What changed in this filing

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Item 1. Financial Statements

2022-11-04 compared with 2022-08-03 · 127 added, 84 removed, 592 unchanged (26% of the section changed)

4 unchanged sentences

(In thousands, except share and per share data)

September 30,

Current assets:

45 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Operating expenses:

13 unchanged sentences

Income tax expense

Net income (loss) attributable to noncontrolling interests

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

Net income attributable to noncontrolling interests

Net income attributable to Euronet Worldwide, Inc.

Earnings per share attributable to Euronet Worldwide, Inc.

7 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Translation adjustment

Comprehensive income (loss)

Comprehensive income (loss) attributable to noncontrolling interests

Comprehensive income attributable to noncontrolling interests

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

11 unchanged sentences

Share-based compensation

Balan ce as of March 31, 2021

Balance as of March 31, 2021

Net (loss) income

3 unchanged sentences

Balan ce as of June 30, 2021

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Balance as of September 30, 2021

Shares Outstanding

14 unchanged sentences

Balance as of June 30, 2022

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Repurchase of shares

Balance as of September 30, 2022

See accompanying notes to the unaudited consolidated financial statements.

8 unchanged sentences

Balance as of December 31, 2020

Net (loss) income

Net income (loss)

Other comprehensive loss

2 unchanged sentences

Balance as of March 31, 2021

Net (loss) income

Net income (loss)

Other comprehensive loss

2 unchanged sentences

Balance as of June 30, 2021

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Balance as of September 30, 2021

Retained Earnings

16 unchanged sentences

Balance as of June 30, 2022

Net income (loss)

Other comprehensive loss

Stock issued under employee stock plans

Share-based compensation

Repurchase of shares

Balance as of September 30, 2022

See accompanying notes to the unaudited consolidated financial statements.

3 unchanged sentences

(Unaudited, in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Adjustments to reconcile net income to net cash provided by operating activities:

55 unchanged sentences

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.

Additionally, the EFT Processing and epay Segments are normally impacted by seasonality during the fourth quarter and first quarter of each year due to higher transaction levels during the holiday season and lower levels following the holiday season.

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.

14 unchanged sentences

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 June 30, 2022.

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.

25 unchanged sentences

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 six months ended June 30, 2022, PBMA had $ 27.5 million and $ 31.2 million in revenue.

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.

13 unchanged sentences

(in thousands)

September 30,

Settlement assets:

10 unchanged sentences

(in thousands)

September 30,

Cash and cash equivalents

9 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Computation of diluted earnings:

8 unchanged sentences

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 2,971,768 and 2,972,786 for the three and six months ended June 30, 2022 and 1,239,000 and 2,429,000 for the three and six months ended June 30, 2021, respectively.

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.

8 unchanged sentences

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.

U nder the repurchase programs w e repurchased $ 104.6 million and $ 175.0 million of stock, f or the three and six months ended June 30, 2022 , respectively .

U nder the repurchase programs w e repurchased $ 0 million and $ 175.0 million of stock, f or the three and nine months ended September 30, 2022 , respectively .

Re purchases 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.

1 unchanged sentence

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

We recorded foreign currency translation losses of $ 88.3 million and $ 109.4 million for the three and six months ended June 30, 2022 , respectively, and gain of $ 12.7 million and loss of $ 30.2 million for the same periods in 2021.

There were no reclassifications of foreign currency translation into the consolidated statements of income for the three and six months ended June 30, 2022 and 2021 .

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 six months ended June 30, 2022 is presented below:

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

(in thousands)

2 unchanged sentences

Foreign currency exchange rate changes

Balance as of June 30, 2022

Of the total goodwill balance of $ 807.8 million as of June 30, 2022 , $ 371.5 million relates to the Money Transfer Segment, $ 315.1 million relates to the EFT Processing Segment and the remaining $ 121.2 million relates to the epay Segment .

Estimated amortization expense on acquired intangible assets with finite lives as of June 30, 2022, is expected to total $ 13.9 million for the remainder of 2022, $ 23.7 million for 2023, $ 17.6 million for 2024, $ 14.4 million for 2025, $ 14.0 million for 2026 and $ 12.8 million for 2027.

Balance as of September 30, 2022

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

1 unchanged sentence

(in thousands)

September 30,

December 31, 2021

5 unchanged sentences

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 six months ended June 30, 2022 is the result of $ 20.2 million of cash payments received in the current year for which we have not yet satisfied the performance obligations, offset by $ 34.0 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2021.

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

1 unchanged sentence

(in thousands)

September 30,

December 31, 2021

1 unchanged sentence

Revolving credit agreement

Uncommitted Credit Agreements

Uncommitted credit agreement

Convertible Debt:

8 unchanged sentences

Credit Facility

On October 17, 2018, the Company entered into an unsecured revolving credit agreement (the "Credit Facility") for $ 1.0 billion that expires on October 17, 2023 .

Fees and interest on borrowings are based upon the Company's corporate credit rating and are based, in the case of letter of credit fees, on a margin, and in the case of interest, on a margin over London Inter-Bank Offered Rate (“LIBOR”) or a margin over the base rate, as selected by the Company, with the applicable margin ranging from 1.125 % to 2.0 % (or 0.175 % to 1.0 % for base rate loans).

The Credit Facility allows for borrowings in Australian dollars, British pounds sterling, Canadian dollars, Czech koruna, Danish krone, euro, Hungarian forints, Japanese yen, New Zealand dollars, Norwegian krone, Polish zlotys, Swedish krona, Swiss francs and U.S.

The Credit Facility conta ins a $ 200 million sublimit for the issuance of letters of credit, a $ 50 million sublimit for U.S.

dollar swingline loans, and a $ 90 million sublimit for certain foreign currencies swingline loans.

The Credit Facility contains customary affirmative and negative covenants, events of default and financial covenants.

The Company was in compliance with all debt covenants as of June 30, 2022 .

On October 24, 2022, the Company amended its revolving credit agreement (the “Credit Facility”) to increase the facility from $ 1.0 billion to $ 1.25 billion and to extend the expiration to October 24, 2027 .

The revolving credit facility contains a sublimit of up to $ 250 million , with $ 150 million committed, for the issuance of letters of credit and a $ 75 million sublimit for U.S.

dollar swingline loans and a $ 75 million sublimit for swingline loans in euros or British pounds sterling.

The Credit Facility allows for borrowings in British pounds sterling, euro and U.S.

Subject to certain conditions, the Company has the option to increase the credit facility by up to an additional $ 500 million by requesting additional commitments from existing or new lenders.

Fees and interest on borrowings vary based upon the Company's corporate credit rating and will be based, in the case of letter of credit fees, on a margin, and in the case of interest, on a margin over a secured overnight financing rate, as defined in the agreement, with a margin, including the facility fee, ranging from 1.00 % to 1.625 % or the base rate, as selected by the Company.

The applicable margin for borrowings under the credit facility, based on the Company's current credit rating is initially 1.25 % including the facility fee.

The Agreement contains customary affirmative and negative covenants, events of default and financial covenants, including (all as defined in the Credit Facility):

(i) a Consolidated Total Leverage Ratio, depending on certain circumstances defined in the Credit Facility, not to exceed a range between 3.5 to 1.0 and 4.5 to 1.0;

and (ii) a Consolidated Interest Coverage Ratio of not less than 3.0 to 1.0.

Subject to meeting certain customary covenants (as defined in the Credit Facility), the Company is permitted to repurchase common stock and debt.

The Company was in compliance with all debt covenants as of September 30, 2022.

Uncommitted Credit Agreements

On May 25, 2022, the Company entered into an Uncommitted Credit Agreement for $ 300 million, fully drawn and outstanding at June 30, 2022, for the sole purpose of providing vault cash for ATMs, that expires no later than November 30, 2022 .

On May 25, 2022, the Company entered into an Uncommitted Credit Agreement for $ 300 million, fully drawn and outstanding at September 30, 2022, for the sole purpose of providing vault cash for ATMs, that expires no later than November 30, 2022 .

Each loan bears interest at the rate per annum equal to the secured overnight financing rate (“SOFR”) plus 1.00 %.

The weighted-average interest rate from the loan inception date to June 30, 2022 was 1.900 %.

On June 24, 2022, the Company entered into an Uncommitted Loan Agreement for $ 150 million, fully drawn and outstanding at June 30, 2022, for the sole purpose of providing vault cash for ATMs, that expires no later than June 23, 2023.

Each loan is a Prime rate loan, a Bloomberg Short-term Bank Yield ("BSBY") rate loan or bears interest at the rate agreed to by the Bank and the Company at the time such loan is made.

The weighted-average interest rate from the loan inception date to June 30, 2022 was 2.317 %.

The weighted-average interest rate from the loan inception date to September 30, 2022 was 2.70 %.

On June 24, 2022, the Company entered into an Uncommitted Loan Agreement for $ 150 million, for the sole purpose of providing vault cash for ATMs, that expires no later than June 23, 2023.

The loan had no balance at September 30, 2022 .

Each loan was either a Prime rate loan, a Bloomberg Short-term Bank Yield ("BSBY") rate loan or bears interest at the rate agreed to by the bank and the Company at the time such loan is made.

The weighted-average interest rate from the loan inception date to September 30, 2022 was 2.76 %.

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 and $ 2.0 million for the three and six months ended June 30, 2021 , 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.

Contractual interest expense for the Convertible Notes was $ 4.0 million and $ 9.0 million for the three and nine months ended September 30, 2022 , respectively.

Accretion expense for the Convertible Notes was $ 4.0 million and $ 11.9 million for the three and nine months ended September 30, 2021.

See Footnote 2, Recently Issued and Adopted Accounting Pronouncements, for more information regarding this adoption.

2 unchanged sentences

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 June 30, 2022 , the Company has outstanding € 600 million ( $ 628.9 million ) principal amount of the Senior Notes.

As of September 30, 2022 , the Company has outstanding € 600 million ( $ 588.4 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 June 30, 2022 and December 31, 2021 , borrowings under these arrangements were $ 0.4 million and $ 0.9 million , respectively.

As of September 30, 2022 and December 31, 2021 , borrowings under these arrangements were $ 3.6 million and $ 0.9 million , respectively.

Debt Issuance Costs

As of June 30, 2022, we had unamortized debt issuance costs of $ 1.8 million for the Credit Facility, $ 5.9 million for the Convertible Notes and $ 4.7 million for the Senior Notes that will be amortized through October 2023, March 2025 and May 2026, respectively.

As of September 30, 2022, we had unamortized debt issuance costs of $ 1.5 million for the Credit Facility, $ 5.3 million for the Convertible Notes and $ 4.4 million for the Senior Notes that will be amortized through October 2023, March 2025 and May 2026, 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 $ 304.5 million and $ 222.1 million as of June 30, 2022 and December 31, 2021, respectively .

with a notional value of $ 415.8 million and $ 222.1 million as of September 30, 2022 and December 31, 2021, 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 $ 304.5 million and $ 216.1 million as of June 30, 2022 and December 31, 2021, respectively , primarily in euro.

T he Company had foreign currency forward contracts outstanding with a notional value of $ 7.4 million and $ 216.1 million as of September 30, 2022 and December 31, 2021, 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 $ 21.7 million and $ 44.2 million for the three and six months ended June 30, 2022 , respectively, compared to $ 19.9 million and $ 38.4 million for the same periods in 2021, respectively.

Foreign exchange revenues from xe's total portfolio of positions were $ 22.3 million and $ 66.5 million for the three and nine months ended September 30, 2022 , respectively, compared to $ 20.1 million and $ 58.5 million for the same periods in 2021, 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 June 30, 2022 and December 31, 2021 was approximately $ 0.9 billion and $ 1.0 billion , respectively.

dollar notional amount of foreign currency derivative customer contracts held by the Company in its xe operations was approximately $1.0 billion as of September 30, 2022 and December 31, 2021 .

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

6 unchanged sentences

Balance Sheet Location

June 30, 2022

September 30, 2022

December 31, 2021

Balance Sheet Location

September 30,

December 31, 2021

3 unchanged sentences

Other current liabilities

The following tables summarize the gross and net fair value of derivative assets and liabilities as of June 30, 2022 and December 31, 2021 (in thousands):

The following tables summarize the gross and net fair value of derivative assets and liabilities as of September 30, 2022 and December 31, 2021 (in thousands):

Offsetting of Derivative Assets

Gross Amounts Not Offset in the Consolidated Balance Sheet

As of June 30, 2022

As of September 30, 2022

Gross Amounts of Recognized Assets

8 unchanged sentences

Gross Amounts Not Offset in the Consolidated Balance Sheet

As of June 30, 2022

As of September 30, 2022

Gross Amounts of Recognized Liabilities

8 unchanged sentences

Income Statement Presentation

The following table summarizes the location and amount of losses on derivatives in the Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021 :

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

Location of Loss Recognized in Income on Derivative Contracts

The following table summarizes the location and amount of losses on derivatives in the Consolidated Statements of Income for the three and nine months ended September 30, 2022 and 2021 :

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

September 30,

Nine Months Ended

September 30,

(in thousands)

Foreign currency exchange contracts - Ria Operations

Foreign currency exchange loss, 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 June 30, 2022

As of September 30, 2022

(in thousands)

13 unchanged sentences

The carrying amounts of cash and cash equivalents, trade accounts receivable, trade accounts payable and short-term debt obligations approximate fair values due to their short maturities.

The carrying values of the Company’s revolving credit agreements approximate fair values because interest is based on LIBOR that resets at various intervals of less than one year.

The carrying values of the Company’s revolving credit agreements approximate fair values because interest as of September 30, 2022 was based on LIBOR that reset at various intervals of less than one year.

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 June 30, 2022 , the fair values of the Convertible Notes and Senior Notes were $ 513.6 million and $ 550.0 million , respectively, with carrying values of $ 525.0 million and $ 628.9 million , respectively.

As of September 30, 2022 , the fair values of the Convertible Notes and Senior Notes were $ 503.9 million and $503.7 million , respectively, with carrying values of $ 525.0 million and $ 588.4 million , respectively.

(12) SEGMENT INFORMATION

12 unchanged sentences

In addition, we account for non-operating activity, share-based compensation expense, certain intersegment eliminations and the costs of providing corporate and other administrative services in our administrative division, "Corporate Services, Eliminations and Other." These services are not directly identifiable with our reportable operating segments.

The following tables present our reportable segment results for the three and six months ended June 30, 2022 and 2021 :

For the Three Months Ended June 30, 2022

The following tables present our reportable segment results for the three and nine months ended September 30, 2022 and 2021 :

For the Three Months Ended September 30, 2022

(in thousands)

8 unchanged sentences

Operating income (loss)

For the Three Months Ended June 30, 2021

For the Three Months Ended September 30, 2021

(in thousands)

8 unchanged sentences

Operating income (loss)

For the Six Months Ended June 30, 2022

For the Nine Months Ended September 30, 2022

(in thousands)

8 unchanged sentences

Operating income (loss)

For the Six Months Ended June 30, 2021

For the Nine Months Ended September 30, 2021

(in thousands)

11 unchanged sentences

(in thousands)

September 30, 2022

December 31, 2021

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 June 30, 2022

For the Six Months Ended June 30, 2022

For the Three Months Ended September 30, 2022

For the Nine Months Ended September 30, 2022

(in thousands)

North America

For the Three Months Ended June 30, 2021

For the Six Months Ended June 30, 2021

For the Three Months Ended September 30, 2021

For the Nine Months Ended September 30, 2021

(in thousands)

1 unchanged sentence

( 13 ) INCOME TAXES

Our effective income tax rate was 26.7 % and 36.7 % for the three and six months ended June 30, 2022 , respectively, compared to 58.9 % and 99.9 % for t he three and six months ended June 30, 2021, respectively .

Our effective income tax rate for the three and six months ended June 30, 2022 was higher than the applicable statutory income tax rate of 21 % a s 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 .

The Company's effective income tax rate was 31.1 % and 33.5 % for the three and nine months ended September 30, 2022 , respectively, compared to 23.6 % and 35.8 % for t he three and nine months ended September 30, 2021, respectively .

The Company's effective income tax rate for the three and nine months ended September 30, 2022 was higher than the applicable statutory income tax rate of 21 % a s a result of certain foreign earnings being subject to higher local statutory tax rates and the Company's U.S.

deferred tax activity on foreign exchange positions.

(14) COMMITMENTS

As of June 30, 2022 , we had $ 80.4 million of stand-by letters of credit/bank guarantees issued on our behalf, of which $ 53.8 million are outstanding under the Credit Facility.

As of September 30, 2022 , we had $ 78.6 million of stand-by letters of credit/bank guarantees issued on our behalf, of which $ 50.9 million are outstanding under the Credit Facility.

The remaining stand-by letters of credit/bank guarantees are collateralized by $ 3.0 million of cash deposits held by the respective issuing banks.

Under certain circumstances, we grant guarantees in support of obligations of subsidiaries.

As of June 30, 2022 , we had granted off balance sheet guarantees for cash in various ATM networks amounting to $ 10.5 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $ 41.2 million over the terms of agreements with our customers.

As of September 30, 2022 , we had granted off balance sheet guarantees for cash in various ATM networks amounting to $ 9.9 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $ 41.6 million over the terms of agreements with our customers.

From time to time, we enter 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, we are responsible for damage to ATMs and theft of ATM network cash.

As of June 30, 2022 , the balance of such cash used in our ATM networks for which we were responsible was approximately $ 477.9 million .

As of September 30, 2022 , the balance of such cash used in our ATM networks for which we were responsible was approximately $ 367.0 million .

We maintain insurance policies to mitigate this exposure;

9 unchanged sentences

We have obtained surety bonds in compliance with money transfer licensing requirements of the applicable governmental authorities.

To date, we are not aware of any significant claims made by the indemnified parties or third parties to guarantee agreements with us and, accordingly, no liabilities were recorded as of June 30, 2022 or December 31, 2021 .

( 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 June 30, 2022 are:

As of June 30, 2022

Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of September 30, 2022 are:

As of September 30, 2022

Maturity of Lease Liabilities (in thousands)

10 unchanged sentences

Three Months Ended

June 30, 2022

September 30, 2022

Three Months Ended

June 30, 2021

Six Months Ended

June 30, 2022

Six Months Ended

June 30, 2021

September 30, 2021

Nine Months Ended

September 30, 2022

Nine Months Ended

September 30, 2021

Operating lease expense

5 unchanged sentences

Lease Term and Discount Rate of Operating Leases

As of June 30, 2022

As of September 30, 2022

Weighted- average remaining lease term (years)

2 unchanged sentences

Other Information (in thousands)

Six Months Ended

June 30, 2022

Six Months Ended

June 30, 2021

Nine Months Ended

September 30, 2022

Nine months ended

September 30, 2021

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