SEC Filing - Euronet Worldwide, Inc.

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eeft-20220930.htm

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, 2022

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

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 ☑ 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 ☑ 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	o
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 ☑

On November 4, 2022, Euronet Worldwide, Inc. had 49,593,877 shares of common stock outstanding.

EURONET WORLDWIDE, INC. AND SUBSIDIARIES

Table of Contents

		Page

PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	1
	Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021	1
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021	2
	Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2022 and 2021	3
	Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2022 and 2021	4
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021	6
	Notes to the Unaudited Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	42
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 6.	Exhibits	44
	Signatures	45

Table of Contents

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

EURONET WORLDWIDE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	As of
	September 30, 2022			December 31, 2021
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	967,100		$	1,260,466
ATM cash	646,121			543,422
Restricted cash	8,396			3,693
Settlement assets	1,034,898			1,102,389
Trade accounts receivable, net of credit losses of $4,059 and $4,469	225,166			203,010
Prepaid expenses and other current assets	364,209			195,443
Total current assets	3,245,890			3,308,423
Operating right of use lease assets	137,993			161,494
Property and equipment, net of accumulated depreciation of $516,239 and $532,631	317,602			345,381
Goodwill	764,780			641,605
Acquired intangible assets, net of accumulated amortization of $180,280 and $185,054	180,257			97,793
Other assets, net of accumulated amortization of $64,542 and $62,349	181,305			189,580
Total assets	$	4,827,827		$	4,744,276
LIABILITIES AND EQUITY
Current liabilities:
Settlement obligations	$	1,034,898		$	1,102,389
Trade accounts payable	169,835			193,529
Accrued expenses and other current liabilities	494,745			367,692
Current portion of operating lease liabilities	45,562			52,136
Short-term debt obligations and current maturities of long-term debt obligations	303,549			821
Income taxes payable	62,783			59,037
Deferred revenue	59,071			77,037
Total current liabilities	2,170,443			1,852,641
Debt obligations, net of current portion	1,428,471			1,420,085
Operating lease obligations, net of current portion	95,057			111,355
Deferred income taxes	37,810			46,505
Other long-term liabilities	68,803			58,166
Total liabilities	3,800,584			3,488,752
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 63,863,162 and 63,779,009	1,277			1,275
Additional paid-in-capital	1,234,090			1,274,118
Treasury stock, at cost, shares issued 14,270,009 and 12,631,125	(1,105,883		)	(931,212		)
Retained earnings	1,280,509			1,083,882
Accumulated other comprehensive loss	(382,224		)	(172,582		)
Total Euronet Worldwide, Inc. stockholders’ equity	1,027,769			1,255,481
Noncontrolling interests	(526		)	43
Total equity	1,027,243			1,255,524
Total liabilities and equity	$	4,827,827		$	4,744,276

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

EURONET WORLDWIDE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except share and per share data)


		Three Months Ended September 30,					Nine Months Ended September 30,
		2022			2021		2022			2021
Revenues	$	931,266		$	816,560		$	2,493,042		$	2,183,916
Operating expenses:
Direct operating costs, exclusive of depreciation		526,048			484,438		1,484,863			1,389,770
Salaries and benefits		134,471			119,421		392,544			356,160
Selling, general and administrative		69,508			64,298		207,613			182,193
Depreciation and amortization		32,781			33,909		101,784			100,729
Total operating expenses		762,808			702,066		2,186,804			2,028,852
Operating income		168,458			114,494		306,238			155,064
Other income (expense):
Interest income		600			153		990			539
Interest expense		(11,716	)		(10,072	)	(26,712		)	(28,718		)
Foreign currency exchange gain (loss), net		(15,798	)		(8,135	)	(35,958		)	(12,051		)
Other gains, net		10			—		202			31
Other expense, net		(26,904	)		(18,054	)	(61,478		)	(40,199		)
Income before income taxes		141,554			96,440		244,760			114,865
Income tax expense		(44,002	)		(22,726	)	(81,884		)	(41,140		)
Net income		97,552			73,714		162,876			73,725
Net income attributable to noncontrolling interests		170			168		361			127
Net income attributable to Euronet Worldwide, Inc.	$	97,722		$	73,882		$	163,237		$	73,852

Earnings per share attributable to Euronet Worldwide, Inc. stockholders:
Basic	$	1.97		$	1.40		$	3.24		$	1.40
Diluted	$	1.87		$	1.37		$	3.10		$	1.37

Weighted average shares outstanding:
Basic		49,583,317			52,829,386		50,345,293			52,799,199
Diluted		52,751,304			53,853,675		53,688,800			53,933,226

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

EURONET WORLDWIDE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited, in thousands)


		Three Months Ended September 30,					Nine Months Ended September 30,
		2022			2021			2022		2021
Net income	$	97,552		$	73,714		$	162,876		$	73,725
Translation adjustment		(100,458	)		(29,692	)	(209,850		)	(59,907		)
Comprehensive income (loss)		(2,906	)		44,022		(46,974		)	13,818
Comprehensive income attributable to noncontrolling interests		262			196		569			200
Comprehensive income (loss) attributable to Euronet Worldwide, Inc.	$	(2,644	)	$	44,218		$	(46,405	)	$	14,018

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

EURONET WORLDWIDE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited, in thousands, except share data)

	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 (loss) income
Other comprehensive loss
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
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	)

	Number of Shares Outstanding		Common Stock		Additional Paid-in Capital			Treasury Stock
Balance as of December 31, 2021	51,147,884		$	1,275	$	1,274,118		$	(931,212	)
Net income (loss)
Other comprehensive loss
Stock issued under employee stock plans	40,173			1		1,989			142
Share-based compensation						9,803
Repurchase of shares	(639,535	)							(70,351	)
Adoption of ASU 2020-06						(74,080	)
Balance as of March 31, 2022	50,548,522			1,276		1,211,830			(1,001,421	)
Net income (loss)
Other comprehensive loss
Stock issued under employee stock plans	31,233			1		1,322			(73	)
Share-based compensation						10,142
Repurchase of shares	(1,000,000	)							(104,600	)
Balance as of June 30, 2022	49,579,755			1,277		1,223,294			(1,106,094	)
Net income
Other comprehensive income
Stock issued under employee stock plans	13,398			—		460			211
Share-based compensation						10,336
Repurchase of shares	—								—
Balance as of September 30, 2022	49,593,153			1,277		1,234,090			(1,105,883	)

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

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, 2020	$	1,013,155		$	(94,214	)	$	281		$	1,445,903
Net income (loss)		(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 loss					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

	Retained Earnings		Accumulated Other Comprehensive Loss			Noncontrolling Interests			Total
Balance as of December 31, 2021	$	1,083,882	$	(172,582	)	$	43		$	1,255,524
Net income (loss)		8,297					(7	)	8,290
Other comprehensive loss				(21,077	)		(37	)	(21,114		)
Stock issued under employee stock plans									2,132
Share-based compensation									9,803
Repurchase of shares									(70,351		)
Adoption of ASU 2020-06		33,390							(40,690		)
Balance as of March 31, 2022		1,125,569		(193,659	)		(1	)		1,143,594
Net income (loss)		57,218					(184	)		57,034
Other comprehensive loss				(88,199	)		(79	)		(88,278	)
Stock issued under employee stock plans										1,250
Share-based compensation										10,142
Repurchase of shares										(104,600	)
Balance as of June 30, 2022		1,182,787		(281,858	)		(264	)		1,019,142
Net income (loss)		97,722					(170	)		97,552
Other comprehensive loss				(100,366	)		(92	)		(100,458	)
Stock issued under employee stock plans										671
Share-based compensation										10,336
Repurchase of shares		—								—
Balance as of September 30, 2022		1,280,509		(382,224	)		(526	)		1,027,243

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

EURONET WORLDWIDE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)


	Nine Months Ended September 30,
	2022			2021
Net income	$	162,876		$	73,725
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	101,784			100,729
Share-based compensation	30,281			26,281
Unrealized foreign exchange loss, net	35,958			12,051
Deferred income taxes	12,210			1,412
Accretion of convertible debt discount and amortization of debt issuance costs	2,351			15,099
Changes in working capital, net of amounts acquired:
Income taxes payable, net	9,153			17,464
Trade accounts receivable, including amounts in settlement assets	6,087			96,541
Prepaid expenses and other current assets, including amounts in settlement assets	(205,363		)	119,698
Trade accounts payable, including amounts in settlement obligations	(107,139		)	(209,069		)
Deferred revenue	(10,988		)	(2,782		)
Accrued expenses and other current liabilities, including amounts in settlement obligations	400,955			47,254
Changes in noncurrent assets and liabilities	10,471			5,937
Net cash provided by operating activities	448,636			304,340
Cash flows from investing activities:
Acquisitions, net of cash acquired	(331,372		)	-
Purchases of property and equipment	(79,351		)	(66,058		)
Purchases of other long-term assets	(5,844		)	(6,171		)
Other, net	528			1,277
Net cash used in investing activities	(416,039		)	(70,952		)
Cash flows from financing activities:
Proceeds from issuance of shares	4,421			6,443
Repurchase of shares	(175,296		)	(979		)
Borrowings from revolving credit agreements	5,924,100			3,539,100
Repayments of revolving credit agreements	(5,581,200		)	(3,756,300		)
Net borrowings (repayments) from short-term debt obligations	4,631			199
Other, net	(3,119		)	(4,754		)
Net cash provided by (used in) financing activities	173,537			(216,291		)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(413,669		)	(82,667		)
Increase (decrease) in cash and cash equivalents and restricted cash	(207,535		)	(65,570		)
Cash and cash equivalents and restricted cash at beginning of period	2,086,102			2,099,508

Cash and cash equivalents and restricted cash at end of period	$	1,878,567		$	2,033,938

Supplemental disclosure of cash flow information:
Interest paid during the period	$	21,668		$	17,226
Income taxes paid during the period	$	65,658		$	28,752

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

EURONET WORLDWIDE, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(1) GENERAL

Organization

Euronet Worldwide, Inc. (the "Company", "Euronet", "we" and "us") 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 ATM, POS, card outsourcing, card issuing and merchant acquiring services, electronic distribution of prepaid mobile airtime and other electronic payment products, and international payment 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 our audited consolidated financial statements for the year ended December 31, 2021, including the notes thereto, set forth in our 2021 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, 2022.

Seasonality

Euronet’s EFT Processing Segment normally experiences its heaviest demand for DCC services during the third quarter of the fiscal year, normally coinciding with the tourism season. Epay Segment is 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. Also, epay sells large loyalty rewards campaigns to retailers, which could be deployed in any given quarter and will impact the activity in that quarter accordingly. 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. We adopted this standard on January 1, 2022 using the modified retrospective approach, which resulted in our Convertible Senior Notes Due 2049 being recognized as a single liability. As a result of the adoption of this standard, we recorded a $99.7 million decrease to additional paid-in capital, a $56.8 million decrease in debt discounts and a $42.9 million increase in retained earnings. The adoption of this standard also impacted our deferred tax liability by decreasing our deferred tax liability by $15.0 million, decreasing retained earnings by $10.6 million, and increasing additional paid-in capital by $25.6 million. Additionally, the elimination of the treasury stock method will increase the number of dilutive shares used in the diluted earnings per share calculation, if dilutive, by 2.8 million shares.

(3) ACQUISITIONS

On March 15, 2022 we completed the acquisition of the Merchant Acquiring Business of Piraeus Bank ("PBMA"). The acquisition includes 205,000 POS terminals at 170,000 merchants throughout Greece, as well as Piraeus Bank’s online merchant acquiring business and expands our omnichannel payments strategy where we use our proprietary technology to provide cash, card-based acquiring solutions, alternative payment acquiring, online acquiring, tokenized payment services and other payment products. Additionally, the acquisition includes a long-term commercial framework agreement between Piraeus Bank and Euronet which includes collaborative product distribution, processing and customer referrals.

The purchase price was €313.8 million, or approximately $346.2 million, which includes $331 million cash paid at closing plus $15.2 million of estimated contingent consideration for a ten-year earnout contingent on performance targets outlined in the commercial framework agreement. The contingent consideration is related to a percentage of the net fee income received during the ten-year period of the commercial framework agreement and there is no contractual maximum amount of consideration under this agreement.

The initial accounting for this acquisition is not complete as of September 30, 2022. The purchase price was preliminarily allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective provisional fair values at the date of acquisition. Additional time is needed to refine and review the results of the valuation of assets and liabilities. The acquisition has been accounted for as a business combination in accordance with U.S. GAAP and the results of operations have been included from the date of acquisition in the EFT Processing Segment.

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date.


(in thousands)		As of March 15, 2022
Other current assets	$	1,707
Settlement assets		78,718
Property and equipment		6,095
Acquired intangible assets		122,455
Total assets acquired	$	208,975

Trade accounts payable	$	1,499
Settlement liabilities		66,925
Accrued expenses and other current liabilities		5,929
Deferred revenue		500
Other long-term liabilities		99
Total liabilities assumed	$	74,952

Goodwill		212,183

Net assets acquired	$	346,206

Assets acquired, liabilities assumed, and consideration transferred were recorded at their estimated fair values on the acquisition date. The fair value measurements of intangible assets were based on significant inputs not observable in the market and represent Level 3 measurements within the fair value hierarchy. Level 3 inputs include discount rates that would be used by a market participant in valuing these assets, projections of revenues and cash flows, and customer attrition rates, among others.

We acquired a customer relationship intangible asset with a preliminary fair value of $112.2 million that is being amortized on a straight-line basis over 15 years and a contract related intangible asset of $10.3 million that is being amortized on a straight-line basis over 10 years.

Goodwill, with a preliminary value of $212.2 million, arising from the acquisition was included in the EFT Processing Segment. The factors that make up goodwill include synergies from combining PBMA operations and intangible assets that do not qualify for separate recognition. Goodwill and intangible assets associated with this acquisition are deductible for tax purposes.

The results of PBMA operations are included in our consolidated results of operation, as part of our EFT Processing business segment, beginning on March 16, 2022. For the three and nine months ended September 30, 2022, PBMA had $32.6 million and $63.8 million in revenue. The PBMA business is impacted by higher transaction volumes during the tourism season in the second and third quarters.

(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. We record 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. The settlement cash held at the Company is primarily generated from the monies remitted by consumers through Company agents and financial institutions in payment of the face value of the payment service or foreign currency purchased and the related fees charged to purchase the currency. We use our cash and cash equivalents to pay the face value of the payment service product upon presentation by the recipient. Cash received by Company agents and merchants generally becomes available to us 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 us.

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 us. 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, 2022		December 31, 2021
Settlement assets:
Settlement cash and cash equivalents	$	210,802	$	203,624
Settlement restricted cash	46,148		74,897
Accounts receivable, net of credit losses of $30,622 and $27,341	569,517		619,738
Prepaid expenses and other current assets	208,431		204,130
Total settlement assets	$	1,034,898	$	1,102,389
Settlement obligations:
Trade account payables	$	378,452	$	461,135
Accrued expenses and other current liabilities	656,446		641,254
Total settlement obligations	$	1,034,898	$	1,102,389

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, 2022		December 31, 2021		September 30, 2021		December 31, 2020
Cash and cash equivalents	$	967,100	$	1,260,466	$	1,048,466	$	1,420,255
Restricted cash	8,396		3,693		3,626		3,334
ATM cash	646,121		543,422		669,686		411,054
Settlement cash and cash equivalents	210,802		203,624		259,727		188,191
Settlement restricted cash	46,148		74,897		52,433		76,674
Cash and cash equivalents and restricted cash at end of period	$	1,878,567	$	2,086,102	$	2,033,938	$	2,099,508

(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 our common stock, assumed vesting of restricted stock and the assumed conversion of our convertible debt, if such conversion would be dilutive.

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

		Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Computation of diluted earnings:
Net income (loss)	$	97,722	$	73,882	$	163,237	$	73,852
Add: Interest expense from assumed conversion of convertible notes, net of tax		1,148		—		3,253		—
Net income (loss) for diluted earnings per share calculation	$	98,870	$	73,882	$	166,490	$	73,852

Computation of diluted weighted average shares outstanding:
Basic weighted average shares outstanding		49,583,317		52,829,386		50,345,293		52,799,199
Incremental shares from assumed exercise of stock options and vesting of restricted stock		386,169		1,024,289		561,689		1,134,027
Incremental shares from assumed conversion of convertible debt		2,781,818		—		2,781,818		—
Diluted weighted average shares outstanding		52,751,304		53,853,675		53,688,800		53,933,226

The table includes all stock options and restricted stock that are dilutive to our 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 our weighted average common shares outstanding of approximately 3,308,000 and 2,849,000 for the three and nine months ended September 30, 2022 and 770,000 and 751,000 for the three and nine months ended September 30, 2021, respectively.

We issued Convertible Senior Notes ("Convertible Notes") due March 2049 on March 18, 2019. Our Convertible Notes currently have a settlement feature requiring us 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 our common stock or a combination thereof, at our option. We have stated our intent to settle any conversion of these notes by paying cash for the principal value and issuing common stock for any conversion premium; however, after adopting ASU 2020-06, 2.8 million incremental shares assumed for conversion of convertible notes shall be included in the dilutive earnings per share calculation, if dilutive, regardless of whether the market price trigger has been met. Therefore, our 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 of $188.73 per share. See Note 9, Debt Obligations, to the consolidated financial statements for more information about the Convertible Notes.

Share repurchases

On February 26, 2020, we 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. On December 8, 2021, we put a repurchase program in place to repurchase up to $300 million in value, but not more than 5.0 million shares of common stock through December 8, 2023. Under the repurchase programs we repurchased $0 million and $175.0 million of stock, for the three and nine months ended September 30, 2022, respectively. 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 Loss

Accumulated other comprehensive loss consists entirely of foreign currency translation adjustments. We recorded foreign currency translation losses of $100.5 million and $209.9 million for the three and nine months ended September 30, 2022, respectively, and losses of $29.7 million and $59.9 million for the three and nine months ended September 30, 2021. There were no reclassifications of foreign currency translation into the consolidated statements of income for the three and nine months ended September 30, 2022 and 2021.

(6) GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET

A summary of acquired intangible assets and goodwill activity for the nine months ended September 30, 2022 is presented below:


(in thousands)	Acquired Intangible Assets			Goodwill			Total Intangible Assets
Balance as of December 31, 2021	$	97,793		$	641,605		$	739,398
Increases (decreases):
Acquisition	122,455			212,183			334,638
Amortization	(20,164		)	—			(20,164		)
Foreign currency exchange rate changes	(19,827		)	(89,008		)	(108,835		)
Balance as of September 30, 2022	$	180,257		$	764,780		$	945,037

Of the total goodwill balance of $764.8 million as of September 30, 2022, $351.3 million relates to the Money Transfer Segment, $298.6 million relates to the EFT Processing Segment and the remaining $114.9 million relates to the epay Segment. Estimated amortization expense on acquired intangible assets with finite lives as of September 30, 2022, is expected to total $6.6 million for the remainder of 2022, $22.3 million for 2023, $16.6 million for 2024, $13.6 million for 2025, $13.3 million for 2026 and $12.1 million for 2027.

(7) ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following:


	As of
(in thousands)	September 30, 2022		December 31, 2021
Accrued expenses	$	348,219	$	285,098
Derivative liabilities	85,799		23,285
Accrued payroll expenses	57,827		55,162
Current portion of finance lease obligations	2,900		4,147
Total	$	494,745	$	367,692

(8) DEFERRED REVENUES

We record deferred revenues when cash payments are received or due in advance of our performance. The decrease in the deferred revenue balance for the nine months ended September 30, 2022 is the result of $26.0 million of cash payments received in the current year for which we have not yet satisfied the performance obligations, offset by $43.9 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2021.

(9) DEBT OBLIGATIONS

Debt obligations consist of the following:

	As of
(in thousands)	September 30, 2022			December 31, 2021
Credit Facility:
Revolving credit agreement	$	326,300		$	283,400

Uncommitted credit agreement		300,000			—
Convertible Debt:
0.75% convertible notes, unsecured, due 2049	525,000			468,235

1.375% Senior Notes, due 2026	588,360			682,080

Other obligations	3,616			920

Total debt obligations	1,743,276			1,434,635
Unamortized debt issuance costs	(11,256		)	(13,729		)
Carrying value of debt	1,732,020			1,420,906
Short-term debt obligations and current maturities of long-term debt obligations	(303,549		)	(821		)
Long-term debt obligations	$	1,428,471		$	1,420,085