What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-05-09 compared with 2022-11-04 · 172 added, 259 removed, 460 unchanged (48% of the section changed)

3 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

September 30,

(In millions, except share and per share data)

Current assets:

43 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

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

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

Operating expenses:

22 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited, in thousands)

(Unaudited, in millions)

Three Months Ended

September 30,

Nine Months Ended

September 30,

Translation adjustment

6 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited, in thousands, except share data)

(Unaudited, in millions, except share data)

Shares Outstanding

Paid-in Capital

Balance as of December 31, 2020

Balan ce as of December 31, 2021

Net (loss) income

2 unchanged sentences

Share-based compensation

Repurchase of shares

Adoption of ASU 2020-06

Balance as of March 31, 2022

Net (loss) income

Other comprehensive loss

Stock issued under employee stock plans

Share-based compensation

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

5 unchanged sentences

Share-based compensation

Repurchase of shares

Adoption of ASU 2020-06

Repurchas e of sh ares

Balance as of March 31, 2023

Net income (loss)

Other comprehensive loss

Stock issued under employee stock plans

Share-based compensation

Repurchase of shares

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.

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

(Unaudited, in thousands)

(Unaudited, in millions)

Retained Earnings

7 unchanged sentences

Share-based compensation

Repurchase of shares

Adoption of ASU 2020-06

Balance as of March 31, 2022

Net income (loss)

Other comprehensive loss

Stock issued under employee stock plans

Share-based compensation

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

8 unchanged sentences

Repurchase of shares

Adoption of ASU 2020-06

Balance as of March 31, 2023

Net income (loss)

Other comprehensive loss

Stock issued under employee stock plans

Share-based compensation

Repurchase of shares

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.

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

Nine Months Ended September 30,

(Unaudited, in millions)

Three Months Ended March 31,

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

3 unchanged sentences

Deferred income taxes

Accretion of convertible debt discount and amortization of debt issuance costs

Amortization of debt issuance costs

Changes in working capital, net of amounts acquired:

17 unchanged sentences

Repayments of revolving credit agreements

Net borrowings (repayments) from short-term debt obligations

Repayments of capital lease obligations

Repayments of long-term debt obligations

Net cash provided by (used in) financing activities

12 unchanged sentences

Euronet Worldwide, Inc.

(the "Company", "Euronet", "we" and "us") was established as a Delaware corporation on December 13, 1996 and succeeded Euronet Holding N.V.

(the "Company" or "Euronet") was established as a Delaware corporation on December 13, 1996 and succeeded Euronet Holding N.V.

as the group holding company, which was founded and established in 1994.

6 unchanged sentences

In the opinion of management, such unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to fairly present the consolidated financial position and the results of operations, comprehensive income, changes in equity and cash flows for the interim periods.

The unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2021 , including the notes thereto, set forth in our 2021 Annual Report on Form 10-K.

The unaudited consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2022 , including the notes thereto, set forth in the Company's 2022 Annual Report on Form 10-K.

Use of Estimates

13 unchanged sentences

Additionally, this ASU eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments.

We adopted this standard on January 1, 2022 using the modified retrospective approach, which resulted in our Convertible Senior Notes Due 2049 being recognized as a single liability.

As a result of the adoption of this standard, we recorded a $ 99.7 million decrease to additional paid-in capital, a $ 56.8 million decrease in debt discounts and a $ 42.9 million increase in retained earnings.

The adoption of this standard also impacted our deferred tax liability by decreasing our deferred tax liability by $ 15.0 million, decreasing retained earnings by $ 10.6 million, and increasing additional paid-in capital by $ 25.6 million.

Additionally, the elimination of the treasury stock method will increase the number of dilutive shares used in the diluted earnings per share calculation, if dilutive, by 2.8 million shares.

The Company adopted this standard on January 1, 2022 using the modified retrospective approach, which resulted in the Company's Convertible Senior Notes Due 2049 being recognized as a single liability.

As a result of the adoption of this standard, the Company recorded a $ 99.7 million decrease to additional paid-in capital, a $ 56.8 million decrease in debt discounts and a $ 42.9 million increase in retained earnings.

The adoption of this standard also impacted the Company's deferred tax liability by decreasing the Company's deferred tax liability by $ 15.0 million, decreasing retained earnings by $ 10.6 million, and increasing additional paid-in capital by $ 25.6 million.

Additionally, the elimination of the treasury stock method increased the number of dilutive shares used in the diluted earnings per share calculation, if dilutive, by 2.8 million shares.

( 3 ) ACQUISITIONS

On March 15, 2022 we completed the acquisition of the Merchant Acquiring Business of Piraeus Bank ("PBMA").

The acquisition includes 205,000 POS terminals at 170,000 merchants throughout Greece, as well as Piraeus Bank’s online merchant acquiring business and expands our omnichannel payments strategy where we use our proprietary technology to provide cash, card-based acquiring solutions, alternative payment acquiring, online acquiring, tokenized payment services and other payment products.

In accordance with ASC 805, the Company allocates the purchase price of its acquisitions to the tangible assets, liabilities and intangible assets acquired based on fair values.

Any excess purchase price over those fair values is recorded as goodwill.

The fair value assigned to intangible assets acquired is supported by valuations using estimates and assumptions provided by management.

For certain large acquisitions, management engages an appraiser to assist in the valuation process.

On March 15, 2022, the Company completed the acquisition of the Merchant Acquiring Business of Piraeus Bank ("PBMA").

The acquisition includes 205,000 POS terminals at 170,000 merchants throughout Greece, as well as Piraeus Bank’s online merchant acquiring business and expands Euronet’s omnichannel payments strategy where the Company uses its proprietary technology to provide cash, card-based acquiring solutions, alternative payment acquiring, online acquiring, tokenized payment services and other payment products.

Additionally, the acquisition includes a long-term commercial framework agreement between Piraeus Bank and Euronet which includes collaborative product distribution, processing and customer referrals.

The purchase price was € 313.8 million, or approximately $ 346.2 million, which includes $ 331 million cash paid at closing plus $ 15.2 million of estimated contingent consideration for a ten -year earnout contingent on performance targets outlined in the commercial framework agreement.

The purchase price was € 317.8 million, or approximately $ 350.6 million, which includes $ 331 million cash paid at closing, $ 4.4 million cash paid for surplus working capital and $ 15.2 million of estimated contingent consideration for a ten -year earn out contingent on performance targets outlined in the commercial framework agreement.

The contingent consideration is related to a percentage of the net fee income received during the ten -year period of the commercial framework agreement and there is no contractual maximum amount of consideration under this agreement.

The initial accounting for this acquisition is not complete as of September 30, 2022.

The purchase price was preliminarily allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective provisional fair values at the date of acquisition.

Additional time is needed to refine and review the results of the valuation of assets and liabilities.

The acquisition has been accounted for as a business combination in accordance with U.S.

GAAP and the results of operations have been included from the date of acquisition in the EFT Processing Segment.

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

(in thousands)

The following table presents the final fair value that was allocated to PBMA's Euronet Merchant Services' (EMS) assets and liabilities based upon fair values as determined by the Company.

The valuation process to determine the fair values is complete.

For the year ended December 31, 2022, the Company made measurement period adjustments to reflect facts and circumstances in existence as of the effective time of the acquisition.

These adjustments primarily included an adjustment to the accrued expenses and other current liabilities related to the surplus working capital of $ 4.4 million and some other immaterial adjustments.

(in millions)

As of March 15, 2022

2 unchanged sentences

Property and equipment

Acquired intangible assets

Intangible assets

Total assets acquired

6 unchanged sentences

Net assets acquired

Assets acquired, liabilities assumed, and consideration transferred were recorded at their estimated fair values on the acquisition date.

The fair value measurements of intangible assets were based on significant inputs not observable in the market and represent Level 3 measurements within the fair value hierarchy.

Level 3 inputs include discount rates that would be used by a market participant in valuing these assets, projections of revenues and cash flows, and customer attrition rates, among others.

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

Goodwill, with a preliminary value of $ 212.2 million, arising from the acquisition was included in the EFT Processing Segment.

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

Goodwill, with a value of $ 212.7 million, arising from the acquisition was included in the EFT Processing Segment.

The factors that make up goodwill include synergies from combining PBMA operations and intangible assets that do not qualify for separate recognition.

Goodwill and intangible assets associated with this acquisition are deductible for tax purposes.

The results of PBMA operations are included in our consolidated results of operation, as part of our EFT Processing business segment, beginning on March 16, 2022.

For the three and nine months ended September 30, 2022, PBMA had $ 32.6 million and $ 63.8 million in revenue.

The results of PBMA operations are included in the Company's consolidated results of operation, as part of the EFT Processing business segment, beginning on March 16, 2022.

For the period beginning on the acquisition date through December 31, 2022, PBMA had $ 88.8 million in revenue.

PBMA had $ 23.6 million in revenue in the first quarter 2023.

The PBMA business is impacted by higher transaction volumes during the tourism season in the second and third quarters.

1 unchanged sentence

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

We record corresponding settlement obligations relating to accounts payable.

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.

The settlement cash held at the Company is primarily generated from the monies remitted by consumers through Company agents and financial institutions in payment of the face value of the payment service or foreign currency purchased and the related fees charged to purchase the currency.

We use our cash and cash equivalents to pay the face value of the payment service product upon presentation by the recipient.

The Company uses its cash and cash equivalents to pay the face value of the payment service product upon presentation by the recipient.

Cash received by Company agents and merchants generally becomes available to us within two weeks after initial receipt by the business partner.

3 unchanged sentences

Most agents typically settle with transferees first then obtain reimbursement from us.

Money order accrued expenses represent amounts not yet presented for payment.

M oney order accrued expenses represent amounts not yet presented for payment.

Due to the agent funding and settlement process, accrued expenses to agents represent amounts due to agents for money transfers that have not been settled with transferees.

(in thousands)

September 30,

(in millions)

Settlement assets:

9 unchanged sentences

The table below reconciles cash and cash equivalents, restricted cash, ATM cash, settlement cash and cash equivalents, and settlement restricted cash as presented within "Cash and cash equivalents and restricted cash" in the Consolidated Statement of C ash Flows.

(in thousands)

September 30,

(in millions)

Cash and cash equivalents

6 unchanged sentences

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

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

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 units and the assumed conversion of the Company’s convertible debt, if such conversion would be dilutive.

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

Computation of diluted earnings:

4 unchanged sentences

Basic weighted average shares outstanding

Incremental shares from assumed exercise of stock options and vesting of restricted stock

Incremental shares from assumed exercise of stock options and vesting of restricted stock units

Incremental shares from assumed conversion of convertible debt

Diluted weighted average shares outstanding

The table includes all stock options and restricted stock that are dilutive to our weighted average common shares outstanding during the period.

The calculation of diluted earnings (loss) per share excludes stock options or shares of restricted stock that are anti-dilutive to our weighted average common shares outstanding of approximately 3,308,000 and 2,849,000 for the three and nine months ended September 30, 2022 and 770,000 and 751,000 for the three and nine months ended September 30, 2021 , respectively.

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

Our Convertible Notes currently have a settlement feature requiring us upon conversion to settle the principal amount of the debt and any conversion value in excess of the principal value ("conversion premium"), for cash or shares of our common stock or a combination thereof, at our option.

We have stated our intent to settle any conversion of these notes by paying cash for the principal value and issuing common stock for any conversion premium;

however, after adopting ASU 2020-06, 2.8 million incremental shares assumed for conversion of convertible notes shall be included in the dilutive earnings per share calculation, if dilutive, regardless of whether the market price trigger has been met.

Therefore, our Convertible Notes were included in the calculation of diluted earnings (loss) per share if their inclusion was dilutive.

The table includes all stock options and restricted stock units that are dilutive to the Company's weighted average common shares outstanding during the period.

The calculation of diluted earnings (loss) per share excludes stock options or shares of restricted stock units that are anti-dilutive to the Company's weighted average common shares outstanding of approximately 2.3 million and 2.2 million for the three months ended March 31, 2023 and 2022, respectively .

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

The Convertible Notes currently have a settlement feature requiring us upon conversion to settle the principal amount of the debt and any conversion value in excess of the principal value ("conversion premium"), for cash or shares of Euronet's common stock or a combination thereof, at the Company's option.

The Company has stated its intent to settle any conversion of these notes by paying cash for the principal value and issuing common stock for any conversion premium;

however, after adopting ASU 2020-06, 2.8 million incremental shares assumed for conversion of convertible notes is required to be included in the dilutive earnings per share calculation, if dilutive, regardless of whether the market price trigger has been met.

Therefore, 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 of $ 188.73 per share.

1 unchanged sentence

Share repurchases

On February 26, 2020, we put a repurchase program in place to repurchase up to $ 250 million in value, but not more than 5.0 million shares of common stock through February 28, 2022.

On December 8, 2021, we put a repurchase program in place to repurchase up to $ 300 million in value, but not more than 5.0 million shares of common stock through December 8, 2023.

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 .

On December 8, 2021, the Company 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.

On September 13, 2022, the Company put a repurchase program in place to repurchase up to $ 350 million in value, but not more than 7.0 million shares of common stock through September 13, 2024.

U nder the repurchase programs w e repurchased $ 28.3 million and $ 70.4 million of stock, f or the three months ended March 31, 2023 and 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 $ 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 .

The Company recorded foreign currency translation result of $ 20.8 million and ($ 21.1 ) million for the three months ended March 31, 2023 and 2022, respectively.

There were no reclassifications of foreign currency translation adjustments into the consolidated statements of income for the three months ended March 31, 2023 and 2022 .

( 6 ) GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET

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

(in thousands)

A summary of acquired intangible assets and goodwill activity for the three months ended March 31, 2023 is presented below:

(in millions)

Balance as of December 31, 2022

1 unchanged sentence

Foreign currency exchange rate changes

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.

Balance as of March 31, 2023

Of the total goodwill balance of $ 834.3 million as of March 31, 2023 , $ 385.1 million relates to the Money Transfer Segment, $ 325.0 million relates to the EFT Processing Segment and the remaining $ 124.2 million relates to the epay Segment .

Estimated amortization expense on acquired intangible assets with finite lives as of March 31, 2023, is expected to total $ 21.3 million for the remainder of 2023, $ 17.1 million for 2024, $ 14.3 million for 2025, $ 14.0 million for 2026, $ 12.8 million for 2027 and $ 12.4 million for 2028.

( 7 ) ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following:

(in thousands)

September 30,

(in millions)

December 31, 2022

1 unchanged sentence

Derivative liabilities

Other tax payables

Accrued payroll expenses

Current portion of finance lease obligations

Current portion of capital lease obligations

(8) DEFERRED REVENUES

We record deferred revenues when cash payments are received or due in advance of our performance.

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

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

The decrease in the deferred revenue balance for the three months ended March 31, 2023 is the result of $ 49.1 million of cash payments received in the current year for which the Company has not yet satisfied the performance obligations, offset by $ 51.0 million of revenues recognized.

(9) DEBT OBLIGATIONS

Debt obligations consist of the following:

(in thousands)

September 30,

(in millions)

March 31, 2023

December 31, 2022

1 unchanged sentence

Revolving credit agreement

Uncommitted credit agreement

Convertible Debt:

14 unchanged sentences

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 applicable margin for borrowings under the credit facility, based on the Company's current credit rating is 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):

2 unchanged sentences

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 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 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 %.

The Company was in compliance with all debt covenants as of March 31, 2023.

Convertible Debt

2 unchanged sentences

Holders of the Convertible Notes have the option to require the Company to purchase their notes on each of March 15, 2025, March 15, 2029, March 15, 2034, March 15, 2039 and March 15, 2044 at a repurchase price equal to 100 % of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the relevant repurchase date.

Prior to the adoption of ASU 2020-06 as of January 1, 2022, in accordance with ASC 470-20-30-27, proceeds from the issuance of convertible debt was allocated between debt and equity components so that debt was discounted to reflect our nonconvertible debt borrowing rate.

ASC 470-20-35-13 required the debt discount to be amortized over the period the convertible debt was expected to be outstanding as additional non-cash interest expense.

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

Contractual interest expense for the Convertible Notes was $ 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.

In connection with the issuance of the Convertible Notes, the Company recorded $ 12.8 million in debt issuance costs, which are being amortized through March 1, 2025.

The Company may redeem for cash all or any portion of the Convertible Notes, at its option, (i) if the closing sale price of the Company's Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption and (ii) on or after March 20, 2025 and prior to the maturity date, regardless of the foregoing sale price condition, in each case at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

No sinking fund is provided for the Convertible Notes.

In addition, if a fundamental change, as defined in the Indenture, occurs prior to the maturity date, holders may require the Company to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

As of March 31, 2023 the conversion threshold was not met.

On January 1, 2022, the Company adopted ASU 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" which simplifies the accounting for convertible instruments by eliminating certain accounting models when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in-capital.

ASU 2020-06 amended the accounting for convertible instruments with ASC Topic 470 Debt.

Contractual interest expense for the Convertible Notes was $ 1.0 million for the quarters ended March 31, 2022 and 2023, Accretion expense is no longer applicable after January 1, 2022 due to adoption of ASU 2020-06.

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 September 30, 2022 , the Company has outstanding € 600 million ( $ 588.4 million ) principal amount of the Senior Notes.

As of March 31, 2023 , the Company has outstanding € 600 million ($ 650.3 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 September 30, 2022 and December 31, 2021 , borrowings under these arrangements were $ 3.6 million and $ 0.9 million , respectively.

As of March 31, 2023 and December 31, 2022 , borrowings under these arrangements were $ 0.2 million and $ 0.2 million , respectively.

Debt Issuance Costs

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.

As of March 31, 2023, the Company had unamortized debt issuance costs of $ 3.7 million for the Credit Facility, $ 4.3 million for the Convertible Notes and $ 3.8 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 $ 415.8 million and $ 222.1 million as of September 30, 2022 and December 31, 2021, respectively .

with a notional value of $ 397.0 million and $ 398.6 million as of March 31, 2023 and December 31, 2022, 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 $ 7.4 million and $ 216.1 million as of September 30, 2022 and December 31, 2021, respectively , primarily in euro.

T he Company had foreign currency forward contracts outstanding with a notional value of $ 271.2 million and $ 228.4 million as of March 31, 2023 and December 31, 2022, 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 $ 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.

Foreign exchange revenues from xe's total portfolio of positions were $ 20.1 million and $ 22.5 million for the three months ended March 31, 2023 and 2022, 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 was approximately $1.0 billion as of September 30, 2022 and December 31, 2021 .

dollar notional amount of foreign currency derivative customer contracts held by the Company in its xe operations was approximately $ 1.0 billion as of March 31, 2023 and December 31, 2022 .

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

4 unchanged sentences

Liability Derivatives

(in thousands)

(in millions)

Balance Sheet Location

September 30, 2022

March 31, 2023

December 31, 2022

Balance Sheet Location

September 30,

March 31, 2023

December 31, 2022

3 unchanged sentences

Other current liabilities

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):

The following tables summarize the gross and net fair value of derivative assets and liabilities as of March 31, 2023 and December 31, 2022 (in millions):

Offsetting of Derivative Assets

Gross Amounts Not Offset in the Consolidated Balance Sheet

As of September 30, 2022

As of March 31, 2023

Gross Amounts of Recognized Assets

8 unchanged sentences

Gross Amounts Not Offset in the Consolidated Balance Sheet

As of September 30, 2022

As of March 31, 2023

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 nine months ended September 30, 2022 and 2021 :

The following table summarizes the location and amount of losses on derivatives in the Consolidated Statements of Income for the three months ended March 31, 2023 and 2022 :

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

1 unchanged sentence

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands)

(in millions)

Foreign currency exchange contracts - Ria Operations

12 unchanged sentences

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

As of September 30, 2022

(in thousands)

As of March 31, 2023

(in millions)

Balance Sheet Classification

4 unchanged sentences

As of December 31, 2022

(in thousands)

(in millions)

Balance Sheet Classification

5 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 as of September 30, 2022 was based on LIBOR that reset 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 March 31, 2023 was based on SOFR that resets 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 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.

As of March 31, 2023 , the fair values of the Convertible Notes and Senior Notes were $ 539.9 million and $ 583.2 million , respectively, with carrying values of $ 525.0 million and $ 650.3 million , respectively.

(12) SEGMENT INFORMATION

Our reportable operating segments have been determined in accordance with ASC Topic 280, Segment Reporting ("ASC 280") .

We currently operate in the following three reportable operating segments:

1) Through the EFT Processing Segment, we process transactions for a network of ATMs and POS terminals across Europe, the Middle East, Africa, Asia Pacific and the United States.

We provide comprehensive electronic payment solutions consisting of ATM cash withdrawal services, ATM network participation, outsourced ATM and POS management solutions, credit, debit and prepaid card outsourcing, dynamic currency conversion, domestic and international surcharges and other value added services.

Through this segment, we also offer a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems.

2) T hrough the epay Segment, we provide distribution, processing and collection services for electronic payment products, and prepaid mobile airtime in Europe, the Middle East, Asia Pacific, the U.S., South America and North America.

3) Through the Money Transfer Segment, we provide global money transfer services under the brand names Ria, AFEX, IME, and xe.

Ria, AFEX, and IME provide global consumer-to-consumer money transfer services through a network of sending agents, Company-owned stores and Company-owned websites, disbursing money transfers through a worldwide correspondent network.

xe offers account-to-account international payment services to high-income individuals and small-to-medium sized businesses.

xe is also a provider of foreign currency exchange information.

We also offer customers bill payment services, payment alternatives such as money orders and prepaid debit cards, comprehensive check cashing services, foreign currency exchange services and mobile top-up.

The Company currently operates in the following three reportable operating segments:

1) Through the EFT Processing Segment, t he Company process transactions for a network of ATMs and POS terminals across Europe, the Middle East, Africa, Asia Pacific and the United States.

Euronet provides comprehensive electronic payment solutions consisting of ATM cash withdrawal services, ATM network participation, outsourced ATM and POS management solutions, credit, debit and prepaid card outsourcing, dynamic currency conversion, domestic and international surcharges and other value added services.

Through this segment, t he Company also offers a suite of integrated electronic financial transaction software solutions for electronic payment and transaction delivery systems.

2) Through the epay Segment, Euronet provides distribution, processing and collection services for electronic payment products, and prepaid mobile airtime through a network of POS terminals in Europe, the Middle East, Asia Pacific, South America and North America.

The epay Segment also provides vouchers and physical gift fulfillment services in Europe.

3) Through the Money Transfer Segment, Euronet provides global consumer-to-consumer money transfer services, primarily under the brand names Ria, IME, AFEX, and xe, and global account-to-account money transfer services under the brand name xe.

The Company offers services under the brand names Ria and IME through a network of sending agents, Company-owned stores, Company-owned websites, and mobile applications, disbursing money transfers through a worldwide correspondent network.

xe is a provider of foreign currency exchange information and offers money transfer services on its currency data websites .

The Company also offers customers bill payment services (primarily in the U.S.) , payment alternatives such as money orders and prepaid debit cards, comprehensive check cashing services for a wide variety of issued checks, along with competitive foreign currency exchange services and prepaid mobile top-up.

Furthermore, xe provides cash management solutions and foreign currency risk management services to small-to-medium sized businesses.

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 nine months ended September 30, 2022 and 2021 :

For the Three Months Ended September 30, 2022

(in thousands)

Corporate Services,

Total revenues

Operating expenses:

Direct operating costs, exclusive of depreciation

Salaries and benefits

Selling, general and administrative

Depreciation and amortization

Total operating expenses

Operating income (loss)

For the Three Months Ended September 30, 2021

(in thousands)

In addition, t he Company accounts for non-operating activity, share-based compensation expense, certain intersegment eliminations and the costs of providing corporate and other administrative services in the 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, 2023 and 2022 :

For the Three Months Ended March 31, 2023

(in millions)

Corporate Services,

7 unchanged sentences

Operating income (loss)

For the Nine Months Ended September 30, 2022

(in thousands)

For the Three Months Ended March 31, 2022

(in millions)

Corporate Services,

7 unchanged sentences

Operating income (loss)

For the Nine Months Ended September 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 income (loss)

The following table presents our total assets by reportable segment:

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

Total Assets as of

(in thousands)

September 30, 2022

(in millions )

March 31, 2023

December 31, 2022

2 unchanged sentences

Corporate Services, Eliminations and Other

The following table presents our revenues disaggregated by segment and region.

The following table presents the Company's revenues disaggregated by segment and region.

Sales and usage-based taxes are excluded from revenues.

We believe disaggregation by segment and region best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The Company believes disaggregation by segment and region best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The disaggregation of revenues by segment and region is based on management's assessment of segment performance together with allocation of financial resources, both capital and operating support costs, on a segment and regional level.

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 September 30, 2022

For the Nine Months Ended September 30, 2022

(in thousands)

North America

For the Three Months Ended September 30, 2021

For the Nine Months Ended September 30, 2021

(in thousands)

For the Three Months Ended March 31, 2023

For the Three Months Ended March 31, 2022

(in millions )

North America

( 13 ) INCOME TAXES

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.

The Company's effective income tax rate was 46.5 % and 67.4 % for the three months ended March 31, 2023 and 2022 , respectively .

The Company's effective income tax rate for the three months ended March 31, 2023 was higher than the applicable statutory income tax rate of 21 % mainly as a result of certain foreign earnin gs being subject to higher local statutory tax rates.

Our effective income tax rate for the three months ended March 31, 2022 was higher than the applicable statutory income tax rate of 21 % as a result of our U.S.

deferred tax activity on foreign exchange positions and certain of our foreign earnings being subject to higher local statutory tax rates.

(14) COMMITMENTS

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 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.

As of March 31, 2023 , the Company had $85.6 million of stand-by letters of credit/bank guarantees issued on the Company's behalf, of which $ 3.3 million are collateralized by cash deposits held by the respective issuing banks.

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

As of March 31, 2023 , the Company had granted off balance sheet guarantees for cash in various ATM networks amounting to $ 11.6 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $ 40.4 million over the terms of agreements with the Company's 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.

The amount of such potential obligations is generally not stated in the agreements.

Our liability under such indemnification provisions may be mitigated by relevant insurance coverage and may be subject to time and materiality limitations, monetary caps and other conditions and defenses.

The Company's liability under such indemnification provisions may be mitigated by relevant insurance coverage and may be subject to time and materiality limitations, monetary caps and other conditions and defenses.

Such indemnification obligations include the following:

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 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;

In connection with contracts with financial institutions in the EFT Processing Segment, we are responsible for losses suffered by our customers and other parties as a result of the breach of our computer systems, including in particular, losses arising from fraudulent transactions made using information stolen through our processing systems.

We maintain insurance policies to mitigate this exposure;

In connection with the license of proprietary systems to customers, we provide certain warranties and infringement indemnities to the licensee, which generally warrant that such systems do not infringe on intellectual property owned by third parties and that the systems will perform in accordance with their specifications;

We have entered into purchase and service agreements with vendors and consulting agreements with providers of consulting services, pursuant to which we have agreed to indemnify certain of such vendors and consultants, respectively, against third-party claims arising from our use of the vendor’s product or the services of the vendor or consultant;

In connection with acquisitions and dispositions of subsidiaries, operating units and business assets, we have entered into agreements containing indemnification provisions, which can be generally described as follows:

(i) in connection with acquisitions of operating units or assets made by us, we have agreed to indemnify the seller against third party claims made against the seller relating to the operating unit or asset and arising after the closing of the transaction, and (ii) in connection with dispositions made by us, we have agreed to indemnify the buyer against damages incurred by the buyer due to the buyer’s reliance on representations and warranties relating to the subject subsidiary, operating unit or business assets in the disposition agreement if such representations or warranties were untrue when made;

We have entered into agreements with certain third parties, including banks that provide fiduciary and other services to us or our benefit plans.

Under such agreements, we have agreed to indemnify such service providers for third-party claims relating to carrying out their respective duties under such agreements.

We are also required to meet minimum capitalization and cash requirements of various regulatory authorities in the jurisdictions in which we have operations.

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 September 30, 2022 or December 31, 2021 .

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, 2023 , the balance of such cash used in the Company's ATM networks for which the Company was responsible was approximately $ 398.8 million .

The Company maintains insurance policies to mitigate this exposure;

In connection with contracts with financial institutions in the EFT Processing Segment, the Company is responsible for losses suffered by the Company's customers and other parties as a result of the breach of the Company's computer systems, including in particular, losses arising from fraudulent transactions made using information stolen through the Company's processing systems.

The Company maintains insurance policies to mitigate this exposure;

In connection with the license of proprietary systems to customers, the Company provides certain warranties and infringement indemnities to the licensee, which generally warrant that such systems do not infringe on intellectual property owned by third parties and that the systems will perform in accordance with their specifications;

The Company has entered into purchase and service agreements with vendors and consulting agreements with providers of consulting services, pursuant to which the Company has agreed to indemnify certain of such vendors and consultants, respectively, against third-party claims arising from the Company's use of the vendor’s product or the services of the vendor or consultant;

In connection with acquisitions and dispositions of subsidiaries, operating units and business assets, the Company has entered into agreements containing indemnification provisions, which can be generally described as follows:

(i) in connection with acquisitions of operating units or assets made by the Company, the Company has agreed to indemnify the seller against third party claims made against the seller relating to the operating unit or asset and arising after the closing of the transaction, and (ii) in connection with dispositions made by the Company, the Company has agreed to indemnify the buyer against damages incurred by the buyer due to the buyer’s reliance on representations and warranties relating to the subject subsidiary, operating unit or business assets in the disposition agreement if such representations or warranties were untrue when made;

The Company has entered into agreements with certain third parties, including banks that provide fiduciary and other services to the Company or the Company's benefit plans.

Under such agreements, the Company has agreed to indemnify such service providers for third-party claims relating to carrying out their respective duties under such agreements.

The Company is also required to meet minimum capitalization and cash requirements of various regulatory authorities in the jurisdictions in which the Company has operations.

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, 2023 or December 31, 2022 .

( 15 ) LITIGATION AND CONTINGENCIES

From time to time, we are a party to legal or regulatory proceedings arising in the ordinary course of our business.

Currently, there are no legal proceedings or regulatory findings that management believes, either individually or in the aggregate, would have a material adverse effect on our consolidated financial condition or results of operations.

From time to time, the Company is a party to legal or regulatory proceedings arising in the ordinary course of the Company's business.

Currently, there are no legal proceedings or regulatory findings that management believes, either individually or in the aggregate, would have a material adverse effect on the Company's consolidated financial condition or results of operations.

In accordance with U.S.

GAAP, we record a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

GAAP, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case.

We enter into operating leases for ATM sites, office spaces, retail stores and equipment.

Our finance leases are immaterial.

The Company enters into operating leases for ATM sites, office spaces, retail stores and equipment.

The Company's finance leases are immaterial.

Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease terms.

The present value of lease payments is determined using the incremental borrowing rate based on information available at the lease commencement date.

We recognize lease expense for these leases on a straight-line basis over the lease term.

The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Most leases include an option to renew, with renewal terms that can extend the lease terms.

The exercise of lease renewal options is at our sole discretion.

The exercise of lease renewal options is at the Company's sole discretion.

The depreciable life of assets and leasehold improvements are limited by the expected lease terms.

We also have a unilateral termination right for most of the ATM site leases.

Since we are not reasonably certain not to exercise termination options, p ayments for ATM site leases with termination options subject to the short-term lease exemption are expensed in the period incurred and corresponding leases are excluded from the right of use lease asset and lease liability balances.

Certain of our lease agreements include variable rental payments based on revenues generated from the use of the leased location and certain leases include rental payments adjusted periodically for inflation.

The Company also has a unilateral termination right for most of the ATM site leases.

Since the Company is not reasonably certain not to exercise termination options, p ayments for ATM site leases with termination options subject to the short-term lease exemption are expensed in the period incurred and corresponding leases are excluded from the right of use lease asset and lease liability balances.

Certain of the Company's lease agreements include variable rental payments based on revenues generated from the use of the leased location and certain leases include rental payments adjusted periodically for inflation.

Variable lease payments are recognized when the event, activity or circumstance in the lease agreement on which those payments are assessed occurs and are excluded from the right of use assets and lease liabilities balances.

1 unchanged sentence

Future minimum lease payments

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)

Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of March 31, 2023 are:

As of March 31, 2023

Maturity of Lease Liabilities (in millions)

Operating Leases (1)

3 unchanged sentences

Present value of lease liabilities

(1) Operating lease payments reflect our current fixed obligations under the operating lease agreements.

(1) Operating lease payments reflect the Company's current fixed obligations under the operating lease agreements.

Lease expense recognized in the Consolidated Statements of Income is summarized as follows:

Lease Expense

(in thousands)

(in millions)

Income Statement Classification

Three Months Ended

September 30, 2022

March 31, 2023

Three Months Ended

September 30, 2021

Nine Months Ended

September 30, 2022

Nine Months Ended

September 30, 2021

March 31, 2022

Operating lease expense

5 unchanged sentences

Lease Term and Discount Rate of Operating Leases

As of September 30, 2022

As of March 31, 2023

Weighted- average remaining lease term (years)

1 unchanged sentence

The following table presents supplemental cash flow and non-cash information related to leases.

Other Information (in thousands)

Nine Months Ended

September 30, 2022

Nine months ended

September 30, 2021

Other Information (in millions)

Three Months Ended

March 31, 2023

Three months ended

March 31, 2022

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

1 unchanged sentence

ROU assets obtained in exchange for new operating lease liabilities

(a) Included in Net cash provided by operating activities on our Consolidated Statements of Cash Flows .

(a) Included in Net cash provided by operating activities on the Company's Consolidated Statements of Cash Flows .

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