Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 06, 2020 | |
Entity Information [Line Items] | ||
Entity File Number | 001-31648 | |
Entity Small Business | false | |
City Area Code | (913) | |
Local Phone Number | 327-4200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true | |
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-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 52,205,743 | |
Entity Tax Identification Number | 74-2806888 | |
Entity Address, City or Town | Leawood, | |
Entity Address, Address Line One | 3500 College Boulevard | |
Entity Address, State or Province | KS | |
Entity Address, Postal Zip Code | 66211 | |
Entity Emerging Growth Company | false | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | EEFT | |
Security Exchange Name | NASDAQ | |
1.375 Senior Notes due 2026 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.375% Senior Notes due 2026 | |
Trading Symbol | EEFT26 | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 709,521 | $ 786,081 |
CashinATM | 558,580 | 665,641 |
Restricted cash | 28,953 | 34,301 |
Settlement Assets, Current | 773,336 | 1,013,067 |
Trade accounts receivable, net of credit losses of $3,967 at March 31, 2020 and $3,892 at December 31, 2019 | 92,860 | 201,935 |
Prepaid expenses and other current assets | 309,385 | 217,707 |
Total current assets | 2,472,635 | 2,918,732 |
Operating right of use lease asset | 379,584 | 377,543 |
Property and equipment, net of accumulated depreciation of $411,616 at March 31, 2020 and $410,243 at December 31, 2019 | 356,558 | 359,980 |
Goodwill | 714,499 | 743,823 |
Acquired intangible assets, net of accumulated amortization of $201,810 at March 31, 2020 and $204,853 at December 31, 2019 | 130,177 | 141,847 |
Other assets, net of accumulated amortization of $47,941 at March 31, 2020 and $46,788 at December 31, 2019 | 130,932 | 115,741 |
Total assets | 4,184,385 | 4,657,666 |
Current liabilities: | ||
Settlement Liabilities, Current | 773,336 | 1,013,067 |
Trade accounts payable | 88,392 | 81,743 |
Accrued expenses and other current liabilities | 365,326 | 294,557 |
Current portion of operating lease liabilities | 129,151 | 127,353 |
Short-term debt obligations and current maturities of long-term debt obligations | 3,528 | 6,089 |
Income taxes payable | 40,090 | 52,583 |
Deferred revenue | 61,767 | 58,588 |
Total current liabilities | 1,461,590 | 1,633,980 |
Debt obligations, net of current portion | 1,083,618 | 1,090,939 |
Operating lease obligations, net of current portion | 243,639 | 241,977 |
Deferred Income Tax Liabilities, Net | 52,613 | 56,067 |
Other long-term liabilities | 53,653 | 55,361 |
Total liabilities | 2,895,113 | 3,078,324 |
Euronet Worldwide, Inc. stockholders' equity: | ||
Preferred Stock, $0.02 par value. 10,000,000 shares authorized; none issued | 0 | 0 |
Common Stock, $0.02 par value. 90,000,000 shares authorized; 62,853,785 issued at March 31, 2020 and 62,775,762 issued at December 31, 2019 | 1,257 | 1,256 |
Additional paid-in-capital | 1,198,097 | 1,190,058 |
Treasury stock, at cost, 10,648,096 shares at March 31, 2020 and 8,554,908 shares at December 31, 2019 | (703,716) | (463,704) |
Retained earnings | 1,018,475 | 1,016,554 |
Accumulated other comprehensive loss | (224,667) | (164,890) |
Total Euronet Worldwide, Inc. stockholders' equity | 1,289,446 | 1,579,274 |
Noncontrolling interests | (174) | 68 |
Total equity | 1,289,272 | 1,579,342 |
Total liabilities and equity | $ 4,184,385 | $ 4,657,666 |
Balance Sheet Parenthetical (Pa
Balance Sheet Parenthetical (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for doubtful accounts receivable | $ 3,967 | $ 27,938 |
Accumulated depreciation of property and equipment | 411,616 | 410,243 |
Accumulated amortization of intangible assets | 201,810 | 204,853 |
Accumulated amortization of other assets | $ 47,941 | $ 46,788 |
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 | 62,853,785 | 62,775,762 |
Treasury Stock, shares | 10,648,096 | 8,554,908 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | $ 583,907 | $ 577,509 |
Operating expenses: | ||
Direct operating costs | 359,456 | 353,833 |
Salaries and benefits | 101,240 | 92,795 |
Selling, general and administrative | 60,793 | 48,147 |
Depreciation and amortization | 30,816 | 26,640 |
Total operating expenses | 552,305 | 521,415 |
Operating income | 31,602 | 56,094 |
Other income (expense): | ||
Interest income | 567 | 343 |
Interest expense | (9,233) | (8,199) |
Loss on early retirement of debt | 0 | (928) |
Foreign currency exchange (loss) gain, net | (18,806) | 3,208 |
Other gains | 31 | 25 |
Other (expense) income, net | (27,441) | (5,551) |
Income before income taxes | 4,161 | 50,543 |
Income tax expense | (2,441) | (15,964) |
Net income | 1,720 | 34,579 |
Net loss attributable to noncontrolling interests | 201 | (36) |
Net income attributable to Euronet Worldwide, Inc. | $ 1,921 | $ 34,543 |
Earnings per share attributable to Euronet Worldwide, Inc. stockholders - basic | $ 0.04 | $ 0.67 |
Earnings per share attributable to Euronet Worldwide, Inc. stockholders - diluted | $ 0.04 | $ 0.62 |
Weighted average number of shares outstanding - basic | 53,607,104 | 51,880,534 |
Weighted average number of shares outstanding - diluted | 54,779,321 | 55,576,867 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 1,720 | $ 34,579 |
Translation adjustment | (59,818) | (16,156) |
Comprehensive income | (58,098) | 18,423 |
Comprehensive loss (income) attributable to noncontrolling interests | 242 | (7) |
Comprehensive (loss) income attributable to Euronet Worldwide, Inc. | $ (57,856) | $ 18,416 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity Statement - USD ($) $ in Thousands | Total | Retained Earnings [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] |
Total Euronet Worldwide Inc. stockholders' equity at Dec. 31, 2018 | $ 1,232,842 | $ 669,805 | $ 1,198 | $ 1,104,264 | $ (391,551) | $ (151,043) | $ 169 |
Number of Shares Outstanding Period Start at Dec. 31, 2018 | 51,819,998 | ||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 130,136 | ||||||
Number of Shares Outstanding Period End at Mar. 31, 2019 | 51,950,140 | ||||||
Net income attributable to Euronet Worldwide, Inc. | $ 34,543 | 34,543 | |||||
Net income attributable to noncontrolling interest | 36 | 36 | |||||
Net income | 34,579 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (16,185) | (16,156) | (29) | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (3,441) | $ (3) | (5,194) | (1,756) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 4,490 | 4,490 | |||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | 71,660 | 71,660 | |||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 6 | ||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | (42,917) | ||||||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | (42,917) | ||||||
Total Euronet Worldwide Inc. stockholders' equity at Mar. 31, 2019 | 1,287,910 | 704,348 | $ 1,201 | 1,142,691 | (393,307) | (167,199) | 176 |
Total Euronet Worldwide Inc. stockholders' equity at Dec. 31, 2019 | $ 1,579,342 | 1,016,554 | $ 1,256 | 1,190,058 | (463,704) | (164,890) | 68 |
Number of Shares Outstanding Period Start at Dec. 31, 2019 | 54,220,854 | ||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 80,519 | ||||||
Number of Shares Outstanding Period End at Mar. 31, 2020 | 52,205,690 | ||||||
Net income attributable to Euronet Worldwide, Inc. | $ 1,921 | 1,921 | |||||
Net income attributable to noncontrolling interest | (201) | (201) | |||||
Net income | 1,720 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (59,818) | (59,777) | (41) | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (1,453) | $ (1) | (1,701) | (249) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 6,338 | 6,338 | |||||
Treasury Stock, Shares, Acquired | (2,095,683) | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ (239,763) | ||||||
Total Euronet Worldwide Inc. stockholders' equity at Mar. 31, 2020 | $ 1,289,272 | $ 1,018,475 | $ 1,257 | $ 1,198,097 | $ (703,716) | $ (224,667) | $ (174) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | $ (227,626) | $ 160,290 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 1,589,753 | 1,291,242 |
Net income | 1,720 | 34,579 |
Net Income (Loss) Attributable to Parent | 1,921 | 34,543 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 30,816 | 26,640 |
Share-based compensation | 6,338 | 4,490 |
Unrealized foreign exchange loss (gain), net | 18,806 | (3,208) |
Deferred income taxes | (2,043) | 3,468 |
Accretion of convertible debt discount and amortization of debt issuance costs | 4,616 | 4,071 |
Changes in working capital, net of amounts acquired: | ||
Income taxes payable, net | (10,454) | 635 |
Trade accounts receivable | 300,063 | (31,456) |
Prepaid expenses and other current assets | (119,648) | 33,787 |
Trade accounts payable | (126,242) | (115,380) |
Accrued expenses and other current liabilities | 14,811 | 51,377 |
Deferred revenue | 4,119 | 3,005 |
Changes in noncurrent assets and liabilities | (17,018) | 953 |
Net cash provided by operating activities | 105,884 | 12,961 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | 475 | 0 |
Purchases of property and equipment | (30,392) | (31,390) |
Purchases of other long-term assets | (2,046) | (1,783) |
Other, net | 357 | 187 |
Net cash used in investing activities | (31,606) | (32,986) |
Cash flows from financing activities: | ||
Proceeds from issuance of shares | 1,700 | 5,171 |
Repurchase of shares | (240,530) | (2,275) |
Borrowings from revolving credit agreements | 805,500 | 1,209,446 |
Repayments of revolving credit agreements | (805,500) | (1,425,398) |
Proceeds from Convertible Debt | 0 | 525,000 |
Repayments of long-term debt obligations | 0 | (94,199) |
Borrowings from short-term debt obligations, net | (2,163) | (11,779) |
Payments of Debt Issuance Costs | 0 | (11,812) |
Other, net | (1,651) | (1,452) |
Net cash provided by financing activities | (242,644) | 192,702 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (59,260) | (12,387) |
Interest paid during the period | 3,678 | 5,491 |
Income taxes paid during the period | $ 16,064 | $ 12,074 |
General
General | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL 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 Presentation The accompanying unaudited consolidated financial statements have been prepared from the records of the Company, in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, such unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to fairly present the consolidated financial position and the results of operations, comprehensive income and cash flows for the interim periods. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2019 , including the notes thereto, set forth in the Company’s 2019 Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include computing income taxes, 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. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ending December 31, 2020 . Seasonality Euronet’s Electronic Funds Transfer ("EFT") Processing Segment experiences its heaviest demand for dynamic currency conversion services during the third quarter of the fiscal year, normally coinciding with the tourism season. Additionally, the EFT Processing and epay Segments are normally 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. COVID-19 (coronavirus) The outbreak of the COVID-19 (coronavirus) pandemic has resulted in travel restrictions across borders, and shelter-in-place orders in most of the countries where the Company operates. The majority of these orders went into effect in late February 2020 or early March 2020. These orders have negatively impacted all of our three operating segments. The EFT Segment has experienced declines in transaction volumes due to these restrictions, especially high-margin cross-border transactions. Although the epay Segment has experienced revenue growth from increased digital content purchases which can be completed remotely, many of its POS retail locations have been closed, reducing in person transactions. Our Money Transfer Segment has experienced declines in transaction volumes due to the restrictions noted above, which have also led to the temporary closure of many of our company owned stores and agents. The Money Transfer Segment has experienced an increase in receivable delinquencies as our agents have been temporarily closed as nonessential services. In response to the COVID-19 driven impacts, the Company has implemented several key measures to offset the impact across the business, including negotiating certain third party contracts, reducing travel, decreasing planned 2020 capital expenditures, and expanding ATM winterizations (placing them in dormancy status) in more sites and more markets. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements | RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform due to the anticipated cessation of LIBOR on or before December 31, 2021. This guidance is effective from March 12, 2020 through December 31, 2022 and could impact the accounting for LIBOR provisions in the Company’s unsecured credit agreement. The Company does not expect that the adoption of this guidance will have a significant impact on its consolidated financial statements. The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), as of January 1, 2020, 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. This replaced the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. The adoption of this standard did not have a significant impact on the Company's consolidated financial statements and related disclosures. |
Settlement Assets Settlement As
Settlement Assets Settlement Assets | 3 Months Ended |
Mar. 31, 2020 | |
Settlement Assets [Abstract] | |
Settlement Assets | SETTLEMENT ASSETS AND OBLIGATIONS Settlement assets represent funds received or to be received from agents for unsettled money transfers and from merchants for unsettled prepaid transactions. The Company records corresponding settlement obligations relating to amounts payable. Settlement assets consist of cash and cash equivalents, restricted cash, accounts receivable and prepaid expenses and other current assets. Cash received by Euronet agents and merchants generally become available to the Company within two weeks after initial receipt by the business partner. Receivables from business partners represent funds collected by such business partners that are in transit to the Company. Settlement obligations consist of money transfers and accounts payable to agents and content providers. Money transfer accounts payable represent amounts to be paid to transferees when they request funds. Most agents typically settle with transferees first then obtain reimbursement from the Company. Money order accounts payable represent amounts not yet presented for payment. Due to the agent funding and settlement process, accounts payable to agents represent amounts due to agents for money transfers that have not been settled with transferees. As of (in thousands) March 31, 2020 December 31, 2019 Settlement assets: Settlement cash and cash equivalents $ 256,456 $ 282,188 Settlement restricted cash 36,243 49,168 Accounts receivable 364,148 574,410 Prepaid expenses and other current assets 116,489 107,301 Total settlement assets $ 773,336 $ 1,013,067 Settlement obligations: Trade account payables $ 353,498 $ 504,667 Accrued expenses and other current liabilities 419,838 508,400 Total settlement obligations $ 773,336 $ 1,013,067 A portion of the Company's credit losses are recorded in the accounts receivable within settlement assets. The balance of credit losses related to accounts receivable within settlement assets was $28.3 million and $24.0 million as of March 31, 2020 and December 31, 2019, respectively. The table below reconciles cash and cash equivalents, restricted cash, ATM cash, settlement cash and cash equivalents, and settlement restricted cash as presented within "Cash and cash equivalents and restricted cash" in the Consolidated Statement of Cash Flows. As of (in thousands) March 31, 2020 December 31, 2019 March 31, 2019 December 31, 2018 Cash and cash equivalents $ 709,521 $ 786,081 $ 558,454 $ 385,031 Restricted cash 28,953 34,301 34,398 31,237 ATM cash 558,580 665,641 421,897 395,378 Settlement cash and cash equivalents 256,456 282,188 235,946 273,948 Settlement restricted cash 36,243 49,168 40,547 45,358 Cash and cash equivalents and restricted cash at end of period $ 1,589,753 $ 1,817,379 $ 1,291,242 $ 1,130,952 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
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: Three Months Ended 2020 2019 Computation of diluted weighted average shares outstanding: Basic weighted average shares outstanding 53,607,104 51,880,534 Incremental shares from assumed exercise of stock options and vesting of restricted stock 1,172,217 1,285,139 Incremental shares from assumed conversion of convertible debentures — 2,411,194 Diluted weighted average shares outstanding 54,779,321 55,576,867 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 three months ended March 31, 2020 and 2019 of approximately 886,000 and 402,000 , respectively. The Company issued new Convertible Senior Notes ("Convertible Notes") due March 2049 on March 18, 2019 and retired the existing convertible notes ("Retired Convertible Notes") that would have matured in 2044 on May 28, 2019. The Company's Convertible Notes currently have, and the Retired Convertible Notes had, a settlement feature requiring the Company upon conversion to settle the principal amount of the debt and any conversion value in excess of the principal value ("conversion premium"), for cash or shares of the Company's common stock or a combination thereof, at the Company's option. The Company has 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 and the Retired Convertible Notes were included in the calculation of diluted earnings per share if their inclusion was dilutive. The dilutive effect increases the more the market price exceeds the conversion price. The Retired Convertible Notes had a dilutive effect for the three months ended March 31, 2019 as the $142.59 market price per share of common stock as of March 31, 2019 exceeded the $72.18 conversion price per share. The Convertible Notes would only have a dilutive effect if the market price per share of common stock exceeds the conversion price of $188.73 per share. The market price per share per share of common stock was $85.72 , therefore, according to ASC Topic 260, Earnings per Share (“ASC 260”) , there was no dilutive effect of the assumed conversion of the debentures as of March 31, 2020 , whereas the dilutive effect was 2,411,194 shares for the three months ended March 31, 2019 . See Note 8, Debt Obligations, to the Consolidated Financial Statements for more information about the convertible notes. Share repurchases The Company's Board of Directors had authorized a stock repurchase program allowing Euronet to repurchase up to $375 million in value or 10.0 million shares of stock through March 31, 2020. On March 11, 2019, in connection with the issuance of the Convertible Notes, the Board of Directors authorized an additional repurchase program of $120 million in value of the Company's common stock through March 11, 2021. On February 26, 2020, the Company put a repurchase program in place to repurchase up to $250 million in value, but not more than 5.0 million shares of common stock through February 28, 2022. For the first quarter of 2020 , the Company repurchased $239.8 million in value of Euronet common stock under the repurchase programs. Repurchases under either 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. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists entirely of foreign currency translation adjustments. The Company recorded foreign currency translation losses of $59.8 million for the three months ended March 31, 2020 and $16.2 million for the three months ended March 31, 2019 . There were no reclassifications of foreign currency translation into the consolidated statements of income for the three months ended March 31, 2020 and 2019 . |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET | GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET A summary of acquired intangible assets and goodwill activity for the three months ended March 31, 2020 is presented below: (in thousands) Acquired Intangible Assets Goodwill Total Intangible Assets Balance as of December 31, 2019 $ 141,847 $ 743,823 $ 885,670 Decreases: Acquisition — (474 ) (474 ) Amortization (5,726 ) — (5,726 ) Other (primarily changes in foreign currency exchange rates) (5,944 ) (28,850 ) (34,794 ) Balance as of March 31, 2020 $ 130,177 $ 714,499 $ 844,676 Estimated amortization expense on intangible assets with finite lives as of March 31, 2020 , is expected to total $16.1 million for the remainder of 2020 , $20.8 million for 2021 , $19.8 million for 2022 , $15.3 million for 2023 , $9.3 million for 2024 and $6.3 million for 2025 . The Company’s annual goodwill impairment test is performed during the fourth quarter of its fiscal year. The annual impairment test for the year ended December 31, 2019 resulted in no impairment charge. The Company considered the impact of COVID-19 on its operations at the reporting unit level and determined that there was no impairment as of March 31, 2020. Determining the fair value of reporting units requires significant management judgment in estimating future cash flows and assessing potential market and economic conditions. It is reasonably possible that the Company’s operations will not perform as expected, or that the estimates or assumptions included in the 2019 annual impairment test could change, which may result in the Company recording material non-cash impairment charges during the year in which these changes take place. In response to the COVID-19 pandemic, we will continue to monitor the evaluation of global medical experts and scientists. As information regarding the impact of the COVID-19 pandemic on the Company's business, including intangible assets, becomes available, the impacts to cash flows and the related impact on recovery of intangible assets will be evaluated. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
Accrued Expenses and Other Current Liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: As of (in thousands) March 31, 2020 December 31, 2019 Accrued expenses $ 228,724 $ 246,699 Derivative liabilities 130,555 41,935 Current portion of capital lease obligations 6,047 5,919 Deferred income taxes — 4 Total $ 365,326 $ 294,557 |
Unearned Revenue Unearned Reven
Unearned Revenue Unearned Revenues (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Unearned Revenue [Abstract] | |
Deferred Revenue Disclosure [Text Block] | UNEARNED REVENUES Accounting Standards Codification ("ASC") Topic 606, “Revenue from Contracts with Customers” (“Topic 606”) 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. Such costs are not material; 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 records deferred revenues when cash payments are received or due in advance of its performance. The increase in the deferred revenue balance for the first quarter of 2020 is primarily driven by $19.0 million of cash payments received in the current year for which the Company has not yet satisfied the performance obligations, largely offset by $15.7 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2019. |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2020 | |
DEBT OBLIGATIONS [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS Debt obligations consist of the following: As of (in thousands) March 31, 2020 December 31, 2019 Credit Facility: Revolving credit agreement $ — $ — Convertible Debt: 0.75% convertible notes, unsecured, due 2049 440,713 436,965 1.375% Senior Notes, due 2026 661,560 673,440 Other obligations 3,598 6,215 Total debt obligations 1,105,871 1,116,620 Unamortized debt issuance costs (18,725 ) (19,592 ) Carrying value of debt 1,087,146 1,097,028 Short-term debt obligations and current maturities of long-term debt obligations (3,528 ) (6,089 ) Long-term debt obligations $ 1,083,618 $ 1,090,939 Credit Facility On October 17, 2018, the Company entered into an unsecured revolving credit agreement (the "Credit Facility") 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 unsecured revolving 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 unsecured revolving credit agreement contains customary affirmative and negative covenants, events of default and financial covenants. The Company was in compliance with all debt covenants, as of March 31, 2020 . Convertible Debt On March 18, 2019, the Company completed the sale of $525.0 million of Convertible Senior Notes ("Convertible Notes"). The Convertible Notes mature in March 2049 unless redeemed or converted prior to such date, and are convertible into shares of Euronet Common Stock at a conversion price of approximately $188.73 per share if certain conditions are met (relating to the closing price 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 on each of March 15, 2025, March 15, 2029, March 15, 2034, March 15, 2039 and March 15, 2044 at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the relevant repurchase date. On March 18, 2019, the Company provided a notice of redemption to the trustee of the indenture governing the Company's 1.5% Convertible Senior Notes due 2044 (the "Retired Convertible Notes"), pursuant to which the Company would redeem all of the remaining principal amount outstanding of the Retired Convertible Notes on May 28, 2019 (the "Redemption Date") for cash at a redemption price equal to 100% of the principal amount of the Retired Convertible Notes redeemed plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date. 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 $99.7 million for the Convertible Notes. Contractual interest expense for the Convertible Notes was $1.0 million for the three months ended March 31, 2020 . Accretion expense for the Convertible Notes was $3.7 million for the three months ended March 31, 2020 . Contractual interest expense for the Convertible Notes and Retired Convertible Notes was $0.2 million and $1.5 million , respectively for the three months ended March 31, 2019. Accretion expense for the Convertible Notes and Retired Convertible Notes was $0.6 million and $2.9 million , respectively for the three months ended March 31, 2019. The effective interest rate was 4.4% for the three months ended March 31, 2020 . As of March 31, 2020 , the unamortized discount was $84.3 million and will be amortized through March 2025. 1.375% Senior Notes due 2026 On May 22, 2019, the Company completed the sale of €600 million ( $669.9 million ) aggregate principal amount of Senior Notes that expire on May 2026 (the “Senior Notes”). The Senior Notes accrue interest at a rate of 1.375% per year, payable annually in arrears commencing May 22, 2020, until maturity or earlier redemption. As of March 31, 2020 , the Company has outstanding €600 million ( $661.6 million ) principal amount of the Senior Notes. In addition, the Company may redeem some or all of these notes on or after February 22, 2026 at their principal amount plus any accrued and unpaid interest. 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 March 31, 2020 and December 31, 2019 , borrowings under these arrangements were $3.6 million and $6.2 million , respectively. Uncommitted Line of Credit On September 4, 2019, the Company entered into an Uncommitted Loan Agreement with Bank of America which may provide Euronet up to $100.0 million under an uncommitted line of credit. Interest on borrowings is equal to LIBOR plus 0.65% and the agreement expires September 4, 2020. As of March 31, 2020 , no |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [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 March 31, 2020 , the Company had foreign currency forward contracts outstanding in the U.S. with a notional value of $213 million . The foreign currency forward contracts consist 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 March 31, 2020 , the Company had foreign currency forward contracts outstanding with a notional value of $193 million , primarily in euros. Foreign currency exchange contracts - xe Operations xe, 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. xe 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 xe's total portfolio of positions were $18.1 million and $18.6 million for the three months ended March 31, 2020 and 2019 , respectively. All of the derivative contracts used in the Company' s xe 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 xe'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. xe 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. xe 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 xe operations as of March 31, 2020 was approximately $1.5 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: Asset Derivatives Liability Derivatives Fair Value Fair Value (in thousands) Balance Sheet Location March 31, 2020 December 31, 2019 Balance Sheet Location March 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments Foreign currency exchange contracts Prepaid expenses and other current assets $ 142,148 $ 54,765 Accrued expenses and other current liabilities $ (130,555 ) $ (41,935 ) The following tables summarize the gross and net fair value of derivative assets and liabilities as of March 31, 2020 and December 31, 2019 (in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Consolidated Balance Sheet As of March 31, 2020 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 $ 142,148 $ — $ 142,148 $ (105,671 ) $ (14,633 ) $ 21,844 As of December 31, 2019 Derivatives subject to a master netting arrangement or similar agreement $ 54,765 $ — $ 54,765 $ (34,935 ) $ (7,362 ) $ 12,468 Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Consolidated Balance Sheet As of March 31, 2020 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 $ (130,555 ) $ — $ (130,555 ) $ 105,671 $ 1,760 $ (23,124 ) As of December 31, 2019 Derivatives subject to a master netting arrangement or similar agreement $ (41,935 ) $ — $ (41,935 ) $ 34,935 $ 827 $ (6,173 ) See Note 10, Fair Value Measurements, for the determination of the fair values of derivatives. Income Statement Presentation The following table summarizes the location and amount of gains and losses on derivatives in the Consolidated Statements of Income for the three months ended March 31, 2020 and 2019 : Amount of Gain Recognized in Income on Derivative Contracts (a) Location of Gain Recognized in Income on Derivative Contracts Three Months Ended (in thousands) 2020 2019 Foreign currency exchange contracts - Ria Operations Foreign currency exchange gain, net $ 1,019 $ 2,459 (a) The Company enters into derivative contracts such as foreign currency exchange forwards and cross-currency swaps as part of its xe 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 10, Fair Value Measurements, for the determination of the fair values of derivatives. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value measurements used in the unaudited 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: • 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. The following table details financial assets and liabilities measured and recorded at fair value on a recurring basis: As of March 31, 2020 (in thousands) Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Foreign currency exchange contracts Other current assets $ — $ 142,148 $ — $ 142,148 Liabilities Foreign currency exchange contracts Other current liabilities $ — $ (130,555 ) $ — $ (130,555 ) As of December 31, 2019 (in thousands) Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Foreign currency exchange contracts Other current assets $ — $ 54,765 $ — $ 54,765 Liabilities Foreign currency exchange contracts Other current liabilities $ — $ (41,935 ) $ — $ (41,935 ) Other Fair Value Disclosures 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 March 31, 2020 , the fair values of the Convertible Notes and Senior Notes were $597.0 million and $615.7 million , respectively, with carrying values of $440.7 million and $661.6 million , respectively. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Euronet’s reportable operating segments have been determined in accordance with ASC Topic 280, Segment Reporting (“ASC 280”) . The Company currently operates in the following three reportable operating segments: 1) Through the EFT Processing Segment, the Company processes transactions for a network of ATMs and POS terminals across Europe, the Middle East and Asia Pacific. The Company provides comprehensive electronic payment solutions consisting of ATM cash withdrawal services, ATM network participation, outsourced ATM and POS management solutions, credit and debit card outsourcing, dynamic currency conversion, domestic and international surcharge and other value added services. Through this segment, the Company also offers a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems. 2) Through the epay Segment, the Company provides distribution, processing and collection services for prepaid mobile airtime and other electronic payment products in Europe, the Middle East, Asia Pacific, the U.S. and South America. 3) Through the Money Transfer Segment, the Company provides global money transfer services under the brand names, Ria, AFEX Money Express, IME, and xe. Ria, AFEX Money Express and IME provide global consumer-to-consumer money transfer services through a network of sending agents, Company-owned stores and Company-owned websites, disbursing money transfers through a worldwide correspondent network. xe offers account-to-account international payment services to high-income individuals and small-to-medium sized businesses. xe is also a provider of foreign currency exchange information. The Company also offers customers bill payment services, payment alternatives such as money orders and prepaid debit cards, comprehensive check cashing services, foreign currency exchange services and mobile top-up. Furthermore, xe provides cash management solutions and foreign currency risk management services to small-to-medium sized businesses. In addition, the Company accounts for non-operating activity, share-based compensation expense, certain intersegment eliminations and the costs of providing corporate and other administrative services in its administrative division, “Corporate Services, Eliminations and Other.” These services are not directly identifiable with the Company’s reportable operating segments. The following tables present the Company’s reportable segment results for the three months ended March 31, 2020 and 2019 : For the Three Months Ended March 31, 2020 (in thousands) EFT Processing epay Money Transfer Corporate Services, Eliminations and Other Consolidated Total revenues $ 145,825 $ 172,911 $ 266,234 $ (1,063 ) $ 583,907 Operating expenses: Direct operating costs 87,536 130,074 142,909 (1,063 ) 359,456 Salaries and benefits 22,091 15,697 53,864 9,588 101,240 Selling, general and administrative 10,941 8,838 38,582 2,432 60,793 Depreciation and amortization 20,322 1,844 8,571 79 30,816 Total operating expenses 140,890 156,453 243,926 11,036 552,305 Operating income (expense) $ 4,935 $ 16,458 $ 22,308 $ (12,099 ) $ 31,602 For the Three Months Ended March 31, 2019 (in thousands) EFT Processing epay Money Transfer Corporate Services, Eliminations and Other Consolidated Total revenues $ 145,703 $ 176,114 $ 256,581 $ (889 ) $ 577,509 Operating expenses: Direct operating costs 83,776 133,525 137,404 (872 ) 353,833 Salaries and benefits 19,431 14,753 51,156 7,455 92,795 Selling, general and administrative 9,086 8,052 29,109 1,900 48,147 Depreciation and amortization 16,642 1,785 8,138 75 26,640 Total operating expenses 128,935 158,115 225,807 8,558 521,415 Operating income (expense) $ 16,768 $ 17,999 $ 30,774 $ (9,447 ) $ 56,094 The following table presents the Company’s total assets by reportable segment: Total Assets as of (in thousands) March 31, 2020 December 31, 2019 EFT Processing $ 1,755,395 $ 1,914,144 epay 763,636 962,671 Money Transfer 1,406,116 1,560,136 Corporate Services, Eliminations and Other 259,238 220,715 Total $ 4,184,385 $ 4,657,666 The following table presents the Company's revenues disaggregated by segment and region. Sales and usage-based taxes are excluded from revenues. The Company believes disaggregation by segment and region best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The disaggregation of revenues by segment and region is based on management's assessment of segment performance together with allocation of financial resources, both capital and operating support costs, on a segment and regional level. Both segments and regions benefit from synergies achieved through concentration of operations and are influenced by macro-economic, regulatory and political factors in the respective segment and region. For the Three Months Ended March 31, 2020 (in thousands) EFT Processing epay Money Transfer Total Europe $ 99,474 $ 115,277 $ 91,058 $ 305,809 North America 15,019 33,852 137,895 186,766 Asia Pacific 31,328 19,274 30,848 81,450 Other 4 4,508 6,433 10,945 Eliminations — — — (1,063 ) Total $ 145,825 $ 172,911 $ 266,234 $ 583,907 For the Three Months Ended March 31, 2019 (in thousands) EFT Processing epay Money Transfer Total Europe $ 107,611 $ 114,906 $ 85,559 $ 308,076 North America 8,205 39,664 134,832 182,701 Asia Pacific 29,877 17,374 30,713 77,964 Other 10 4,170 5,477 9,657 Eliminations — — — (889 ) Total $ 145,703 $ 176,114 $ 256,581 $ 577,509 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective income tax rate was 58.7% and 31.6% for the three months ended March 31, 2020 and 2019 , respectively. The Company's effective income tax rate for the three months ended March 31, 2020 was higher than the applicable statutory income tax rate of 21% primarily as a result of certain foreign earnings of the Company being subject to higher local statutory income tax rates. The Company's effective income tax rate for the three months ended March 31, 2019 was higher than the applicable statutory income tax rate of 21% largely because of the application to the Company of the global intangible low-taxed income ("GILTI") tax provision and certain foreign earnings of the Company being subject to higher local statutory income tax rates. |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2020 | |
Other Commitments [Line Items] | |
Commitments | COMMITMENTS As of March 31, 2020 , the Company had $73.0 million of stand-by letters of credit/bank guarantees issued on its behalf, of which $49.7 million are outstanding under the Credit Facility. The remaining stand-by letters of credit/bank guarantees are collateralized by $3.9 million by cash deposits held by the respective issuing banks. Under certain circumstances, Euronet grants guarantees in support of obligations of subsidiaries. As of March 31, 2020 , the Company had granted off balance sheet guarantees for cash in various ATM networks amounting to $11.4 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $37.5 million over the terms of 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: • 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. As of March 31, 2020 , the balance of such cash used in the Company's ATM networks for which the Company was responsible was approximately $509 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. 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 March 31, 2020 or December 31, 2019 . |
Litigation and Contingencies
Litigation and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Loss Contingencies [Line Items] | |
Litigation and Contingencies | LITIGATION AND CONTINGENCIES From time to time, the Company is a party to legal or 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 on the Company's consolidated financial condition or results of operations. 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. |
Leases Leases (Notes)
Leases Leases (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |
Leases of Lessee Disclosure [Text Block] | LEASES The Company enters into operating leases for ATM sites, office spaces, retail stores and equipment. The Company's finance leases are immaterial. Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease terms. The present value of lease payments is determined using the incremental borrowing rate based on information available at the lease commencement date. All leases with fixed payments, including leases with an initial term of 12 months or less, are recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include an option to renew, with renewal terms that can extend the lease terms. The exercise of lease renewal options is at the Company’s sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease terms. The Company also has a unilateral termination right for most of the ATM site leases. Since the Company is not reasonably certain to exercise the renewal or termination options, the options are not considered in determining the lease terms, and associated payment impacts are excluded from lease payments. Certain of the Company's lease agreements include variable rental payments based on revenues generated from the use of the leased location and certain leases include rental payments adjusted periodically for inflation. Variable lease payments are recognized when the event, activity or circumstance in the lease agreement on which those payments are assessed occurs and are excluded from the right of use assets and lease liabilities balances. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. Future minimum lease payments Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of March 31, 2020 are: As of March 31, 2020 Maturity of Lease Liabilities (in thousands) Operating Leases Remainder of 2020 $ 98,827 2021 99,540 2022 70,832 2023 49,670 2024 30,813 Thereafter 46,573 Total lease payments $ 396,255 Less: imputed interest (23,465 ) Present value of lease liabilities $ 372,790 Lease expense recognized in the Consolidated Statements of Income is summarized as follows: Lease Expense (in thousands) Income Statement Classification Three Months Ended March 31, 2020 Operating lease expense Selling, general and administrative and Direct operating costs $ 33,188 Variable lease expense Selling, general and administrative and Direct operating costs 8,680 Total lease expense $ 41,868 Other information about lease amounts recognized in the consolidated financial statements is summarized as follows: Lease Term and Discount Rate of Operating Leases As of March 31, 2020 Weighted- average remaining lease term (years) 4.4 Weighted- average discount rate 3.0 % The following table presents supplemental cash flow and non-cash information related to leases. Other Information (in thousands) Three Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities (a) $ 32,792 Supplemental non-cash information on lease liabilities arising from obtaining ROU assets ROU assets obtained in exchange for new operating lease liabilities $ 50,525 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies and Practices [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements | In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform due to the anticipated cessation of LIBOR on or before December 31, 2021. This guidance is effective from March 12, 2020 through December 31, 2022 and could impact the accounting for LIBOR provisions in the Company’s unsecured credit agreement. The Company does not expect that the adoption of this guidance will have a significant impact on its consolidated financial statements. The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), as of January 1, 2020, 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. This replaced the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. The adoption of this standard did not have a significant impact on the Company's consolidated financial statements and related disclosures. |
Settlement Assets Settlement _2
Settlement Assets Settlement Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Settlement Assets [Abstract] | |
Settlement Assets and Liabilities [Table Text Block] | As of (in thousands) March 31, 2020 December 31, 2019 Settlement assets: Settlement cash and cash equivalents $ 256,456 $ 282,188 Settlement restricted cash 36,243 49,168 Accounts receivable 364,148 574,410 Prepaid expenses and other current assets 116,489 107,301 Total settlement assets $ 773,336 $ 1,013,067 Settlement obligations: Trade account payables $ 353,498 $ 504,667 Accrued expenses and other current liabilities 419,838 508,400 Total settlement obligations $ 773,336 $ 1,013,067 |
Schedule of Cash and Cash Equivalents [Table Text Block] | As of (in thousands) March 31, 2020 December 31, 2019 March 31, 2019 December 31, 2018 Cash and cash equivalents $ 709,521 $ 786,081 $ 558,454 $ 385,031 Restricted cash 28,953 34,301 34,398 31,237 ATM cash 558,580 665,641 421,897 395,378 Settlement cash and cash equivalents 256,456 282,188 235,946 273,948 Settlement restricted cash 36,243 49,168 40,547 45,358 Cash and cash equivalents and restricted cash at end of period $ 1,589,753 $ 1,817,379 $ 1,291,242 $ 1,130,952 |
Stocholders' Equity (Tables)
Stocholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended 2020 2019 Computation of diluted weighted average shares outstanding: Basic weighted average shares outstanding 53,607,104 51,880,534 Incremental shares from assumed exercise of stock options and vesting of restricted stock 1,172,217 1,285,139 Incremental shares from assumed conversion of convertible debentures — 2,411,194 Diluted weighted average shares outstanding 54,779,321 55,576,867 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | A summary of acquired intangible assets and goodwill activity for the three months ended March 31, 2020 is presented below: (in thousands) Acquired Intangible Assets Goodwill Total Intangible Assets Balance as of December 31, 2019 $ 141,847 $ 743,823 $ 885,670 Decreases: Acquisition — (474 ) (474 ) Amortization (5,726 ) — (5,726 ) Other (primarily changes in foreign currency exchange rates) (5,944 ) (28,850 ) (34,794 ) Balance as of March 31, 2020 $ 130,177 $ 714,499 $ 844,676 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities [Table Text Block] | Accrued expenses and other current liabilities consist of the following: As of (in thousands) March 31, 2020 December 31, 2019 Accrued expenses $ 228,724 $ 246,699 Derivative liabilities 130,555 41,935 Current portion of capital lease obligations 6,047 5,919 Deferred income taxes — 4 Total $ 365,326 $ 294,557 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
DEBT OBLIGATIONS [Abstract] | |
Schedule of Debt [Table Text Block] | : As of (in thousands) March 31, 2020 December 31, 2019 Credit Facility: Revolving credit agreement $ — $ — Convertible Debt: 0.75% convertible notes, unsecured, due 2049 440,713 436,965 1.375% Senior Notes, due 2026 661,560 673,440 Other obligations 3,598 6,215 Total debt obligations 1,105,871 1,116,620 Unamortized debt issuance costs (18,725 ) (19,592 ) Carrying value of debt 1,087,146 1,097,028 Short-term debt obligations and current maturities of long-term debt obligations (3,528 ) (6,089 ) Long-term debt obligations $ 1,083,618 $ 1,090,939 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: Asset Derivatives Liability Derivatives Fair Value Fair Value (in thousands) Balance Sheet Location March 31, 2020 December 31, 2019 Balance Sheet Location March 31, 2020 December 31, 2019 Derivatives not designated as hedging instruments Foreign currency exchange contracts Prepaid expenses and other current assets $ 142,148 $ 54,765 Accrued expenses and other current liabilities $ (130,555 ) $ (41,935 ) |
Offsetting Assets and Liabilities [Table Text Block] | The following tables summarize the gross and net fair value of derivative assets and liabilities as of March 31, 2020 and December 31, 2019 (in thousands): Offsetting of Derivative Assets Gross Amounts Not Offset in the Consolidated Balance Sheet As of March 31, 2020 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 $ 142,148 $ — $ 142,148 $ (105,671 ) $ (14,633 ) $ 21,844 As of December 31, 2019 Derivatives subject to a master netting arrangement or similar agreement $ 54,765 $ — $ 54,765 $ (34,935 ) $ (7,362 ) $ 12,468 Offsetting of Derivative Liabilities Gross Amounts Not Offset in the Consolidated Balance Sheet As of March 31, 2020 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 $ (130,555 ) $ — $ (130,555 ) $ 105,671 $ 1,760 $ (23,124 ) As of December 31, 2019 Derivatives subject to a master netting arrangement or similar agreement $ (41,935 ) $ — $ (41,935 ) $ 34,935 $ 827 $ (6,173 ) |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table summarizes the location and amount of gains and losses on derivatives in the Consolidated Statements of Income for the three months ended March 31, 2020 and 2019 : Amount of Gain Recognized in Income on Derivative Contracts (a) Location of Gain Recognized in Income on Derivative Contracts Three Months Ended (in thousands) 2020 2019 Foreign currency exchange contracts - Ria Operations Foreign currency exchange gain, net $ 1,019 $ 2,459 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table details financial assets and liabilities measured and recorded at fair value on a recurring basis: As of March 31, 2020 (in thousands) Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Foreign currency exchange contracts Other current assets $ — $ 142,148 $ — $ 142,148 Liabilities Foreign currency exchange contracts Other current liabilities $ — $ (130,555 ) $ — $ (130,555 ) As of December 31, 2019 (in thousands) Balance Sheet Classification Level 1 Level 2 Level 3 Total Assets Foreign currency exchange contracts Other current assets $ — $ 54,765 $ — $ 54,765 Liabilities Foreign currency exchange contracts Other current liabilities $ — $ (41,935 ) $ — $ (41,935 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020 and 2019 : For the Three Months Ended March 31, 2020 (in thousands) EFT Processing epay Money Transfer Corporate Services, Eliminations and Other Consolidated Total revenues $ 145,825 $ 172,911 $ 266,234 $ (1,063 ) $ 583,907 Operating expenses: Direct operating costs 87,536 130,074 142,909 (1,063 ) 359,456 Salaries and benefits 22,091 15,697 53,864 9,588 101,240 Selling, general and administrative 10,941 8,838 38,582 2,432 60,793 Depreciation and amortization 20,322 1,844 8,571 79 30,816 Total operating expenses 140,890 156,453 243,926 11,036 552,305 Operating income (expense) $ 4,935 $ 16,458 $ 22,308 $ (12,099 ) $ 31,602 For the Three Months Ended March 31, 2019 (in thousands) EFT Processing epay Money Transfer Corporate Services, Eliminations and Other Consolidated Total revenues $ 145,703 $ 176,114 $ 256,581 $ (889 ) $ 577,509 Operating expenses: Direct operating costs 83,776 133,525 137,404 (872 ) 353,833 Salaries and benefits 19,431 14,753 51,156 7,455 92,795 Selling, general and administrative 9,086 8,052 29,109 1,900 48,147 Depreciation and amortization 16,642 1,785 8,138 75 26,640 Total operating expenses 128,935 158,115 225,807 8,558 521,415 Operating income (expense) $ 16,768 $ 17,999 $ 30,774 $ (9,447 ) $ 56,094 The following table presents the Company’s total assets by reportable segment: Total Assets as of (in thousands) March 31, 2020 December 31, 2019 EFT Processing $ 1,755,395 $ 1,914,144 epay 763,636 962,671 Money Transfer 1,406,116 1,560,136 Corporate Services, Eliminations and Other 259,238 220,715 Total $ 4,184,385 $ 4,657,666 |
Schedule of Revenues by Segment by Region [Table Text Block] | The following table presents the Company's revenues disaggregated by segment and region. Sales and usage-based taxes are excluded from revenues. The Company believes disaggregation by segment and region best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The disaggregation of revenues by segment and region is based on management's assessment of segment performance together with allocation of financial resources, both capital and operating support costs, on a segment and regional level. Both segments and regions benefit from synergies achieved through concentration of operations and are influenced by macro-economic, regulatory and political factors in the respective segment and region. For the Three Months Ended March 31, 2020 (in thousands) EFT Processing epay Money Transfer Total Europe $ 99,474 $ 115,277 $ 91,058 $ 305,809 North America 15,019 33,852 137,895 186,766 Asia Pacific 31,328 19,274 30,848 81,450 Other 4 4,508 6,433 10,945 Eliminations — — — (1,063 ) Total $ 145,825 $ 172,911 $ 266,234 $ 583,907 For the Three Months Ended March 31, 2019 (in thousands) EFT Processing epay Money Transfer Total Europe $ 107,611 $ 114,906 $ 85,559 $ 308,076 North America 8,205 39,664 134,832 182,701 Asia Pacific 29,877 17,374 30,713 77,964 Other 10 4,170 5,477 9,657 Eliminations — — — (889 ) Total $ 145,703 $ 176,114 $ 256,581 $ 577,509 |
Leases Leases (Tables)
Leases Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future minimum lease payments Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of March 31, 2020 are: As of March 31, 2020 Maturity of Lease Liabilities (in thousands) Operating Leases Remainder of 2020 $ 98,827 2021 99,540 2022 70,832 2023 49,670 2024 30,813 Thereafter 46,573 Total lease payments $ 396,255 Less: imputed interest (23,465 ) Present value of lease liabilities $ 372,790 |
Lease, Cost [Table Text Block] | Lease expense recognized in the Consolidated Statements of Income is summarized as follows: Lease Expense (in thousands) Income Statement Classification Three Months Ended March 31, 2020 Operating lease expense Selling, general and administrative and Direct operating costs $ 33,188 Variable lease expense Selling, general and administrative and Direct operating costs 8,680 Total lease expense $ 41,868 |
Lessee, Operating Lease, Disclosure [Table Text Block] | Other information about lease amounts recognized in the consolidated financial statements is summarized as follows: Lease Term and Discount Rate of Operating Leases As of March 31, 2020 Weighted- average remaining lease term (years) 4.4 Weighted- average discount rate 3.0 % |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table presents supplemental cash flow and non-cash information related to leases. Other Information (in thousands) Three Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities (a) $ 32,792 Supplemental non-cash information on lease liabilities arising from obtaining ROU assets ROU assets obtained in exchange for new operating lease liabilities $ 50,525 |
Settlement Assets Settlement _3
Settlement Assets Settlement Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Settlement Assets [Abstract] | ||||
Allowance for Doubtful Other Receivables, Current | $ 28,300 | $ 24,000 | ||
Cash and cash equivalents | 709,521 | 786,081 | $ 558,454 | $ 385,031 |
Restricted cash | 28,953 | 34,301 | 34,398 | 31,237 |
CashinATM | 558,580 | 665,641 | 421,897 | 395,378 |
Settlement Assets Cash and Cash Equivalent | 256,456 | 282,188 | 235,946 | 273,948 |
Settlement Assets Restricted Cash | 36,243 | 49,168 | 40,547 | 45,358 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 1,589,753 | 1,817,379 | $ 1,291,242 | $ 1,130,952 |
Settlement Assets Account Receivable | 364,148 | 574,410 | ||
Settlement Assets Prepaid expenses and other current assets | 116,489 | 107,301 | ||
Settlement Assets, Current | 773,336 | 1,013,067 | ||
Settlement Obligations Trade Accounts Payable | 353,498 | 504,667 | ||
Settlement Liabilities Accrued Expenses and Other Current Liabilities | 419,838 | 508,400 | ||
Settlement Liabilities, Current | $ 773,336 | $ 1,013,067 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
Mar. 31, 2020 | Mar. 31, 2019 | Feb. 26, 2020 | Mar. 18, 2019 | Mar. 11, 2019 | Feb. 27, 2018 | Oct. 30, 2014 | |
Stockholders' Equity [Line Items] | |||||||
Document Period End Date | Mar. 31, 2020 | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 239,763 | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 886,000 | 402,000 | |||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 0 | 2,411,194 | |||||
Translation adjustment | $ 59,818 | $ 16,156 | |||||
Debt Instrument, Convertible, Conversion Price | $ 188.73 | $ 72.18 | |||||
Share Price | $ 85.72 | $ 142.59 | |||||
Share Repurchase Plan [Member] | |||||||
Stockholders' Equity [Line Items] | |||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,000,000 | 10,000,000 | |||||
Stock Repurchase Program, Authorized Amount | $ 250,000 | $ 120,000 | $ 375,000 |
Stockholders' Equity Earnings P
Stockholders' Equity Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Document Period End Date | Mar. 31, 2020 | |
Weighted average number of shares outstanding - basic | 53,607,104 | 51,880,534 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 1,172,217 | 1,285,139 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 0 | 2,411,194 |
Weighted Average Number of Shares Outstanding, Diluted | 54,779,321 | 55,576,867 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Finite-lived Intangible Assets Rollforward [Roll Forward] | ||
Finite-Lived Intangible Assets, Net | $ 130,177 | $ 141,847 |
Finite-Lived Intangible Assets, Amortization Expense | (5,726) | |
Finite-lived intangible assets, other changes | (5,944) | |
Goodwill | 714,499 | 743,823 |
Goodwill, Other Increase (Decrease) | (28,850) | |
Intangible Assets, Net (Including Goodwill) | 844,676 | $ 885,670 |
Total intangible assets amortization expense | (5,726) | |
Total intangible assets, other changes | (34,794) | |
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 16,100 | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 20,800 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 19,800 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 15,300 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 9,300 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 6,300 | |
Finite-lived Intangible Assets Acquired | 0 | |
Goodwill, Acquired During Period | (474) | |
Total intangible assets acquired during period | $ (474) |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Capital Lease Obligations, Current | $ 6,047 | $ 5,919 |
Deferred Income Taxes and Other Tax Receivable, Current | 0 | 4 |
Accrued expenses | 228,724 | 246,699 |
Settlement Liabilities, Current | 773,336 | 1,013,067 |
Derivative liabilities | 130,555 | 41,935 |
Accrued expenses and other current liabilities | $ 365,326 | $ 294,557 |
Unearned Revenue Details (Detai
Unearned Revenue Details (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue, Additions | $ 19 |
Deferred Revenue, Revenue Recognized | $ 15.7 |
Debt Obligations (Narrative) (D
Debt Obligations (Narrative) (Details) - USD ($) | 3 Months Ended | |||||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Sep. 04, 2019 | May 22, 2019 | Mar. 18, 2019 | Oct. 17, 2018 | Oct. 30, 2014 | |
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | |||||||
Senior Notes | 661,560,000 | $ 673,440,000 | $ 669,900,000 | |||||
Revolving Credit Facility | 0 | 0 | ||||||
Debt Instrument, Convertible, Conversion Price | $ 188.73 | $ 72.18 | ||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 99,700,000 | |||||||
Other Debt | 3,598,000 | 6,215,000 | ||||||
Debt, Long-term and Short-term, Combined Amount | 1,105,871,000 | 1,116,620,000 | ||||||
Unamortized Debt Issuance Expense | (18,725,000) | (19,592,000) | ||||||
Debt, net of debt issuance costs | 1,087,146,000 | 1,097,028,000 | ||||||
Short-term debt obligations and current maturities of long-term debt obligations | (3,528,000) | (6,089,000) | ||||||
Debt obligations, net of current portion | $ 1,083,618,000 | 1,090,939,000 | ||||||
Line of Credit Facility, Expiration Date | Oct. 17, 2023 | |||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.375% | |||||||
Line of Credit, Current | $ 3,600,000 | 6,200,000 | ||||||
Due 2049 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible Debt | 440,700,000 | |||||||
Debt Instrument, Face Amount | $ 525,000,000 | |||||||
Interest Expense, Debt | 1,000,000 | $ 200,000 | ||||||
Amortization of Debt Discount (Premium) | $ 3,700,000 | 600,000 | ||||||
Debt Instrument, Interest Rate During Period | 4.40% | |||||||
Debt Instrument, Unamortized Discount | $ 84,300,000 | |||||||
Due 2044 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Expense, Debt | 1,500,000 | |||||||
Amortization of Debt Discount (Premium) | $ 2,900,000 | |||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.65% | |||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | |||||||
Minimum [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.175% | |||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||
Maximum [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||
Unsecured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | $ 1,000,000,000 | ||||||
Due 2049 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible Debt | $ 440,713,000 | $ 436,965,000 | ||||||
Letter of Credit [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | |||||||
Swingline loans [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000,000 | |||||||
Foreign Swingline Loans [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 90,000,000 | |||||||
Euro Member Countries, Euro | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes | $ 600,000,000 | $ 600,000,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Ria Operations [Member] | Foreign Exchange Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Notional Amount | $ 213 | |
Corporate Operations [Member] | Foreign Exchange Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Notional Amount | 193 | |
HiFX Operations [Member] | Foreign Exchange Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Notional Amount | $ 1,500 | |
Maximum [Member] | Ria Operations [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency forward contract term | 14 days | |
Trading Revenue [Member] | HiFX Operations [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign Currency Exchange Margin | $ 18.1 | $ 18.6 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Derivative Instruments, Asset at Fair Value | $ 142,148 | $ 54,765 |
Foreign Currency Derivative Instruments, Liability at Fair Value | $ (130,555) | $ (41,935) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Details 2) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | ||
Derivative Assets, Fair Value, Gross Assets | $ 142,148 | $ 54,765 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | 0 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 142,148 | 54,765 |
Derivative Asset, Not Offset, Policy Election Deduction | (105,671) | (34,935) |
Cash Collateral Received | (14,633) | (7,362) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 21,844 | 12,468 |
Derivative Liability, Fair Value, Gross Liability | (130,555) | (41,935) |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (130,555) | (41,935) |
Derivative Liability, Not Offset, Policy Election Deduction | 105,671 | 34,935 |
Cash Collateral Paid | 1,760 | 827 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ (23,124) | $ (6,173) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Ria Operations [Member] | Foreign Currency Gain (Loss) [Member] | ||
Derivative Instruments, Loss [Line Items] | ||
Gain (loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 1,019 | $ 2,459 |
HiFX Operations [Member] | Trading Revenue [Member] | ||
Derivative Instruments, Loss [Line Items] | ||
Foreign Currency Exchange Margin | $ 18,100 | $ 18,600 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | May 22, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes | $ 661,560,000 | $ 673,440,000 | $ 669,900,000 |
Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 142,148,000 | 54,765,000 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | (130,555,000) | (41,935,000) | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 142,148,000 | 54,765,000 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | (130,555,000) | (41,935,000) | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | $ 0 | |
Due 2049 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible Debt, Fair Value Disclosures | 597,000,000 | ||
Convertible Debt | 440,700,000 | ||
Senior Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes Payable, Fair Value Disclosure | 615,700,000 | ||
Senior Notes | $ 661,600,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | segment | 3 | ||
Revenues | $ 583,907 | $ 577,509 | |
Direct operating costs | 359,456 | 353,833 | |
Salaries and benefits | 101,240 | 92,795 | |
Selling, general and administrative | 60,793 | 48,147 | |
Depreciation and amortization | 30,816 | 26,640 | |
Operating income (expense) | 31,602 | 56,094 | |
Property, Plant and Equipment, Net | 356,558 | $ 359,980 | |
Assets | 4,184,385 | 4,657,666 | |
Costs and Expenses | 552,305 | 521,415 | |
Eft Processing Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 145,825 | 145,703 | |
Direct operating costs | 87,536 | 83,776 | |
Salaries and benefits | 22,091 | 19,431 | |
Selling, general and administrative | 10,941 | 9,086 | |
Depreciation and amortization | 20,322 | 16,642 | |
Operating income (expense) | 4,935 | 16,768 | |
Assets | 1,755,395 | 1,914,144 | |
Costs and Expenses | 140,890 | 128,935 | |
Epay Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 172,911 | 176,114 | |
Direct operating costs | 130,074 | 133,525 | |
Salaries and benefits | 15,697 | 14,753 | |
Selling, general and administrative | 8,838 | 8,052 | |
Depreciation and amortization | 1,844 | 1,785 | |
Operating income (expense) | 16,458 | 17,999 | |
Assets | 763,636 | 962,671 | |
Costs and Expenses | 156,453 | 158,115 | |
Money Transfer Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 266,234 | 256,581 | |
Direct operating costs | 142,909 | 137,404 | |
Salaries and benefits | 53,864 | 51,156 | |
Selling, general and administrative | 38,582 | 29,109 | |
Depreciation and amortization | 8,571 | 8,138 | |
Operating income (expense) | 22,308 | 30,774 | |
Assets | 1,406,116 | 1,560,136 | |
Costs and Expenses | 243,926 | 225,807 | |
Corporate Services, Eliminations and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | (1,063) | (889) | |
Direct operating costs | (1,063) | (872) | |
Salaries and benefits | 9,588 | 7,455 | |
Selling, general and administrative | 2,432 | 1,900 | |
Depreciation and amortization | 79 | 75 | |
Operating income (expense) | (12,099) | (9,447) | |
Assets | 259,238 | $ 220,715 | |
Costs and Expenses | 11,036 | 8,558 | |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 305,809 | 308,076 | |
Europe [Member] | Eft Processing Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 99,474 | 107,611 | |
Europe [Member] | Epay Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 115,277 | 114,906 | |
Europe [Member] | Money Transfer Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 91,058 | 85,559 | |
Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 81,450 | 77,964 | |
Asia Pacific [Member] | Eft Processing Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 31,328 | 29,877 | |
Asia Pacific [Member] | Epay Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 19,274 | 17,374 | |
Asia Pacific [Member] | Money Transfer Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 30,848 | 30,713 | |
Other geographic locations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 10,945 | 9,657 | |
Other geographic locations [Member] | Eft Processing Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4 | 10 | |
Other geographic locations [Member] | Epay Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,508 | 4,170 | |
Other geographic locations [Member] | Money Transfer Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,433 | 5,477 | |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 186,766 | 182,701 | |
North America [Member] | Eft Processing Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 15,019 | 8,205 | |
North America [Member] | Epay Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 33,852 | 39,664 | |
North America [Member] | Money Transfer Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 137,895 | 134,832 | |
Consolidation, Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (1,063) | $ (889) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income taxes [Line Items] | ||
Effective Income Tax Rate | 58.70% | 31.60% |
Federal Statutory Income Tax Rate | 21.00% | 21.00% |
Commitments (Details)
Commitments (Details) $ in Millions | Mar. 31, 2020USD ($) |
Other Commitments [Line Items] | |
Letters of Credit Outstanding, Amount | $ 73 |
Pledged Assets, Not Separately Reported, Other | 3.9 |
Credit Facility [Domain] | |
Other Commitments [Line Items] | |
Letters of Credit Outstanding, Amount | 49.7 |
Guarantee Type, Other [Member] | |
Other Commitments [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 11.4 |
Performance Guarantee [Member] | |
Other Commitments [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 37.5 |
Indemnification Agreement [Member] | |
Other Commitments [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 509 |
Leases Leases (Details)
Leases Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Payments, Use | $ 32,792 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 50,525 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 4 months 24 days | |
Lease, Cost [Table Text Block] | $ 33,188 | |
Right of use lease asset | 379,584 | $ 377,543 |
Current portion of operating lease liabilities | 129,151 | 127,353 |
Operating lease obligations, net of current portion | 243,639 | $ 241,977 |
Lessee, operating lease, liability, payments due remainder of fiscal year | 98,827 | |
Lessee, operating lease, liability, payments due year two | 99,540 | |
Lessee, operating lease, liability, payments due year three | 70,832 | |
Lessee, operating lease, liability, payments due year four | 49,670 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 30,813 | |
Lessee, operating lease, liability, payments due after year five | 46,573 | |
Lessee, operating lease, liability, payments due | 396,255 | |
Operating Lease, Liability | 372,790 | |
Capital Leases, Future Minimum Payments, Interest Included in Payments | (23,465) | |
Variable Lease, Cost | 8,680 | |
Operating Lease, Expense | $ 41,868 |