What changed in this filing

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Item 1. Financial Statements

2023-10-31 compared with 2023-08-01 · 95 added, 77 removed, 570 unchanged (23% of the section changed)

52 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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THREE MONTHS ENDED NINE MONTHS ENDED

SEPTEMBER 30 SEPTEMBER 30

2023 2022 2023 2022

12 unchanged sentences

Income (Loss) Before Income Taxes 52.6 ( 32.4 ) 139.3 ( 75.5 )

Income tax expense (benefit) 12.0 ( 3.1 ) 20.7 ( 0.2 )

Income tax expense 16.2 4.2 36.9 4.0

Net Income (Loss) 36.4 (36.6) 102.4 ( 79.5 )

12 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

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5 unchanged sentences

Reclassification of hedging activities into earnings 6.8 12.8 22.1 20.2

Current period pension adjustment — ( 4.2 ) — ( 4.2 )

Reclassification of pension into earnings 0.8 1.1 2.2 3.5

9 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED

NINE MONTHS ENDED

(In millions)

30 unchanged sentences

Purchase of treasury stock ( 0.1 ) —

Net cash provided by (used for) financing activities ( 28.9 ) 33.5

Net cash used for financing activities ( 69.1 ) ( 1.9 )

Effect of exchange rate changes on cash 3.0 ( 2.1 )

11 unchanged sentences

(In millions)

Balance, March 31, 2022 $ — $ 0.1 $ 0.1 $ — $ 312.3 $ 218.2 $ ( 102.3 ) $ ( 32.1 ) $ ( 71.4 ) $ 324.9 $ 26.6 $ 351.5

Balance, June 30, 2022 $ 15.9 $ 0.1 $ 0.1 $ — $ 291.2 $ 193.3 $ ( 142.6 ) $ ( 72.3 ) $ ( 70.2 ) $ 199.6 $ 7.9 $ 207.5

Stock-based compensation — — — — 1.1 — — — — 1.1 — 1.1

2 unchanged sentences

Cash dividends — — — — — ( 5.5 ) — — — ( 5.5 ) — ( 5.5 )

Accrued dividends 0.3 — — — — — — — — — — —

Current period other comprehensive loss — — — — — — ( 30.2 ) ( 26.1 ) ( 4.2 ) ( 60.5 ) — ( 60.5 )

Reclassification adjustment to net income (loss) — — — — — — — 5.7 1.2 6.9 — 6.9

Purchase of noncontrolling interest — — — — ( 12.8 ) — — — — ( 12.8 ) ( 11.1 ) ( 23.9 )

Reclassification adjustment to net income — — — — — — — 12.8 1.1 13.9 — 13.9

Reclassification from permanent equity to temporary equity ( 2.8 ) — — — 2.8 — — — — 2.8 — 2.8

Foreign currency translation on noncontrolling interest — — — — — — — — — — ( 0.5 ) ( 0.5 )

Balance, September 30, 2022 $ 13.7 $ 0.1 $ 0.1 $ — $ 295.0 $ 150.5 $ ( 172.8 ) $ ( 85.6 ) $ ( 73.3 ) $ 114.0 $ 7.5 $ 121.5

Balance, June 30, 2023 $ 13.9 $ 0.1 $ 0.1 $ ( 0.1 ) $ 309.3 $ 206.5 $ ( 131.4 ) $ ( 23.9 ) $ ( 70.1 ) $ 290.5 $ 1.8 $ 292.3

Balance, March 31, 2023 $ 14.7 $ 0.1 $ 0.1 $ ( 0.1 ) $ 303.4 $ 173.7 $ ( 125.4 ) $ ( 25.4 ) $ ( 70.9 ) $ 255.5 $ 2.1 $ 257.6

Stock-based compensation — — — — 3.2 — — — — 3.2 — 3.2

Stock issued under stock compensation plans — — — 0.1 ( 0.1 ) — — — — — — —

Net income 0.3 — — — — 35.8 — — — 35.8 0.1 35.9

1 unchanged sentence

Accrued dividends 0.2 — — — — — — — — — — —

Current period other comprehensive income — — — — — — ( 6.0 ) ( 2.9 ) — ( 8.9 ) — ( 8.9 )

Current period other comprehensive loss — — — — — — ( 12.0 ) ( 15.1 ) — ( 27.1 ) — ( 27.1 )

Reclassification adjustment to net income — — — — — — — 6.8 0.8 7.6 — 7.6

Foreign currency translation on noncontrolling interest — — — — — — — — — — ( 0.1 ) ( 0.1 )

Balance, June 30, 2023 $ 13.9 $ 0.1 $ 0.1 $ ( 0.1 ) $ 309.3 $ 206.5 $ ( 131.4 ) $ ( 23.9 ) $ ( 70.1 ) $ 290.5 $ 1.8 $ 292.3

Balance, September 30, 2023 $ 14.4 $ 0.1 $ 0.1 $ — $ 312.4 $ 236.7 $ ( 143.4 ) $ ( 32.2 ) $ ( 69.3 ) $ 304.4 $ 1.8 $ 306.2

See notes to unaudited condensed consolidated financial statements.

11 unchanged sentences

Cash dividends — — — — — ( 16.4 ) — — — ( 16.4 ) ( 0.2 ) ( 16.6 )

Accrued dividends 0.3 — — — — — — — — — — —

Current period other comprehensive loss — — — — — — ( 75.1 ) ( 73.8 ) ( 4.2 ) ( 153.1 ) — ( 153.1 )

Reclassification adjustment to net income (loss) — — — — — — — 7.4 2.4 9.8 — 9.8

Reclassification adjustment to net income — — — — — — — 20.2 3.5 23.7 — 23.7

Purchase of noncontrolling interest — — — — ( 12.8 ) — — — — ( 12.8 ) ( 11.1 ) ( 23.9 )

1 unchanged sentence

Foreign currency translation on noncontrolling interest — — — — — — — — — — ( 2.0 ) ( 2.0 )

Balance, June 30, 2022 $ 15.9 $ 0.1 $ 0.1 $ — $ 291.2 $ 193.3 $ ( 142.6 ) $ ( 72.3 ) $ ( 70.2 ) $ 199.6 $ 7.9 $ 207.5

Balance, September 30, 2022 $ 13.7 $ 0.1 $ 0.1 $ — $ 295.0 $ 150.5 $ ( 172.8 ) $ ( 85.6 ) $ ( 73.3 ) $ 114.0 $ 7.5 $ 121.5

Balance, December 31, 2022 $ 14.2 $ 0.1 $ 0.1 $ — $ 297.7 $ 152.7 $ ( 137.0 ) $ ( 37.7 ) $ ( 71.5 ) $ 204.4 $ 6.5 $ 210.9

Stock-based compensation — — — — 14.0 — — — — 14.0 — 14.0

Stock issued under stock compensation plans — — — 0.1 ( 0.1 ) — — — — — — —

Purchase of treasury stock — — — ( 0.1 ) — — — — — ( 0.1 ) — ( 0.1 )

2 unchanged sentences

Accrued dividends 0.7 — — — — — — — — — — —

Current period other comprehensive income — — — — — — 5.6 ( 1.5 ) — 4.1 — 4.1

Current period other comprehensive loss — — — — — — ( 6.4 ) ( 16.6 ) — ( 23.0 ) — ( 23.0 )

Reclassification adjustment to net income — — — — — — — 22.1 2.2 24.3 — 24.3

2 unchanged sentences

Foreign currency translation on noncontrolling interest ( 0.3 ) — — — — — — — — — 0.1 0.1

Balance, June 30, 2023 $ 13.9 $ 0.1 $ 0.1 $ ( 0.1 ) $ 309.3 $ 206.5 $ ( 131.4 ) $ ( 23.9 ) $ ( 70.1 ) $ 290.5 $ 1.8 $ 292.3

Balance, September 30, 2023 $ 14.4 $ 0.1 $ 0.1 $ — $ 312.4 $ 236.7 $ ( 143.4 ) $ ( 32.2 ) $ ( 69.3 ) $ 304.4 $ 1.8 $ 306.2

See notes to unaudited condensed consolidated financial statements.

31 unchanged sentences

Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company as of June 30, 2023 and the results of its operations and changes in equity for the three and six months ended June 30, 2023 and 2022, and the results of its cash flows for the six months ended June 30, 2023 and 2022 have been included.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company as of September 30, 2023 and the results of its operations and changes in equity for the three and nine months ended September 30, 2023 and 2022, and the results of its cash flows for the nine months ended September 30, 2023 and 2022 have been included.

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

6 unchanged sentences

From the date of issuance through December 31, 2024 The Company does not expect the guidance to have a material effect on its financial position, results of operations, cash flows and related disclosures.

ASU 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60) The guidance provides a basis of accounting for newly-formed joint venture entities which will recognize and measure assets and liabilities at fair value upon formation.

January 1, 2025 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures.

Note 3— Revenue

18 unchanged sentences

Standalone selling prices are generally determined based on the prices charged to customers or using expected cost plus margin.

Impairment losses recognized on receivables or contract assets were not significant for the six months ended June 30, 2023 and 2022.

Impairment losses recognized on receivables or contract assets were not significant for the nine months ended September 30, 2023 and 2022.

The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less.

4 unchanged sentences

THREE MONTHS ENDED

JUNE 30, 2023

SEPTEMBER 30, 2023

Lift truck business

6 unchanged sentences

THREE MONTHS ENDED

JUNE 30, 2022

SEPTEMBER 30, 2022

Lift truck business

5 unchanged sentences

Total Revenues $ 571.3 $ 159.4 $ 65.5 $ 82.2 $ 1.2 $ ( 39.5 ) $ 840.1

SIX MONTHS ENDED

JUNE 30, 2023

NINE MONTHS ENDED

SEPTEMBER 30, 2023

Lift truck business

5 unchanged sentences

Total Revenues $ 2,190.9 $ 599.4 $ 149.1 $ 288.0 $ 4.1 $ ( 140.4 ) $ 3,091.1

SIX MONTHS ENDED

JUNE 30, 2022

NINE MONTHS ENDED

SEPTEMBER 30, 2022

Lift truck business

16 unchanged sentences

In the United States, Bolzoni also has revenue for sales of lift truck components to the lift truck business.

Nuvera's revenues include development funding from third-party development agreements and the sale of fuel cell stacks and engines to third parties and to the lift truck business.

In all revenue transactions, the Company receives cash equal to the invoice price and amount of consideration received and the revenue recognized may vary with changes in marketing incentives.

Nuvera's revenues include

the sale of fuel cell stacks and engines to third parties and to the lift truck business.

In all revenue transactions, the Company receives cash equal to the invoice price.

The amount of consideration received and the revenue recognized may vary with changes in marketing incentives.

Intercompany revenues between Bolzoni, Nuvera and the lift truck business have been eliminated.

7 unchanged sentences

Foreign currency effect 0.1

Balance, June 30, 2023 $ 131.4

Balance, September 30, 2023 $ 110.8

Note 4— Business Segments

12 unchanged sentences

Financial information for each reportable segment is presented in the following table:

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8 unchanged sentences

Total $ 1,001.2 $ 840.1 $ 3,091.1 $ 2,563.1

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2023 2022 2023 2022

Operating profit (loss)

15 unchanged sentences

federal statutory rate to the reported income tax rate is as follows:

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6 unchanged sentences

Discrete items ( 1.2 ) 0.6 ( 3.3 ) ( 4.7 )

Income tax expense (benefit) $ 12.0 $ ( 3.1 ) $ 20.7 $ ( 0.2 )

Income tax expense $ 16.2 $ 4.2 $ 36.9 $ 4.0

Reported income tax rate 30.8 % ( 13.0 ) % 26.5 % ( 5.3 ) %

3 unchanged sentences

The net of these items is included in the valuation allowance line in the table above.

During the first and second quarters of 2023, the Company recorded other permanent adjustments primarily relating to state income taxes and non-deductible compensation.

During the first nine months of 2023, the Company recorded other permanent adjustments primarily related to the unfavorable tax effects of non-U.S.

rate differences, state income taxes, non-deductible compensation and global intangible low-taxed income, partially offset by favorable tax effects of foreign derived intangible income, federal income tax credits and equity interest earnings.

During the third quarter of 2023, the Company recognized a discrete tax benefit of $ 1.2 million primarily related to the expiration of the statute of limitations for uncertain tax positions.

During the second quarter of 2023 and 2022, the Company recognized discrete tax benefits of $ 2.3 million and $ 4.5 million, respectively, mainly resulting from the expiration of the statute of limitations for uncertain tax positions related to acquisitions.

Of those amounts, an offsetting pre-tax indemnity receivable was recorded for $ 2.1 million and $ 3.8 million in the second quarter of 2023 and 2022, respectively.

Of those amounts, an offsetting pre-tax indemnity receivable was recorded for $ 2.1 million and $ 3.8 million in the second

quarter of 2023 and 2022, respectively.

The expense for the release of the indemnity receivable was recorded in pre-tax earnings on the line “Other, net” in the unaudited condensed consolidated statements of operations.

2 unchanged sentences

OCI Components Amount Reclassified from OCI Affected Line Item

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16 unchanged sentences

This valuation methodology is Level 2 as defined in the fair value hierarchy.

At June 30, 2023, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $ 504.1 million and $ 514.8 million, respectively.

At September 30, 2023, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $ 476.1 million and $ 484.9 million, respectively.

At December 31, 2022, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $ 486.4 million and $ 490.3 million, respectively.

22 unchanged sentences

Foreign Currency Derivatives:

The Company held forward foreign currency exchange contracts with total notional amounts of $ 0.9 billion at June 30, 2023, primarily denominated in euros, Japanese yen, U.S.

dollars, Chinese renminbi, Mexican pesos, Swedish kroner, British pounds and Australian dollars.

The Company held forward foreign currency exchange contracts with total notional amounts of $ 1.0 billion at September 30, 2023, primarily denominated in euros, Japanese yen, U.S.

dollars, Chinese renminbi, British pounds, Swedish kroner, Mexican pesos, and Australian dollars.

The Company held forward foreign currency exchange contracts with total notional amounts of $ 0.8 billion at December 31, 2022, primarily denominated in euros, Japanese yen, U.S.

dollars, Chinese renminbi, British pounds, Mexican pesos, Swedish kroner and Australian dollars.

The fair value of these contracts approximated a net liability of $ 35.3 million and $ 43.5 million at June 30, 2023 and December 31, 2022, respectively.

The fair value of these contracts approximated a net liability of $ 45.7 million and $ 43.5 million at September 30, 2023 and December 31, 2022, respectively.

Forward foreign currency exchange contracts that qualify for hedge accounting are generally used to hedge transactions expected to occur within the next 24 months.

The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in OCI.

Based on market valuations at June 30, 2023, $ 30.0 million of the amount of net deferred loss included in OCI at June 30, 2023 is expected to be reclassified as expense into the unaudited condensed consolidated statements of operations over the next twelve months, as the transactions occur.

Based on market valuations at September 30, 2023, $ 37.9 million of the amount of net deferred loss included in OCI at September 30, 2023 is expected to be reclassified as expense into the unaudited condensed consolidated statements of operations over the next twelve months, as the transactions occur.

Interest Rate Derivatives:

1 unchanged sentence

In addition, the Company holds certain contracts that hedge interest payments on Bolzoni's debt.

The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at June 30, 2023 and December 31, 2022:

The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at September 30, 2023 and December 31, 2022:

Notional Amount Average Fixed Rate

JUNE 30 DECEMBER 31 JUNE 30 DECEMBER 31

2023 2022 2023 2022 Term at June 30, 2023

SEPTEMBER 30 DECEMBER 31 SEPTEMBER 30 DECEMBER 31

2023 2022 2023 2022 Term at September 30, 2023

$ 180.0 $ 180.0 1.65 % 1.68 % Extending to May 2027

$ 8.3 $ 22.4 0.47 % 0.18 % Extending to May 2027

The fair value of all interest rate swap agreements was a net asset of $ 16.5 million and $ 16.1 million at June 30, 2023 and December 31, 2022, respectively.

The fair value of all interest rate swap agreements was a net asset of $ 17.4 million and $ 16.1 million at September 30, 2023 and December 31, 2022, respectively.

The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in OCI.

Based on market valuations at June 30, 2023, $ 7.0 million of the amount included in OCI as net deferred gain is expected to be reclassified as income in the unaudited condensed consolidated statements of operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements.

Based on market valuations at September 30, 2023, $ 7.1 million of the amount included in OCI as net deferred gain is expected to be reclassified as income in the unaudited condensed consolidated statements of operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements.

The following table summarizes the fair value of derivative instruments reflected on a gross basis by contract as recorded in the unaudited condensed consolidated balance sheets:

Asset Derivatives Liability Derivatives

Balance Sheet Location JUNE 30

Balance Sheet Location SEPTEMBER 30

2023 DECEMBER 31

2022 Balance Sheet Location JUNE 30

2022 Balance Sheet Location SEPTEMBER 30

2023 DECEMBER 31

5 unchanged sentences

Foreign currency exchange contracts

Current Prepaid expenses and other — — Prepaid expenses and other — —

Other current liabilities 5.3 2.6 Other current liabilities 34.1 32.1

Current Other current liabilities 5.0 2.6 Other current liabilities 41.6 32.1

Long-term Other non-current assets 1.4 0.7 Other non-current assets — 0.3

9 unchanged sentences

The following table summarizes the offsetting of the fair value of derivative instruments on a gross basis by counterparty as recorded in the unaudited condensed consolidated balance sheets:

Derivative Assets as of June 30, 2023 Derivative Liabilities as of June 30, 2023

Derivative Assets as of September 30, 2023 Derivative Liabilities as of September 30, 2023

Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount

11 unchanged sentences

Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)

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Derivatives Designated as Hedging Instruments 2023 2022 2023 2022 2023 2022 2023 2022

15 unchanged sentences

All other eligible employees of the Company, including employees whose pension benefits are frozen, receive retirement benefits under defined contribution retirement plans.

During the third quarter of 2022, the Company recognized a settlement loss of $ 1.5 million resulting from lump-sum distributions exceeding the total projected interest cost for the plan year for its U.S.

pension plan.

The Company remeasured the plan as of September 30, 2022 using a discount rate of 5.52 % compared to the December 31, 2021 discount rate of 2.58 %.

As a result of the remeasurement, the funded status of the plan decreased by $ 4.3 million and accumulated other comprehensive income increased by $ 4.2 million ($ 4.2 million net of tax).

The Company presents the components of net benefit cost, other than service cost, in other (income) expense in the unaudited condensed consolidated statements of operations for its pension plans.

1 unchanged sentence

The components of pension (income) expense are set forth below:

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1 unchanged sentence

Expected return on plan assets ( 0.7 ) ( 0.9 ) ( 2.0 ) ( 2.7 )

Settlement loss — 1.5 — 1.5

Amortization of actuarial loss 0.6 0.5 1.6 1.4

15 unchanged sentences

Inventories are stated at the lower of cost or market for last-in, first-out (“LIFO”) inventory or lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory.

At June 30, 2023 and December 31, 2022, 50 % and 52 %, respectively, of total inventories were determined using the LIFO method, which consists primarily of manufactured inventories, including service parts, for the lift truck business in the United States.

At September 30, 2023 and December 31, 2022, 50 % and 52 %, respectively, of total inventories were determined using the LIFO method, which consists primarily of manufactured inventories, including service parts, for the lift truck business in the United States.

The FIFO method is used with respect to all other inventories.

32 unchanged sentences

Payments made ( 20.3 )

Foreign currency effect 0.3

Balance at June 30, 2023 $ 61.9

Balance at September 30, 2023 $ 66.4

Note 12— Contingencies

7 unchanged sentences

Terms of the third-party financing arrangements for which the Company is providing recourse or repurchase obligations generally range from one to five years .

Total amounts subject to recourse or repurchase obligations at June 30, 2023 and December 31, 2022 were $ 141.5 million and $ 133.2 million, respectively.

As of June 30, 2023, losses anticipated under the terms of the recourse or repurchase obligations were not significant and reserves have been provided for such losses based on historical experience in the accompanying unaudited condensed consolidated financial statements.

The Company generally retains a security interest in the related assets financed such that, in the event the Company would become obligated under the terms of the recourse or repurchase obligations, the Company would take title to the assets financed.

The fair value of collateral held at June 30, 2023 was approximately $ 195.4 million based on Company estimates.

Total amounts subject to recourse or repurchase obligations at September 30, 2023 and December 31, 2022 were $ 138.7 million and $ 133.2 million, respectively.

As of September 30, 2023, losses anticipated under the terms of the recourse or repurchase obligations were not significant and reserves have been provided for such losses based on historical experience in the accompanying unaudited condensed consolidated financial statements.

The Company generally retains a security interest in

the related assets financed such that, in the event the Company would become obligated under the terms of the recourse or repurchase obligations, the Company would take title to the assets financed.

The fair value of collateral held at September 30, 2023 was approximately $ 192.4 million based on Company estimates.

The Company estimates the fair value of the collateral using information regarding the original sales price, the current age of the equipment and general market conditions that influence the value of both new and used lift trucks.

The Company also regularly monitors the external credit ratings of the entities for which it has provided recourse or repurchase obligations.

As of June 30, 2023, the Company did not believe there was a significant risk of non-payment or non-performance of the obligations by these entities;

As of September 30, 2023, the Company did not believe there was a significant risk of non-payment or non-performance of the obligations by these entities;

however, there can be no assurance that the risk may not increase in the future.

In addition, the Company has an agreement with WF to limit its exposure to losses at certain eligible dealers.

Under this agreement, losses related to $ 25.5 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5 % of their original loan balance, or $ 12.1 million as of June 30, 2023.

The $ 25.5 million is included in the $ 141.5 million of total amounts subject to recourse or repurchase obligations at June 30, 2023.

Under this agreement, losses related to $ 28.2 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5 % of their original loan balance, or $ 13.4 million as of September 30, 2023.

The $ 28.2 million is included in the $ 138.7 million of total amounts subject to recourse or repurchase obligations at September 30, 2023.

Generally, the Company sells lift trucks through its independent dealer network or directly to customers.

2 unchanged sentences

On occasion, the credit quality of a customer or credit concentration issues within WF may require the Company to provide recourse or repurchase obligations of the lift trucks purchased by customers and financed through HYGFS.

At June 30, 2023, approximately $ 129.8 million of the Company's total recourse or repurchase obligations of $ 141.5 million related to transactions with HYGFS.

At September 30, 2023, approximately $ 125.7 million of the Company's total recourse or repurchase obligations of $ 138.7 million related to transactions with HYGFS.

In connection with the joint venture agreement, the Company also provides a guarantee to WF for 20 % of HYGFS’ debt with WF, such that the Company would become liable under the terms of HYGFS’ debt agreements with WF in the case of default by HYGFS.

At June 30, 2023, loans from WF to HYGFS totaled $ 1.2 billion.

At September 30, 2023, loans from WF to HYGFS totaled $ 1.2 billion.

Although the Company’s contractual guarantee was $ 248.1 million, the loans by WF to HYGFS are secured by HYGFS’ customer receivables, of which the Company guarantees $ 125.7 million.

13 unchanged sentences

The Company's equity investments in unconsolidated affiliates recorded on the unaudited condensed consolidated balance sheets are as follows:

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

HYGFS $ 20.0 $ 21.8

1 unchanged sentence

Dividends received from unconsolidated affiliates are summarized below:

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HYGFS $ 10.5 $ 14.9

1 unchanged sentence

Summarized financial information for HYGFS and SN is as follows:

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5 unchanged sentences

equity investment in a third party valued using a quoted market price in an active market, or Level 1 in the fair value hierarchy.

The Company's investment as of June 30, 2023 and December 31, 2022 was $ 1.1 million and $ 0.5 million, respectively.

The Company's investment as of September 30, 2023 and December 31, 2022 was $ 1.1 million and $ 0.5 million, respectively.

Any gain or loss on the investment is included on the line "Other, net" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations as follows:

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Gain on equity investment $ 0.3 $ 0.6 $ 0.5 $ 0.6

Gain (loss) on equity investment $ — $ ( 0.3 ) $ 0.5 $ ( 0.9 )

The Company has a debt investment in a third party, OneH2, Inc.

The Company's investment was $ 0.8 million as of each June 30, 2023 and December 31, 2022.

The Company's investment was $ 0.8 million as of each September 30, 2023 and December 31, 2022.

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