What changed in this filing

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Item 1. Financial Statements

2021-08-03 compared with 2021-05-05 · 141 added, 86 removed, 499 unchanged (31% of the section changed)

51 unchanged sentences

Three Months Ended

Six Months Ended

Operating expenses:

2 unchanged sentences

Selling, general and administrative

Goodwill impairmen t

Depreciation and amortization

Total operating expenses

Operating income

Operating income (loss)

Other income (expense):

1 unchanged sentence

Interest expense

Foreign currency exchange loss, net

Foreign currency exchange gain (loss), net

Other gains, net

Other expense, net

(Loss) income before income taxes

Income (loss) before income taxes

Income tax expense

Net (loss) income

Net (income) loss attributable to noncontrolling interests

Net (loss) income attributable to Euronet Worldwide, Inc.

(Loss) earnings per share attributable to Euronet Worldwide, Inc.

Net income (loss)

Net loss (income) attributable to noncontrolling interests

Net income (loss) attributable to Euronet Worldwide, Inc.

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

stockholders:

3 unchanged sentences

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands)

Three Months Ended

Net (loss) income

Six Months Ended

Net income (loss)

Translation adjustment

Comprehensive loss

Comprehensive loss attributable to noncontrolling interests

Comprehensive loss attributable to Euronet Worldwide, Inc.

Comprehensive income (loss)

Comprehensive (income) loss attributable to noncontrolling interests

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

See accompanying notes to the unaudited consolidated financial statements.

11 unchanged sentences

Repurchase of shares

Balan ce as of March 31, 2020

Balance as of March 31, 2020

Net (loss) income

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Balan ce as of June 30, 2020

Shares Outstanding

6 unchanged sentences

Balance as of March 31, 2021

Net income (loss)

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Balance as of June 30, 2021

See accompanying notes to the unaudited consolidated financial statements.

14 unchanged sentences

Balance as of March 31, 2020

Net (loss) income

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Balance as of June 30, 2020

Retained Earnings

8 unchanged sentences

Balance as of March 31, 2021

Net income (loss)

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Balance as of June 30, 2021

See accompanying notes to the unaudited consolidated financial statements.

3 unchanged sentences

(Unaudited, in thousands)

Three Months Ended

Net (loss) income

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Six Months Ended

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

2 unchanged sentences

Deferred income taxes

Goodwill impairment

Accretion of convertible debt discount and amortization of debt issuance costs

7 unchanged sentences

Changes in noncurrent assets and liabilities

Net cash (used in) provided by operating activities

Net cash provided by operating activities

Cash flows from investing activities:

50 unchanged sentences

The Company is currently evaluating the impact the adoption of ASU 2020-06 will have on the consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform due to the anticipated cessation of LIBOR on or before December 31, 2021.

This guidance is effective from March 12, 2020 through December 31, 2022 and could impact the accounting for LIBOR provisions in the Company’s unsecured credit agreement.

The Company does not expect that the adoption of this guidance will have a significant impact on its consolidated financial statements.

( 3 ) PENDING ACQUISITION

6 unchanged sentences

Settlement assets represent funds received or to be received from agents for unsettled money transfers and from merchants for unsettled prepaid transactions.

The Company records corresponding settlement obligations relating to amounts payable.

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.

10 unchanged sentences

Settlement restricted cash

Accounts receivable, net of credit allowance of $ 33,980 and $ 35,800

Accounts receivable, net of credit losses of $ 30,582 and $ 35,800

Prepaid expenses and other current assets

12 unchanged sentences

(5) STOCKHOLDERS' EQUITY

(Loss) Earnings Per Share

Basic (loss) earnings per share has been computed by dividing (loss) earnings available to common stockholders by the weighted average number of common shares outstanding during the respective period.

Diluted (loss) earnings per share has been computed by dividing (loss) earnings available to common stockholders by the weighted average shares outstanding during the respective period, after adjusting for the potential dilution of options to purchase the Company's common stock, assumed vesting of restricted stock and the assumed conversion of the Company's convertible debt, if such conversion would be dilutive.

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

Six Months Ended

Computation of diluted weighted average shares outstanding:

3 unchanged sentences

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 (loss) earnings per share excludes stock options or shares of restricted stock that are anti-dilutive to the Company’s weighted average common shares outstanding of approximately 2,437,000 and 886,000 for the three months ended March 31, 2021 and 2020 , respectively.

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 1,239,000 and 2,429,000 for the three and six months ended June 30, 2021, respectively, and approximately 2,533,000 and 1,608,000 for the three and six months ended June 30, 2020 , respectively .

The Company issued Convertible Senior Notes ("Convertible Notes") due March 2049 on March 18, 2019.

1 unchanged sentence

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 (loss) earnings per share if their inclusion was dilutive.

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 $ 138.30 on March 31, 2021 and $ 85.72 on March 31, 2020 , t herefore, 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 months ended March 31, 2021 and 2020.

The market price per share of common stock was $ 135.35 on June 30, 2021 and $ 95.82 on June 30, 2020 , t herefore, 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 six months ended June 30, 2021 and 2020.

See Note 9, Debt Obligations, to the consolidated financial statements for more information about the Convertible Notes.

2 unchanged sentences

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 months ended March 31, 2021, there were no repurchases of stock under the repurchase programs .

For the three and six months ended June 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 Loss

Accumulated other comprehensive loss consists entirely of foreign currency translation adjustments.

The Company recorded foreign currency translation losses of $ 42.9 million and $ 59.8 million for the three months ended March 31, 2021 and 2020, respectively.

There were no reclassifications of foreign currency translation into the consolidated statements of income for the three months ended March 31, 2021 and 2020 .

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) consists entirely of foreign currency translation adjustments.

The Company recorded a foreign currency translation gain of $ 12.7 million and a loss of $ 30.2 million for the three and six months ended June 30, 2021, respectively, and a gain of $ 32.2 million and a loss of $ 27.6 million for the three and six months ended June 30, 2020, respectively.

There were no reclassifications of foreign currency translation into the consolidated statements of income for the three and six months ended June 30, 2021 and 2020 .

( 6 ) GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET

A summary of acquired intangible assets and goodwill activity for the three months ended March 31, 2021 is presented below:

A summary of acquired intangible assets and goodwill activity for the six months ended June 30, 2021 is presented below:

(in thousands)

1 unchanged sentence

Foreign currency exchange rate changes

Balance as of March 31, 2021

Of the total goodwill balance of $ 653.1 million as of March 31, 2021 , $ 398.0 million relates to the Money Transfer Segment, $ 132.3 million relates to the epay Segment and the remaining $ 122.8 million relates to the EFT Processing Segment.

Estimated amortization expense on acquired intangible assets with finite lives as of March 31, 2021, is expected to total $ 17.0 million for the remainder of 2021, $ 21.5 million for 2022, $ 16.6 million for 2023, $ 9.8 million for 2024, $ 6.4 million for 2025 and $ 6.2 million for 2026.

Balance as of June 30, 2021

Of the total goodwill balance of $ 657.3 million as of June 30, 2021 , $ 400.6 million relates to the Money Transfer Segment, $ 133.3 million relates to the epay Segment and the remaining $ 123.4 million relates to the EFT Processing Segment.

Estimated amortization expense on acquired intangible assets with finite lives as of June 30, 2021, is expected to total $ 11.4 million for the remainder of 2021, $ 21.7 million for 2022, $ 16.7 million for 2023, $ 9.8 million for 2024, $ 6.4 million for 2025 and $ 6.3 million for 2026.

( 7 ) ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

1 unchanged sentence

(in thousands)

March 31, 2021

June 30, 2021

December 31, 2020

4 unchanged sentences

The Company records deferred revenues when cash payments are received or due in advance of its performance.

The increase in the deferred revenue balance for the three months ended March 31, 2021 is primarily driven by $ 22.9 million of cash payments received in the current year for which the Company has not yet satisfied the performance obligations, offset by $ 21.6 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2020.

The increase in the deferred revenue balance for the six months ended June 30, 2021 is primarily driven by $ 33.4 million of cash payments received in the current year for which the Company has not yet satisfied the performance obligations, offset by $ 35.1 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2020.

(9) DEBT OBLIGATIONS

1 unchanged sentence

(in thousands)

March 31, 2021

June 30, 2021

December 31, 2020

12 unchanged sentences

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).

3 unchanged sentences

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 March 31, 2021 .

The Company was in compliance with all debt covenants as of June 30, 2021 .

Convertible Debt

5 unchanged sentences

The allocation resulted in an increase to additional paid-in capital of $ 99.7 million for the Convertible Notes.

Contractual interest expense for the Convertible Notes was $ 1.0 million for the three months ended March 31, 2021 and 2020 .

Accretion expense for the Convertible Notes was $ 3.9 million and $ 3.7 million for the three months ended March 31, 2021 and 2020, respectively .

The effective interest rate was 4.4 % for the three months ended March 31, 2021 .

As of March 31, 2021 , the unamortized discount was $ 68.8 million and will be amortized through March 2025.

Contractual interest expense for the Convertible Notes was $ 1.0 million and $ 2.0 million for the three and six months ended June 30, 2021, respectively, and $ 1.0 million and $ 2.0 million for the three and six months ended June 30, 2020, respectively .

Accretion expense for the Convertible Notes was $ 4.0 million and $ 7.9 million for the three and six months ended June 30, 2021 , respectively, and $ 3.8 million and $ 7.5 million for the three and six months ended June 30, 2020, respectively .

The effective interest rate was 4.4 % for the three and six months ended June 30, 2021 .

As of June 30, 2021 , the unamortized discount was $ 64.9 million and will be amortized through March 2025.

1.375 % Senior Notes due 2026

1 unchanged sentence

The Senior Notes accrue interest at a rate of 1.375 % per year, payable annually in arrears commencing May 22, 2020, until maturity or earlier redemption.

As of March 31, 2021 , the Company has outstanding € 600 million ( $ 703.7 million ) principal amount of the Senior Notes.

As of June 30, 2021 , the Company has outstanding € 600 million ( $ 711.3 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.

1 unchanged sentence

Certain of the Company's subsidiaries have available lines of credit and overdraft credit facilities that generally provide for short-term borrowings that are used from time to time for working capital purposes.

As of March 31, 2021 and December 31, 2020 , borrowings under these arrangements were $ 0.8 million and $ 0.9 million , respectively.

As of June 30, 2021 and December 31, 2020 , borrowings under these arrangements were $ 0.8 million and $ 0.9 million , respectively.

(10) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

10 unchanged sentences

T he Company had foreign currency forward contracts outstanding in the U.S.

with a notional value of $ 120 million and $ 246 million as of March 31, 2021 and December 31, 2020, respectively .

with a notional value of $ 220 million and $ 246 million as of June 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.

T he Company had foreign currency forward contracts outstanding with a notional value of $ 593 million and $ 454 million as of March 31, 2021 and December 31, 2020, respectively , primarily in euro.

T he Company had foreign currency forward contracts outstanding with a notional value of $ 99 million and $ 454 million as of June 30, 2021 and December 31, 2020, respectively , primarily in euro.

Foreign currency exchange contracts - xe Operations

1 unchanged sentence

xe aggregates its foreign currency exposures arising from customer contracts and hedges the resulting net currency risks by entering into offsetting contracts with established financial institution counterparties.

Foreign exchange revenues from xe's total portfolio of positions were $ 18.5 million and $ 18.1 million for the three months ended March 31, 2021 and 2020 , respectively.

Foreign exchange revenues from xe's total portfolio of positions were $ 19.9 million and $ 38.4 million for the three and six months ended June 30, 2021 , respectively, and $ 13.2 million and $ 31.3 million for t he three and six months ended June 30, 2020, respectively.

All of the derivative contracts used in the Company's xe operations are economic hedges and are not designated as hedges under ASC 815 .

5 unchanged sentences

The aggregate equivalent U.S.

dollar notional amount of foreign currency derivative customer contracts held by the Company in its xe operations as of March 31, 2021 and December 31, 2020 was approximately $ 1.4 billion and $ 1.3 billion , respectively.

dollar notional amount of foreign currency derivative customer contracts held by the Company in its xe operations as of June 30, 2021 and December 31, 2020 was approximately $ 1.1 billion and $ 1.3 billion , respectively.

The significant majority of customer contracts are written in major currencies such as the euro, U.S.

6 unchanged sentences

Balance Sheet Location

March 31, 2021

June 30, 2021

December 31, 2020

Balance Sheet Location

March 31, 2021

June 30, 2021

December 31, 2020

3 unchanged sentences

Other current liabilities

The following tables summarize the gross and net fair value of derivative assets and liabilities as of March 31, 2021 and December 31, 2020 (in thousands):

The following tables summarize the gross and net fair value of derivative assets and liabilities as of June 30, 2021 and December 31, 2020 (in thousands):

Offsetting of Derivative Assets

Gross Amounts Not Offset in the Consolidated Balance Sheet

As of March 31, 2021

As of June 30, 2021

Gross Amounts of Recognized Assets

8 unchanged sentences

Gross Amounts Not Offset in the Consolidated Balance Sheet

As of March 31, 2021

As of June 30, 2021

Gross Amounts of Recognized Liabilities

8 unchanged sentences

Income Statement Presentation

The following table summarizes the location and amount of gains and losses on derivatives in the Consolidated Statements of Income for the three months ended March 31, 2021 and 2020 :

Amount of (Loss) Gain Recognized in Income on Derivative Contracts (a)

Location of (Loss) Gain Recognized in Income on Derivative Contracts

The following table summarizes the location and amount of gains and losses on derivatives in the Consolidated Statements of Income for the three and six months ended June 30, 2021 and 2020 :

Amount of Gain (Loss) Recognized in Income on Derivative Contracts (a)

Location of Gain (Loss) Recognized in Income on Derivative Contracts

Three Months Ended

Six Months Ended June 30,

(in thousands)

Foreign currency exchange contracts - Ria Operations

Foreign currency exchange (loss) gain, net

Foreign currency exchange gain (loss), net

(a) The Company enters into derivative contracts such as foreign currency exchange forwards and cross-currency swaps as part of its xe operations.

10 unchanged sentences

The following table details financial assets and liabilities measured and recorded at fair value on a recurring basis:

As of March 31, 2021

As of June 30, 2021

(in thousands)

15 unchanged sentences

The Company estimates the fair value of the Convertible Notes and Senior Notes using quoted prices in inactive markets for identical liabilities (Level 2).

As of March 31, 2021 , the fair values of the Convertible Notes and Senior Notes were $ 631.4 million and $ 712.0 million , respectively, with carrying values of $ 456.2 million and $ 703.7 million , respectively.

As of June 30, 2021 , the fair values of the Convertible Notes and Senior Notes were $ 633.3 million and $ 721.7 million , respectively, with carrying values of $ 460.1 million and $ 711.3 million , respectively.

(12) SEGMENT INFORMATION

13 unchanged sentences

In addition, the Company accounts for non-operating activity, share-based compensation expense, certain intersegment eliminations and the costs of providing corporate and other administrative services in its administrative division, “Corporate Services, Eliminations and Other.” These services are not directly identifiable with the Company’s reportable operating segments.

The following tables present the Company’s reportable segment results for the three months ended March 31, 2021 and 2020 :

For the Three Months Ended March 31, 2021

The following tables present the Company’s reportable segment results for the three and six months ended June 30, 2021 and 2020 :

For the Three Months Ended June 30, 2021

(in thousands)

8 unchanged sentences

Operating (loss) income

For the Three Months Ended March 31, 2020

For the Three Months Ended June 30, 2020

(in thousands)

5 unchanged sentences

Selling, general and administrative

Goodwill impairment

Depreciation and amortization

Total operating expenses

Operating income (expense)

Operating (loss) income

For the Six Months Ended June 30, 2021

(in thousands)

Corporate Services,

Total revenues

Operating expenses:

Direct operating costs

Salaries and benefits

Selling, general and administrative

Depreciation and amortization

Total operating expenses

Operating (loss) income

For the Six Months Ended June 30, 2020

(in thousands)

Corporate Services,

Total revenues

Operating expenses:

Direct operating costs

Salaries and benefits

Selling, general and administrative

Goodwill impairment

Depreciation and amortization

Total operating expenses

Operating (loss) income

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

1 unchanged sentence

(in thousands)

March 31, 2021

June 30, 2021

December 31, 2020

7 unchanged sentences

Both segments and regions benefit from synergies achieved through concentration of operations and are influenced by macro-economic, regulatory and political factors in the respective segment and region.

For the Three Months Ended March 31, 2021

For the Three Months Ended March 31, 2020

For the Three Months Ended June 30, 2021

For the Six Months Ended June 30, 2021

(in thousands)

North America

For the Three Months Ended June 30, 2020

For the Six Months Ended June 30, 2020

(in thousands)

North America

( 13 ) INCOME TAXES

The Company's effective income tax rate was ( 236.9 %) and 58.7 % for the three months ended March 31, 2021 and 2020, respectively .

The Company's effective income tax rate for the three months ended March 31, 2021 was lower than the applicable statutory income tax rate of 21 % as a result of the non-recognition of tax benefits from losses in certain foreign countries where we have a limited history of profitable earnings, certain foreign earnings of the Company being subject to higher local statutory tax rates, and the Company’s U.S.

deferred tax activity on foreign exchange positions.

The Company's effe ctive income tax rate for the three months ended March 31, 2020 was higher than the applicable statutory income tax rate of 21 % primarily as a result of certain foreign earnings of the Company being subject to higher local statutory income tax rates.

Our effective income tax rate was 58.9 % and 99.9 % for the three and six months ended June 30, 2021, respectively, compared to ( 8.4 )% and ( 11.1 )% for t he three and six months ended June 30, 2020, respectively.

Our effective income tax rate for the three and six months ended June 30, 2021 was higher than the applicable statutory income tax rate of 21 % as a result of certain foreign earnings being subject to higher local statutory tax rates, the non-recognition of tax benefits from losses in certain foreign countries where we have a limited history of profitable earnings and as a result of an increase in the valuation allowance in certain jurisdictions relating to the reversal of tax benefits recognized in the first quarter of 2021 for continuing net operating losses.

Our effe ctive income tax rate for the three and six months ended June 30, 2020 was different than the applicable statutory income tax rate of 21 % primarily due to the non-deductible goodwill impairment charge during the second quarter of 2020 and as a result of an increase in the valuation allowance in certain jurisdictions relating to the reversal of tax benefits recognized in the first quarter of 2020 for net operating losses in those jurisdictions which have a limited history of profitable earnings.

(14) COMMITMENTS

As of March 31, 2021 , the Company had $ 87.4 million of stand-by letters of credit/bank guarantees issued on its behalf, of which $ 58.9 million are outstanding under the Credit Facility.

As of June 30, 2021 , the Company had $ 89.6 million of stand-by letters of credit/bank guarantees issued on its behalf, of which $ 59.5 million are outstanding under the Credit Facility.

The remaining stand-by letters of credit/bank guarantees are collateralized by $ 3.8 million of cash deposits held by the respective issuing banks.

Under certain circumstances, Euronet grants guarantees in support of obligations of subsidiaries.

As of March 31, 2021 , the Company had granted off balance sheet guarantees for cash in various ATM networks amounting to $ 11.2 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $ 45.4 million over the terms of agreements with the customers.

As of June 30, 2021 , the Company had granted off balance sheet guarantees for cash in various ATM networks amounting to $ 11.7 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $ 37.6 million over the terms of agreements with the customers.

From time to time, the Company enters into agreements with commercial counterparties that contain indemnification provisions, the terms of which may vary depending on the negotiated terms of each respective agreement.

3 unchanged sentences

In connection with contracts with financial institutions in the EFT Processing Segment, the Company is responsible for damage to ATMs and theft of ATM network cash.

As of March 31, 2021 , the balance of such cash used in the Company's ATM networks for which the Company was responsible was approximately $ 486 million .

As of June 30, 2021 , the balance of such cash used in the Company's ATM networks for which the Company was responsible was approximately $ 702 million .

The Company maintains insurance policies to mitigate this exposure;

9 unchanged sentences

The Company has obtained surety bonds in compliance with money transfer licensing requirements of the applicable governmental authorities.

To date, the Company is not aware of any significant claims made by the indemnified parties or third parties to guarantee agreements with the Company and, accordingly, no liabilities were recorded as of March 31, 2021 or December 31, 2020 .

( 15 ) LITIGATION AND CONTINGENCIES

18 unchanged sentences

Future minimum lease payments

Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of March 31, 2021 are:

As of March 31, 2021

Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of June 30, 2021 are:

As of June 30, 2021

Maturity of Lease Liabilities (in thousands)

12 unchanged sentences

Three Months Ended

March 31, 2021

June 30, 2021

Three Months Ended

March 31, 2020

June 30, 2020

Six Months Ended

June 30, 2021

Six Months Ended

June 30, 2020

Operating lease expense

5 unchanged sentences

Lease Term and Discount Rate of Operating Leases

As of March 31, 2021

As of June 30, 2021

Weighted- average remaining lease term (years)

2 unchanged sentences

Other Information (in thousands)

Three Months Ended

March 31, 2021

Three Months Ended

March 31, 2020

Six Months Ended

June 30, 2021

Six Months Ended

June 30, 2020

Cash paid for amounts included in the measurement of lease liabilities (a)

3 unchanged sentences

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