What changed in this filing

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Item 1. Financial Statements

2020-07-31 compared with 2020-05-01 · 127 added, 67 removed, 479 unchanged (29% of the section changed)

3 unchanged sentences

(unaudited, in thousands, except per share data)

March 31, 2020 December 31, 2019

June 30, 2020 December 31, 2019

Current assets:

47 unchanged sentences

(unaudited, in thousands except per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2020 2019 2020 2019

Transportation $ 3,348,611 $ 3,638,612 $ 6,890,729 $ 7,143,544

12 unchanged sentences

Net income 143,939 169,180 222,085 330,968

Other comprehensive (loss) income, net of tax ( 32,195 ) 5,297

Other comprehensive income (loss), net of tax 24,253 ( 5,688 ) ( 7,942 ) ( 391 )

Comprehensive income $ 168,192 $ 163,492 $ 214,143 $ 330,577

12 unchanged sentences

Comprehensive

Loss Treasury

Income (Loss) Treasury

Stockholders’

9 unchanged sentences

Balance March 31, 2020 134,586 13,459 533,819 4,153,109 ( 108,344 ) ( 3,004,925 ) 1,587,118

Net income 143,939 143,939

Foreign currency translation, net of tax 24,253 24,253

Dividends declared, $ 0.51 per share

( 69,791 ) ( 69,791 )

Stock issued for employee benefit plans 138 13 ( 1,165 ) 9,007 7,855

Stock-based compensation expense — — 10,954 — 10,954

Balance June 30, 2020 134,724 $ 13,472 $ 543,608 $ 4,227,257 $ ( 84,091 ) $ ( 2,995,918 ) $ 1,704,328

Outstanding Amount Additional

13 unchanged sentences

Balance March 31, 2019 136,889 13,689 527,089 3,937,698 ( 66,638 ) ( 2,759,277 ) 1,652,561

Net income 169,180 169,180

Foreign currency translation ( 5,688 ) ( 5,688 )

Dividends declared, $ 0.50 per share

( 69,268 ) ( 69,268 )

Stock issued for employee benefit plans 129 13 ( 681 ) 8,367 7,699

Issuance of restricted stock, net of forfeitures 23 2 ( 2 ) —

Stock-based compensation expense — — 14,684 — 14,684

Repurchase of common stock ( 1,310 ) ( 131 ) ( 109,726 ) ( 109,857 )

Balance June 30, 2019 135,731 $ 13,573 $ 541,090 $ 4,037,610 $ ( 72,326 ) $ ( 2,860,636 ) $ 1,659,311

See accompanying notes to the condensed consolidated financial statements.

2 unchanged sentences

(unaudited, in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

29 unchanged sentences

Cash dividends ( 137,104 ) ( 139,010 )

Proceeds from long-term borrowings — 473,000

Payments on long-term borrowings — ( 561,000 )

Proceeds from short-term borrowings 979,600 14,000

23 unchanged sentences

RECENTLY ADOPTED ACCOUNTING STANDARDS

In June 2016, the FASB issued ASU (“Accounting Standards Update”) 2016-13, Financial Instruments - Credit Losses (Topic 326):

In June 2016, the FASB issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments , and in November 2018 issued a subsequent amendment, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses .

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Amongst other practical expedients, the update allows for contract modifications due to reference rate reform for certain receivables and debt contracts to be accounted for by prospectively adjusting the effective interest rate.

The amendments in this ASU are effective for all entities beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022.

The amendments in this ASU are effective for all entities beginning on March 12, 2020, and companies may elect to apply the amendments prospectively through December 31, 2022.

The Company is currently evaluating the effects that adoption of this guidance will have on the consolidated financial statements.

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Note 1 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2019, includes a summary of the significant accounting policies and methods used in the preparation of our consolidated financial statements.

We have updated these policies below to effect the adoption of Accounting Standards Codification (“ASC”) 326 in the first quarter of 2020.

We have updated these policies below to give effect to the adoption of Accounting Standards Codification (“ASC”) 326 in the first quarter of 2020.

ALLOWANCE FOR CREDIT LOSSES.

12 unchanged sentences

Translation ( 1,977 ) ( 1,156 ) ( 52 ) ( 3,185 )

Balance March 31, 2020 $ 1,179,375 $ 204,705 $ 66,919 $ 1,450,999

Balance June 30, 2020 $ 1,190,266 $ 207,771 $ 67,718 $ 1,465,755

Goodwill is tested at least annually for impairment on November 30, or more frequently if events or changes in circumstances indicate that the asset might be impaired.

1 unchanged sentence

If the Step Zero Analysis indicates it is more likely than not that the fair value of our reporting units is less than their respective carrying value, an additional impairment assessment is performed (“Step One Analysis”).

We considered whether there were any changes in circumstances indicating that our goodwill might be impaired, including consideration of the impacts of the novel coronavirus (“COVID-19”) on financial markets and our business operations, and determined the more likely than not criteria had not been met, and therefore a Step One Analysis was not required as of March 31, 2020.

Identifiable intangible assets consisted of the following (in thousands):

March 31, 2020 December 31, 2019

June 30, 2020 December 31, 2019

Cost Accumulated Amortization Net Cost Accumulated Amortization Net

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Amortization expense for other intangible assets is as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2020 2019 2020 2019

Amortization expense $ 9,655 $ 9,675 $ 18,031 $ 18,968

Finite-lived intangible assets, by reportable segment, as of March 31, 2020, will be amortized over their remaining lives as follows (in thousands):

Finite-lived intangible assets, by reportable segment, as of June 30, 2020, will be amortized over their remaining lives as follows (in thousands):

NAST Global Forwarding All Other and Corporate Total

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A financial asset or liability’s classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.

We had no Level 3 assets or liabilities as of and during the periods ended March 31, 2020, and December 31, 2019.

We had no Level 3 assets or liabilities as of and during the periods ended June 30, 2020 and December 31, 2019.

There were no transfers between levels during the period.

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Average interest rate as of Carrying value as of

March 31, 2020 December 31, 2019 Maturity March 31, 2020 December 31, 2019

June 30, 2020 December 31, 2019 Maturity June 30, 2020 December 31, 2019

Revolving credit facility — % — % October 2023 $ — $ —

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Interest on the Notes is payable semi-annually in arrears.

The fair value of the Notes approximated $ 511.7 million at March 31, 2020.

The fair value of the Notes approximated $ 546.8 million at June 30, 2020.

We estimate the fair value of the Notes primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering our own risk.

If the Notes were recorded at fair value, they would be classified as Level 2.

If the Notes were recorded at fair value, they would be classified as a Level 2 financial liability.

The Note Purchase Agreement contains various restrictions and covenants that require us to maintain certain financial ratios, including a maximum leverage ratio of 3.00 to 1.00, a minimum interest coverage ratio of 2.00 to 1.00, and a maximum consolidated priority debt to consolidated total asset ratio of 15 percent.

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trade accounts receivable and provides funding of up to $ 250 million.

The trade accounts receivable under the facility are owned by C.H.

Robinson Receivables LLC and are not available to the creditors of C.H.

Robinson Worldwide, Inc., and our subsidiaries.

The interest rate on borrowings under the Receivables Securitization Facility is based on one-month LIBOR plus 0.65 percent.

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Taking into effect the amortization of the original issue discount and all underwriting and issuance expenses, the Senior Notes have an effective yield to maturity of approximately 4.39 percent per annum.

The fair value of the Senior Notes, excluding debt discounts and issuance costs, approximated $ 648.5 million as of March 31, 2020, based primarily on the market prices quoted from external sources.

The carrying value of the Senior Notes was $ 592.7 million as of March 31, 2020.

If the Senior Notes were measured at fair value in the financial statements, they would be classified as Level 2 in the fair value hierarchy.

The fair value of the Senior Notes, excluding debt discounts and issuance costs, approximated $ 694.1 million as of June 30, 2020, based primarily on the market prices quoted from external sources.

The carrying value of the Senior Notes was $ 592.9 million as of June 30, 2020.

If the Senior Notes were measured at fair value in the financial statements, they would be classified as a Level 2 financial liability in the fair value hierarchy.

We may redeem the Senior Notes, in whole or in part, at any time and from time to time prior to their maturity at the applicable redemption prices described in the Senior Notes.

Upon the occurrence of a “change of control triggering event” as defined in the Senior Notes (generally, a change of control of us accompanied by a reduction in the credit rating for the Senior Notes), we will generally be required to make an offer to repurchase the Senior Notes from holders at 101 percent of their principal amount plus accrued and unpaid interest to the date of repurchase.

The Senior Notes were issued under an indenture that contains covenants imposing certain limitations on our ability to incur liens, enter into sales and leaseback transactions and consolidate, or merge or transfer substantially all of our assets and those of our subsidiaries on a consolidated basis.

The Senior Notes were issued under an indenture that contains covenants imposing certain limitations on our ability to incur liens or enter into sales and leaseback transactions above certain limits;

and consolidate, or merge or transfer substantially all of our assets and those of our subsidiaries on a consolidated basis.

It also provides for customary events of default (subject in certain cases to customary grace and cure periods), which include among other things nonpayment, breach of covenants in the indenture, and certain events of bankruptcy and insolvency.

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The indenture does not contain any financial ratios or specified levels of net worth or liquidity to which we must adhere.

As of March 31, 2020, we were in compliance with all of the covenants under the Credit Agreement, Note Purchase Agreement, Receivables Securitization Facility, and Senior Notes.

Our effective tax rate for the three months ended March 31, 2020, and 2019 was 17.1 percent and 22.0 percent, respectively.

The effective income tax rate for the three months ended March 31, 2020, was lower than the statutory federal income tax rate primarily due to the tax impact of share-based payment awards, which reduced the effective tax rate by 3.6 percentage points, and foreign tax impacts recorded in the three months ended March 31, 2020.

As of June 30, 2020, we were in compliance with all of the covenants under the Credit Agreement, Note Purchase Agreement, Receivables Securitization Facility, and Senior Notes.

Our effective tax rate for the three months ended June 30, 2020 and 2019 was 19.4 percent and 23.4 percent, respectively, and our effective tax rate for the six months ended June 30, 2020 and 2019 was 18.6 percent and 22.7 percent, respectively.

The effective income tax rate for the three and six months ended June 30, 2020, was lower than the statutory federal income tax rate primarily due to the tax impact of share-based payment awards, including the tax benefit from the delivery of a one-time deferred stock award that was granted to the company's prior Chief Executive Officer in 2000, which reduced the effective tax rate by 4.5 percentage points and 4.2 percentage points, respectively, and foreign tax impacts recorded in the three and six months ended June 30, 2020.

In 2019, we removed our assertion that the unremitted earnings of foreign subsidiaries were permanently reinvested with limited exceptions.

If we repatriated all foreign earnings that are still considered to be permanently reinvested, the estimated effect on income taxes payable would be an increase of approximately $ 3.9 million as of March 31, 2020.

On March 27, 2020, the U.S.

government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).

This law included provisions which may benefit us in two primary ways.

First, the CARES Act allows for a deferral of the employer share of federal payroll taxes otherwise due through December 31, 2020.

government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) in response to the COVID-19 pandemic.

The CARES Act allows for a deferral of the employer share of federal payroll taxes otherwise due through December 31, 2020.

50 percent of the deferred amount is due December 31, 2021 and the remaining 50 percent is due December 31, 2022.

This provision allows us to defer certain federal payroll deposits and invest this cash back into our business without any interest cost.

We are in the process of determining the amount of cash to be made available as a result of this provision.

Second, the CARES Act provides for a tax credit of up to

$5,000 related to wages and health benefits provided to an employee whose work from March 17, 2020 through December 31, 2020 was impacted by COVID-19.

We are in the process of determining the amount of any such credit.

This provision allows us to defer certain federal payroll deposits and invest this cash back into the business without any interest cost.

The CARES Act also provides for a tax credit of up to $5,000 related to wages and health benefits provided to an employee whose work from March 17, 2020 through December 31, 2020 was impacted by COVID-19.

Through June 30, 2020, we have recognized a payroll deferral and tax credit of $ 8.3 million and $ 0.5 million, respectively, under the CARES Act.

We will continue evaluating the impact of the CARES Act over the remainder of 2020.

On December 22, 2017, the U.S.

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tax code, including but not limited to, reducing the U.S.

federal corporate tax rate from 35 percent to 21 percent and requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries and adding new rules for Global Intangible Low-tax Income (“GILTI”) and Foreign Derived Intangible Income (“FDII”).

Although enacted more than two years ago, regulatory guidance on the application of FDII has not been finalized.

We have included the tax impact of both GILTI and FDII in our income tax expense for the three months ended March 31, 2020, and 2019, based on our understanding of the rules available at the time of this filing.

However, our calculations could be impacted by future regulations as guidance is finalized.

We will continue to monitor any new guidance related to FDII and determine any impact it may have on our calculations.

As of March 31, 2020, we have $ 38.6 million of unrecognized tax benefits and related interest and penalties.

federal corporate tax rate from 35 percent to 21 percent and adding new rules for Global Intangible Low-tax Income ("GILTI") and Foreign Derived Intangible Income (“FDII”).

Although enacted more than two years ago, regulatory guidance on the application of FDII was not finalized until shortly after the second quarter of 2020.

We have included the tax impact of both GILTI and FDII in our income tax expense for the three and six months ended June 30, 2020, and 2019, based on our understanding of the rules available at the time of filing.

The Treasury Department issued final regulatory guidance related to both GILTI and FDII on July 15, 2020, subsequent to the quarter ended June 30, 2020.

The effective date of these regulations is January 1, 2021, absent an election to apply these rules retroactively to 2018.

We are reviewing these regulations and the potential to elect a 2018 effective date.

The impact of this new guidance is not expected to have a material impact on full-year 2020 results.

As of June 30, 2020, we have $ 38.9 million of unrecognized tax benefits and related interest and penalties.

It is possible the amount of unrecognized tax benefit could change in the next 12 months as a result of a lapse of the statute of limitations and settlements with taxing authorities.

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A summary of our total compensation expense recognized in our condensed consolidated statements of operations and comprehensive income for stock-based compensation is as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2020 2019 2020 2019

Stock options $ 5,025 $ 4,461 $ 10,038 $ 8,710

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A maximum of 17,041,803 shares can be granted under this plan following the amendment and restatement.

Approximately 2,940,625 shares were available for stock awards under the plan as of March 31, 2020.

Approximately 2,946,808 shares were available for stock awards under the plan as of June 30, 2020.

Shares subject to awards that expire or are canceled without delivery of shares or that are settled in cash generally become available again for issuance under the plan.

3 unchanged sentences

These grants are being expensed based on the terms of the awards.

As of March 31, 2020, unrecognized compensation expense related to stock options was $ 58.3 million.

As of June 30, 2020, unrecognized compensation expense related to stock options was $ 53.2 million.

The amount of future expense to be recognized will be based on the passage of time and the employees' continued employment.

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These grants have been expensed during the year they were earned.

As of March 31, 2020, there was unrecognized compensation expense of $ 136.4 million related to previously granted full value awards.

As of June 30, 2020, there was unrecognized compensation expense of $ 131.5 million related to previously granted full value awards.

The amount of future expense to be recognized will be based on the passage of time, the company’s earnings growth, and certain other conditions.

3 unchanged sentences

The following is a summary of the employee stock purchase plan activity:

Three Months Ended March 31, 2020

Three Months Ended June 30, 2020

Shares purchased

26 unchanged sentences

The Prime Distribution goodwill is a result of acquiring and retaining the Prime Distribution workforce and expected synergies from integrating its business into ours.

Purchase accounting is considered preliminary, subject to revision primarily related to certain potential post-closing and working capital adjustments, as final information was not available as of March 31, 2020.

Purchase accounting is considered substantially complete.

The goodwill will not be deductible for tax purposes.

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We do not report our intersegment revenues by reportable segment to our CODM and do not believe they are a meaningful metric for evaluating the performance of our reportable segments.

Reportable segment information as of, and for the three months ended March 31, 2020, and 2019, is as follows (dollars in thousands):

Reportable segment information as of, and for the three and six months ended June 30, 2020 and 2019, is as follows (dollars in thousands):

NAST Global Forwarding All Other and Corporate Consolidated

Three Months Ended March 31, 2020

Three Months Ended June 30, 2020

Total revenues $ 2,475,292 $ 707,820 $ 444,734 $ 3,627,846

6 unchanged sentences

NAST Global Forwarding All Other and Corporate Consolidated

Three Months Ended March 31, 2019

Three Months Ended June 30, 2019

Total revenues $ 2,872,053 $ 592,483 $ 444,304 $ 3,908,840

5 unchanged sentences

Average headcount 7,533 4,770 3,409 15,712

NAST Global Forwarding All Other and Corporate Consolidated

Six Months Ended June 30, 2020

Total Revenues $ 5,299,037 $ 1,238,204 $ 895,613 $ 7,432,854

Net Revenues 752,334 291,274 138,798 1,182,406

Income (loss) from operations 235,372 70,734 ( 7,879 ) 298,227

Depreciation and amortization 12,455 18,355 19,341 50,151

Total assets (1)

2,793,290 1,029,203 1,003,196 4,825,689

Average headcount 6,981 4,763 3,594 15,338

NAST Global Forwarding All Other and Corporate Consolidated

Six Months Ended June 30, 2019

Total Revenues $ 5,668,837 $ 1,130,050 $ 861,163 $ 7,660,050

Net Revenues 972,968 269,172 131,876 1,374,016

Income (loss) from operations 416,015 40,821 ( 4,751 ) 452,085

Depreciation and amortization 12,390 18,241 19,011 49,642

Total assets (1)

2,685,477 1,014,235 984,397 4,684,109

Average headcount 7,486 4,728 3,343 15,557

_________________________________________

(1) All cash and cash equivalents are included in All Other and Corporate.

REVENUE FROM CONTRACTS WITH CUSTOMERS

A summary of our total revenues disaggregated by major service line and timing of revenue recognition is presented below for each of our reportable segments for the three months ended March 31, 2020 and 2019 (in thousands):

Three Months Ended March 31, 2020

A summary of our total revenues disaggregated by major service line and timing of revenue recognition is presented below for each of our reportable segments for the three and six months ended June 30, 2020 and 2019 (in thousands):

Three Months Ended June 30, 2020

NAST Global Forwarding All Other and Corporate Total

4 unchanged sentences

Total $ 2,475,292 $ 707,820 $ 444,734 $ 3,627,846

Three Months Ended March 31, 2019

Three Months Ended June 30, 2019

NAST Global Forwarding All Other and Corporate Total

4 unchanged sentences

Total $ 2,872,053 $ 592,483 $ 444,304 $ 3,908,840

Six Months Ended June 30, 2020

NAST Global Forwarding All Other and Corporate Total

Major Service Lines

Transportation and logistics services (1)

$ 5,299,037 $ 1,238,204 $ 353,488 $ 6,890,729

— — 542,125 542,125

Total $ 5,299,037 $ 1,238,204 $ 895,613 $ 7,432,854

Six Months Ended June 30, 2019

NAST Global Forwarding All Other and Corporate Total

Major Service Lines

Transportation and logistics services (1)

$ 5,668,837 $ 1,130,050 $ 344,657 $ 7,143,544

— — 516,506 516,506

Total $ 5,668,837 $ 1,130,050 $ 861,163 $ 7,660,050

____________________________________________

(1) Transportation and logistics services performance obligations are completed over time.

(2) Sourcing performance obligations are completed at a point in time.

We typically do not receive consideration and amounts are not due from our customer prior to the completion of our performance obligation and as such contract liabilities as of March 31, 2020, and revenue recognized in the three months ended March 31, 2020 and 2019 resulting from contract liabilities was not significant.

We typically do not receive consideration and amounts are not due from our customer prior to the completion of our performance obligation and as such contract liabilities, as of June 30, 2020, and revenue recognized in the three and six months ended June 30, 2020 and 2019 resulting from contract liabilities was not significant.

Contract assets and accrued expenses-transportation expense fluctuate from period to period primarily based upon shipments in-transit at period end.

18 unchanged sentences

We have lease agreements with lease components (e.g., payments for rent) and non-lease components (e.g., payments for common area maintenance and parking), which are all accounted for as a single lease component.

We do not have material lease agreements that have not yet commenced that are expected to create significant rights or obligations as of March 31, 2020.

Information regarding lease expense, remaining lease term, discount rate, and other select lease information is presented below as of March 31, 2020, and for the three months ended March 31, 2020 (dollars in thousands):

Lease Costs Three Months Ended March 31, 2020 Three Months Ended March 31, 2019

We do not have material lease agreements that have not yet commenced that are expected to create significant rights or obligations as of June 30, 2020.

Information regarding lease expense, remaining lease term, discount rate, and other select lease information is presented below as of June 30, 2020, and for the three and six months ended June 30, 2020 (dollars in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Lease Costs 2020 2019 2020 2019

Operating lease expense $ 21,508 $ 16,957 $ 41,482 $ 33,779

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Total lease expense $ 25,535 $ 20,033 $ 48,081 $ 39,196

Other Lease Information Three Months Ended March 31, 2020 Three Months Ended March 31, 2019

Six Months Ended June 30,

Other Lease Information 2020 2019

Operating cash flows from operating leases $ 38,655 $ 33,376

Right-of-use lease assets obtained in exchange for new lease liabilities 70,993 26,198

Lease Term and Discount Rate As of

March 31, 2020

Lease Term and Discount Rate As of June 30, 2020

Weighted average remaining lease term (in years) (1)

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Excluding this lease, the weighted average remaining lease term of our agreements is 4.8 years.

The maturity of lease liabilities as of March 31, 2020, were as follows (in thousands):

The maturities of lease liabilities as of June 30, 2020, were as follows (in thousands):

Maturity of Lease Liabilities Operating Leases

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Prior period information was not restated and continues to be presented under guidance effective for those periods.

Topic 326 changes how entities measure credit losses for certain financial assets including accounts receivable by replacing the historical “incurred loss” approach with an “expected loss” model.

This ASU changes how entities measure credit losses for certain financial assets including accounts receivable by replacing the historical “incurred loss” approach with an “expected loss” model.

We have updated our significant accounting policy for allowance for credit losses as discussed in Note 1, Basis of Presentation .

Our allowance for credit losses is computed using a number of factors including our past credit loss experience, the aging of amounts due from our customers, our customers' credit ratings, in addition to other customer specific factors.

Our allowance for credit losses is computed using a number of factors including our past credit loss experience, the aging of amounts due from our customers, and our customers' credit ratings, in addition to other customer specific factors.

We have also assessed the current macroeconomic environment, including the impact of COVID-19, to determine our ending allowance for credit losses for both accounts receivable and contract assets.

The allowance for credit losses on contract assets was not significant.

A rollforward of our allowance for credit losses on our accounts receivable balance is presented below for the three months ended March 31, 2020:

A rollforward of our allowance for credit losses on our accounts receivable balance is presented below for the six months ended June 30, 2020:

Balance, December 31, 2019 $ 32,838

1 unchanged sentence

Write-offs ( 7,120 )

Balance, March 31, 2020 $ 32,472

Recoveries of amounts previously written off were not significant for the three months ended March 31, 2020.

Balance, June 30, 2020 $ 34,183

Recoveries of amounts previously written off were not significant for the three and six months ended June 30, 2020.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss is included in Stockholders' investment on our condensed consolidated balance sheets.

The recorded balance at March 31, 2020, and December 31, 2019, was $ 108.3 million and $ 76.1 million, respectively.

Accumulated other comprehensive loss is comprised solely of foreign currency adjustments, net of related income tax effects at March 31, 2020, and December 31, 2019.

Other comprehensive loss was $ 32.2 million for the three months ended March 31, 2020, which consisted of foreign currency adjustments, including foreign currency translation, net of related income tax effects of $ 1.5 million.

The recorded balance at June 30, 2020 and December 31, 2019, was $ 84.1 million and $ 76.1 million, respectively.

Accumulated other comprehensive loss is comprised solely of foreign currency adjustments, net of related income tax effects at June 30, 2020 and December 31, 2019.

Other comprehensive income was $ 24.3 million for the three months ended June 30, 2020.

Other comprehensive loss was $ 7.9 million for the six months ended June 30, 2020.

Other comprehensive income and loss consisted of foreign currency adjustments, including foreign currency translation, net of related income tax effects of $ 0.7 million and $ 0.8 million for the three and six months ended June 30, 2020, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements