of this standard did not have a significant impact on the Company's consolidated financial statements and related disclosures. In August 2016, the FASB issued an accounting standard classified under FASB ASC Topic 230, “Statement of Cash Flows”. This accounting standard provides guidance on eight specific cash flow issues. Subsequently, the FASB issued amendments to this accounting standard that required companies to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the statement of cash flows. The Company adopted these standards as of January 1, 2018. The adoption of these accounting standards resulted in a decrease of $5.0 million for 2017 and an increase of $23.3 million for 2016 in net cash provided by operating activities. As of December 31, 2018, the Company had $76.6 million of restricted cash consisting of restricted cash held in trust and/or cash held on behalf of others and cash collateral on bank credit arrangements. Cash held in trust and/or cash held on behalf of others is in connection with the administration of the customer collection and vendor remittance activities by certain subsidiaries within the Company’s epay and EFT Processing Segments. Amounts collected on behalf of certain mobile phone operators and/or merchants are deposited into a restricted cash account. The bank credit arrangements primarily represent cash collateral on deposit with commercial banks to cover guarantees. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will update the existing guidance on accounting for leases and require new qualitative and quantitative disclosures about the Company’s leasing activities. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; and ASU No. 2018-20, Narrow Scope Improvements for Lessors. The new standard requires lessees to account for all leases on the balance sheet, except for certain short-term leases that have a maximum possible lease term of 12 months. The accounting for lessors is largely unchanged from the previous accounting guidance, except for leverage lease accounting which is not permitted for leases entered into or modified after the effective date of the new standard. The new standard is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted. A modified retrospective approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company will adopt the new standard on January 1, 2019 and use the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company will elect the "package of practical expedients," which permits the Company not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company will also elect to combine lease and non-lease components and to include short-term leases with an initial term of 12 months or less on the balance sheet. The Company estimates approximately $375 million would be recognized as total right-of-use assets and total lease liabilities on its consolidated balance sheet as of January 1, 2019. Other than as disclosed, the Company does not expect the new standard to have a material impact on its results of operations or its cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Topic 326 was subsequently amended by ASU 2018-19. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. The Company is continuing to assess the potential impacts of the standard. |
Stockholders' Equity (Note) |
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Stockholders' Equity | Stockholders' Equity Earnings Per Share Basic earnings per share has been computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the respective period. Diluted earnings per share has been computed by dividing earnings available to common stockholders by the weighted average shares outstanding during the respective period, after adjusting for the potential dilution of options to purchase the Company's Common Stock, assumed vesting of restricted stock and the assumed conversion of the Company's convertible debt. The following table provides the computation of diluted weighted average number of common shares outstanding:
The table includes all stock options and restricted stock that are dilutive to the Company's weighted average common shares outstanding during the period. The calculation of diluted earnings per share excludes stock options or shares of restricted stock that are anti-dilutive to the Company's weighted average common shares outstanding for the years ended December 31, 2018, 2017 and 2016 of approximately 458,000, 798,000 and 616,000, respectively. During 2018, 2017 and 2016, the Company had convertible notes outstanding that, if converted, could have a potentially dilutive effect on its Common Stock. The Company's convertible notes have settlement features requiring the Company, upon conversion, to settle the principal amount of the debt and the conversion value in excess of the principal value ("conversion premium") for cash or shares of the Company's Common Stock, at the Company's option. At issuance, the Company stated its intent to settle any conversion of these notes by paying cash for the principal value and issuing Common Stock for any conversion premium. Accordingly, the convertible notes are included in the calculation of diluted earnings per share if their inclusion is dilutive. The convertible notes would only have a dilutive effect if the market price per share of Common Stock exceeds the conversion price of $72.18 per share and the dilutive effect increases the more the market price exceeds the conversion price. As of December 31, 2018, and currently, the Company maintains the intent and ability to settle any conversion as stated. As of December 31, 2018, 2017 and 2016, the stock prices exceeded the conversion price and these notes were dilutive to earnings per share. Further, as a result of the share prices increasing from $72.43 as of December 31, 2016 to $84.27 as of December 31, 2017 and to $102.38 as December 31, 2018, there were increases in dilutive shares from the assumed conversion of convertible notes. Therefore, according to ASC Topic 260, Earnings per Share (“ASC 260”), the dilutive effect of the assumed conversion of the debentures was 1,640,477, 799,680 and 18,904 shares for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 10, Debt Obligations, to the Consolidated Financial Statements for more information about the convertible notes. Share repurchases The Company's Board of Directors has authorized a stock repurchase program ("Repurchase Program"), allowing Euronet to repurchase up to $375 million in value or 10.0 million shares of stock through March 31, 2020. Repurchases under the Repurchase Program may take place in the open market or in privately negotiated transactions, including derivative transactions, and may be made under a Rule 10b5-1 plan. For the year ended December 31, 2018, the Company repurchased $175.0 million in value of Euronet Common Stock under the Repurchase Program. No repurchases were made during 2017. In January 2016, the Company announced that its Board of Directors authorized a stock repurchase program ("2016 Program") allowing the Company to repurchase up to $100 million in value or 5.0 million shares of its common stock through December 10, 2017. For the year end December 31, 2016, the Company repurchased 1.1 million shares at a weighted average purchase price of $65.74 for a total value of $75.6 million under the 2016 Program. Preferred Stock The Company has the authority to issue up to 10 million shares of preferred stock, of which no shares are currently issued or outstanding. Accumulated other comprehensive loss As of December 31, 2018 and 2017, accumulated other comprehensive loss consists entirely of foreign currency translation adjustments. The Company recorded a foreign currency translation loss of $56.7 million, a gain of $116.4 million and a loss of $45.2 million for the years ended December 31, 2018, 2017, and 2016, respectively. There were no reclassifications of foreign currency translation into the Consolidated Statements of Income for the years ended December 31, 2018, 2017, and 2016. Dividends No dividends was paid on any class of the Company's stock during 2018, 2017, and 2016. |
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Acquisitions [Abstract] | |
Acquisitions | Acquisitions In accordance with ASC 805, the Company allocates the purchase price of its acquisitions to the tangible assets, liabilities and intangible assets acquired based on fair values. Any excess purchase price over those fair values is recorded as goodwill. The fair value assigned to intangible assets acquired is supported by valuations using estimates and assumptions provided by management. For certain large acquisitions, management engages an appraiser to assist in the valuation process. The Company completed the acquisitions of two small European businesses for an immaterial amount of cash consideration, completing one acquisition in the first quarter of 2018 and completing the other acquisition in the second quarter of 2018. The acquisitions have been accounted for as business combinations in accordance with U.S. GAAP and the results of operations have been included from the respective dates of acquisition in the EFT Processing Segment. There were no acquisitions in 2017. |
Restricted Cash (Note) |
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Restricted Cash [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Assets Disclosure [Text Block] | Restricted Cash The restricted cash balances as of December 31, 2018 and 2017 were as follows:
Cash held in trust and/or cash held on behalf of others is in connection with the administration of the customer collection and vendor remittance activities by certain subsidiaries within the Company's epay and EFT Processing Segments. Amounts collected on behalf of certain mobile phone operators and/or merchants are deposited into a restricted cash account. The bank credit arrangements primarily represent cash collateral on deposit with commercial banks to cover guarantees. |
Property and Equipment, Net (Note) |
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PROPERTY AND EQUIPMENT, NET [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment, Net The components of property and equipment, net of accumulated depreciation and amortization as of December 31, 2018 and 2017 are as follows:
Depreciation and amortization expense related to property and equipment, including property and equipment recorded under capital leases, for the years ended December 31, 2018, 2017 and 2016 was $75.1 million, $63.4 million and $48.5 million, respectively. |
Goodwill and Acquired Intangible Assets, Net (Note) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET | Goodwill and Acquired Intangible Assets, Net Goodwill represents the excess of the purchase price of the acquired business over the estimated fair value of the underlying net tangible and intangible assets acquired. The following table summarizes intangible assets as of December 31, 2018 and 2017:
The following table summarizes the goodwill and amortizable intangible assets activity for the years ended December 31, 2018 and 2017:
The Company performs its annual goodwill impairment test during the fourth quarter of each year. The annual goodwill impairment test completed during the fourth quarter of 2018 resulted in no impairment charges. During the fourth quarter of 2018, the Company recorded a $7.0 million non-cash impairment charge for acquired intangible assets, specifically the HiFX trade name, related to rebranding the HiFX business to xe. Of the total goodwill balance of $704.2 million as of December 31, 2018, $467.6 million relates to the Money Transfer Segment, $130.9 million relates to the epay Segment and the remaining $105.7 million relates to the EFT Processing Segment. Amortization expense for intangible assets with finite lives was $22.6 million, $24.5 million and $25.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. Estimated annual amortization expense, before income taxes, on intangible assets with finite lives as of December 31, 2018, is expected to total $20.5 million for 2019, $19.7 million for 2020, $18.8 million for 2021, $17.8 million for 2022 and $13.1 million for 2023. |
Accrued Expenses and Other Current Liabilities (Note) |
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Text Block] | Accrued Expenses and Other Current Liabilities The balances as of December 31, 2018 and 2017 were as follows:
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Debt Obligations (Note) |
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DEBT OBLIGATIONS | Debt Obligations Debt obligations consist of the following as of December 31, 2018 and 2017:
As of December 31, 2018, aggregate annual maturities of long-term debt are $0.5 million in 2019, $401.5 million in 2020, none in 2021 and 2022, $215.7 million in 2023, and none thereafter. This maturity schedule reflects the revolving credit facility maturing in 2023 and the convertible notes maturing in 2020, coinciding with the terms of the initial put option by holders of the notes. Credit Facility In the early fourth quarter of 2018, the Company early retired the senior secured revolving bank credit facility (the "Credit Facility") with a syndicate of financial institutions. The Credit Facility was subsequently replaced by a new unsecured credit agreement for $1.0 billion that expires on October 17, 2023. Fees and interest on borrowings are based upon the Company's corporate credit rating and are based, in the case of letter of credit fees, on a margin , and in the case of interest, on a margin over London Inter-Bank Offered Rate (“LIBOR”) or a margin over the base rate, as selected by the Company, with the applicable margin ranging from 1.125% to 2.0% (or 0.175% to 1.0% for base rate loans). The new unsecured credit agreement allows for borrowings in Australian Dollars, British Pounds Sterling, Canadian Dollars, Czech Koruna, Danish Krone, Euros, Hungarian Forints, Japanese Yen, New Zealand Dollars, Norwegian Krone, Polish Zlotys, Swedish Krona, Swiss Francs, and U.S. Dollars. The revolving credit facility contains a $200 million sublimit for the issuance of letters of credit, a $50 million sublimit for U.S. Dollar swingline loans, and a $90 million sublimit for certain foreign currencies swingline loans. The retired Credit Facility provided an aggregate amount of $675 million, consisting of a $590 million five-year revolving credit facility, a $10 million five-year India revolving credit facility and a $75 million five-year term loan. Fees and interest on borrowings varied based upon the Company's consolidated total leverage ratio (as defined in the amended and restated credit agreement) and were based, in the case of letter of credit fees, on a margin, and in the case of interest, on a margin over LIBOR or a margin over the base rate, as selected by the Company, with the applicable margin ranging from 1.375% to 2.375% (or 0.375% to 1.375% for base rate loans). The base rate is the highest of (i) the Bank of America prime rate, (ii) the Federal Funds rate plus 0.50% or (iii) the Fixed LIBOR rate plus 1.00%. The term loan was subject to scheduled quarterly amortization payments, as set forth in the amended and restated credit agreement. The weighted average interest rates of the Company's borrowing under the unsecured credit agreement were 3.1% as of December 31, 2018, and 2.9% and 2.8% for the retired term loan and Credit Facility, respectively, as of December 31, 2017. As of December 31, 2018 and 2017, the Company had stand-by letters of credit/bank guarantees outstanding against the revolving credit facilities of $47.1 million and $57.3 million, respectively. Stand-by letters of credit/bank guarantees reduce the Company's borrowing capacity under the revolving credit facility and are generally used to secure trade credit and performance obligations. As of December 31, 2018 and 2017, the stand-by letters of credit interest charges were 1.1% and 1.4% per annum, respectively. The unsecured credit agreement contains customary affirmative and negative covenants, events of default and financial covenants, including: (i) as of the end of each fiscal quarter ended on March 31, September 30 and December 31, a Consolidated Total Leverage Ratio not to be greater than 3.5 to1.0; (ii) as of the end of each fiscal quarter ended on June 30, a Consolidated Total Leverage Ratio not to be greater than 4.0 to1.0; provided that, not more than two times prior to the expiration date, that a Material Acquisition has been consummated, for any period of four consecutive fiscal quarters following such Material Acquisition, the Consolidated Total Leverage Ratio will be not greater than 4.0 to1.0 for fiscal quarters ended on March 31, September 30 and December 31 and not greater than 4.5 to1.0 for fiscal quarters ended on June 30; provided, further, that following such four consecutive fiscal quarters for which the maximum Consolidated Total Leverage Ratio is increased, the maximum Consolidated Total Leverage Ratio shall revert to the levels set forth in clauses (i) and (ii) above for not fewer than two fiscal quarters before a subsequent Increase Notice is delivered to the syndicate of financial institutions; and (iii) a Consolidated Interest Coverage Ratio not less than 4.0 to 1.0. Subject to meeting certain leverage ratio and liquidity requirements as contained in the unsecured credit agreement, the Company is permitted to pay dividends, repurchase common stock and repurchase subordinated debt. The Company and certain subsidiaries have guaranteed the repayment of obligations under the credit agreement. Convertible Debt On October 30, 2014, the Company completed the sale of $402.5 million of Convertible Senior Notes due 2044 (“Convertible Notes”). The Convertible Notes have an interest rate of 1.5% per annum payable semi-annually in April and October, and are convertible into shares of Euronet Common Stock at a conversion price of approximately $72.18 per share if certain conditions are met (relating to the closing prices of Euronet Common Stock exceeding certain thresholds for specified periods). Holders of the Convertible Notes have the option to require the Company to purchase their notes at par on October 1, 2020, and have additional options to require the Company to purchase their notes at par on October 1, 2024, 2029, 2034, and 2039, or upon a change in control of the Company. In connection with the issuance of the Convertible Notes, the Company recorded $10.7 million in debt issuance costs, which are being amortized through October 1, 2020. Holders may convert all or any portion of their Convertible Notes at their option at any time prior to October 1, 2044 only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter), if the closing sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five consecutive business day period after any ten consecutive trading day period (the measurement period) in which the trading price for the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of the Company's common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. If the holders exercise their option to convert, the Company is required to deliver cash or shares of the Company's Common Stock, at the Company's option, to satisfy the principal amount and the conversion premium. As of September 30, 2018, the conversion threshold in clause (1) of the preceding sentence had been met and the Convertible Notes became convertible at the holders' option during the fourth quarter of 2018. During the fourth quarter of 2018, $1.0 million principal value of Convertible Notes were converted by holders. As of December 31, 2018, the conversion threshold was met and the Convertible Notes continue to be convertible at the holders' option during the first quarter of 2019. In accordance with ASC 470-20-30-27, proceeds from the issuance of convertible debt is allocated between debt and equity components so that debt is discounted to reflect the Company's nonconvertible debt borrowing rate. ASC 470-20-35-13 requires the debt discount to be amortized over the period the convertible debt is expected to be outstanding as additional non-cash interest expense. The allocation resulted in an increase to additional paid-in capital of $66.1 million. Contractual interest expense was $6.0 million for each of the years ended December 31, 2018, 2017 and 2016. Discount accretion was $11.5 million, $11.0 million and $10.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018 and 2017, the unamortized discounts were $21.6 million and $33.2 million, respectively. The discount will be amortized through October 1, 2020. The effective interest rate was 4.7% for the years ended December 31, 2018 and 2017. Other obligations Certain of the Company's subsidiaries have available lines of credit and overdraft credit facilities that generally provide for short-term borrowings that are used from time to time for working capital purposes. As of December 31, 2018 and 2017, borrowings under these arrangements were $38.5 million and $27.8 million, respectively. As of December 31, 2018, there was $38.0 million due in 2019 under these other obligation arrangements. |
Derivative Instruments and Hedging Activities (Note) |
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Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | Derivative Instruments and Hedging Activities The Company is exposed to foreign currency exchange risk resulting from (i) the collection of funds or the settlement of money transfer transactions in currencies other than the U.S. dollar, (ii) derivative contracts written to its customers in connection with providing cross-currency money transfer services and (iii) certain foreign currency denominated other asset and liability positions. The Company enters into foreign currency derivative contracts, primarily foreign currency forwards and cross-currency swaps, to minimize its exposure related to fluctuations in foreign currency exchange rates. As a matter of Company policy, the derivative instruments used in these activities are economic hedges and are not designated as hedges under ASC 815, primarily due to either the relatively short duration of the contract term or the effects of fluctuations in currency exchange rates are reflected concurrently in earnings for both the derivative instrument and the transaction and have an offsetting effect. Foreign currency exchange contracts - Ria Operations and Corporate In the United States, the Company uses short-duration foreign currency forward contracts, generally with maturities up to 14 days, to offset the fluctuation in foreign currency exchange rates on the collection of money transfer funds between initiation of a transaction and its settlement. Due to the short duration of these contracts and the Company’s credit profile, the Company is generally not required to post collateral with respect to these foreign currency forward contracts. Most derivative contracts executed with counterparties in the U.S. are governed by an International Swaps and Derivatives Association agreement that includes standard netting arrangements; therefore, asset and liability positions from forward contracts and all other foreign exchange transactions with the same counterparty are net settled upon maturity. As of December 31, 2018, the Company had foreign currency forward contracts outstanding in the U.S. with a notional value of $251.1 million, primarily in Australian dollars, Canadian dollars, British pounds, euros and Mexican pesos. In addition, the Company uses forward contracts, typically with maturities from a few days to less than one year, to offset foreign exchange rate fluctuations on certain short-term borrowings that are payable in currencies other than the U.S dollar. As of December 31, 2018, the Company had foreign currency forward contracts outstanding with a notional value of $64.3 million, primarily in euros. Foreign currency exchange contracts - HiFX Operations HiFX, writes derivative instruments, primarily foreign currency forward contracts and cross-currency swaps, mostly with counterparties comprised of individuals and small-to-medium size businesses and derives a currency margin from this activity as part of its operations. HiFX aggregates its foreign currency exposures arising from customer contracts and hedges the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties. Foreign exchange revenues from HiFX's total portfolio of positions were $69.2 million, $72.5 million and $66.0 million for the years ended December 31, 2018, 2017 and 2016, respectively. All of the derivative contracts used in the Company' s HiFX operations are economic hedges and are not designated as hedges under ASC 815. The duration of these derivative contracts is generally less than one year. The fair value of HiFX's total portfolio of positions can change significantly from period to period based on, among other factors, market movements and changes in customer contract positions. HiFX manages counterparty credit risk (the risk that counterparties will default and not make payments according to the terms of the agreements) on an individual counterparty basis. It mitigates this risk by entering into contracts with collateral posting requirements and/or by performing financial assessments prior to contract execution, conducting periodic evaluations of counterparty performance and maintaining a diverse portfolio of qualified counterparties. HiFX does not expect any significant losses from counterparty defaults. The aggregate equivalent U.S. dollar notional amounts of foreign currency derivative customer contracts held by the Company in its HiFX operations as of December 31, 2018 was approximately $1.8 billion. The significant majority of customer contracts are written in major currencies such as the euro, U.S. dollar, British pound, Australian dollar and New Zealand dollar. Balance Sheet Presentation The following table summarizes the fair value of the derivative instruments as recorded in the Consolidated Balance Sheets as of the dates below:
The following tables summarize the gross and net fair value of derivative assets and liabilities as of December 31, 2018 and 2017 (in thousands): Offsetting of Derivative Assets
Offsetting of Derivative Liabilities
Income Statement Presentation The following tables summarize the location and amount of gains on derivatives in the Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016:
(a) The Company enters into derivative contracts such as foreign currency exchange forwards and cross-currency swaps as part of its HiFX operations. These derivative contracts are excluded from this table as they are part of the broader disclosure of foreign currency exchange revenues for this business discussed above. See Note 17, Financial Instruments and Fair Value Measurements, for the determination of the fair values of derivatives. |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases of Lessee Disclosure [Text Block] | Leases Capital leases The Company leases certain of its ATMs, computer equipment and vehicles under capital lease agreements that expire between the years of 2019 and 2023 and bear interest at rates between 0.8% and 13.0%. The lessors for these leases hold a security interest in the equipment leased under the respective capital lease agreements. Lease installments are paid on a monthly, quarterly or semi-annual basis. Certain leases contain a bargain purchase option at the conclusion of the lease period. The gross amount of the assets and related accumulated amortization recorded within property and equipment and subject to capital leases as of December 31, 2018 and 2017 were as follows:
Non-cash financing and investing activities for the years ended December 31, 2018, 2017 and 2016 represented capital lease obligations of $6.9 million, $7.9 million and $5.8 million, respectively, incurred when the Company entered into leases primarily for new ATMs, to upgrade ATMs or for data center computer equipment. Operating leases The Company has non-cancelable operating leases that expire between the years of 2019 and 2033. Certain of these leases contain renewal options and escalation provisions. The Company recognizes rent expense under the straight-line method over the term of the lease. Rent expense for the years ended December 31, 2018, 2017 and 2016 amounted to $132.8 million, $105.0 million and $80.0 million, respectively. Future minimum lease payments Future minimum lease payments under the capital leases and the non-cancelable operating leases (with initial lease terms in excess of one year) as of December 31, 2018 are:
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Income Taxes (Note) |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | Income Taxes Tax Cuts and Jobs Act of 2017 We calculate our provision for federal, state and international income taxes based on current tax law. On December 22, 2017, the U.S. enacted into law what is informally called the Tax Cuts and Jobs Act of 2017 ("U.S. Tax Reform"). The most significant provisions of U.S. Tax Reform are the transition tax on previously undistributed foreign earnings of foreign subsidiaries, the reduction of the U.S. corporate statutory income tax rate from 35% to 21% beginning on January 1, 2018, and new taxes on certain foreign sourced earnings. Under the accounting rules, companies are required to recognize the effects of changes in tax laws and tax rates on deferred tax assets and liabilities in the period in which the new legislation is enacted. The SEC staff issued Staff Accounting Bulletin ("SAB") 118, which provides guidance on accounting for the tax effects of U.S. Tax Reform. SAB 118 provides a measurement period of up to one year from enactment date for companies to complete their accounting. In accordance with SAB 118, the Company recorded a net provisional tax expense of $41.6 million resulting from the enactment of U.S. Tax Reform. Included in the net tax expense was a current tax expense of $28.1 million. The remaining tax expense of $13.5 million was largely the required remeasurement of the Company's U.S. deferred tax assets and liabilities considering the new statutory tax rate. In the fourth quarter of 2018 the Company completed its accounting for the tax effects of U.S. Tax Reform. The net tax expense decreased by approximately $12.3 million to $29.3 million largely due to changes in the transition tax calculations. The current tax expense is $15.0 million and the deferred tax expense is $14.3 million. The Company elected to pay the transition tax over 8 years. The Company continues to evaluate the indefinite reinvestment assertion on foreign earnings in conjunction with the tax effects of U.S. Tax Reform. This includes the tax impacts of the global intangible low-taxed income ("GILTI") provision on current foreign earnings. The FASB issued guidance that allows for either recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years or recognizing such taxes as current period expenses when incurred. The Company elected to recognize the tax effects of GILTI as a current period expense. The sources of income before income taxes for the years ended December 31, 2018, 2017 and 2016 are presented as follows:
The Company's income tax expense for the years ended December 31, 2018, 2017 and 2016 consisted of the following:
The following is a reconciliation of the federal statutory income tax rates of 21% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017 and 2016 to the effective income tax rate for the same years:
The tax effect of temporary differences and carryforwards that give rise to deferred tax assets and liabilities from continuing operations are as follows:
Subsequently recognized tax benefits relating to the valuation allowance for deferred tax assets as of December 31, 2018 are expected to be allocated to income taxes in the Consolidated Statements of Income. As of December 31, 2018, and 2017, the Company's foreign tax loss carryforwards were $109.8 million and $90.2 million, respectively, and U.S. state tax loss carryforwards were $91.8 million and $59.1 million, respectively. In assessing the Company's ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the Company will only realize the benefits of these deductible differences, net of the existing valuation allowances, as of December 31, 2018. As of December 31, 2018, the Company had foreign tax net operating loss carryforwards of $109.8 million, which will expire as follows:
In addition, the Company's state tax net operating loss carryforwards of $91.8 million will expire periodically from 2019 through 2038. While U.S. tax expense has been recognized as a result of the transition tax and GILTI provisions of U.S. Tax Reform, the Company has not provided additional deferred taxes, if any, on undistributed earnings attributable to foreign subsidiaries that have been considered to be reinvested indefinitely. Gross undistributed earnings reinvested indefinitely in foreign subsidiaries aggregated approximately $1,478 million as of December 31, 2018. Other than the transition tax and GILTI provisions of U.S. Tax Reform, no deferred tax liabilities with respect to items such as certain foreign exchange gains or losses, foreign withholding taxes or additional state taxes have been recognized and it is not practical to determine the income tax liability that would be payable if such earnings were not reinvested indefinitely. Accounting for uncertainty in income taxes A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2018 and 2017 is as follows:
As of December 31, 2018 and 2017, approximately $28.0 million and $26.7 million, respectively, of the unrecognized tax benefits would impact the Company's provision for income taxes and effective income tax rate, if recognized. Total estimated accrued interest and penalties related to the underpayment of income taxes was $4.4 million and $3.5 million as of December 31, 2018 and 2017, respectively. The following income tax years remain open in the Company's major jurisdictions as of December 31, 2018:
It is reasonably possible that the balance of gross unrecognized tax benefits could significantly change within the next twelve months as a result of the resolution of audit examinations and expirations of certain statutes of limitations and, accordingly, materially affect the Company's operating results. At this time, it is not possible to estimate the range of change due to the uncertainty of potential outcomes. |
Valuation and Qualifying Accounts (Note) |
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Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Valuation and Qualifying Accounts Accounts receivable balances are stated net of allowance for doubtful accounts. Historically, the Company has not experienced significant write-offs. The Company records allowances for doubtful accounts when it is probable that the accounts receivable balance will not be collected. The following table provides a summary of the allowance for doubtful accounts balances and activity for the years ended December 31, 2018, 2017 and 2016:
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Stock Plans (Note) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock Plans The Company has share-based compensation plans (“SCP”) that allow it to grant restricted shares, or options to purchase shares, of Common Stock to certain current and prospective key employees, directors and consultants of the Company. These awards generally vest over periods ranging from three to five years from the date of grant, are generally exercisable during the shorter of a ten-year term or the term of employment with the Company. With the exception of certain awards made to the Company's employees in Germany, Singapore and Malaysia, awards under the SCP are settled through the issuance of new shares under the provisions of the SCP. For Company employees in Germany, Singapore and Malaysia, certain awards are settled through the issuance of treasury shares, which also reduces the number of shares available for future issuance under the SCP. As of December 31, 2018, the Company has approximately 3.1 million in total shares remaining available for issuance under the SCP. Share-based compensation expense was $16.8 million, $15.6 million and $15.0 million for the years ended December 31, 2018, 2017 and 2016, respectively, and was recorded in salaries and benefits expense in the accompanying Consolidated Statements of Income. The Company recorded a tax benefit of $2.7 million, $2.3 million and $1.0 million during the years ended December 31, 2018, 2017 and 2016, respectively, for the portion of this expense that relates to foreign tax jurisdictions in which an income tax benefit is expected to be derived. Stock options Summary stock options activity is presented in the table below:
Options outstanding that are expected to vest are net of estimated future forfeitures. The Company received cash of $17.1 million, $9.5 million and $4.1 million in connection with stock options exercised in the years ended December 31, 2018, 2017 and 2016, respectively. The intrinsic value of these options exercised was $73.0 million, $23.2 million and $12.3 million in the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, unrecognized compensation expense related to nonvested stock options that are expected to vest totaled $21.6 million and will be recognized over the next 5 years, with an overall weighted-average period of 3.7 years. The following table provides the fair value of options granted under the SCP during 2018, 2017 and 2016, together with a description of the assumptions used to calculate the fair value using the Black-Scholes-Merton option-pricing model:
(a) At the date of grant, the risk fee rate for stock options awarded in 2018 and 2017 was 2.8% and 2.2%, respectively. Restricted stock Restricted stock awards vest based on the achievement of time-based service conditions and/or performance-based conditions. For certain awards, vesting is based on the achievement of more than one condition of an award with multiple time-based and/or performance-based conditions. Summary restricted stock activity is presented in the table below:
The fair value of shares vested in the years ended December 31, 2018, 2017 and 2016 was $14.2 million, $13.1 million and $13.3 million, respectively. As of December 31, 2018, there was $10.9 million of total unrecognized compensation cost related to unvested time-based restricted stock, which is expected to be recognized over a weighted-average period of 3.6 years. As of December 31, 2018, there was $9.8 million of total unrecognized compensation costs related to unvested performance-based restricted stock, which is expected to be recognized based on Company performance over a weighted-average period of 1.8 years. The weighted average grant date fair value of restricted stock granted during the years ended December 31, 2018, 2017 and 2016 was $107.88, $91.28 and $73.86 per share, respectively. Employee stock purchase plan The Company has a qualified Employee Stock Purchase Plan (the “ESPP”), which allows qualified employees (as defined by the plan documents) to participate in the purchase of rights to purchase designated shares of the Company's Common Stock at a price equal to the lower of 85% of the closing price at the beginning or end of each quarterly offering period. The Company reserved 1,000,000 shares of Common Stock for purchase under the ESPP. Pursuant to the ESPP, during the years ended December 31, 2018, 2017 and 2016, the Company issued 21,872, 21,547 and 34,658 rights, respectively, to purchase shares of Common Stock at a weighted average price per share of $71.08, $69.06 and $59.69, respectively. The grant date fair value of the option to purchase shares at the lower of the closing price at the beginning or end of the quarterly period, plus the actual total discount provided, are recorded as compensation expense. Total compensation expense recorded was $0.4 million, $0.4 million, and $0.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. The following table provides the weighted-average fair value of the ESPP stock purchase rights during the years ended December 31, 2018, 2017 and 2016 and the assumptions used to calculate the fair value using the Black-Scholes-Merton option-pricing model:
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Segment Information (Note) |
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SEGMENT INFORMATION | 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:
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:
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 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. |
Fair Value Measurements (Note) |
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FAIR VALUE MEASUREMENTS | Financial Instruments and Fair Value Measurements Concentrations of credit risk The Company's credit risk primarily relates to trade accounts receivable and cash and cash equivalents. The EFT Processing Segment's customer base includes the most significant international card organizations and certain banks in its markets. The epay Segment's customer base is diverse and includes several major retailers and/or distributors in markets that they operate. The Money Transfer Segment trade accounts receivable are primarily due from independent agents that collect cash from customers on the Company's behalf and generally remit the cash within one week. The Company performs ongoing evaluations of its customers' financial condition and limits the amount of credit extended, or purchases credit enhancement protection, when deemed necessary, but generally requires no collateral. See Note 14, Valuation and Qualifying Accounts, for further disclosure. The Company invests excess cash not required for use in operations primarily in high credit quality, short-term duration securities that the Company believes bear minimal risk. Fair value measurements Fair value measurements used in the consolidated financial statements are based upon the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
The following table details financial assets measured and recorded at fair value on a recurring basis:
The carrying amounts of cash and cash equivalents, trade accounts receivable, trade accounts payable and short-term debt obligations approximate fair values due to their short maturities. The carrying values of the Company’s revolving credit agreements approximate fair values because interest is based on LIBOR that resets at various intervals of less than one year. The Company estimates the fair value of the Convertible Notes using quoted prices in inactive markets for identical liabilities (Level 2). As of December 31, 2018 and 2017, the fair values of the Convertible Notes were $571.6 million and $503.7 million, respectively, with carrying values of $379.9 million and $369.3 million, respectively. |
Litigation and Contingencies (Note) |
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Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | Litigation and Contingencies From time to time, the Company is a party to legal and regulatory proceedings arising in the ordinary course of its business. Currently, there are no legal proceedings or regulatory findings that management believes, either individually or in the aggregate, would have a material adverse effect upon the consolidated financial statements of the Company. In accordance with U.S. GAAP, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case |
Commitments (Note) |
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Guarantees [Abstract] | |||||||||||||||||||||||||
GUARANTEES | Commitments As of December 31, 2018, the Company had $77.8 million of stand-by letters of credit/bank guarantees issued on its behalf, of which $3.9 million are collateralized by cash deposits held by the respective issuing banks. Under certain circumstances, the Company grants guarantees in support of obligations of subsidiaries. As of December 31, 2018, the Company granted off balance sheet guarantees for cash in various ATM networks amounting to $22.9 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $61.7 million over the terms of the agreements with the customers. From time to time, the Company enters into agreements with commercial counterparties that contain indemnification provisions, the terms of which may vary depending on the negotiated terms of each respective agreement. The amount of such potential obligations is generally not stated in the agreements. Euronet's liability under such indemnification provisions may be mitigated by relevant insurance coverage and may be subject to time and materiality limitations, monetary caps and other conditions and defenses. Such indemnification obligations include the following:
The Company is also required to meet minimum capitalization and cash requirements of various regulatory authorities in the jurisdictions in which the Company has money transfer operations. The Company has obtained surety bonds in compliance with money transfer licensing requirements of the applicable governmental authorities. To date, the Company is not aware of any significant claims made by the indemnified parties or third parties to guarantee agreements with the Company and, accordingly, no liabilities were recorded as of December 31, 2018 or 2017. |
Related Party Transactions (Note) |
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Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions The Company leases an airplane from a company partially owned by Mr. Michael J. Brown, Euronet's Chief Executive Officer, President and Chairman of the Board of Directors. The airplane is leased for business use on a per flight hour basis at competitive commercial rates with no minimum usage requirement. Euronet incurred expenses of $0.3 million, $0.4 million and $0.3 million during the years ended December 31, 2018, 2017 and 2016, respectively, for the use of this airplane. In June 2014, the Company signed an ATM operating agreement with Rontec Ltd., a U.K. company in which Gerald Ronson holds a majority of the shares. Mr. Ronson is the father-in-law of Paul Althasen, one of the Company's directors. This is a commercial agreement under which the Company leases ATM sites from Rontec Ltd. at rates which it considers to be competitive commercial rates. The Company paid $38 thousand, $49 thousand and $106 thousand under this agreement in each of 2018, 2017 and 2016, respectively. |
Selected Quarterly Data (Unaudited) (Note) |
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Quarterly Financial Information [Text Block] | Selected Quarterly Data (Unaudited)
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Significant Accounting Policies and Practices (Policies) |
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Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currencies Assets and liabilities denominated in currencies other than the functional currency of a subsidiary are remeasured at rates of exchange on the balance sheet date. Resulting gains and losses on foreign currency transactions are included in the Consolidated Statements of Income. The financial statements of foreign subsidiaries where the functional currency is not the U.S. dollar are translated to U.S. dollars using (i) exchange rates in effect at period end for assets and liabilities, and (ii) weighted average exchange rates during the period for revenues and expenses. Adjustments resulting from translation of such financial statements are reflected in accumulated other comprehensive income (loss) as a separate component of consolidated equity. |
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Cash and Cash Equivalents, Policy [Policy Text Block] | Cash equivalents The Company considers all highly liquid investments, with an original maturity of three months or less, and certificates of deposit, which may be withdrawn at any time at the discretion of the Company without penalty, to be cash equivalents. |
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Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment Property and equipment are stated at cost, less accumulated depreciation. Property and equipment acquired in acquisitions have been recorded at estimated fair values as of the acquisition date. Depreciation is generally calculated using the straight-line method over the estimated useful lives of the respective assets. Depreciation and amortization rates are generally as follows:
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Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and other intangible assets The Company accounts for goodwill and other intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 350, Intangibles - Goodwill and Other (“ASC 350”). ASC 350 requires that the Company test for impairment on an annual basis and whenever events or circumstances dictate. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. ASC 350 provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the existing quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The Company has a policy for its annual review of goodwill to perform the qualitative assessment for all reporting units not subjected directly to the quantitative impairment test. Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators). These factors are then classified by the type of impact they would have on the estimated fair value using positive, neutral, and adverse categories based on current business conditions. Furthermore, the Company considers the results of the most recent quantitative impairment test completed for a reporting unit and compares, among other factors, the weighted average cost of capital ("WACC") between the current and prior years for each reporting unit. Under the quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. The Company uses weighted results from the discounted cash flow model ("DCF model") and guideline public company method ("Market Approach model") to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows and EBITDA are the best indicator of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including sales volumes and gross margins, tax rates, capital spending, discount rates and working capital changes. Most of these assumptions vary significantly among the reporting units. Significant assumptions in the Market Approach model are projected EBITDA, selected market multiple, and the estimated control premium. If the carrying value of goodwill exceeds its fair value, an impairment loss equal to such excess would be recognized. The Company completed its annual goodwill impairment test in the fourth quarter of 2018. It determined, after performing a qualitative review of each reporting unit, that it is more likely than not that the fair value of each of our reporting units exceeds the respective carrying amounts. Accordingly, there was no indication of impairment, and the quantitative goodwill impairment test was not performed. Other Intangible Assets - In accordance with ASC 350, intangible assets with finite lives are amortized over their estimated useful lives. Unless otherwise noted, amortization is calculated using the straight-line method over the estimated useful lives of the assets as follows:
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such events or changes in circumstances are present, a loss is recognized if the carrying value of the asset is in excess of the sum of the undiscounted cash flows expected to result from the use of the asset and its eventual disposition. An impairment loss is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. During 2018, the Company recorded a non-cash impairment charge of $7.0 million related to certain trade names as a result of combining HiFX into xe in order to operate the businesses under one brand name, xe. During 2017, the Company recorded a non-cash impairment charge of $2.3 million related to certain customer relationships as a result of the closure of the Pure Commerce office in South Korea. No impairment of long-lived assets was recorded during 2016. See Note 8, Goodwill and Acquired Intangible Assets, Net, to the Consolidated Financial Statements for additional information regarding the impairment of goodwill and other intangible assets. |
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Other assets policy [Policy Text Block] | Other assets Other assets include investments in unconsolidated affiliates, capitalized software development costs and capitalized payments for new or renewed contracts, contract renewals and customer conversion costs. Euronet capitalizes initial payments for new or renewed contracts to the extent recoverable through future operations, contractual minimums and/or penalties in the case of early termination. The Company's accounting policy is to limit the amount of capitalized costs for a given contract to the lesser of the estimated ongoing net future cash flows related to the contract or the termination fees the Company would receive in the event of early termination of the contract by the customer. ASC Topic 340, Other Assets and Deferred Costs (“ASC 340”) requires the deferral of incremental costs to obtain customer contracts, known as contract assets, which are then amortized to expense as part of selling, general and administrative expense over the respective periods of expected benefit. The Company completed its review of such costs and concluded that a transition adjustment was not necessary related to contract assets. However, the Company has implemented processes and controls to record such costs on an ongoing basis and will disclose them if they become material. The Company accounts for investments in affiliates using the equity method of accounting when it has the ability to exercise significant influence over the affiliate, but does not have a controlling interest. Equity losses in affiliates are generally recognized until the Company's investment is zero. As of December 31, 2018 and 2017, the Company had no material investments in unconsolidated affiliates. |
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Debt, Policy [Policy Text Block] | Convertible notes The Company accounts for its convertible debt instruments that may be settled in cash upon conversion in accordance with ASC Topic 470, Debt (“ASC 470”), which requires the proceeds from the issuance of such convertible debt instruments to be allocated between debt and equity components so that debt is discounted to reflect the Company's nonconvertible debt borrowing rate. Further, the Company applies ASC 470-20-35-13, which requires the debt discount to be amortized over the period the convertible debt is expected to be outstanding as additional non-cash interest expense. |
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Consolidation, Policy [Policy Text Block] | Noncontrolling interests The Company accounts for noncontrolling interests in its consolidated financial statements according to ASC Topic 810, Consolidations (“ASC 810”), which requires noncontrolling interests to be reported as a component of equity. |
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Business Combinations Policy [Policy Text Block] | Business combinations The Company accounts for business combinations in accordance with ASC Topic 805, Business Combinations (“ASC 805”), which requires most identifiable assets, liabilities, noncontrolling interests and goodwill acquired in a business combination to be recorded at “full fair value” at the acquisition date. Transaction-related costs are expensed in the period incurred. |
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Income Tax, Policy [Policy Text Block] | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In accordance with ASC Topic 740, Income Taxes (“ASC 740”), the Company's policy is to record estimated interest and penalties related to the underpayment of income taxes as income tax expense in the Consolidated Statements of Income. See Note 13, Taxes, to the Consolidated Financial Statements for further discussion regarding these provisions. |
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Presentation of taxes collected and remitted to government authorities policy [Policy Text Block] | Presentation of taxes collected and remitted to governmental authorities The Company presents taxes collected and remitted to governmental authorities on a net basis in the accompanying Consolidated Statements of Income. |
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Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value measurements The Company applies the provisions of ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), regarding fair value measurements for assets and liabilities. ASC 820 defines fair value, establishes a framework for measuring fair value and requires certain disclosures about fair value measurements. The provisions apply whenever other accounting pronouncements require or permit fair value measurements. See Note 17, Financial Instruments and Fair Value Measurements, to the Consolidated Financial Statements for the required fair value disclosures. |
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Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block] | Accounting for derivative instruments and hedging activities The Company accounts for derivative instruments and hedging activities in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”), which requires that all derivative instruments be recognized as either assets or liabilities on the balance sheet at fair value. Primarily in the Money Transfer Segment, the Company enters into foreign currency derivative contracts, mainly forward contracts, to offset foreign currency exposure related to money transfer settlement assets and liabilities in currencies other than the U.S. dollar, derivative contracts written to its customers arising from its cross-currency money transfer services and certain assets and liability positions denominated in currencies other than the U.S. dollar. These contracts are considered derivative instruments under the provisions of ASC 815; however, the Company does not designate such instruments as hedges for accounting purposes. Accordingly, changes in the value of these contracts are recognized immediately as a component of foreign currency exchange gain (loss), net in the Consolidated Statements of Income. Cash flows resulting from derivative instruments are included in operating activities in the Company's Consolidated Statements of Cash Flows. The Company enters into derivative instruments with highly credit-worthy financial institutions and does not use derivative instruments for trading or speculative purposes. See Note 11, Derivative Instruments and Hedging Activities, to the Consolidated Financial Statements for further discussion of derivative instruments. |
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Revenue Recognition, Policy [Policy Text Block] | Revenue recognition The Company recognizes revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales and usage-based taxes are excluded from revenues. A description of the major components of revenue by business segment is as follows: EFT Processing - Revenues in the EFT Processing Segment are primarily derived from transaction and management fees and foreign currency exchange margin from owned and outsourced ATM, POS and card processing networks and from the sale of EFT software solutions for electronic payment and transaction delivery systems, and fees or margin earned from value added services, including dynamic currency conversion and domestic and international surcharge. Transaction-based fees include charges for cash withdrawals, debit or credit card transactions, balance inquiries, transactions not completed because the relevant card issuer does not give authorization and prepaid mobile airtime recharges. Outsourcing services are generally billed on the basis of a fixed monthly fee per ATM, plus a transaction-based fee. Transaction-based fees are recognized at the time the transactions are processed and outsourcing management fees are recognized ratably over the contract period. These fees can be variable based on transaction volume tiered discounts; however, as all tiered discounts are calculated monthly, the actual discount is recorded on a monthly basis. Certain of the Company's non-cancelable customer contracts provide for the receipt of up-front fees from the customer and/or decreasing or increasing fee schedules over the agreement term for substantially the same level of services to be provided by the Company. The Company recognizes revenue under these contracts based on proportional performance of services over the term of the contract. This generally results in “straight-line” (i.e., consistent value per period) revenue recognition of the contracts' total cash flows, including any up-front payment received from the customer. epay - Revenue generated in the epay Segment is primarily derived from commissions or processing fees associated with distribution and/or processing of prepaid mobile airtime and non-mobile products. These fees and commissions are received from mobile operators, content vendors or distributors or from retailers. In accordance with ASC 606, commissions are recognized as revenue during the period in which the Company provides the service. The portion of the commission that is paid to retailers is generally recorded as a direct operating cost. However, in circumstances where the Company is not the primary obligor in the distribution of the electronic payment products, those commissions are recorded as a reduction of revenue. In selling certain products, the Company is the primary obligor in the arrangements; accordingly, the gross sales value of the products are recorded as revenue and the purchase cost as direct operating cost. Transactions are processed through a network of POS terminals and direct connections to the electronic payment systems of retailers. Transaction processing fees are recognized at the time the transactions are processed. Money Transfer - In accordance with ASC 606, revenues for money transfer and other services represent a transaction fee in addition to a margin earned from purchasing currency at wholesale exchange rates and selling the currency to customers at retail exchange rates. Revenues and the associated direct operating cost are recognized at the time the transaction is processed. The Company has origination and distribution agents in place, which each earn a fee for the respective service. These fees are reflected as direct operating costs. |
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Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-based compensation The Company follows the provisions of ASC Topic 718, Compensation - Stock Compensation (“ASC 718”), for equity classified awards, which requires the determination of the fair value of the share-based compensation at the grant date and subsequent recognition of the related expense over the period in which the share-based compensation is earned (“requisite service period”). The amount of future compensation expense related to awards of nonvested shares or nonvested share units (“restricted stock”) is based on the market price for Euronet Common Stock at the grant date. The grant date is the date at which all key terms and conditions of the grant have been determined and the Company becomes contingently obligated to transfer equity to the employee who renders the requisite service, generally the date at which grants are approved by the Company's Board of Directors or Compensation Committee thereof. Share-based compensation expense for awards with only service conditions is generally recognized as expense on a “straight-line” basis over the requisite service period. For awards that vest based on achieving periodic performance conditions, expense is recognized on a “graded attribution method.” The graded attribution method results in expense recognition on a straight-line basis over the requisite service period for each separately vesting portion of an award. The Company has elected to use the “with and without method” when calculating the income tax benefit associated with its share-based payment arrangements. See Note 15, Stock Plans, for further disclosure. |
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New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“Topic 606”), and subsequently modified the standard with several ASUs. The Company adopted the standard on January 1, 2018 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting under Topic 605. The Company completed its review of customer contracts relative to the requirements of Topic 606 and concluded that revenues from certain customer contracts in the epay Segment should be recorded differently under the principal versus agent guidance of Topic 606. With respect to those contracts, the Company concluded that it earns a commission from content providers for distributing and processing their prepaid mobile airtime and other electronic payment products, but it is not the principal for the products themselves. As a result, the impact of the change in accounting principle was a reduction of $88.5 million in both revenues and direct operating expenses for the year ended December 31, 2018, with no impact on reported net income. Contract Balances The Company records deferred revenues when cash payments are received or due in advance of its performance. The increase in the deferred revenue balance for 2018 is primarily driven by $52.9 million of cash payments received in the current year for which we have not yet satisfied the performance obligations, that were offset by $45.6 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2017. Disaggregation of Revenues The following table presents the Company's revenues disaggregated by segment and region. 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. The Company recognizes foreign exchange revenues from derivative instruments in its HiFX operations in accordance with ASC Topic 815 and not ASC Topic 606. These revenues are not significant to the Company's consolidated revenues and are included in the following tables.
In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products. The new standard specifies that liabilities within its scope are considered to be financial liabilities, and amends the guidance in ASC 405-20, Extinguishments of Liabilities, by directing entities to derecognize prepaid stored-value product liabilities based on expected breakage in proportion to the pattern of rights expected to be exercised by the consumer. Derecognition for breakage is permitted only to the extent that it is probable that a significant reversal of recognized breakage will not subsequently occur. The new standard is consistent with the breakage guidance in Topic 606. The Company adopted this ASU as of January 1, 2018 along with Topic 606. The adoption of this standard did not have a significant impact on the Company's consolidated financial statements and related disclosures. In August 2016, the FASB issued an accounting standard classified under FASB ASC Topic 230, “Statement of Cash Flows”. This accounting standard provides guidance on eight specific cash flow issues. Subsequently, the FASB issued amendments to this accounting standard that required companies to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the statement of cash flows. The Company adopted these standards as of January 1, 2018. The adoption of these accounting standards resulted in a decrease of $5.0 million for 2017 and an increase of $23.3 million for 2016 in net cash provided by operating activities. As of December 31, 2018, the Company had $76.6 million of restricted cash consisting of restricted cash held in trust and/or cash held on behalf of others and cash collateral on bank credit arrangements. Cash held in trust and/or cash held on behalf of others is in connection with the administration of the customer collection and vendor remittance activities by certain subsidiaries within the Company’s epay and EFT Processing Segments. Amounts collected on behalf of certain mobile phone operators and/or merchants are deposited into a restricted cash account. The bank credit arrangements primarily represent cash collateral on deposit with commercial banks to cover guarantees. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will update the existing guidance on accounting for leases and require new qualitative and quantitative disclosures about the Company’s leasing activities. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; and ASU No. 2018-20, Narrow Scope Improvements for Lessors. The new standard requires lessees to account for all leases on the balance sheet, except for certain short-term leases that have a maximum possible lease term of 12 months. The accounting for lessors is largely unchanged from the previous accounting guidance, except for leverage lease accounting which is not permitted for leases entered into or modified after the effective date of the new standard. The new standard is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted. A modified retrospective approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company will adopt the new standard on January 1, 2019 and use the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company will elect the "package of practical expedients," which permits the Company not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Company will also elect to combine lease and non-lease components and to include short-term leases with an initial term of 12 months or less on the balance sheet. The Company estimates approximately $375 million would be recognized as total right-of-use assets and total lease liabilities on its consolidated balance sheet as of January 1, 2019. Other than as disclosed, the Company does not expect the new standard to have a material impact on its results of operations or its cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Topic 326 was subsequently amended by ASU 2018-19. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. The Company is continuing to assess the potential impacts of the standard. |
Summary of Significant Accounting Policies and Practices Recently Issued and Adopted Accounting Pronouncements (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenues by Segment by Region [Table Text Block] |
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Stockholders' Equity (Tables) |
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Schedule of Weighted Average Number of Shares [Table Text Block] | The following table provides the computation of diluted weighted average number of common shares outstanding:
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Acquisitions (Tables) - YourCash [Member] |
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Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] |
Restricted Cash (Tables) |
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Restrictions on Cash and Cash Equivalents [Table Text Block] | The restricted cash balances as of December 31, 2018 and 2017 were as follows:
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Property and Equipment, Net (Tables) |
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PROPERTY AND EQUIPMENT, NET [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | The components of property and equipment, net of accumulated depreciation and amortization as of December 31, 2018 and 2017 are as follows:
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Goodwill and Acquired Intangible Assets, Net (Tables) |
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Goodwill and Acquired Intangible Assets Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following table summarizes intangible assets as of December 31, 2018 and 2017:
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Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table summarizes the goodwill and amortizable intangible assets activity for the years ended December 31, 2018 and 2017:
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Accrued Expenses and Other Current Liabilities (Tables) |
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Current Liabilities [Table Text Block] | The balances as of December 31, 2018 and 2017 were as follows:
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Debt Obligations (Tables) |
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Schedule of Long-term Debt Instruments [Table Text Block] | Debt obligations consist of the following as of December 31, 2018 and 2017:
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Derivative Instruments and Hedging Activities (Tables) |
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value of the derivative instruments as recorded in the Consolidated Balance Sheets as of the dates below:
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Offsetting Assets and Liabilities [Table Text Block] | The following tables summarize the gross and net fair value of derivative assets and liabilities as of December 31, 2018 and 2017 (in thousands): Offsetting of Derivative Assets
Offsetting of Derivative Liabilities
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Derivative Instruments, Gain (Loss) [Table Text Block] | The following tables summarize the location and amount of gains on derivatives in the Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016:
(a) The Company enters into derivative contracts such as foreign currency exchange forwards and cross-currency swaps as part of its HiFX operations. These derivative contracts are excluded from this table as they are part of the broader disclosure of foreign currency exchange revenues for this business discussed above. |
Leases (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Capital Leased Asssets [Table Text Block] | The gross amount of the assets and related accumulated amortization recorded within property and equipment and subject to capital leases as of December 31, 2018 and 2017 were as follows:
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Future minimum lease payments for operating and capital leases [Table Text Block] | Future minimum lease payments under the capital leases and the non-cancelable operating leases (with initial lease terms in excess of one year) as of December 31, 2018 are:
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The sources of income before income taxes for the years ended December 31, 2018, 2017 and 2016 are presented as follows:
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Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The Company's income tax expense for the years ended December 31, 2018, 2017 and 2016 consisted of the following:
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following is a reconciliation of the federal statutory income tax rates of 21% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017 and 2016 to the effective income tax rate for the same years:
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effect of temporary differences and carryforwards that give rise to deferred tax assets and liabilities from continuing operations are as follows:
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Summary of Operating Loss Carryforwards [Table Text Block] | December 31, 2018, the Company had foreign tax net operating loss carryforwards of $109.8 million, which will expire as follows:
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Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2018 and 2017 is as follows:
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Summary of Income Tax Examinations [Table Text Block] |
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Valuation and Qualifying Accounts (Tables) |
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Schedule of Valuation and Qualifying Accounts Disclosure [Table Text Block] | The following table provides a summary of the allowance for doubtful accounts balances and activity for the years ended December 31, 2018, 2017 and 2016:
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Stock Plans (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Summary stock options activity is presented in the table below:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table provides the fair value of options granted under the SCP during 2018, 2017 and 2016, together with a description of the assumptions used to calculate the fair value using the Black-Scholes-Merton option-pricing model:
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Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Summary restricted stock activity is presented in the table below:
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Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The following table provides the weighted-average fair value of the ESPP stock purchase rights during the years ended December 31, 2018, 2017 and 2016 and the assumptions used to calculate the fair value using the Black-Scholes-Merton option-pricing model:
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Segment Information (Tables) |
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables present the Company’s reportable segment results for the years ended December 31, 2018, 2017 and 2016:
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Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | 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:
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Fair Value Measurements (Tables) |
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Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table details financial assets measured and recorded at fair value on a recurring basis:
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Selected Quarterly Data (Unaudited) (Tables) |
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Selected Quarterly Data [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Quarterly Financial Information [Table Text Block] |
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Summary of Significant Accounting Policies and Practices Goodwill and aquired intangible asset impairment (Details) - USD ($) $ in Thousands |
12 Months Ended | |
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Dec. 31, 2018 |
Dec. 31, 2017 |
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Goodwill [Line Items] | ||
Restricted cash | $ 76,595 | $ 81,374 |
Impairment of Intangible Assets, Finite-lived | $ 7,049 | $ 2,286 |
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Oct. 30, 2014 |
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Debt Instrument, Convertible, Conversion Price | $ 72.18 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (56,656) | $ 116,401 | $ (45,175) |
Stockholders' Equity Computation of diluted weighted average shares outstanding (Details) - shares |
12 Months Ended | ||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Weighted average shares outstanding - basic | 51,487,557 | 52,523,272 | 52,276,951 |
Weighted average number diluted shares outstanding adjustment | 1,499,713 | 1,793,375 | 1,705,224 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 1,640,477 | 799,680 | 18,904 |
Weighted average shares outstanding - diluted | 54,627,747 | 55,116,327 | 54,001,079 |
Antidilutive securities excluded from computation of earnings per share, amount | 458,000 | 798,000 | 616,000 |
Stockholders' Equity Preferred Stock (Details) - shares |
12 Months Ended | ||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Preferred Stock [Abstract] | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 1,640,477 | 799,680 | 18,904 |
Acquisitions (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Business Acquisition [Line Items] | |||
Goodwill | $ 704,197 | $ 717,386 | $ 689,713 |
Restricted Cash (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 76,595 | $ 81,374 |
Cash held in trust or on behalf of others [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 67,163 | 67,541 |
Collateral on bank credit arrangements and other [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 9,432 | $ 13,833 |
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Accrued expenses, current | $ 293,864 | $ 301,390 |
Accrued amounts due to mobile operators and other content providers | 65,878 | 92,291 |
Money transfer settlement obligations | 310,710 | 343,613 |
Derivative Liability, Current | 36,102 | 22,495 |
Accrued expenses and other current liabilities | $ 706,554 | $ 759,789 |
Derivative Instruments and Hedging Activities Fair Value (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Derivatives, Fair Value [Line Items] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | $ 44,637 | $ 36,574 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ (36,102) | $ (22,495) |
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Ria Operations [Member] | Foreign Currency Gain (Loss) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 173 | $ 175 | $ 143 |
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for doubtful accounts receivable, period start | $ 20,958 | $ 18,369 | $ 19,140 |
Additions-charged to expense | 8,653 | 6,631 | 6,556 |
Amounts written off | (4,079) | (5,944) | (6,839) |
Other (primarily changes in foreign currency exchange rates) | (1,245) | 1,902 | (488) |
Allowance for doubtful accounts receivable, period end | $ 24,287 | $ 20,958 | $ 18,369 |
Related Party Transactions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from transactions with related party | $ 300 | $ 400 | $ 300 |
Rontec Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from transactions with related party | $ 38 | $ 49 | $ 106 |
Selected Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Selected Quarterly Data [Abstract] | |||||||||||
Revenues (quarterly) | $ 649,385 | $ 714,505 | $ 622,224 | $ 550,515 | $ 604,645 | $ 637,834 | $ 536,563 | $ 473,380 | $ 2,536,629 | $ 2,252,422 | $ 1,958,615 |
Operating income (loss) (quarterly) | 71,160 | 150,913 | 90,369 | 45,472 | 41,119 | 116,901 | 66,691 | 41,286 | 357,914 | 265,997 | 249,773 |
Net income (loss) | 59,894 | 102,257 | 43,636 | 26,344 | (22,829) | 100,353 | 51,347 | 28,069 | 232,131 | 156,940 | 174,098 |
Net income attributable to Euronet Worldwide, Inc. (quarterly) | $ 59,991 | $ 102,723 | $ 43,724 | $ 26,413 | $ (22,933) | $ 100,290 | $ 51,365 | $ 28,123 | $ 232,851 | $ 156,845 | $ 174,415 |
Earnings (loss) per share, basic (quarterly) | $ 1.16 | $ 2.01 | $ 0.85 | $ 0.51 | $ (0.44) | $ 1.91 | $ 0.98 | $ 0.54 | $ 4.52 | $ 2.99 | $ 3.34 |
Earnings (loss) per share, diluted (quarterly) | $ 1.10 | $ 1.89 | $ 0.82 | $ 0.49 | $ (0.44) | $ 1.80 | $ 0.93 | $ 0.51 | $ 4.26 | $ 2.85 | $ 3.23 |
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