View Filing Data

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Jul. 31, 2018
Entity Information [Line Items]
Entity Registrant Name	EURONET WORLDWIDE INC
Entity Central Index Key	0001029199
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		51,022,506

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 1,163,369	$ 819,144
Restricted cash	72,914	81,374
Trade accounts receivable, net of allowances for doubtful accounts of $23,168 at June 30, 2018 and $20,958 at December 31, 2017	697,008	744,879
Prepaid expenses and other current assets	231,851	244,789
Total current assets	2,165,142	1,890,186
Property and equipment, net of accumulated depreciation of $350,923 at June 30, 2018 and $340,128 at December 31, 2017	274,693	268,303
Goodwill	719,162	717,386
Acquired intangible assets, net of accumulated amortization of $187,054 at June 30, 2018 and $179,142 at December 31, 2017	135,639	150,543
Other assets, net of accumulated amortization of $47,317 at June 30, 2018 and $44,469 at December 31, 2017	112,325	113,611
Total assets	3,406,961	3,140,029
Current liabilities:
Trade accounts payable	391,743	494,841
Accrued expenses and other current liabilities	718,320	759,789
Current portion of capital lease obligations	5,335	5,369
Short-term debt obligations and current maturities of long-term debt obligations	618,770	41,288
Income taxes payable	53,596	54,437
Deferred revenue	50,700	51,996
Total current liabilities	1,838,464	1,407,720
Debt obligations, net of current portion	372,005	404,012
Capital lease obligations, net of current portion	9,110	9,753
Deferred income taxes	54,009	54,969
Other long-term liabilities	62,943	64,097
Total liabilities	2,336,531	1,940,551
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; 59,104,973 issued at June 30, 2018 and 58,892,744 issued at December 31, 2017	1,181	1,178
Additional paid-in-capital	1,084,536	1,072,005
Treasury stock, at cost, 8,123,102 shares at June 30, 2018 and 6,084,586 shares at December 31, 2017	(393,138)	(217,161)
Retained earnings	507,091	436,954
Accumulated other comprehensive loss	(130,006)	(94,458)
Total Euronet Worldwide, Inc. stockholders' equity	1,069,664	1,198,518
Noncontrolling interests	766	960
Total equity	1,070,430	1,199,478
Total liabilities and equity	$ 3,406,961	$ 3,140,029

Balance Sheet Parenthetical (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Allowance for doubtful accounts receivable	$ 23,168	$ 20,958
Accumulated depreciation of property and equipment	350,923	340,128
Accumulated amortization of intangible assets	187,054	179,142
Accumulated amortization of other assets	$ 47,317	$ 44,469
Preferred Stock, par value per share	$ 0.02	$ 0.02
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Common Stock, par value per share	$ 0.02	$ 0.02
Common Stock, shares authorized	90,000,000	90,000,000
Common Stock, shares issued	59,104,973	58,892,744
Treasury Stock, shares	8,123,102	6,084,586

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues	$ 622,224	$ 536,563	$ 1,172,739	$ 1,009,943
Operating expenses:
Direct operating costs	361,512	317,346	704,836	613,953
Salaries and benefits	91,723	78,620	177,429	150,483
Selling, general and administrative	52,357	48,442	102,368	90,429
Intangible assets impairment	0	2,286	0	2,286
Depreciation and amortization	26,263	23,178	52,265	44,815
Total operating expenses	531,855	469,872	1,036,898	901,966
Operating income	90,369	66,691	135,841	107,977
Other income (expense):
Interest income	416	459	712	1,629
Interest expense	(10,061)	(8,376)	(17,667)	(15,524)
Loss from unconsolidated affiliates	0	0	(117)	0
Foreign currency exchange (loss) gain, net	(20,690)	11,141	(18,755)	12,856
Other gains	29	18	60	35
Other (expense) income, net	(30,306)	3,242	(35,767)	(1,004)
Income before income taxes	60,063	69,933	100,074	106,973
Income tax expense	(16,427)	(18,586)	(30,094)	(27,557)
Net income	43,636	51,347	69,980	79,416
Net loss attributable to noncontrolling interests	88	18	157	72
Net income attributable to Euronet Worldwide, Inc.	$ 43,724	$ 51,365	$ 70,137	$ 79,488
Earnings per share attributable to Euronet Worldwide, Inc. stockholders - basic	$ 0.85	$ 0.98	$ 1.36	$ 1.52
Earnings per share attributable to Euronet Worldwide, Inc. stockholders - diluted	$ 0.82	$ 0.93	$ 1.30	$ 1.44
Weighted average number of shares outstanding - basic	51,226,898	52,453,752	51,563,090	52,399,848
Weighted average number of shares outstanding - diluted	53,492,835	55,210,993	53,871,279	55,122,618

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net income	$ 43,636	$ 51,347	$ 69,980	$ 79,416
Translation adjustment	(58,533)	51,188	(35,585)	70,608
Comprehensive (loss) income	(14,897)	102,535	34,395	150,024
Comprehensive loss (income) attributable to noncontrolling interests	180	(80)	194	(50)
Comprehensive (loss) income attributable to Euronet Worldwide, Inc.	$ (14,717)	$ 102,455	$ 34,589	$ 149,974

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Net income	$ 69,980	$ 79,416
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	52,265	44,815
Share-based compensation	8,579	8,092
Unrealized foreign exchange loss (gain), net	18,755	(12,856)
Deferred income taxes	192	(43)
Loss from unconsolidated affiliates	117	0
Accretion of convertible debt discount and amortization of debt issuance costs	6,994	6,671
Non-cash impairment of acquired intangible assets	0	2,286
Changes in working capital, net of amounts acquired:
Income taxes payable, net	(729)	(143)
Trade accounts receivable	35,456	92,656
Prepaid expenses and other current assets	12,304	55,499
Trade accounts payable	(99,237)	(120,919)
Deferred revenue	(84)	(2,358)
Accrued expenses and other current liabilities	(35,553)	(46,042)
Changes in noncurrent assets and liabilities	265	(3,833)
Net cash provided by operating activities	69,304	103,241
Cash flows from investing activities:
Acquisitions, net of cash acquired	(12,854)	0
Purchases of property and equipment	(53,381)	(47,940)
Purchases of other long-term assets	(3,717)	(3,159)
Other, net	962	471
Net cash used in investing activities	(68,990)	(50,628)
Cash flows from financing activities:
Proceeds from issuance of shares	4,136	4,626
Repurchase of shares	(176,657)	(2,293)
Borrowings from revolving credit agreements	2,573,941	1,214,687
Repayments of revolving credit agreements	(2,333,885)	(1,052,187)
Repayments of long-term debt obligations	(6,199)	(4,219)
Repayments of capital lease obligations	(3,255)	(2,365)
Borrowings from short-term debt obligations, net	302,841	95,022
Other, net	0	304
Net cash provided by financing activities	360,922	253,575
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(25,471)	41,421
Increase in cash and cash equivalents and restricted cash	335,765	347,609
Cash and cash equivalents and restricted cash, period start	900,518	812,088
Cash and cash equivalents and restricted cash, period end	1,236,283	1,159,697
Interest paid during the period	9,857	9,873
Income taxes paid during the period	$ 31,710	$ 24,949

General	6 Months Ended
General	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	GENERAL Organization Euronet Worldwide, Inc. (together with its subsidiaries, the “Company” or “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, software solutions, electronic distribution of prepaid mobile airtime and other electronic payment products, foreign currency exchange services 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, 2017, including the notes thereto, set forth in the Company’s 2017 Annual Report on Form 10-K. Certain amounts in prior years have been reclassified to conform to the current year's presentation. 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 reported 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, 2018. Seasonality Euronet’s EFT Processing Segment experiences its heaviest demand for dynamic currency conversion ("DCC") services during the third quarter of the fiscal year, coinciding with the tourism season. Additionally, the EFT Processing and epay Segments are impacted by seasonality during the fourth quarter and the 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 regions 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 experiences its lowest transaction levels during the first quarter of each year.

Recently Issued and Adopted Accounting Pronouncements

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Recently Issued and Adopted Accounting Pronouncements

RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“Topic 606”), and subsequently modified the standard with several ASUs. The Company adopted the standard on January 1, 2018 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting under Topic 605.

The Company completed its review of customer contracts relative to the requirements of Topic 606 and concluded that revenues from certain customer contracts in the epay Segment should be recorded differently under the principal versus agent guidance of Topic 606. With respect to those contracts, the Company concluded that it earns a commission from content providers for distributing and processing their prepaid mobile airtime and other electronic payment products, but it is not the principal for the products themselves. As a result, the impact of the change in accounting principle was a reduction of $14.3 million and $36.9 million in both revenues and direct operating expenses for the three and six months ended June 30, 2018, respectively, with no impact on reported net income.

Contract Balances

The new standard requires the deferral of incremental costs to obtain customer contracts, known as contract assets, which are then amortized to expense as part of selling, general and administrative expense over the respective periods of expected benefit. The Company completed its review of such costs and concluded that a transition adjustment was not necessary related to contract assets. However, the Company has implemented processes and controls to record such costs on an ongoing basis and will disclose them if they become material.

The Company records deferred revenues when cash payments are received or due in advance of its performance. The decrease in the deferred revenue balance for the first half of 2018 is primarily driven by $17.1 million of cash payments received or due in advance of satisfying the performance obligations, offset by $18.5 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2017.

Variable Consideration

Within the EFT segment, outsourcing services are generally billed on the basis of a fixed fee per ATM, plus a transaction-based fee. Transaction-based fees are recognized at the time the transactions are processed and outsourcing management fees are recognized ratably over the contract period. These fees can be variable based on transaction volume tiered discounts; however, as all tiered discounts are calculated monthly, the actual discount is recorded on a monthly basis. In addition, the epay segment generates commissions from the distribution of electronic content. It is common for these long-term contracts to contain award fees, incentive fees, or other provisions that can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics or program milestones and can be based upon customer discretion.

Transaction fees, as well as any tiered volume discounts or incentive fees, are calculated and billed monthly in accordance with the terms established in the contract. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on as assessment of Euronet's anticipated performance and all information (historical, current and forecast) that is reasonably available.

Arrangements with Multiple Performance Obligations

The Company's most significant revenues are generated from transaction fees for which there are no remaining performance obligations left to fulfill after revenue is recognized. An insignificant amount of revenues are generated from contracts with customers which may include multiple performance obligations. For such arrangements, Euronet allocates revenues to each performance obligation based on its relative standalone selling price.

Disaggregation of Revenues

Revenues are recognized when control of the promised goods or services is transferred to Euronet's customers, in an amount that reflects the consideration it expects to be entitled to in exchange for goods or services.

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 June 30, 2018								For the Six Months Ended June 30, 2018
(in thousands)	EFT Processing		epay		Money Transfer		Total		EFT Processing		epay		Money Transfer		Total
North America	$	8,327	$	42,270	$	143,754	$	194,351	$	16,343	$	83,321	$	272,739	$	372,403
Europe	158,413		103,344		81,816		343,573		258,499		216,794		155,774		631,067
Asia Pacific	28,146		17,158		31,713		77,017		55,740		34,611		63,854		154,205
Other	8		3,691		4,532		8,231		15		8,582		8,285		16,882
Total	$	194,894	$	166,463	$	261,815	$	623,172	$	330,597	$	343,308	$	500,652	$	1,174,557



	For the Three Months Ended June 30, 2017								For the Six Months Ended June 30, 2017
(in thousands)	EFT Processing		epay		Money Transfer		Total		EFT Processing		epay		Money Transfer		Total
North America	$	7,601	$	15,837	$	126,457	$	149,895	$	14,999	$	32,807	$	248,006	$	295,812
Europe	123,172		120,920		64,555		308,647		199,066		240,754		120,278		560,098
Asia Pacific	25,181		22,808		23,846		71,835		47,638		45,735		48,643		142,016
Other	2		4,562		2,268		6,832		5		9,000		4,174		13,179
Total	$	155,956	$	164,127	$	217,126	$	537,209	$	261,708	$	328,296	$	421,101	$	1,011,105
As noted above, prior period amounts have not been adjusted under the modified retrospective method.

In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products. The new standard specifies that liabilities within its scope are considered to be financial liabilities, and amends the guidance in ASC 405-20, Extinguishments of Liabilities, by directing entities to derecognize prepaid stored-value product liabilities based on expected breakage in proportion to the pattern of rights expected to be exercised by the consumer. Derecognition for breakage is permitted only to the extent that it is probable that a significant reversal of recognized breakage will not subsequently occur. The new standard is consistent with the breakage guidance in Topic 606. The Company adopted this ASU as of January 1, 2018 along with Topic 606. The adoption of this standard did not have a significant impact on the Company's consolidated financial statements and related disclosures.

In August 2016, the FASB issued an accounting standard classified under FASB ASC Topic 230, “Statement of Cash Flows”. This accounting standard provides guidance on eight specific cash flow issues. Subsequently, the FASB issued amendments to this accounting standard that required companies to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the statement of cash flows.

The Company adopted these standards as of January 1, 2018. The adoption of these accounting standards resulted in an increase in net cash provided by operating activities of $10.5 million for the six months ended June 30, 2017. As of June 30, 2018, the Company had $72.9 million of restricted cash consisting of restricted cash held in trust and/or cash held on behalf of others and cash collateral on bank credit arrangements. Cash held in trust and/or cash held on behalf of others is in connection with the administration of the customer collection and vendor remittance activities by certain subsidiaries within the Company’s epay and EFT Processing Segments. Amounts collected on behalf of certain mobile phone operators and/or merchants are deposited into a restricted cash account. The bank credit arrangements primarily represent cash collateral on deposit with commercial banks to cover guarantees.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will update the existing guidance on accounting for leases and require new qualitative and quantitative disclosures about the Company’s leasing activities. The new standard requires lessees to account for all leases on the balance sheet, except for certain short-term leases that have a maximum possible lease term of 12 months. The accounting for lessors is largely unchanged from the previous accounting guidance, except for leverage lease accounting which is not permitted for leases entered into or modified after the effective date of the new standard. The new standard is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that the Company may elect to apply. The Company currently anticipates this standard will have a material impact on its consolidated balance sheets but will not have a material impact on its consolidated income statements. The Company currently expects the most significant impact will be the recognition of right-of-use assets and lease liabilities for operating leases. The Company currently expects its accounting for capital leases to remain substantially unchanged. The Company is continuing to assess the potential impacts of the standard.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently in the process of evaluating the effect of the adoption of ASU 2016-13 on its consolidated financial statements.

Stockholders' Equity

6 Months Ended

Jun. 30, 2018

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 periods. 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 any potential dilution from options to purchase the Company's common stock, assumed vesting of restricted stock and the assumed conversion of the Company’s convertible debentures. The following table provides the computation of diluted weighted average number of common shares outstanding:



	Three Months Ended June 30,		Six Months Ended June 30,
	2018	2017	2018	2017
Computation of diluted weighted average shares outstanding:
Basic weighted average shares outstanding	51,226,898	52,453,752	51,563,090	52,399,848
Incremental shares from assumed exercise of stock options and vesting of restricted stock	1,494,766	1,788,091	1,537,018	1,753,620
Incremental shares from assumed conversion of convertible notes	771,171	969,150	771,171	969,150
Diluted weighted average shares outstanding	53,492,835	55,210,993	53,871,279	55,122,618

The table includes the impact of all stock options and restricted stock that are dilutive to the Company’s weighted average common shares outstanding during the three and six months ended June 30, 2018 and 2017. 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 of approximately 1,209,000 and 1,124,000 for the three and six months ended June 30, 2018, respectively, and approximately 928,000 and 929,000 for the three and six months ended June 30, 2017, respectively.

The Company's convertible notes have settlement features requiring the Company upon conversion to settle the principal amount of the debt and the conversion value in excess of the principal value ("conversion premium") for cash or shares of the Company's common stock or a combination thereof, at the Company's option. At issuance, the Company stated its intent to settle any conversion of these notes by paying cash for the principal value and issuing common stock for any conversion premium. Accordingly, the convertible notes are included in the calculation of diluted earnings per share if their inclusion is dilutive. The convertible notes would only have a dilutive effect if the market price per share of common stock exceeds the conversion price of $72.18 per share and the dilutive effect increases the more the market price exceeds the conversion price. As of June 30, 2018 and 2017, the stock price exceeded the conversion price and these notes were dilutive to earnings per share. Further, as a result of the share price decreasing from $87.37 at June 30, 2017 to $83.77 at June 30, 2018, there was a decrease in shares from the assumed conversion of convertible notes.

Share repurchases

The Company's Board of Directors has authorized a stock repurchase program ("Repurchase Program") allowing Euronet to repurchase up to $375 million in value or 10.0 million shares of stock through March 31, 2020. Repurchases under the Repurchase Program may take place in the open market or in privately negotiated transactions, including derivative transactions, and may be made under a Rule 10b5-1 plan. For the three and six months ended June 30, 2018, the Company repurchased $50.0 million and $175.0 million, respectively, in value of Euronet common stock under the Repurchase Program.

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss consists entirely of foreign currency translation adjustments. The Company recorded foreign currency translation losses of $58.5 million and $35.6 million for the three and six months ended June 30, 2018, respectively, and gains of $51.2 million and $70.6 million for the three and six months ended June 30, 2017, respectively. There were no reclassifications of foreign currency translation into the consolidated statements of income for the three and six months ended June 30, 2018 and 2017.

Goodwill and Acquired Intangible Assets, Net

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET

A summary of acquired intangible assets and goodwill activity for the six months ended June 30, 2018 is presented below:



(in thousands)	Acquired Intangible Assets			Goodwill			Total Intangible Assets
Balance as of December 31, 2017	$	150,543		$	717,386		$	867,929
Increases (decreases):
Acquisition				20,742			20,742
Amortization	(11,616		)	—			(11,616		)
Other (primarily changes in foreign currency exchange rates)	(3,288		)	(18,966		)	(22,254		)
Balance as of June 30, 2018	$	135,639		$	719,162		$	854,801

Estimated amortization expense on intangible assets with finite lives, before income taxes, as of June 30, 2018, is expected to total $11.1 million for the remainder of 2018, $21.5 million for 2019, $20.7 million for 2020, $19.8 million for 2021, $18.7 million for 2022 and $13.8 million for 2023.

The Company completed the acquisitions of two small European businesses for an immaterial amount of cash consideration, completing one acquisition in the first quarter of 2018 and completing the other acquisition in the second quarter of 2018. The acquisitions have been accounted for as business combinations in accordance with U.S. GAAP and the results of operations have been included from the respective dates of acquisition in the EFT Processing Segment.

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, 2017 resulted in impairment charges of $31.8 million.

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 2017 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.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accrued Expenses and Other Current Liabilities

6 Months Ended

Jun. 30, 2018

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)	June 30, 2018		December 31, 2017
Accrued expenses	$	249,822	$	301,390
Money transfer settlement obligations	323,401		343,613
Accrued amounts due to mobile operators and other content providers	118,473		92,291
Derivative liabilities	26,624		22,495
Total	$	718,320	$	759,789

Debt Obligations

6 Months Ended

Jun. 30, 2018

DEBT OBLIGATIONS [Abstract]

DEBT OBLIGATIONS

Debt obligations consist of the following:



	As of
(in thousands)	June 30, 2018			December 31, 2017
Credit Facility:
Term loan, due 2019	$	45,000		$	51,094
Revolving credit agreements, due 2019	242,819			3,000
	287,819			54,094
Convertible Debt:
1.50% convertible notes, unsecured, due 2044	374,958			369,259

ATM credit facility	300,000			—

Other obligations	32,517			27,763

Total debt obligations	995,294			451,116
Unamortized debt issuance costs	(4,519		)	(5,816		)
Carrying value of debt	990,775			445,300
Short-term debt obligations and current maturities of long-term debt obligations	(618,770		)	(41,288		)
Long-term debt obligations	$	372,005		$	404,012

Credit Facility

As of June 30, 2018, the Company had a $675 million senior secured credit facility (the "Credit Facility") consisting of a $600 million revolving credit facility and a $75 million term loan ("Term Loan A"), which had been reduced to $45.0 million through principal amortization payments. The Credit Facility expires April 9, 2019.

Interest on borrowings under the revolving credit facility and Term Loan A varies based upon the Company's consolidated total leverage ratio, as defined in the Company's credit agreement, and is based on a margin over the London Inter-Bank Offered Rate (“LIBOR”) or a margin over a base rate, as selected by the Company, with the applicable margin ranging from 1.375% to 2.375% for LIBOR loans or 0.375% to 1.375% for base rate loans. Accordingly, the weighted average interest rate for borrowings outstanding under the Company's revolving credit facility and Term Loan A was 3.01% and 3.47%, respectively, as of June 30, 2018.

Convertible Debt

The Convertible Senior Notes (“Convertible Notes”) had a principal amount outstanding of $402.5 million as of June 30, 2018. The Convertible Notes mature in October 2044 unless repurchased or converted prior to such date, and are convertible into shares of Euronet Common Stock at a conversion price of approximately $72.18 per share. Holders of the Convertible Notes have the option to require the Company to purchase their notes at par on October 1, 2020, and have additional options to require the Company to purchase their notes at par on October 1, 2024, 2029, 2034, and 2039, or upon a change in control of the Company.

Holders may convert all or any portion of their Convertible Notes at their option at any time prior to October 1, 2044 only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter), if the closing sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five consecutive business day period after any ten consecutive trading day period (the measurement period) in which the trading price for the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of the Company's common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. If the holders exercise their option to convert, the Company is required to deliver cash or shares of the Company's common stock, at the Company's option, to satisfy the principal amount and the conversion premium.

None of the above conversion conditions are currently in effect.

Contractual interest expense for the Convertible Notes was $1.5 million and $3.0 million for the three and six months ended June 30, 2018 and 2017, respectively. Accretion expense was $2.9 million and $5.7 million for the three and six months ended June 30, 2018, respectively, and $2.7 million and $5.4 million for the three and six months ended June 30, 2017, respectively. The effective interest rate was 4.7% for the three and six months ended June 30, 2018. As of June 30, 2018, the unamortized discount was $27.5 million, and will be amortized through October 1, 2020.

ATM Credit Facility

On May 11, 2018, the Company entered into a short-term credit facility in the amount of $300 million for the sole purpose of providing cash for its ATM network. Interest is charged on this financing on an annual basis at the Overnight LIBOR rate plus 1.75%. The facility expires on November 30, 2018. The weighted average interest rate for borrowings under the ATM credit facility was 3.5% for the second quarter of 2018.

Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2018

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract]

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) short-term borrowings that are payable in currencies other than the U.S. dollar. 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 Topic 815, Derivatives and Hedging ("ASC Topic 815"), primarily due to either the relatively short duration of the contract term or the effects of fluctuations in currency exchange rates being reflected concurrently in earnings for both the derivative instrument and the hedged transaction and having an offsetting effect.

Foreign currency exchange contracts - Ria Operations and Corporate

In the United States, the Company's Ria operations use 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 June 30, 2018, the Company held in its Ria operations foreign currency forward contracts outstanding in the U.S. with a notional value of $397 million, primarily in Australian dollars, Canadian dollars, British pounds, euros and Mexican pesos.

In addition, the Company uses forward contracts, typically with maturities from a few days to less than one year, to offset foreign exchange rate fluctuations on certain foreign currency denominated other asset and liability positions. As of June 30, 2018, the Company had foreign currency forward contracts outstanding with a notional value of $404 million, primarily in euros and Polish zloty.

Foreign currency exchange contracts - HiFX Operations

HiFX writes derivative instruments, primarily foreign currency forward contracts and cross-currency swaps, mostly with counterparties comprised of individuals and small-to-medium size businesses and derives a currency margin from this activity as part of its operations. HiFX aggregates its foreign currency exposures arising from customer contracts and may hedge some or all of the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties. Foreign exchange revenues from HiFX's total portfolio of positions were $16.8 million and $35.5 million for the three and six months ended June 30, 2018, respectively, and $16.0 million and $31.7 million for the three and six months ended June 30, 2017, respectively. All of the derivative contracts used in the Company's HiFX operations are economic hedges and are not designated as hedges under ASC Topic 815. The duration of these derivative contracts is generally less than one year.

The fair value of HiFX's total portfolio of positions can change significantly from period to period based on, among other factors, market movements and changes in customer contract positions. HiFX manages counterparty credit risk (the risk that counterparties will default and not make payments according to the terms of the agreements) on an individual counterparty basis. It mitigates this risk by entering into contracts with collateral posting requirements and/or by performing financial assessments prior to contract execution, conducting periodic evaluations of counterparty performance and maintaining a diverse portfolio of qualified counterparties. HiFX does not expect any significant losses from counterparty defaults.

The aggregate equivalent U.S. dollar notional amounts of foreign currency derivative customer contracts held by the Company in its HiFX operations as of June 30, 2018 was approximately $1.2 billion. The majority of customer contracts are written in major currencies such as the U.S. dollar, euro, New Zealand dollar, British pound, and Australian 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	June 30, 2018		December 31, 2017		Balance Sheet Location	June 30, 2018			December 31, 2017
Derivatives not designated as hedging instruments
Foreign currency exchange contracts	Other current assets	$	43,372	$	36,574	Accrued expenses and other current liabilities	$	(26,624	)	$	(22,495	)

The following tables summarize the gross and net fair value of derivative assets and liabilities as of June 30, 2018 and December 31, 2017 (in thousands):

Offsetting of Derivative Assets



							Gross Amounts Not Offset in the Consolidated Balance Sheet
As of June 30, 2018	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts Presented in the Consolidated Balance Sheet		Financial Instruments			Cash Collateral Received			Net Amounts
Derivatives subject to a master netting arrangement or similar agreement	$	43,372	$	—	$	43,372	$	(14,986	)	$	(4,945	)	$	23,441

As of December 31, 2017
Derivatives subject to a master netting arrangement or similar agreement	$	36,574	$	—	$	36,574	$	(15,050	)	$	(7,603	)	$	13,921

Offsetting of Derivative Liabilities



									Gross Amounts Not Offset in the Consolidated Balance Sheet
As of June 30, 2018	Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts Presented in the Consolidated Balance Sheet			Financial Instruments		Cash Collateral Paid		Net Amounts
Derivatives subject to a master netting arrangement or similar agreement	$	(26,624	)	$	—	$	(26,624	)	$	14,986	$	168	$	(11,470	)

As of December 31, 2017
Derivatives subject to a master netting arrangement or similar agreement	$	(22,495	)	$	—	$	(22,495	)	$	15,050	$	2,716	$	(4,729	)

See Note 8, 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 and six months ended June 30, 2018 and 2017:



		Amount of Gain (Loss) Recognized in Income on Derivative Contracts (a)
	Location of Gain (Loss) Recognized in Income on Derivative Contracts	Three Months Ended June 30,					Six Months Ended June 30,
(in thousands)		2018		2017			2018		2017
Foreign currency exchange contracts	Foreign currency exchange (loss) gain, net	$	7,085	$	(1,410	)	$	8,380	$	(6,069	)

(a) The Company enters into derivative contracts such as foreign currency exchange forwards and cross-currency swaps as part of its HiFX operations. These derivative contracts are excluded from this table as they are part of the broader disclosure of foreign currency exchange revenues for this business discussed above.

Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

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 June 30, 2018
(in thousands)	Balance Sheet Classification	Level 1		Level 2			Level 3		Total
Assets
Foreign currency exchange contracts	Other current assets	$	—	$	43,372		$	—	$	43,372
Liabilities
Foreign currency exchange contracts	Other current liabilities	$	—	$	(26,624	)	$	—	$	(26,624	)



		As of December 31, 2017
(in thousands)	Balance Sheet Classification	Level 1		Level 2			Level 3		Total
Assets
Foreign currency exchange contracts	Other current assets	$	—	$	36,574		$	—	$	36,574
Liabilities
Foreign currency exchange contracts	Other current liabilities	$	—	$	(22,495	)	$	—	$	(22,495	)

Other Fair Value Disclosures

The carrying amounts of cash and cash equivalents, accounts receivable, trade accounts payable, accrued expenses and other current obligations approximate their fair values because of the relatively short-term maturities of these financial instruments. The carrying values of the Company’s long-term debt (other than the Convertible Notes), including the current portion, approximate fair value because interest is primarily based on LIBOR, which 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 June 30, 2018 and December 31, 2017, the fair values of the Convertible Notes were $514.3 million and $503.7 million, respectively, with carrying values of $375.0 million and $369.3 million, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Segment Information

6 Months Ended

Jun. 30, 2018

Segment Information [Abstract]

SEGMENT INFORMATION

The Company’s reportable operating segments have been determined in accordance with ASC Topic 280, Segment Reporting. The Company currently operates in the following three reportable operating segments:

Through the EFT Processing Segment, the Company processes transactions for a network of ATMs and POS terminals across Europe, the Middle East and Asia Pacific. The Company provides comprehensive electronic payment solutions consisting of ATM cash withdrawal services, ATM network participation, outsourced ATM and POS management solutions, credit and debit card outsourcing, dynamic currency conversion 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 United States and South America.

Through the Money Transfer Segment, the Company provides global money transfer services under the brand names Ria, HiFX, IME and xe. Ria and IME provide global consumer-to-consumer money transfer services through a network of sending agents, Company-owned stores and Company-owned websites, disbursing money transfers through a worldwide correspondent network. HiFX offers account-to-account international payment services to high-income individuals and small-to-medium sized businesses. xe is a provider of foreign currency exchange information and offers money transfers on its currency data websites. The Company also offers customers bill payment services, payment alternatives such as money orders and prepaid debit cards, comprehensive check cashing services, foreign currency exchange services and mobile top-up. The Company provides cash management solutions and foreign currency risk management services to small-to-medium sized businesses under the brand name HiFM.

In addition, the Company accounts for non-operating activity, most 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 and six months ended June 30, 2018 and 2017:



	For the Three Months Ended June 30, 2018
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	194,893	$	166,463	$	261,816	$	(948	)	$	622,224
Operating expenses:
Direct operating costs	96,326		125,423		140,707		(944		)	361,512
Salaries and benefits	19,046		14,327		49,118		9,232			91,723
Selling, general and administrative	10,216		8,490		31,426		2,225			52,357
Depreciation and amortization	16,383		1,894		7,953		33			26,263
Total operating expenses	141,971		150,134		229,204		10,546			531,855
Operating income (expense)	$	52,922	$	16,329	$	32,612	$	(11,494	)	$	90,369



	For the Three Months Ended June 30, 2017
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	155,957	$	164,127	$	217,127	$	(648	)	$	536,563
Operating expenses:
Direct operating costs	77,656		124,086		116,251		(647		)	317,346
Salaries and benefits	15,562		13,056		42,274		7,728			78,620
Selling, general and administrative	7,896		9,523		26,451		4,572			48,442
Acquired intangible assets impairment	2,286		—		—		—			2,286
Depreciation and amortization	13,226		2,673		7,247		32			23,178
Total operating expenses	116,626		149,338		192,223		11,685			469,872
Operating income (expense)	$	39,331	$	14,789	$	24,904	$	(12,333	)	$	66,691



	For the Six Months Ended June 30, 2018
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	330,597	$	343,308	$	500,652	$	(1,818	)	$	1,172,739
Operating expenses:
Direct operating costs	178,163		260,345		268,138		(1,810		)	704,836
Salaries and benefits	36,051		28,744		96,475		16,159			177,429
Selling, general and administrative	19,331		17,223		61,125		4,689			102,368
Depreciation and amortization	32,583		3,772		15,848		62			52,265
Total operating expenses	266,128		310,084		441,586		19,100			1,036,898
Operating income (expense)	$	64,469	$	33,224	$	59,066	$	(20,918	)	$	135,841



	For the Six Months Ended June 30, 2017
(in thousands)	EFT Processing		epay		Money Transfer		Corporate Services, Eliminations and Other			Consolidated
Total revenues	$	261,709	$	328,297	$	421,100	$	(1,163	)	$	1,009,943
Operating expenses:
Direct operating costs	139,729		250,246		225,136		(1,158		)	613,953
Salaries and benefits	29,308		25,651		81,163		14,361			150,483
Selling, general and administrative	15,082		18,483		49,264		7,600			90,429
Acquired intangible assets impairment	2,286		—		—		—			2,286
Depreciation and amortization	25,011		5,206		14,538		60			44,815
Total operating expenses	211,416		299,586		370,101		20,863			901,966
Operating income (expense)	$	50,293	$	28,711	$	50,999	$	(22,026	)	$	107,977

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



	Property and Equipment, net as of				Total Assets as of
(in thousands)	June 30, 2018		December 31, 2017		June 30, 2018		December 31, 2017
EFT Processing	$	203,932	$	196,451	$	1,451,704	$	1,040,135
epay	27,752		28,135		587,761		695,990
Money Transfer	42,934		43,564		1,329,681		1,255,765
Corporate Services, Eliminations and Other	75		153		37,815		148,139
Total	$	274,693	$	268,303	$	3,406,961	$	3,140,029

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2018
INCOME TAXES [Abstract]
INCOME TAXES	INCOME TAXES The Company's effective income tax rate was 27.3% and 30.1% for the three and six months ended June 30, 2018, respectively, compared to 26.6% and 25.8% for the three and six months ended June 30, 2017, respectively. The Company's effective income tax rate for the three and six months ended June 30, 2017 was less than the applicable statutory rate of 35% primarily as a result of the Company's U.S. tax position. The Company had significant U.S. federal tax net operating loss carryforwards with no recent history of significant U.S. taxable income; therefore, the Company had recorded a valuation allowance against its net U.S. deferred tax assets. Accordingly, in instances when the Company generated pre-tax U.S. GAAP income, no income tax expense was recognized to the extent there were net operating loss carryforwards to offset the pre-tax U.S. GAAP income. The Company's effective income tax rate for the three and six months ended June 30, 2018 was higher than the applicable statutory income tax rate of 21% as a result of the enactment into law what is commonly known as the Tax Cuts and Jobs Act of 2017 (the "Act") and the Act's impact on the Company's U.S. income tax positions at the end of 2017. The most significant provisions of the Act are the transition tax on previously undistributed foreign earnings of foreign subsidiaries, the reduction in the U.S. corporate statutory income tax rate from 35% to 21% beginning on January 1, 2018, and new taxes on certain foreign sourced earnings. As stated above, the Company had recorded a valuation allowance against its net U.S. deferred tax assets. Upon enactment of the Act, the Company expected to utilize its historic U.S. federal tax net operating losses to partially offset the transition tax and released the associated valuation allowance in the fourth quarter of 2017. This change has created additional U.S. tax expense as the Company now recognizes income tax expense on its pre-tax U.S. GAAP income. In addition, the Act's global intangible low-taxed income ("GILTI") provision has subjected the Company's foreign earnings to additional U.S. tax expense. The SEC staff issued Staff Accounting Bulletin ("SAB") 118, which provides guidance on accounting for the tax effects of the Act. SAB 118 provides a measurement period of up to one year from the Act's enactment date for companies to complete their accounting. In accordance with SAB 118, the Company provided provisional amounts where appropriate which it believes represent a reasonable estimate based on available information and its interpretations of the Act. Further, the Company is allowed to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or recognize such taxes as current period expenses when incurred. Due to the complexity of calculating GILTI, the Company has not determined which method it will apply. The Company will continue to evaluate the Act and adjust the provisional amounts as additional information becomes available.

Commitments

6 Months Ended

Jun. 30, 2018

Other Commitments [Line Items]

Commitments

COMMITMENTS

As of June 30, 2018, the Company had $75.8 million of stand-by letters of credit/bank guarantees issued on its behalf, of which $49.0 million are outstanding under the Credit Facility. The remaining stand-by letters of credit/bank guarantees are collateralized by $3.0 million of cash deposits held by the respective issuing banks.

Under certain circumstances, Euronet grants guarantees in support of obligations of subsidiaries. As of June 30, 2018, the Company had granted off balance sheet guarantees for cash in various ATM networks amounting to $16.4 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $30.2 million over the terms of agreements with the customers.

Once each of Euronet's subsidiaries reaches a certain size, it is required under the Credit Facility to provide a guarantee of all or a portion of the outstanding obligations under the Credit Facility depending upon whether the subsidiary is a domestic or foreign entity.

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 that, generally, is not recorded on the Company’s Consolidated Balance Sheets. As of June 30, 2018, the balance of cash used in the Company's ATM networks for which the Company was responsible was approximately $451 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 systems of internal controls and 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 June 30, 2018 or December 31, 2017.

Litigation and Contingencies	6 Months Ended
Litigation and Contingencies	Jun. 30, 2018
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.

Recent Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies and Practices [Abstract]

Recently Issued and Adopted Accounting Pronouncements

Contract Balances

Variable Consideration

Arrangements with Multiple Performance Obligations

Disaggregation of Revenues



	For the Three Months Ended June 30, 2018								For the Six Months Ended June 30, 2018
(in thousands)	EFT Processing		epay		Money Transfer		Total		EFT Processing		epay		Money Transfer		Total
North America	$	8,327	$	42,270	$	143,754	$	194,351	$	16,343	$	83,321	$	272,739	$	372,403
Europe	158,413		103,344		81,816		343,573		258,499		216,794		155,774		631,067
Asia Pacific	28,146		17,158		31,713		77,017		55,740		34,611		63,854		154,205
Other	8		3,691		4,532		8,231		15		8,582		8,285		16,882
Total	$	194,894	$	166,463	$	261,815	$	623,172	$	330,597	$	343,308	$	500,652	$	1,174,557



	For the Three Months Ended June 30, 2017								For the Six Months Ended June 30, 2017
(in thousands)	EFT Processing		epay		Money Transfer		Total		EFT Processing		epay		Money Transfer		Total
North America	$	7,601	$	15,837	$	126,457	$	149,895	$	14,999	$	32,807	$	248,006	$	295,812
Europe	123,172		120,920		64,555		308,647		199,066		240,754		120,278		560,098
Asia Pacific	25,181		22,808		23,846		71,835		47,638		45,735		48,643		142,016
Other	2		4,562		2,268		6,832		5		9,000		4,174		13,179
Total	$	155,956	$	164,127	$	217,126	$	537,209	$	261,708	$	328,296	$	421,101	$	1,011,105
As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Recently Issued and Adopted Accounting Pronouncements (Table)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of Revenues by Segment by Region [Table Text Block]

For the Three Months Ended June 30, 2018

For the Six Months Ended June 30, 2018

(in thousands)

EFT

Processing

epay

Money

Transfer

Total

EFT

Processing

epay