eeft-20210930.htm
false false NASDAQ NASDAQ KS false Q3 2021 Large Accelerated Filer --12-31 0001029199 true false DE false no Included in Net cash provided by operating activities on the Company's Consolidated Statements of Cash Flows. 0001029199 2021-05-01 2021-05-31 0001029199 srt:ConsolidationEliminationsMember 2021-01-01 2021-09-30 0001029199 eeft:OtherGeographicLocationsMember 2021-01-01 2021-09-30 0001029199 srt:AsiaPacificMember 2021-01-01 2021-09-30 0001029199 srt:NorthAmericaMember 2021-01-01 2021-09-30 0001029199 srt:EuropeMember 2021-01-01 2021-09-30 0001029199 2021-04-01 2021-06-30 0001029199 eeft:Due2049Member 2021-01-01 2021-09-30 0001029199 eeft:Due2049Member 2019-03-18 0001029199 us-gaap:UnsecuredDebtMember 2018-10-17 0001029199 eeft:RiaOperationsAndCorporateOperationsMember us-gaap:ForeignExchangeContractMember 2021-01-01 2021-09-30 0001029199 srt:MaximumMember us-gaap:BaseRateMember 2021-01-01 2021-09-30 0001029199 srt:MinimumMember us-gaap:BaseRateMember 2021-01-01 2021-09-30 0001029199 srt:MaximumMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-01-01 2021-09-30 0001029199 srt:MinimumMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-01-01 2021-09-30 0001029199 eeft:RiaOperationsAndCorporateOperationsMember us-gaap:ForeignExchangeContractMember 2020-07-01 2020-09-30 0001029199 eeft:UnallocatedAmountToSegmentIntersegmentEliminationsAndOtherMember 2021-01-01 2021-09-30 0001029199 2021-01-01 2021-03-31 0001029199 eeft:MoneyTransferSegmentMember 2021-01-01 2021-09-30 0001029199 eeft:EpaySegmentMember 2021-01-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember 2021-01-01 2021-09-30 0001029199 2021-03-31 0001029199 eeft:ShareRepurchasePlanMember 2020-02-26 0001029199 eeft:ShareRepurchasePlanMember 2019-03-11 0001029199 eeft:A1.375SeniorNotesdue2026Member 2021-01-01 2021-09-30 0001029199 us-gaap:CommonStockMember 2021-01-01 2021-09-30 0001029199 us-gaap:NoncontrollingInterestMember 2020-09-30 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0001029199 us-gaap:RetainedEarningsMember 2020-09-30 0001029199 us-gaap:TreasuryStockMember 2020-09-30 0001029199 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0001029199 2020-01-01 2020-12-31 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001029199 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0001029199 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001029199 2020-03-31 0001029199 us-gaap:TreasuryStockMember 2020-01-01 2020-03-31 0001029199 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001029199 2020-12-31 0001029199 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001029199 2021-09-30 0001029199 us-gaap:NoncontrollingInterestMember 2019-12-31 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001029199 us-gaap:RetainedEarningsMember 2019-12-31 0001029199 us-gaap:TreasuryStockMember 2019-12-31 0001029199 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001029199 us-gaap:CommonStockMember 2019-12-31 0001029199 us-gaap:CommonStockMember 2020-09-30 0001029199 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember eeft:OtherGeographicLocationsMember 2021-01-01 2021-09-30 0001029199 eeft:EpaySegmentMember eeft:OtherGeographicLocationsMember 2021-01-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember eeft:OtherGeographicLocationsMember 2021-01-01 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:AsiaPacificMember 2021-01-01 2021-09-30 0001029199 eeft:EpaySegmentMember srt:AsiaPacificMember 2021-01-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember srt:AsiaPacificMember 2021-01-01 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:NorthAmericaMember 2021-01-01 2021-09-30 0001029199 eeft:EpaySegmentMember srt:NorthAmericaMember 2021-01-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember srt:NorthAmericaMember 2021-01-01 2021-09-30 0001029199 us-gaap:CommonStockMember 2020-07-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:EuropeMember 2021-01-01 2021-09-30 0001029199 eeft:EpaySegmentMember srt:EuropeMember 2021-01-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember srt:EuropeMember 2021-01-01 2021-09-30 0001029199 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0001029199 us-gaap:TreasuryStockMember 2020-07-01 2020-09-30 0001029199 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember srt:ConsolidationEliminationsMember 2021-01-01 2021-09-30 0001029199 eeft:EpaySegmentMember srt:ConsolidationEliminationsMember 2021-01-01 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:ConsolidationEliminationsMember 2021-01-01 2021-09-30 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0001029199 us-gaap:NoncontrollingInterestMember 2020-07-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember srt:EuropeMember 2020-07-01 2020-09-30 0001029199 eeft:EpaySegmentMember srt:EuropeMember 2020-07-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember 2020-07-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:EuropeMember 2020-07-01 2020-09-30 0001029199 2019-03-05 2019-03-18 0001029199 eeft:EpaySegmentMember 2020-07-01 2020-09-30 0001029199 2018-10-14 2018-10-17 0001029199 eeft:EftProcessingSegmentMember srt:NorthAmericaMember 2020-07-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember 2020-07-01 2020-09-30 0001029199 eeft:UnallocatedAmountToSegmentIntersegmentEliminationsAndOtherMember 2020-07-01 2020-09-30 0001029199 eeft:EpaySegmentMember srt:NorthAmericaMember 2020-07-01 2020-09-30 0001029199 srt:EuropeMember 2020-07-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:NorthAmericaMember 2020-07-01 2020-09-30 0001029199 srt:NorthAmericaMember 2020-07-01 2020-09-30 0001029199 srt:AsiaPacificMember 2020-07-01 2020-09-30 0001029199 eeft:OtherGeographicLocationsMember 2020-07-01 2020-09-30 0001029199 srt:ConsolidationEliminationsMember 2020-07-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember srt:AsiaPacificMember 2020-07-01 2020-09-30 0001029199 eeft:EpaySegmentMember srt:AsiaPacificMember 2020-07-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:AsiaPacificMember 2020-07-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember eeft:OtherGeographicLocationsMember 2020-07-01 2020-09-30 0001029199 eeft:SeniorNotes1.375PercentDue2026Member 2019-05-22 0001029199 us-gaap:RetainedEarningsMember 2020-06-30 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001029199 us-gaap:NoncontrollingInterestMember 2020-06-30 0001029199 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001029199 us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001029199 us-gaap:CommonStockMember 2020-06-30 0001029199 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001029199 us-gaap:TreasuryStockMember 2020-06-30 0001029199 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001029199 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001029199 us-gaap:TreasuryStockMember 2020-04-01 2020-06-30 0001029199 2020-04-01 2020-06-30 0001029199 eeft:EpaySegmentMember eeft:OtherGeographicLocationsMember 2020-07-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember eeft:OtherGeographicLocationsMember 2020-07-01 2020-09-30 0001029199 2020-06-30 0001029199 2019-03-18 0001029199 us-gaap:CommonStockMember 2020-03-31 0001029199 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001029199 us-gaap:TreasuryStockMember 2020-03-31 0001029199 us-gaap:CommonStockMember 2021-09-30 0001029199 us-gaap:AdditionalPaidInCapitalMember 2021-09-30 0001029199 us-gaap:TreasuryStockMember 2021-09-30 0001029199 us-gaap:RetainedEarningsMember 2021-09-30 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-09-30 0001029199 us-gaap:NoncontrollingInterestMember 2021-09-30 0001029199 us-gaap:RetainedEarningsMember 2020-12-31 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001029199 us-gaap:NoncontrollingInterestMember 2020-12-31 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001029199 us-gaap:NoncontrollingInterestMember 2020-03-31 0001029199 us-gaap:RetainedEarningsMember 2020-03-31 0001029199 us-gaap:CommonStockMember 2020-12-31 0001029199 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001029199 us-gaap:TreasuryStockMember 2020-12-31 0001029199 us-gaap:GoodwillMember 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember 2021-09-30 0001029199 eeft:EpaySegmentMember 2021-09-30 0001029199 eeft:EftProcessingSegmentMember 2021-09-30 0001029199 us-gaap:LineOfCreditMember 2021-09-30 0001029199 eeft:SwinglineLoansMember 2021-09-30 0001029199 eeft:ForeignSwinglineLoansMember 2021-09-30 0001029199 eeft:Due2049Member 2021-09-30 0001029199 eeft:Due2026Member 2021-09-30 0001029199 us-gaap:FairValueMeasurementsRecurringMember 2021-09-30 0001029199 us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001029199 currency:EUR 2021-09-30 0001029199 eeft:Due2049Member 2020-12-31 0001029199 eeft:Due2026Member 2020-12-31 0001029199 eeft:EftProcessingSegmentMember 2021-09-30 0001029199 eeft:EpaySegmentMember 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember 2021-09-30 0001029199 eeft:UnallocatedAmountToSegmentIntersegmentEliminationsAndOtherMember 2021-09-30 0001029199 eeft:EftProcessingSegmentMember 2020-12-31 0001029199 eeft:EpaySegmentMember 2020-12-31 0001029199 eeft:MoneyTransferSegmentMember 2020-12-31 0001029199 eeft:UnallocatedAmountToSegmentIntersegmentEliminationsAndOtherMember 2020-12-31 0001029199 us-gaap:CreditFacilityDomain 2021-09-30 0001029199 us-gaap:GuaranteeTypeOtherMember 2021-09-30 0001029199 us-gaap:PerformanceGuaranteeMember 2021-09-30 0001029199 us-gaap:IndemnificationGuaranteeMember 2021-09-30 0001029199 currency:EUR eeft:SeniorNotes1.375PercentDue2026Member 2019-05-22 0001029199 eeft:SeniorNotes1.375PercentDue2026Member 2021-09-30 0001029199 srt:ConsolidationEliminationsMember eeft:EftProcessingSegmentMember 2020-07-01 2020-09-30 0001029199 srt:ConsolidationEliminationsMember eeft:EpaySegmentMember 2020-07-01 2020-09-30 0001029199 srt:ConsolidationEliminationsMember eeft:MoneyTransferSegmentMember 2020-07-01 2020-09-30 0001029199 eeft:XeOperationsMember us-gaap:ForeignExchangeContractMember 2021-09-30 0001029199 2019-12-31 0001029199 2020-01-01 2020-03-31 0001029199 2021-01-01 2021-09-30 0001029199 2020-07-01 2020-09-30 0001029199 eeft:PiraeusBankMerchantAcquiringMember 2021-01-01 2021-03-31 0001029199 us-gaap:ConvertibleNotesPayableMember us-gaap:FairValueInputsLevel2Member 2021-09-30 0001029199 us-gaap:SeniorNotesMember us-gaap:FairValueInputsLevel2Member 2021-09-30 0001029199 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0001029199 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-09-30 0001029199 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-09-30 0001029199 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0001029199 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0001029199 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-12-31 0001029199 eeft:XeOperationsMember us-gaap:ForeignExchangeContractMember 2020-12-31 0001029199 us-gaap:CommonStockMember 2021-03-31 0001029199 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001029199 us-gaap:TreasuryStockMember 2021-03-31 0001029199 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001029199 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001029199 us-gaap:TreasuryStockMember 2021-04-01 2021-06-30 0001029199 us-gaap:NoncontrollingInterestMember 2021-04-01 2021-06-30 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001029199 us-gaap:RetainedEarningsMember 2021-03-31 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001029199 us-gaap:NoncontrollingInterestMember 2021-03-31 0001029199 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001029199 us-gaap:NoncontrollingInterestMember 2021-01-01 2021-03-31 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001029199 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001029199 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001029199 us-gaap:TreasuryStockMember 2021-01-01 2021-03-31 0001029199 eeft:SeniorNotes1.375PercentDue2026Member 2021-01-01 2021-09-30 0001029199 currency:USD eeft:RiaOperationsAndCorporateOperationsMember 2020-12-31 0001029199 us-gaap:FairValueInputsLevel2Member 2021-09-30 0001029199 currency:EUR eeft:RiaOperationsAndCorporateOperationsMember us-gaap:ForeignExchangeContractMember 2020-12-31 0001029199 eeft:AccruedExpensesAndOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2020-12-31 0001029199 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2020-12-31 0001029199 eeft:RiaOperationsAndCorporateOperationsMember us-gaap:ForeignExchangeContractMember currency:EUR 2021-09-30 0001029199 eeft:RiaOperationsAndCorporateOperationsMember us-gaap:ForeignExchangeContractMember currency:USD 2021-09-30 0001029199 eeft:AccruedExpensesAndOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2021-09-30 0001029199 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2021-09-30 0001029199 us-gaap:TradingRevenueMember eeft:XeOperationsMember us-gaap:ForeignExchangeContractMember 2021-01-01 2021-09-30 0001029199 us-gaap:TradingRevenueMember eeft:XeOperationsMember us-gaap:ForeignExchangeContractMember 2020-07-01 2020-09-30 0001029199 srt:MaximumMember eeft:RiaOperationsAndCorporateOperationsMember us-gaap:ForeignExchangeContractMember 2021-01-01 2021-09-30 0001029199 2020-01-01 2020-09-30 0001029199 2021-07-01 2021-09-30 0001029199 us-gaap:RetainedEarningsMember 2021-06-30 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001029199 us-gaap:NoncontrollingInterestMember 2021-06-30 0001029199 2021-06-30 0001029199 us-gaap:AdditionalPaidInCapitalMember 2021-07-01 2021-09-30 0001029199 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001029199 us-gaap:CommonStockMember 2021-06-30 0001029199 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001029199 us-gaap:TreasuryStockMember 2021-06-30 0001029199 us-gaap:CommonStockMember 2021-07-01 2021-09-30 0001029199 us-gaap:TreasuryStockMember 2021-07-01 2021-09-30 0001029199 us-gaap:RetainedEarningsMember 2021-07-01 2021-09-30 0001029199 us-gaap:NoncontrollingInterestMember 2021-07-01 2021-09-30 0001029199 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-07-01 2021-09-30 0001029199 eeft:RiaOperationsAndCorporateOperationsMember us-gaap:ForeignExchangeContractMember 2021-07-01 2021-09-30 0001029199 eeft:RiaOperationsAndCorporateOperationsMember us-gaap:ForeignExchangeContractMember 2020-01-01 2020-09-30 0001029199 us-gaap:TradingRevenueMember eeft:XeOperationsMember us-gaap:ForeignExchangeContractMember 2021-07-01 2021-09-30 0001029199 us-gaap:TradingRevenueMember eeft:XeOperationsMember us-gaap:ForeignExchangeContractMember 2020-01-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember 2021-07-01 2021-09-30 0001029199 eeft:EpaySegmentMember 2021-07-01 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember 2021-07-01 2021-09-30 0001029199 eeft:UnallocatedAmountToSegmentIntersegmentEliminationsAndOtherMember 2021-07-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember 2020-01-01 2020-09-30 0001029199 eeft:EpaySegmentMember 2020-01-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember 2020-01-01 2020-09-30 0001029199 eeft:UnallocatedAmountToSegmentIntersegmentEliminationsAndOtherMember 2020-01-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember srt:EuropeMember 2021-07-01 2021-09-30 0001029199 eeft:EpaySegmentMember srt:EuropeMember 2021-07-01 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:EuropeMember 2021-07-01 2021-09-30 0001029199 srt:EuropeMember 2021-07-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember srt:NorthAmericaMember 2021-07-01 2021-09-30 0001029199 eeft:EpaySegmentMember srt:NorthAmericaMember 2021-07-01 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:NorthAmericaMember 2021-07-01 2021-09-30 0001029199 srt:NorthAmericaMember 2021-07-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember srt:AsiaPacificMember 2021-07-01 2021-09-30 0001029199 eeft:EpaySegmentMember srt:AsiaPacificMember 2021-07-01 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:AsiaPacificMember 2021-07-01 2021-09-30 0001029199 srt:AsiaPacificMember 2021-07-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember eeft:OtherGeographicLocationsMember 2021-07-01 2021-09-30 0001029199 eeft:EpaySegmentMember eeft:OtherGeographicLocationsMember 2021-07-01 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember eeft:OtherGeographicLocationsMember 2021-07-01 2021-09-30 0001029199 eeft:OtherGeographicLocationsMember 2021-07-01 2021-09-30 0001029199 srt:ConsolidationEliminationsMember 2021-07-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember srt:ConsolidationEliminationsMember 2021-07-01 2021-09-30 0001029199 eeft:EpaySegmentMember srt:ConsolidationEliminationsMember 2021-07-01 2021-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:ConsolidationEliminationsMember 2021-07-01 2021-09-30 0001029199 eeft:EftProcessingSegmentMember srt:EuropeMember 2020-01-01 2020-09-30 0001029199 eeft:EpaySegmentMember srt:EuropeMember 2020-01-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:EuropeMember 2020-01-01 2020-09-30 0001029199 srt:EuropeMember 2020-01-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember srt:NorthAmericaMember 2020-01-01 2020-09-30 0001029199 eeft:EpaySegmentMember srt:NorthAmericaMember 2020-01-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:NorthAmericaMember 2020-01-01 2020-09-30 0001029199 srt:NorthAmericaMember 2020-01-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember srt:AsiaPacificMember 2020-01-01 2020-09-30 0001029199 eeft:EpaySegmentMember srt:AsiaPacificMember 2020-01-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:AsiaPacificMember 2020-01-01 2020-09-30 0001029199 srt:AsiaPacificMember 2020-01-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember eeft:OtherGeographicLocationsMember 2020-01-01 2020-09-30 0001029199 eeft:EpaySegmentMember eeft:OtherGeographicLocationsMember 2020-01-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember eeft:OtherGeographicLocationsMember 2020-01-01 2020-09-30 0001029199 eeft:OtherGeographicLocationsMember 2020-01-01 2020-09-30 0001029199 eeft:EftProcessingSegmentMember srt:ConsolidationEliminationsMember 2020-01-01 2020-09-30 0001029199 eeft:EpaySegmentMember srt:ConsolidationEliminationsMember 2020-01-01 2020-09-30 0001029199 eeft:MoneyTransferSegmentMember srt:ConsolidationEliminationsMember 2020-01-01 2020-09-30 0001029199 srt:ConsolidationEliminationsMember 2020-01-01 2020-09-30 0001029199 2021-10-27 xbrli:shares xbrli:pure iso4217:EUR iso4217:USD iso4217:USD xbrli:shares eeft:segment
 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                                                          For the transition period from

to
Commission File Number: 001-31648
EURONET WORLDWIDE, INC.
(Exact name of registrant as specified in its charter)
Delaware
74-2806888
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
11400 Tomahawk Creek Parkway, Suite 300
 
Leawood,
Kansas
66211
(Address of principal executive offices)
(Zip Code)
(913) 327-4200
(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
EEFT
Nasdaq Global Select Market
1.375% Senior Notes due 2026
EEFT26
Nasdaq Global Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer 
þ

Accelerated filer 
Non-accelerated filer 
o

Smaller reporting company


Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No þ
On October 27, 2021, Euronet Worldwide, Inc. had 52,856,023 shares of common stock outstanding.
 

EURONET WORLDWIDE, INC. AND SUBSIDIARIES

Table of Contents

Page

PART I—FINANCIAL INFORMATION
1
ITEM 1. Financial Statements (unaudited) 1

Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020 1

Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020 2

Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2021 and 2020 3

Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2021 and 2020 4

Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020 6

Notes to the Unaudited Consolidated Financial Statements 7
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 38
ITEM 4. Controls and Procedures 40
PART II—OTHER INFORMATION
40
ITEM 1. Legal Proceedings 40
ITEM 1A. Risk Factors 40
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 40
ITEM 6. Exhibits 41

Signatures 42






EURONET WORLDWIDE, INC. AND SUBSIDIARIES
(In thousands, except share and per share data)
 
As of
 
September 30,
2021
 
December 31,
2020
 
(unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
1,048,466

 
$
1,420,255

ATM cash
669,686

 
411,054

Restricted cash
3,626

 
3,334

Settlement assets
928,740

 
1,140,875

Trade accounts receivable, net of credit losses of $4,504 and $5,926
152,564

 
117,517

Prepaid expenses and other current assets
235,209

 
272,900

Total current assets
3,038,291

 
3,365,935

Operating right of use lease assets
165,327

 
162,074

Property and equipment, net of accumulated depreciation of $517,319 and $490,429
350,727

 
378,441

Goodwill
646,178

 
665,821

Acquired intangible assets, net of accumulated amortization of $180,100 and $175,210
102,238

 
121,883

Other assets, net of accumulated amortization of $60,908 and $55,710
223,557

 
232,557

Total assets
$
4,526,318

 
$
4,926,711

LIABILITIES AND EQUITY
 
 
 
Current liabilities:
 
 
 
Settlement obligations
$
928,740

 
$
1,140,875

Trade accounts payable
168,792

 
147,593

Accrued expenses and other current liabilities
369,283

 
404,021

Current portion of operating lease liabilities
54,210

 
52,436

Short-term debt obligations and current maturities of long-term debt obligations
985

 
797

Income taxes payable
53,147

 
36,359

Deferred revenue
67,677

 
73,360

Total current liabilities
1,642,834

 
1,855,441

Debt obligations, net of current portion
1,197,495

 
1,437,589

Operating lease obligations, net of current portion
115,289

 
106,502

Deferred income taxes
38,666

 
37,875

Other long-term liabilities
40,577

 
43,401

Total liabilities
3,034,861

 
3,480,808

Equity:
 
 
 
Euronet Worldwide, Inc. stockholders’ equity:
 
 
 
Preferred Stock, $0.02 par value. 10,000,000 shares authorized; none issued

 

Common Stock, $0.02 par value. 90,000,000 shares authorized;  shares issued 63,483,092 and 63,366,010
1,270

 
1,267

Additional paid-in-capital
1,260,283

 
1,228,446

Treasury stock, at cost, shares issued 10,627,621 and 10,631,961
(703,136
)
 
(703,032
)
Retained earnings
1,087,007

 
1,013,155

Accumulated other comprehensive loss
(154,048
)
 
(94,214
)
Total Euronet Worldwide, Inc. stockholders’ equity
1,491,376

 
1,445,622

Noncontrolling interests
81
 
281

Total equity
1,491,457

 
1,445,903

Total liabilities and equity
$
4,526,318

 
$
4,926,711

See accompanying notes to the unaudited consolidated financial statements.
EURONET WORLDWIDE, INC. AND SUBSIDIARIES
(Unaudited, in thousands, except share and per share data)
 
Three Months Ended
September 30,



Nine Months Ended
September 30,

 
2021

 
2020


2021


2020

Revenues 
$
816,560

 
$
664,351


$
2,183,916


$
1,776,061

Operating expenses:
 
 
 








Direct operating costs
484,438

 
407,598



1,389,770



1,117,065

Salaries and benefits
119,421

 
101,577



356,160



293,769

Selling, general and administrative 
64,298

 
55,225



182,193



169,333

Goodwill and acquired intangible assets impairment


1,467






106,021

Depreciation and amortization
33,909

 
32,412



100,729



93,470

Total operating expenses
702,066

 
598,279



2,028,852



1,779,658

Operating income (loss)
114,494

 
66,072


155,064



(3,597
)
Other income (expense):
 
 
 








Interest income
153

 
139



539



867

Interest expense
(10,072
)
 
(9,477
)


(28,718
)

(27,594
)
Foreign currency exchange loss, net
(8,135
)
 
(1,368
)


(12,051
)

(17,679
)
Other gains, net

 


31



728

Other expense, net
(18,054
)
 
(10,706
)


(40,199
)

(43,678
)
Income (loss) before income taxes 
96,440
 
55,366


114,865



(47,275
)
Income tax expense
(22,726
)
 
(15,051
)


(41,140
)

(26,423
)
Net income (loss)
73,714
 
40,315


73,725



(73,698
)
Net loss (income) attributable to noncontrolling interests
168
 
(66
)


127


64

Net income (loss) attributable to Euronet Worldwide, Inc.
$
73,882
 
$
40,249

$
73,852

$
(73,634
)
 
 
 
 








Earnings (loss) per share attributable to Euronet Worldwide, Inc. stockholders:
 
 
 








Basic
$
1.40
 
$
0.77

$
1.40

$
(1.40
)
Diluted
$
1.37
 
$
0.76

$
1.37

$
(1.40
)
 
 
 
 








Weighted average shares outstanding:
 
 
 








Basic
52,829,386

 
52,294,522



52,799,199



52,712,030

Diluted
53,853,675

 
53,201,971



53,933,226



52,712,030


See accompanying notes to the unaudited consolidated financial statements.


EURONET WORLDWIDE, INC. AND SUBSIDIARIES
(Unaudited, in thousands)
 
Three Months Ended
September 30,


Nine Months Ended
September 30,


 
2021



2020


2021

 
2020

Net income (loss)
$
73,714


$
40,315


$
73,725
 
$
(73,698
)
Translation adjustment
(29,692
)

47,006


(59,907
)
 
19,360
Comprehensive income (loss)
44,022


87,321


13,818
 
(54,338
)
Comprehensive loss (income) attributable to noncontrolling interests
196

(133 )

200
 
11

Comprehensive income (loss) attributable to Euronet Worldwide, Inc.
$
44,218


$
87,188


$
14,018
 
$
(54,327
)
See accompanying notes to the unaudited consolidated financial statements.


EURONET WORLDWIDE, INC. AND SUBSIDIARIES
(Unaudited, in thousands, except share data)

 
 
Number of
Shares Outstanding

 

Common
Stock

 
Additional
Paid-in Capital

 
Treasury
Stock

Balance as of December 31, 2019
 
54,220,854

 
$
1,256

 
$
1,190,058

 
$
(463,704
)
Net income (loss)
 
 

 

 

 
 


 
 


Other comprehensive loss
 
 

 

 

 
 


 
 


Stock issued under employee stock plans
 
80,519

 

1

 
1,701

 

(249
)
Share-based compensation 
 
 

 

 

 

6,338

 
 


Repurchase of shares
 
(2,095,683
)
 

 

 



 
 
(239,763
)
Balance as of March 31, 2020

52,205,690



1,257



1,198,097



(703,716
)
Net (loss) income















Other comprehensive income















Stock issued under employee stock plans

82,841



2



3,763



59

Share-based compensation









3,125





Balance as of June 30, 2020
 
52,288,531

 
$
1,259

 
$
1,204,985

 
$
(703,657
)
Net income















Other comprehensive income















Stock issued under employee stock plans

21,604







687



53

Share-based compensation









5,037





Balance as of September 30, 2020

52,310,135


$
1,259


$
1,210,709


$
(703,604
)

 
 
Number of
Shares Outstanding

 
Common
Stock

 
Additional
Paid-in Capital

 
Treasury
Stock

Balance as of December 31, 2020
 
52,734,049

 
$
1,267

 
$
1,228,446

 
$
(703,032
)
Net (loss) income
 
 

 
 


 
 


 
 


Other comprehensive loss
 
 

 
 


 
 


 
 


Stock issued under employee stock plans
 
62,436

 

1

 

3,335

 

(482
)
Share-based compensation
 
 

 
 


 

8,492

 
 


Balance as of March 31, 2021

52,796,485



1,268



1,240,273



(703,514
)
Net income (loss)















Other comprehensive income















Stock issued under employee stock plans

25,769



1



1,199



267

Share-based compensation









10,984





Balance as of June 30, 2021
 
52,822,254

 
$
1,269

 
$
1,252,456

 
$
(703,247
)
Net income (loss)















Other comprehensive income















Stock issued under employee stock plans

33,217



1



1,022



111

Share-based compensation









6,805





Balance as of September 30, 2021

52,855,471


$
1,270


$
1,260,283


$
(703,136
)

See accompanying notes to the unaudited consolidated financial statements.


EURONET WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)
(Unaudited, in thousands)

 
 
 Retained Earnings

 
Accumulated Other
Comprehensive Loss

 
Noncontrolling
Interests

 
Total

Balance as of December 31, 2019
 
$
1,016,554

 
$
(164,890
)
 
$
68

 
$
1,579,342

Net income (loss)
 

1,921

 
 


 

(201
)
 

1,720

Other comprehensive loss 
 
 


 

(59,777
)
 

(41
)
 

(59,818
)
Stock issued under employee stock plans
 
 


 
 


 
 


 

1,453

Share-based compensation
 
 


 
 


 
 


 

6,338

Repurchase of shares
 
 


 
 


 
 


 

(239,763
)
Balance as of March 31, 2020


1,018,475



(224,667
)


(174
)


1,289,272

Net (loss) income


(115,804
)






71



(115,733
)
Other comprehensive income






32,145



27



32,172

Stock issued under employee stock plans














3,824

Share-based compensation














3,125

 Balance as of June 30, 2020
 

902,671

 

(192,522
)
 

(76
)
 

1,212,660

 Net income


40,249







66



40,315

 Other comprehensive income






46,939



67



47,006

 Stock issued under employee stock plans














740

 Share-based compensation














5,037

 Balance as of September 30, 2020

$
942,920


$
(145,583
)

$
57


$
1,305,758


 
 
 Retained Earnings

 
Accumulated Other
Comprehensive Loss

 
Noncontrolling
Interests

 
Total

Balance as of December 31, 2020
 
$
1,013,155

 
$
(94,214
)
 
$
281

 
$
1,445,903

Net (loss) income
 

(8,665
)
 
 


 

44
 
(8,621
)
Other comprehensive loss
 
 


 

(42,845
)
 

(56
)
 
(42,901
)
Stock issued under employee stock plans 
 
 


 
 


 
 


 
2,854

Share-based compensation
 
 


 
 


 
 


 
8,492

Balance as of March 31, 2021


1,004,490



(137,059
)


269


1,405,727

Net income (loss)


8,635







(3
)

8,632

Other comprehensive income






12,675



11


12,686

Stock issued under employee stock plans













1,467

Share-based compensation













10,984

 Balance as of June 30, 2021
 

1,013,125

 

(124,384
)
 

277
 

1,439,496

 Net income


73,882







(168
)


73,714

Other comprehensive income






(29,664
)


(28
)


(29,692
)
Stock issued under employee stock plans














1,134

Share-based compensation














6,805

Balance as of September 30, 2021

$
1,087,007


$
(154,048
)

$
81


$
1,491,457


See accompanying notes to the unaudited consolidated financial statements. 



EURONET WORLDWIDE, INC. AND SUBSIDIARIES
(Unaudited, in thousands)
 
Nine Months Ended
September 30,
 
2021
 
2020
Net income (loss)
$
73,725
 
$
(73,698
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Depreciation and amortization
100,729

 
93,470

Share-based compensation
26,281

 
14,500

Unrealized foreign exchange loss, net
12,051

 
17,679
Deferred income taxes
1,412
 
(5,011
)
Goodwill and acquired intangible assets impairment



106,021

Accretion of convertible debt discount and amortization of debt issuance costs
15,099

 
13,996

Changes in working capital, net of amounts acquired:

 

Income taxes payable, net
17,464
 
(26,625
)
Trade accounts receivable
96,541

 
232,380
Prepaid expenses and other current assets
119,698
 
(25,917
)
Trade accounts payable
(209,069
)
 
(127,291
)
Deferred revenue
(2,782
)
 
(4,540
)
Accrued expenses and other current liabilities
47,254

 
25,110

Changes in noncurrent assets and liabilities
5,937
 
(19,658
)
Net cash provided by operating activities
304,340
 
220,416

Cash flows from investing activities:
 
 

Acquisitions, net of cash acquired
 
(451
)
Purchases of property and equipment
(66,058
)
 
(71,396
)
Purchases of other long-term assets
(6,171
)
 
(5,968
)
Other, net
1,277

 
742

Net cash used in investing activities
(70,952
)
 
(77,073
)
Cash flows from financing activities:
 
 
 
Proceeds from issuance of shares
6,443

 
6,564

Repurchase of shares
(979
)
 
(240,838
)
Borrowings from revolving credit agreements
3,539,100

 
2,018,600

Repayments of revolving credit agreements
(3,756,300
)
 
(2,018,600
)
Net borrowing (repayments) from short-term debt obligations
199
 
(5,032
)
Other, net
(4,754
)
 
(4,763
)
Net cash used in financing activities
(216,291
)
 
(244,069
)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
(82,667
)
 
32,042
Decrease in cash and cash equivalents and restricted cash
(65,570
)
 
(68,684
)
Cash and cash equivalents and restricted cash at beginning of period
2,099,508

 
1,817,379

 
 
 
 
Cash and cash equivalents and restricted cash at end of period
$
2,033,938

 
$
1,748,695

 
 
 
 
Supplemental disclosure of cash flow information:
 
 
 
Interest paid during the period
$
17,226

 
$
16,653

Income taxes paid during the period
$
28,752

 
$
50,300

See accompanying notes to the unaudited consolidated financial statements.

EURONET WORLDWIDE, INC. AND SUBSIDIARIES

(1) GENERAL


Organization

Euronet Worldwide, Inc. (the “Company” or “Euronet”) was established as a Delaware corporation on December 13, 1996 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, changes in equity 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, 2020, including the notes thereto, set forth in the Company’s 2020 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, 2021.

Seasonality

Euronet’s Electronic Funds Transfer ("EFT") Processing Segment normally experiences its heaviest demand for dynamic currency conversion ("DCC") 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.

(2) RECENTLY ISSUED AND ADOPTED ACCOUNTING PRONOUNCEMENTS

In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" which simplifies the accounting for convertible instruments by eliminating certain accounting models when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in-capital. Under this ASU, certain debt instruments with embedded conversion features will be accounted for as a single liability measured at its amortized cost. Additionally, this ASU eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments. The new guidance is effective for annual periods beginning after December 15, 2021, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of ASU 2020-06 will have on the consolidated financial statements. 

(3) PENDING ACQUISITION


In March 2021, the Company entered into an agreement to purchase the Piraeus Bank Merchant Acquiring business of Piraeus Bank for 300 million, or approximately $360 million. The proposed arrangement will include separate commercial agreements for a long-term strategic partnership with Piraeus Bank for collaborative product distribution, processing and customer referrals. The acquisition will expand the Company’s omnichannel payments strategy and position the Company in Greece’s growing market for merchant acquiring services. The closing is targeted for late 2021 and is subject to regulatory approvals, finalization of the commercial agreements, and customary closing conditions. The Company expects to finance the purchase price using cash on hand.


(4) 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 accounts 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 becomes 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 accrued expenses for money transfers, content providers, and EFT customer deposits and accounts payable to agents and content providers. Money transfer accrued expenses 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 accrued expenses represent amounts not yet presented for payment. Due to the agent funding and settlement process, accrued expenses to agents represent amounts due to agents for money transfers that have not been settled with transferees. 

 

As of

(in thousands)

September 30,
2021


December 31,
2020

Settlement assets:

 

 
Settlement cash and cash equivalents

$
259,727


$
188,191

Settlement restricted cash

52,433


76,674

Accounts receivable, net of credit losses of $31,220 and $35,800

478,760


641,955

Prepaid expenses and other current assets

137,820


234,055

Total settlement assets

$
928,740


$
1,140,875

Settlement obligations:

 

 
Trade account payables

$
319,193


$
571,175

Accrued expenses and other current liabilities

609,547


569,700

Total settlement obligations

$
928,740


$
1,140,875



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)
 
September 30,
2021
 
December 31,
2020
 
September 30,
2020
 
December 31,
2019

Cash and cash equivalents
 
$
1,048,466

 
$
1,420,255

 
$
1,008,183

 
$
786,081

Restricted cash
 
3,626

 
3,334

 
14,204

 
34,301

ATM cash
 
669,686

 
411,054

 
409,683

 
665,641

Settlement cash and cash equivalents
 
259,727

 
188,191

 
272,467

 
282,188

Settlement restricted cash
 
52,433

 
76,674

 
44,158

 
49,168

Cash and cash equivalents and restricted cash at end of period
 
$
2,033,938

 
$
2,099,508

 
$
1,748,695

 
$
1,817,379


(5) STOCKHOLDERS' EQUITY

Earnings (Loss) Per Share

Basic earnings (loss) per share has been computed by dividing earnings (loss) available to common stockholders by the weighted average number of common shares outstanding during the respective period. Diluted earnings (loss) per share has been computed by dividing earnings (loss) 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, if such conversion would be dilutive.

The following table provides the computation of diluted weighted average number of common shares outstanding:


Three Months Ended
September 30,

Nine Months Ended
September 30,

 
2021

2020

2021

2020

Computation of diluted weighted average shares outstanding:








Basic weighted average shares outstanding
52,829,386

52,294,522

52,799,199

52,712,030

Incremental shares from assumed exercise of stock options and vesting of restricted stock
1,024,289

907,449

1,134,027


Diluted weighted average shares outstanding 
53,853,675

53,201,971

53,933,226

52,712,030


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 (loss) 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 770,000 and 751,000 for the three and nine months ended September 30, 2021, respectively, and approximately 1,122,000 and 1,887,000 for the three and nine months ended September 30, 2020, respectively.

The Company issued Convertible Senior Notes ("Convertible Notes") due March 2049 on March 18, 2019. The Company's Convertible Notes currently have 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 were included in the calculation of diluted earnings (loss) per share if their inclusion was dilutive. The dilutive effect increases the more the market price exceeds the conversion price. 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 of common stock was $127.28 on September 30, 2021 and $91.10 on September 30, 2020, therefore, according to ASC Topic 260, Earnings per Share (“ASC 260”), there was no dilutive effect of the assumed conversion of the debentures for the three and nine months ended September 30, 2021 and 2020. See Note 9, Debt Obligations, to the consolidated financial statements for more information about the Convertible Notes. 
Share Repurchases

On March 11, 2019, in connection with the issuance of the Convertible Notes, the Board of Directors authorized a 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 three and nine months ended September 30, 2021, there were no repurchases of stock under the repurchase programs. Repurchases under the current 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 Income (Loss)

Accumulated other comprehensive income (loss) consists entirely of foreign currency translation adjustments. The Company recorded a foreign currency translation loss of $29.7 million and $59.9 million for the three and nine months ended September 30, 2021, respectively, and a gain of $47.0 million and $19.4 million for the three and nine months ended September 30, 2020, respectively. There were no reclassifications of foreign currency translation into the consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020.

(6) GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET 

A summary of acquired intangible assets and goodwill activity for the nine months ended September 30, 2021 is presented below:
(in thousands)


 Acquired
Intangible
Assets



Goodwill

 
Total
Intangible
Assets

Balance as of December 31, 2020
 
$
121,883

 
$
665,821

 
$
787,704

Decreases:
 
 
 
 
 
 
Acquisition
 

 
 

Amortization
 
(17,388
)
 

 
(17,388
)
Foreign currency exchange rate changes
 
(2,257
)
 
(19,643
)
 
(21,900
)
Balance as of September 30, 2021
 
$
102,238

 
$
646,178

 
$
748,416

Of the total goodwill balance of $646.2 million as of September 30, 2021$393.9 million relates to the Money Transfer Segment, $131.0 million relates to the epay Segment and the remaining $121.3 million relates to the EFT Processing Segment. Estimated amortization expense on acquired intangible assets with finite lives as of September 30, 2021, is expected to total $5.6 million for the remainder of 2021, $21.2 million for 2022, $16.3 million for 2023, $9.6 million for 2024, $6.3 million for 2025 and $6.2 million for 2026.


(7) ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following:
 
 
As of

(in thousands)
 
September 30, 2021
 
December 31, 2020
Accrued expenses
 
$
339,023

 
$
331,713

Derivative liabilities
 
25,498

 
65,905

Current portion of finance lease obligations
 
4,762

 
6,403

Total
 
$
369,283

 
$
404,021


(8) UNEARNED REVENUES

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 nine months ended September 30, 2021 is driven by $39.7 million of cash payments received in the current year for which the Company has not yet satisfied the performance obligations, offset by $45.4 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2020.

(9) DEBT OBLIGATIONS


Debt obligations consist of the following: 

 
 
As of
(in thousands)
 
September 30, 2021

 
December 31, 2020

Credit Facility:
 
 
 
 
Revolving credit agreement
 
$
53,200

 
$
270,400

Convertible Debt:
 
 
 
 
0.75% convertible notes, unsecured, due 2049
 
464,161

 
452,228






1.375% Senior Notes, due 2026
 
694,860

 
732,840






Other obligations
 
1,054

 
850










Total debt obligations
 
1,213,275

 
1,456,318

Unamortized debt issuance costs
 
(14,795
)
 
(17,932
)
Carrying value of debt
 
1,198,480

 
1,438,386

Short-term debt obligations and current maturities of long-term debt obligations
 
(985
)
 
(797
)
Long-term debt obligations
 
$
1,197,495

 
$
1,437,589


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. In May 2021, an additional lender joined the Credit Facility which increased the revolving commitment by $30 million. 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 Credit Facility allows for borrowings in Australian dollars, British pounds sterling, Canadian dollars, Czech koruna, Danish krone, euro, Hungarian forints, Japanese yen, New Zealand dollars, Norwegian krone, Polish zlotys, Swedish krona, Swiss francs and U.S. dollars. The 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 Credit Facility contains customary affirmative and negative covenants, events of default and financial covenants. The Company was in compliance with all debt covenants as of September 30, 2021.

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.

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 and $3.0 million for the three and nine months ended September 30, 2021, respectively, and $1.0 million and $3.0 million for the three and nine months ended September 30, 2020, respectively. Accretion expense for the Convertible Notes was $4.0 million and $11.9 million for the three and nine months ended September 30, 2021, respectively, and $3.8 million and $11.4 million for the three and nine months ended September 30, 2020, respectively. The effective interest rate was 4.4% for the three and nine months ended September 30, 2021. As of September 30, 2021, the unamortized discount was $60.8 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 in 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 September 30, 2021, the Company has outstanding 600 million ($694.9 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 September 30, 2021 and December 31, 2020, borrowings under these arrangements were $1.1 million and $0.9 million, respectively.

(10) 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 Topic 815, Derivatives and Hedging ("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. The Company had foreign currency forward contracts outstanding in the U.S. with a notional value of $275 million and $246 million as of September 30, 2021 and December 31, 2020, respectively. The foreign currency forward contracts consist primarily in Australian dollars, Canadian dollars, British pounds sterling, euro 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. The Company had foreign currency forward contracts outstanding with a notional value of $46 million and $454 million as of September 30, 2021 and December 31, 2020, respectively, primarily in euro.

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 $20.1 million and $58.5 million for the three and nine months ended September 30, 2021, respectively, and $14.4 <