What changed in this filing

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Item 1. Financial Statements

2023-11-03 compared with 2023-08-02 · 126 added, 97 removed, 602 unchanged (27% of the section changed)

4 unchanged sentences

(In millions, 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:

8 unchanged sentences

Interest expense

Foreign currency exchange gain (loss), net

Other gains (losses), net

Foreign currency exchange loss, net

Other (losses) gains, net

Other expense, net

12 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.

7 unchanged sentences

Balan ce as of December 31, 2021

Net (loss) income

Net income (loss)

Other comprehensive loss

10 unchanged sentences

Balance as of June 30, 2022

Net income (loss)

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Balance as of September 30, 2022

Shares Outstanding

13 unchanged sentences

Balance as of June 30, 2023

Net income (loss)

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Repurchas e of sh ares

Balance as of September 30, 2023

See accompanying notes to the unaudited consolidated financial statements.

21 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

Retained Earnings

15 unchanged sentences

Balance as of June 30, 2023

Other comprehensive income

Stock issued under employee stock plans

Share-based compensation

Repurchase of shares

Balance as of September 30, 2023

See accompanying notes to the unaudited consolidated financial statements.

3 unchanged sentences

(Unaudited, in millions)

Six Months Ended June 30,

Nine Months Ended September 30,

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

1 unchanged sentence

Share-based compensation

Unrealized foreign exchange (gain) loss, net

Unrealized foreign exchange loss, net

Deferred income taxes

7 unchanged sentences

Accrued expenses and other current liabilities, including amounts in settlement obligations

Changes in noncurrent assets and liabilities

Changes in noncurrent assets an d liabilit ies

Net cash provided by operating activities

9 unchanged sentences

Repayments of credit agreements

Repayments of capital lease obligations

Repayments of long-term debt obligations

Net borrowings (repayments) from short-term debt obligations

Net cash provided by financing activities

Effect of exchange rate changes on cash and cash equivalents and restricted cash

Increase in cash and cash equivalents and restricted cash

Increase/(decrease) in cash and cash equivalents and restricted cash

Cash and cash equivalents and restricted cash at beginning of period

26 unchanged sentences

Euronet’s EFT Processing Segment normally experiences its heaviest demand for dynamic currency conversion ("DCC") services during the third quarter of the fiscal year, normally coinciding with the tourism season.

Epay Segment is normally impacted by seasonality during the fourth quarter and first quarter of each year due to higher transaction levels during the holiday season and lower levels following the holiday season.

The 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.

46 unchanged sentences

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 June 30, 2022, PBMA had $ 31.2 million in revenue.

PBMA had $ 56.2 million in revenue in the first six months of 2023.

For the period beginning on the acquisition date through September 30, 2022, PBMA had $ 63.8 million in revenue.

PBMA had $ 42.3 million and $ 98.5 million in revenue for the three and nine months ended September 30, 2023 .

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

13 unchanged sentences

(in millions)

September 30,

Settlement assets:

10 unchanged sentences

(in millions)

September 30,

Cash and cash equivalents

10 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Computation of diluted earnings:

7 unchanged sentences

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 2.6 million and 2.6 million for the three and six months ended June 30, 2023 and 3.0 million and 3.0 million for the three and six months ended June 30, 2022, respectively .

The calculation of diluted earnings 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 3.6 million and 2.7 million for the three and nine months ended September 30, 2023 and 3.3 million and 2.8 million for the three and nine months ended September 30, 2022 , respectively .

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

2 unchanged sentences

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.

Therefore, the Convertible Notes were included in the calculation of diluted earnings 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.

3 unchanged sentences

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 $ 0.1 million and $ 28.4 million of stock, f or the three and six months ended June 30, 2023 and we repurchased $ 104.6 million and $ 175.0 million of stock, for the three and six months ended June 30, 2022, respectively .

On September 13, 2023, 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, 2025.

U nder the repurchase programs, w e repurchased $ 296.1 million and $ 324.5 million of stock, f or the three and nine months ended September 30, 2023 and we repurchased $ 175.0 million of stock for the nine months ended September 30, 2022.

We did not repurchase any stock during the three months ended September 30, 2022.

Repurchases under the current program may take place in the open market or in privately negotiated transactions, including derivative transactions, and may be made under a Rule 10 b 5 - 1 plan.

1 unchanged sentence

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

The Company recorded foreign currency translation result of $ 10.0 million and $ 30.8 million for the three and six months ended June 30, 2023 and ( $ 88.3 ) million and ($ 109.3 ) million for the three and six months ended June 30, 2022, respectively.

There were no reclassifications of foreign currency translation adjustments into the consolidated statements of income for the three and six months ended June 30, 2023 and 2022 .

The Company recorded foreign currency translation adjustments of ( $ 61.0 ) million and ($ 30.1 ) million for the three and nine months ended September 30, 2023 and ( $ 100.5 ) million and ($ 209.9 ) million for the three and nine months ended September 30, 2022 , respectively.

There were no reclassifications of foreign currency translation adjustments into the consolidated statements of income for the three and nine months ended September 30, 2023 and 2022 .

( 6 ) GOODWILL AND ACQUIRED INTANGIBLE ASSETS, NET

A summary of acquired intangible assets and goodwill activity for the six months ended June 30, 2023 is presented below:

A summary of acquired intangible assets and goodwill activity for the nine months ended September 30, 2023 is presented below:

(in millions)

2 unchanged sentences

Foreign currency exchange rate changes

Balance as of June 30, 2023

Of the total goodwill balance of $ 838.0 million as of June 30, 2023 , $ 386.5 million relates to the Money Transfer Segment, $ 326.8 million relates to the EFT Processing Segment and the remaining $ 124.7 million relates to the epay Segment .

Estimated amortization expense on acquired intangible assets with finite lives as of June 30, 2023, is expected to total $ 11.0 million for the remainder of 2023, $ 18.1 million for 2024, $ 14.8 million for 2025, $ 14.5 million for 2026, $ 13.2 million for 2027 and $ 12.8 million for 2028.

Balance as of September 30, 2023

Of the total goodwill balance of $ 817.8 million as of September 30, 2023 , $ 378.2 million relates to the Money Transfer Segment, $ 317.9 million relates to the EFT Processing Segment and the remaining $ 121.7 million relates to the epay Segment .

Estimated amortization expense on acquired intangible assets with finite lives as of September 30, 2023 , is expected to total $ 5.3 million for the remainder of 2023 , $ 17.5 million for 2024 , $ 14.2 million for 2025 , $ 13.9 million for 2026 , $ 12.6 million for 2027 and $ 12.2 million for 2028 .

( 7 ) ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

1 unchanged sentence

(in millions)

September 30,

December 31, 2022

6 unchanged sentences

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 six months ended June 30, 2023 is the result of $ 93.6 million of cash payments received in the current year for which the Company has not yet satisfied the performance obligations, offset by $ 98.7 million of revenues recognized.

The decrease in the deferred revenue balance for the nine months ended September 30, 2023 is the result of $ 134.4 million of cash payments received in the current year for which the Company has not yet satisfied the performance obligations, offset by $ 145.1 million of revenues recognized.

(9) DEBT OBLIGATIONS

1 unchanged sentence

(in millions)

June 30, 2023

September 30, 2023

December 31, 2022

1 unchanged sentence

Revolving credit agreement

Convertible Debt:

0.75 % Convertible Notes, unsecured, due 2049

19 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 June 30, 2023.

Convertible Debt

The Company was in compliance with all debt covenants as of September 30, 2023.

Convertible Notes

On March 18, 2019, the Company completed the sale of $ 525.0 million of Convertible Senior Notes ("Convertible Notes").

5 unchanged sentences

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 June 30, 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 and $2.0 million for the three and six months ended June 30, 2023 , respectively.

Contractual expense for the Convertible Notes was $ 1.0 million and $ 2.0 million for the three and six months ended June 30, 2022, respectively.

Accretion expense is no longer applicable after January 1, 2022 due to adoption of ASU 2020-06.

As of September 30, 2023, the conversion threshold was not met.

Contractual interest expense for the Convertible Notes was $ 1.0 million and $ 2.9 million for the three and nine months ended September 30, 2023 , respectively.

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.

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 June 30, 2023 , the Company has outstanding € 600 million ($ 654.6 million ) principal amount of the Senior Notes.

As of September 30, 2023 , the Company has outstanding € 600 million ($ 634.2 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.

Uncommitted Credit Agreements

On June 27, 2023, the Company entered into an Uncommitted Credit Agreement for $ 300 million, fully drawn and outstanding at June 30, 2023, for the sole purpose of providing vault cash for ATMs, that expires no later than November 30, 2023.

On June 27, 2023, the Company entered into an Uncommitted Credit Agreement for $ 300 million, fully drawn and outstanding at September 30, 2023, for the sole purpose of providing vault cash for ATMs, that expires no later than November 30, 2023.

The loan bears interest at the rate per annum equal to the secured overnight financing rate (“SOFR”) plus 1.125 %.

The weighted-average interest rate from the loan inception date to June 30, 2023 was 6.18 %.

On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $ 150 million, fully drawn and outstanding at June 30, 2023, for the sole purpose of providing vault cash for ATMs, that expires no later than June 21, 2024.

The weighted-average interest rate from the loan inception date to September 30, 2023 was 6.33 %.

On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $ 150 million, fully drawn and outstanding at September 30, 2023, for the sole purpose of providing vault cash for ATMs, that expires no later than June 21, 2024.

The loan is a Prime rate loan, a Bloomberg Short-term Bank Yield ("BSBY") rate loan plus 0.95 % 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, 2023 was 6.12 %.

The weighted-average interest rate from the loan inception date to September 30, 2023 was 6.24 %.

Other obligations

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, 2023 and December 31, 2022 , borrowings under these arrangements were $ 0.2 million each .

As of September 30, 2023 and December 31, 2022 , borrowings under these arrangements were $ 0.2 million each .

Debt Issuance Costs

As of June 30, 2023, the Company had unamortized debt issuance costs of $ 3.5 million for the Credit Facility, $ 3.8 million for the Convertible Notes and $ 3.5 million for the Senior Notes that will be amortized through October 2027, March 2025 and May 2026, respectively.

As of September 30, 2023 , the Company had unamortized debt issuance costs of $ 3.4 million for the Credit Facility, $ 3.2 million for the Convertible Notes and $ 3.2 million for the Senior Notes that will be amortized through October 2027, 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 $ 436.4 million and $ 398.6 million as of June 30, 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.

with a notional value of $ 426.0 million and $ 398.6 million as of September 30, 2023 and December 31, 2022 , respectively .

The foreign currency forward contracts consist primarily in Australian dollars, Canadian dollars, British pounds sterling, euros 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 $ 68.0 million and $ 228.4 million as of June 30, 2023 and December 31, 2022, respectively , primarily in euro.

T he Company had foreign currency forward contracts outstanding with a notional value of $ 325.5 million and $ 228.4 million as of September 30, 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 $ 21.5 million and $ 41.6 million for the three and six months ended June 30, 2023, respectively, and $ 21.7 million and $ 44.2 million for the three and six months ended June 30, 2022, respectively.

Foreign exchange revenues from xe's total portfolio of positions were $ 22.2 million and $ 63.8 million for the three and nine months ended September 30, 2023, respectively, and $ 22.3 million and $ 66.5 million for the same periods in 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 as of June 30, 2023 and December 31, 2022 was $ 1.2 billion and $ 1.0 billion, respectively.

dollar notional amount of foreign currency derivative customer contracts held by the Company in its xe operations as of September 30, 2023 and December 31, 2022 was $ 1.0 billion and $ 1.0 billion, respectively.

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

6 unchanged sentences

Balance Sheet Location

June 30, 2023

September 30, 2023

December 31, 2022

Balance Sheet Location

June 30, 2023

September 30, 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 June 30, 2023 and December 31, 2022 (in millions):

Offsetting of Derivative Assets

Gross Amounts Not Offset in the Consolidated Balance Sheet

As of June 30, 2023

The following tables summarize the gross and net fair value of derivative assets and liabilities as of September 30, 2023 and December 31, 2022 (in millions):

Offsetting of De rivative Ass ets

As of September 30, 2023

Gross Amounts of Recognized Assets

1 unchanged sentence

Net Amounts Presented in the Consolidated Balance Sheet

Financial Instruments

Cash Collateral Received

Derivatives Not Offset in the Consolidated Balance Sheet

Derivatives subject to a master netting arrangement or similar agreement

2 unchanged sentences

Offsetting of Derivative Liabilities

Gross Amounts Not Offset in the Consolidated Balance Sheet

As of June 30, 2023

As of September 30, 2023

Gross Amounts of Recognized Liabilities

1 unchanged sentence

Net Amounts Presented in the Consolidated Balance Sheet

Financial Instruments

Cash Collateral Paid

Derivatives Not Offset in the Consolidated Balance Sheet

Derivatives subject to a master netting arrangement or similar agreement

3 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, 2023 and 2022 :

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

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, 2023 and 2022 :

Amount of (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 millions)

Foreign currency exchange contracts - Ria Operations

Foreign currency exchange gain (loss), net

Foreign currency exchange (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, 2023

As of September 30, 2023

(in millions)

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 as of June 30, 2023 was based on SOFR 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, 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 June 30, 2023 , the fair values of the Convertible Notes and Senior Notes were $ 532.0 million and $ 592.2 million , respectively, with carrying values of $ 525.0 million and $ 654.6 million , respectively.

As of September 30, 2023 , the fair values of the Convertible Notes and Senior Notes were $ 498.5 million and $ 571.8 million , respectively, with carrying values of $ 525.0 million and $ 634.2 million , respectively.

(12) SEGMENT INFORMATION

12 unchanged sentences

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 and six months ended June 30, 2023 and 2022 :

For the Three Months Ended June 30, 2023

The following tables present the Company's reportable segment results for the three months and nine months ended September 30, 2023 and 2022 :

For the Three Months Ended September 30, 2023

(in millions)

8 unchanged sentences

Operating income (loss)

For the Three Months Ended June 30, 2022

For the Three Months Ended September 30, 2022

(in millions)

8 unchanged sentences

Operating income (loss)

For the Six Months Ended June 30, 2023

For the Nine Months Ended September 30, 2023

(in millions)

8 unchanged sentences

Operating income (loss)

For the Six Months Ended June 30, 2022

For the Nine Months Ended September 30, 2022

(in millions)

11 unchanged sentences

(in millions )

June 30, 2023

September 30, 2023

December 31, 2022

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.

Revenues for the Three Months Ended June 30, 2023

Revenues for the Six Months Ended June 30, 2023

Revenues for the Three Months Ended September 30, 2023

Revenues for the Nine Months Ended September 30, 2023

(in millions )

North America

Revenues for the Three Months Ended June 30, 2022

Revenues for the Six Months Ended June 30, 2022

Revenues for the Three Months Ended September 30, 2022

Revenues for the Nine Months Ended September 30, 2022

(in millions )

1 unchanged sentence

( 13 ) INCOME TAXES

The Company's effective income tax rate was 27.3 % and 31.9 % for the three and six months ended June 30, 2023 respectively, compared to 26.7 % and 36.7 % for the three and six months ended June 30, 2022, respectively.

The Company's effective income tax rate for the three and six months ended June 30, 2023 was higher than the applicable statutory income tax rate of 21 % mainly as a result of our U.S.

deferred tax activity and certain foreign earnings being subject to higher local statutory tax rates.

The Company's effective income tax rate was 29.2 % and 30.6 % for the three and nine months ended September 30, 2023 respectively, compared to 31.1 % and 33.5 % for the three and nine months ended September 30, 2022 , respectively.

The Company's effective income tax rate for the three and nine months ended September 30, 2023 was higher than the applicable statutory income tax rate of 21 % mainly as a result of our U.S.

deferred tax activity and certain foreign earnings being subject to higher local statutory tax rate s and our U.S.

deferred tax activity.

(14) COMMITMENTS

As of June 30, 2023 , the Company had $ 86.7 million of stand-by letters of credit/bank guarantees issued on the Company's behalf, of which $ 3.4 million are collateralized by cash deposits held by the respective issuing banks.

As of September 30, 2023 , the Company had $ 83.6 million of stand-by letters of credit/bank guarantees issued on the Company's behalf, of which $ 3.2 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 June 30, 2023 , the Company had granted off balance sheet guarantees for cash in various ATM networks amounting to $ 43.3 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $ 11.5 million over the terms of agreements with the Company's customers.

As of September 30, 2023 , the Company had granted off balance sheet guarantees for cash in various ATM networks amounting to $ 10.9 million over the terms of the cash supply agreements and performance guarantees amounting to approximately $ 51.0 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.

3 unchanged sentences

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

As of June 30, 2023 , the balance of such cash used in the Company's ATM networks for which the Company was responsible was approximately $ 405 million .

As of September 30, 2023 , the balance of such cash used in the Company's ATM networks for which the Company was responsible was approximately $ 282.5 million .

The Company maintains insurance policies to mitigate this exposure;

9 unchanged sentences

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

To date, the Company is not aware of any significant claims made by the indemnified parties or third parties to guarantee agreements with the Company and, accordingly, no liabilities were recorded as of June 30, 2023 or December 31, 2022 .

( 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, 2023 are:

As of June 30, 2023

Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of September 30, 2023 are:

As of September 30, 2023

Maturity of Lease Liabilities (in millions)

10 unchanged sentences

Three Months Ended

June 30, 2023

September 30, 2023

Three Months Ended

June 30, 2022

Six Months Ended

June 30, 2023

Six Months Ended

June 30, 2022

September 30, 2022

Nine Months Ended

September 30, 2023

Nine Months Ended

September 30, 2022

Operating lease expense

5 unchanged sentences

Lease Term and Discount Rate of Operating Leases

As of June 30, 2023

As of September 30, 2023

Weighted- average remaining lease term (years)

2 unchanged sentences

Other Information (in millions)

Six Months Ended

June 30, 2023

Six Months Ended

June 30, 2022

Nine Months Ended

September 30, 2023

Nine Months Ended

September 30, 2022

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